Zargon Oil & Gas Ltd. reaffirmed capital expenditure guidance for the year 2013 and 2014. The company's 2013 non-ASP field capital budget remains at $40 million but is partially offset by $35 million (cash) of dispositions. The 2013 ASP capital expenditures continue to be estimated at $38 million. The remaining $4 million of phase 1 ASP capital costs are forecast to be spent in the first quarter of 2014 and will provide for the forecast March 2014 ASP initial injection date.

The company's 2014 capital budget remains at $35 million for conventional projects, $4 million for ASP capital projects and $10 million for ASP chemical expenditures. The $49 million capital program is forecasted to be funded by cash flows, long term bank debt and the sale of approximately $5 million of non-strategic oil and natural gas properties.

For the fourth quarter of 2013, the company reaffirmed production guidance of 4,550 barrels of oil and liquids per day and 15.00 million cubic feet of natural gas per day.

For the first quarter of 2014, the company's production rates are now forecast to average 4,300 barrels of oil per day and 14.30 million cubic feet of natural gas per day.