Zargon Oil & Gas Ltd. reported production results for the fourth quarter ended December 31, 2014. For the quarter, oil and liquid production volumes averaged 4,150 barrels per day and slightly exceeded guidance levels of 4,100 barrels per day. Natural gas production volumes averaged 6.43 million cubic feet per day and essentially matched guidance levels of 6.50 million cubic feet per day. The oil and liquid production volumes were positively impacted by the fourth quarter 2014 drilling program of three Williston Basin wells located at Steelman, Saskatchewan and Mackobee Coulee, North Dakota and two Alberta Plains South wells at Taber, Alberta. Fourth quarter 2014 production volumes were reduced by the mid-December sale of the Hamilton Lake property that had been producing approximately 170 barrels of oil per day and 1.40 million cubic feet per day (400 barrels of oil equivalent per day) to Zargon's interest.

The company provided production guidance for the fiscal 2015. The company provided first quarter 2015 and year average 2015 conventional production (non-ASP) production guidance of 4,000 and 3,800 barrels of oil and liquids per day, respectively. ASP production was forecast to ramp up in 2015 by producing 100, 250, 500 and 750 in the successive 2015 quarters with an average rate of 400 barrels of oil per day during the year. Natural gas volumes were forecast to average 5.0 and 4.8 million cubic feet per day in the 2015 first quarter and 2015 year, respectively. These production guidance levels are reaffirmed.