Zargon Oil & Gas

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(August 2014)
Zargon's core business is oil exploitation - targeting increased oil recovery from existing oil reservoirs.

 

Zargon Oil & Gas

Oil Exploitation • Long Life Assets Dividend Paying

“Zargon’s core business is oil exploitation – targeting increased oil recovery from existing oil resevoirs. Long-life oil production supports our dividend paying objectives,” is described on their website : zargon.ca

With an apparent strategy of payment to the investor and some growth, it could be that Zargon may have remained under the radar for many …but the Kingsmill Saar Wealth Management Group is unabashedly different: our aim is to grow your wealth while producing the cash flow you require.

Zargon has caught our attention. Look at that Yield: 8.5% Which, we remind you, with the benefits of the Canadian Dividend Tax Credit has an effect of 11.5%. In today’s Market, that is very interesting!

Often we see oil & gas companies running on their cash flow. This time, however, it is the business of Zargon that funds the yield …and profitably. Our Analysts’ Report advises us that 33-35% of their cash flow covers the yield which has been consistent and reliable ...even with these natural gas prices. Zargon offers us the safety of your payment that we look for.

Their long term strategies focus on increasing the recovery of un-drained oil in existing resevoirs, providing low decline production. That’s their own investment in their business, a strategy that appears to be working for them.

Rated as ’Market Perform’ our Analysts do not predict exciting growth, but we have seen upward revisions to their reports in the last 6-7 months.

And just look at that Yield! We should talk.

Zargon Oil & Gas

Yield of 8.5% Pre Tax Equivalent of 11.5% Cash Flow

“Zargon provides long term exposure to oil prices through long-life oil production and oil reserves,” according to their website: zargon.ca. A Calgary based, Western Canadian producer, they are justifiably proud that over their 20 year history they have returned $352M or $17.60 per share through distributions and dividends on a total equity investment of $210 Million.

Rated ‘Market Perform’ and with reliable yield that with the Canadian Dividend Tax Credit and planning can offer you 11.5% in this Market; we suggest you consider Zargon Oil and Gas.

• Our example: 6,000 shares will cost $50,780. Paying $4,320 per year or $360 per month, the Yield is 8.5% before tax breaks.

• Utilizing the Canadian Dividend Tax Credit, this security offers an 11.5%* pre-tax yield. We have to say it again: look at that! Is that not attractive?

• The security can be bought and sold on any business day.

Zargon Oil and Gas is rated by our analysts as, ‘Market Perform.’

You may wish to call us for the full report. Surely we will not be alone in this recommendation for your consideration. You may not want to sit on this idea.

For immediate attention and more details, contact us at: 1-800-387-9314 or our direct numbers below

 

 

 

^{* Based on top tax bracket Yeilds are as of August11, 2014 and are subject to change and availability Securities noted are available for sale on any business day. 1: BMO Capital Markets has undertaken an underwriting liability with respect to this issuer within the past 12 months. 2: BMO Capital Markets has provided investtment banking services with respect to this issuer within the past 12 months. 3: BMO Capital Markets has managed or co-managed a public offering of securities with respect to this issuer within the past 12 months. 4: BMO Capital Markets or an affiliate has received compensation for investment banking services from this issuer within the past 12 months.5: BMO Capital Markets or an affiliate received compensation for products or services other than investment banking services within the past 12 months.6: This issuer is a client (or was a client) of BMO NB, BMO Capital Markets Corp., BMO CM Ltd. or an affiliate within the past 12months: Investment Banking Services, Non-Investment Banking Securities Related Services & Non-Securities Related Services.8: BMO Capital Markets or an affiliate has a financial interest in 1% or more of any class of the equity securities of this issuer. Disclosure 19: Securities legislation in certain Canadian provinces prohibits registrants from recommending, or cooperating with any other person in recommending, in any circular, pamphlet or similar publication that is distributed with reasonable regularity in the ordinary course of its business, that securities of the registrant or a related issuer, or in the case of a distribution, that securities of a connected issuer, be purchased, sold or held unless such publication contains a statement of the relationship or connection between the registrant and the issuer. BMO Nesbitt Burns Inc. and BMO Nesbitt Burns Ltee./Ltd. are subsidiaries of BMO Nesbitt Burns Corporation Limited. Bank of Montreal, through a subsidiary, owns all of the voting and participating securities of BMO Nesbitt Burns Corporation Limited. Accordingly, Bank of Montreal is a related and connected issuer of BMO Nesbitt Burns Inc. and BMO Nesbitt Burns Ltee./Ltd. TO U.S. RESIDENTS: This publication, to the extent it refers to Bank of Montreal securities, has not been approved or distributed by BMO Capital Markets Corp. or BMO Nesbitt Burns Securities Ltd., affiliates of BMO Nesbitt Burns Inc. and BMO Nesbitt Burns Ltee./Ltd. It is intended for distribution in the U.S. by BMO Nesbitt Burns Inc. and BMO Nesbitt Burns Ltee./Ltd only to Major U.S. Institutional Investors (as defined in SEC Rule 15a-6 under the Securities Exchange Act of 1934, as amended). ® “BMO (M-bar roundel symbol)” is a registered trade-mark of Bank of Montreal, used under licence. ® “Nesbitt Burns” is a registered trade-mark of BMO Nesbitt Burns Corporation Limited, used under licence. BMO Nesbitt Burns Inc. and BMO Nesbitt Burns Ltée are indirect subsidiaries of Bank of Montreal. BMO Nesbitt Burns Inc. and BMO Nesbitt Burns Ltée provide this commentary to clients for informational purposes only. The information contained herein is based on sources that we believe to be reliable, but is not guaranteed by us, may be incomplete or may change without notice. The comments included in this document are general in nature, and professional advice regarding an individual’s particular position should be obtained. BMO Nesbitt Burns Inc. and BMO Nesbitt Burns Ltée are indirect subsidiaries of Bank of Montreal and Member-Canadian Investor Protection Fund. “BMO (M-bar Roundel symbol)” is a registered trademark of Bank of Montreal, used under licence. “Nesbitt Burns” is a registered trademark of BMO Nesbitt Burns Corporation Limited, used under licence.}