Zargon Oil & Gas Ltd. reported unaudited earnings and production results for the first quarter ended March 31, 2018. For the quarter, the company's funds used operating activities were CAD 0.30 million or CAD 0.01 per share compared to funds from operations of CAD 1.50 million CAD 0.05 per share a year ago. The reduction in funds flow is primarily due to Zargon's first quarter 2018 realized hedging losses of CAD 0.85 million and higher one-time operating and transportation costs. Cash flows from operating activities were CAD 0.80 million against CAD 2.52 million a year ago. Net loss was CAD 4.33 million against CAD 0.54 million a year ago. Net capital expenditures were CAD 1.50 million CAD 2.51 million a year ago. Net debt was CAD 40.79 million against CAD 35.09 million a year ago.

First quarter 2018, oil and liquids production averaged 1,949 barrels per day compared to 2,016 barrels per day a year ago. Natural gas production averaged was 2.87 million cubic feet per day compared to 3.38 million cubic feet per day a year ago. Equivalent was 2,427 barrels of oil equivalent per day compared to 2,579 barrels of oil equivalent per day a year ago.