Zargon Oil & Gas Ltd.

Zargon Oil & Gas Ltd.

May 16, 2008 19:07 ET

Zargon Energy Trust Announces Receipt of the Minimum Required Shares in Connection With Its Offer to Acquire Newpact Energy Corp.

CALGARY, ALBERTA--(Marketwire - May 16, 2008) - Zargon Energy Trust (TSX:ZAR.UN) (TSX:ZOG.B) ("Zargon") is pleased to announce that as of the tender deadline today, 7,947,506 common shares of Newpact Energy Corp. ("Newpact") have been validly deposited to Zargon's offer to acquire all of the outstanding common shares of Newpact Energy Corp. The deposited shares represent approximately 99.6 percent of the common shares of Newpact on a fully diluted basis. Zargon has exercised its statutory rights under the Business Corporations Act (Alberta) to compulsorily acquire the remaining Newpact shares that were not deposited pursuant to the offer.

The consideration offered is approximately 0.0534 Zargon trust units for each outstanding Newpact common share for total consideration of approximately 426,000 Zargon trust units.

Newpact is currently producing approximately 350 barrels of oil equivalent per day, primarily from two Alberta properties, which consists of 100 barrels per day of crude oil and 1.50 million cubic feet per day of natural gas. Approximately 48 percent of Newpact's current production is from the operated St. Anne oil and natural gas property which is located northwest of Edmonton and 25 percent of current production is from the Ghost Pine natural gas property, which primarily consists of shallow decline coal bed methane production, and is located northeast of Calgary.


Barrels of oil equivalent ("boe") may be misleading, particularly if used in isolation. A boe conversion ratio of six thousand cubic feet of natural gas to one barrel of oil is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.


Based in Calgary, Alberta, Zargon's securities trade on the Toronto Stock Exchange and there are currently 17.686 million trust units (ZAR.UN) and 2.056 million exchangeable shares (ZOG.B) outstanding. After giving effect to the conversion privilege of the exchangeable shares at the May 15, 2008 revised exchange ratio, there would be a total of 20.458 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 unitholder presentation, financial reports and historical news releases.

Contact Information

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