Zargon Oil & Gas Ltd.

Zargon Oil & Gas Ltd.

June 02, 2006 11:59 ET

Zargon Energy Trust Announces Increase to Exchangeable Share Ratio

CALGARY, ALBERTA--(CCNMatthews - June 2, 2006) - Zargon Energy Trust (TSX:ZAR.UN) (TSX:ZOG.B) ("Zargon") is pleased to announce the increase to the Exchange Ratio of the exchangeable shares of Zargon Oil & Gas Ltd. from 1.14624 to 1.15269. This increase will be effective on June 15, 2006.

The following are the details of the calculation of the Exchange Ratio:

Five day Effective
Weighted Date Exchange
Average of the Ratio
Record Trading Increase Increase as of
Date of Opening Zargon's Price of in in Effect-
Zargon's Exchange Distribution Zargon's Exchange Exchange ive
Distribution Ratio per Unit Units Ratio (1) Ratio Date

May 31, 1.14624 $0.18 $31.97896 0.00645 June 15, 1.15269
2006 2006

(1) The increase in the Exchange Ratio is calculated by multiplying Zargon's distribution per unit by the Exchange Ratio immediately prior to the distribution record date and dividing by the five day weighted average trading price of Zargon's units.

A holder of exchangeable shares can exchange all or a portion of their holdings into Zargon Energy Trust Units, at any time, by giving notice to their investment advisor or Valiant Trust Company at its principal transfer office at Suite 310, 606 - 4th Street S.W., Calgary, Alberta, T2P 1T1.

Based in Calgary, Alberta, Zargon's securities trade on the Toronto Stock Exchange and there are currently 16.598 million trust units (ZAR.UN) and 2.336 million exchangeable shares (ZOG.B) outstanding. After giving effect to the conversion privilege of the exchangeable shares and the June 15, 2006 revised exchange ratio there would be a total of 19.291 million trust units outstanding.

In order to learn more about Zargon, we encourage you to visit Zargon's website at where you will find a current shareholder presentation, financial reports and historical news releases.

Contact Information

  • Zargon Energy Trust
    C.H. Hansen
    President and Chief Executive Officer
    B.C. Heagy
    Vice President, Finance and Chief Financial Officer
    Zargon Energy Trust
    Phone: (403) 264-9992