Zargon Oil & Gas Ltd. announced unaudited earnings results for the fourth quarter and full year and production results for the year ended December 31, 2016. For calendar 2016, funds flow from operating activities was $3.50 million or $0.11 per basic share was 86% lower than the $24.14 million or $0.80 per basic share recorded in the prior year. Gross petroleum and natural gas sales were $44.72 million against $67.35 million a year ago. Cash flows used in operating activities was $4.66 million against $20.25 million a year ago. Net loss was $18.09 million or $0.59 per basic share against $106.14 million or $3.50 per basic share a year ago. Field capital and administrative asset expenditures were $6.92 million against $25.37 million a year ago. Net capital expenditures were $85.13 million.

For the fourth quarter 2016, funds flow from operating activities were $0.86 million or $0.03 per basic share compared with the $0.61 million of negative funds flow recorded in the prior quarter. For the 2016 fourth quarter, net capital expenditures totaled $1.43 million and included $0.37 million of ASP chemical costs. Gross petroleum and natural gas sales were $9.24 million against $14.40 million a year ago. Cash flows used in operating activities was $1.77 million against $1.05 million a year ago. Net loss was $17.81 million or $0.58 per basic share against $56.34 million or $1.86 per basic share a year ago. Field capital and administrative asset expenditures were $1.42 million against $7.72 million a year ago. Net capital expenditures were $1.43 million against $7.75 million a year ago.

Oil and liquids production averaged 2,943 barrels of oil and liquids per day in 2016, a 21% decrease from the preceding year, reflecting $92.04 million of third quarter 2016 Southeast Saskatchewan and Killam, Alberta property sales. Natural gas production averaged 3.50 million cubic feet per day in 2016, a 30% decrease from 2015, primarily due property dispositions and natural declines. Total 2016 production averaged 3,526 barrels of oil equivalent per day, a 23% decrease from the prior year.