Zargon Oil & Gas Ltd. reported earnings and production results for the third quarter and nine months ended September 30, 2018. For the quarter, the company reported funds flow from operating activities of $1.93 million compared to $0.58 million recorded in the prior quarter, and $1.76 million reported in the third quarter of 2017. The increase from the prior quarter is primarily due to the expiration of hedges on June 30, 2018, which had been responsible for a $1.56 million net realized derivative loss in the second quarter. Cash flows from operating activities were $0.85 million against $0.25 million a year ago. Net loss was $0.64 million against $3.51 million a year ago. Net capital expenditures were $0.93 million against $1.77 million a year ago, a 47% decrease from the 2017 third quarter expenditures of $1.77 million. Funds flow from operating activities per share was $0.06 against $0.06 a year ago. Net loss per share was $0.02 against $0.11 a year ago.

For the nine months, the company reported funds flow from operating activities was $2.21 million against $4.4 million a year ago. Cash flows from operating activities were $3.63 million against $2.19 million a year ago. Net loss was $6.66 million against $5.76 million a year ago. Net capital expenditures were $3.62 million against $46.41 million a year ago. Funds flow from operating activities per share was $0.07 against $0.14 a year ago. Net loss per share was $0.22 against $0.19 a year ago. Net debt was $40.78 million against $36.70 million a year ago.

For the third quarter 2018, the company reported production averaged 1,953 barrels of oil equivalent per day, an 8% decline from the preceding quarter rate of 2,118 barrels of oil equivalent per day and a 26% decline from the third quarter 2017 production rate of 2,628 barrels of oil equivalent per day. The reduction in production volumes was primarily due to the suspension of discretionary oil exploitation capital programs, the deferral of routine maintenance operations due to cash constraints and the shut-in of uneconomic natural gas properties. Average daily production of oil and liquids was 1,680 bbl/d against 2,037 bbl/d a year ago. Average daily production of natural gas was 1.64 mmcf/d against 3.55 mmcf/d a year ago.

For the nine months, the company reported average daily production of oil and liquids 1,810 bbl/d against 1,991 bbl/d a year ago. Average daily production of Natural gas was 2.12 mmcf/d against 3.47 mmcf/d a year ago. Average daily production of oil Equivalent was 2,164 boe/d against 2,569 boe/d a year ago.