Jim Letourneau's Blog

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Zargon Acquires Masters Energy

Another example of  value vultures helping to stop oil company valuations from reaching zero...

Zargon Energy Trust (TSX:ZAR.UN) has offered $1.82/share for Masters Energy (TSX:MSY). Masters Energy shares ramped $0.42 to close at $1.62. The offer states that 20% will be paid in cash and 80% of the total consideration will be paid in Zargon trust units. We were following Masters ASP flood project at Little Bow as we like to see new technology being successfully applied to old oil fields. On a EV/boepd basis Zargon is paying $26,235/boe for Masters.