Zargon Oil & Gas Ltd. reported earnings and operating results for the third quarter and nine months ended September 30, 2017. For the quarter, the company reported funds flow from operating activities of $1.76 million or $0.06 per basic share compare to funds flow from operating activities negative of $0.51 million or $0.02 per basic share a year ago. Cash flows from operating activities were $0.25 million compared to $3.19 million a year ago. Net loss was $3.51 million or $0.11 per basic share compared to net earnings of $11.73 million or $0.38 per basic share a year ago. Gross petroleum and natural gas sales were $9.28 million compared to $12.33 million a year ago. Net capital expenditures were $1.77 million.

For the nine months period, the company reported gross petroleum and natural gas sales of $28.37 million compared to $35.47 million a year ago. Funds flow from operating activities were $4.40 million or $0.14 per basic share compared to $2.66 million or $0.09 per basic share a year ago. Cash flows from operating activities were $2.19 million compared to $6.44 million a year ago. Net losses were $5.76 million or $0.19 per basic share compared to $2.36 million or $0.08 per basic share a year ago. Net capital expenditures were $6.41 million. Net debt as at September 30, 2017 was $36.70 million compared to $32.99 million a year ago.

For the quarter, oil and liquids production averaged 2,037 barrels per day compared to 2,915 barrels per day a year ago. Natural gas production averaged was 3.55 million cubic feet per day compared to 3.39 million cubic feet per day a year ago. Equivalent was 2,628 barrels of oil equivalent per day compared to 3,480 barrels of oil equivalent per day a year ago.

For the nine months, oil and liquids production averaged 1,991 barrels per day compared to 3,275 barrels per day a year ago. Natural gas production averaged was 3.47 million cubic feet per day compared to 3.67 million cubic feet per day a year ago. Equivalent was 2,569 barrels of oil equivalent per day compared to 3,887 barrels of oil equivalent per day a year ago.

The company provides 2017 annual guidance levels of 2,500 barrels of oil equivalent per day. The 2017 production guidance levels have been consistently exceeded by virtue of a $8.30 million (projected) 2017 capital program focused on waterflood implementation and optimizations plus well reactivations /recompletions.

Fourth quarter 2017 production volumes are expects to average 2,550 barrels of oil equivalent per day.