Zargon Oil & Gas Ltd. announced unaudited earnings results for the fourth quarter and year ended December 31, 2011. For the quarter net loss was $23.87 million or $0.81 loss per share compared to net loss of $36.29 million or $1.35 loss per share for the corresponding period of last year. Fourth quarter funds flow from operating activities of $17.10 million or $0.58 per diluted share were 17% higher than the $14.59 million or $0.50 per diluted share recorded in the prior quarter, and 19% higher than the $14.40 million or $0.54 per diluted share reported in the fourth quarter of 2010. Funds flow from operating activities for the fourth quarter of 2011 included reductions of $2.34 million of realized derivative losses and $1.81 million of asset retirement expenses. Net capital expenditures were $24.88 million against $20.09 million of previous year period. During the quarter, exploration and development capital expenditures (excluding property acquisitions and dispositions) were a robust $23.71 million for field related programs and included the drilling of 11.5 net wells which resulted in 9.0 net oil wells and 2.5 net abandonments. Cash flows from operating activities were $22.97 million or $0.78 per share against cash flows from operating activities of $8.34 million or $0.31 per share of prior year period. Petroleum and natural gas sales, before royalties were $51.13 million against $42.64 million for the comparable period of last year. Net earnings were $10.38 million or $0.36 earnings per share against net loss of $12.88 million or $0.49 loss per share of previous year. Funds flow from operating activities in 2011 of $60.67 million or $2.11 per diluted share were 17% lower than the $72.92 million or $2.77 per diluted share recorded in the prior year. Cash flows from operating activities were $73.26 million or $2.55 per share against cash flows from operating activities of $61.67 million or $2.34 per share of prior year. The reduction in cash flow was primarily caused by decreased production volumes, increased realized derivative losses and increased production costs. Net capital expenditures for the year totalled $48.65 million versus $69.22 million; consisting of $71.66 million of exploitation and development programs, $23.37 million of net property dispositions and $0.36 million of administrative assets. December 31, 2011 debt, net of working capital (excluding unrealized derivative assets/liabilities and deferred taxes), of $109.50 million, was approximately 1.8 times 2011 funds flow from operating activities, and was down 12% from the 2010 year end net debt of $124.39 million. Petroleum and natural gas sales, before royalties were $191.53 million against $179.47 million for the comparable period of last year. Including the Little Bow Alkaline Surfactant Polymer (ASP) project, the company's 2012 capital budget has been reset at $66 million and comprises of $21 million of ASP-related expenditures and a net $45 million of field capital expenditures. Consistent with the last two years, the 2012 capital programs will be directed entirely to oil exploitation activities. In 2012, the company is projecting to spend $21 million of Phase 1 Little Bow ASP capital with 75% of the expenditures occurring in the second half of the year. This tertiary oil recovery project entails the injection of chemicals in a water solution into a partially depleted reservoir to recover incremental oil reserves.