ZARGON ENERGY TRUST
TSX : ZAR.UN

ZARGON ENERGY TRUST
Zargon Oil & Gas Ltd.
TSX : ZAR

Zargon Oil & Gas Ltd.

December 01, 2006 13:41 ET

Zargon Energy Trust Announces Increase to Exchangeable Share Ratio

CALGARY, ALBERTA--(CCNMatthews - Dec. 1, 2006) - Zargon Energy Trust ("Zargon") (TSX:ZAR.UN)(TSX:ZOG.B) is pleased to announce the increase to the Exchange Ratio of the exchangeable shares of Zargon Oil & Gas Ltd. from 1.18584 to 1.19403. This increase will be effective on December 15, 2006.



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

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

November 30, December 15,
2006 1.18584 $0.18 $26.07565 0.00819 2006 1.19403

(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 16.789 million trust units (ZAR.UN) and 2.207 million exchangeable shares (ZOG.B) outstanding. After giving effect to the conversion privilege of the exchangeable shares and the December 15, 2006 revised exchange ratio there would be a total of 19.424 million trust units outstanding.

In order to learn more about Zargon, we encourage you to visit Zargon's website at www.zargon.ca 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
    or
    B.C. Heagy
    Vice President, Finance and Chief Financial Officer
    or
    (403) 264-9992
    Email: zargon@zargon.ca
    Website: www.zargon.ca