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NEWS RELEASE TRANSMITTED BY Marketwire


FOR: ZARGON OIL & GAS LTD.

TSX SYMBOL: ZAR - |  View Quote |  View Chart |  View Financials | 

Zargon Energy Trust Confirms December 2006 Cash Distribution

DEC 15, 2006 - 18:23 ET

CALGARY, ALBERTA--(CCNMatthews - Dec. 15, 2006) - Zargon Energy Trust (TSX:ZAR.UN) (TSX:ZOG.B) ("Zargon") confirms that the monthly cash distribution for the month of December in the amount of Cdn. $0.18 per trust unit will be paid on January 15, 2007 to unitholders of record on December 31, 2006. The ex-distribution date is December 27, 2006.

As part of its distribution policy, Zargon also reviewed the granting of a year end supplemental distribution and has decided not to pay a supplemental distribution at this time. The granting of a supplemental distribution will be reviewed again in June 2007 and this decision will be based on the commodity price environment, tax position, funding requirements for Zargon's exploration and development program and further clarification of the impact of the recent federal government announcement regarding the taxation of trusts.

Based in Calgary, Alberta, Zargon's securities trade on the Toronto Stock Exchange and there are currently 16.789 million trust units (TSX:ZAR.UN) and 2.207 million exchangeable shares (TSX:ZOG.B) outstanding. After giving effect to the conversion privilege of the exchangeable shares and the December 15, 2006 revised exchange ratio there would be a total of 19.424 million trust units outstanding.

In order to learn more about Zargon, we encourage you to visit Zargon's website at www.zargon.ca where you will find a current shareholder presentation, financial reports and historical news releases.

FOR FURTHER INFORMATION PLEASE CONTACT:

Zargon Energy Trust
C.H. Hansen
President and Chief Executive Officer
(403) 264-9992

or

B.C. Heagy
Vice President, Finance and Chief Financial Officer
(403) 264-9992
Email: zargon@zargon.ca
Website: www.zargon.ca

 

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