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CALGARY, ALBERTA--(CCNMatthews - Jan. 3, 2007) - Zargon Energy Trust ("Zargon") (TSX:ZAR.UN) (TSX:ZOG.B) is pleased to announce the increase to the Exchange Ratio of the exchangeable shares of Zargon Oil & Gas Ltd. from 1.19403 to 1.20270. This increase will be effective on January 15, 2007.

The following are the details of the calculation of the Exchange Ratio:

                                      Five day          Effective
                                      Weighted               Date
                                       Average             of the  Exchange
Record                                 Trading Increase  Increase     Ratio
Date of       Opening      Zargon's   Price of       in        in     as of
Zargon's     Exchange  Distribution   Zargon's Exchange  Exchange Effective
Distribution    Ratio      per Unit      Units Ratio (1)    Ratio      Date


December                                                  January
 31, 2006     1.19403        $ 0.18 $ 24.79078  0.00867  15, 2007   1.20270


(1) The increase in the Exchange Ratio is calculated by multiplying
    Zargon's distribution per unit by the Exchange Ratio immediately prior
    to the distribution record date and dividing by the five day weighted
    average trading price of Zargon's units.

A holder of exchangeable shares can exchange all or a portion of their holdings into Zargon Energy Trust Units, at any time, by giving notice to their investment advisor or Valiant Trust Company at its principal transfer office at Suite 310, 606 - 4th Street S.W., Calgary, Alberta, T2P 1T1.

Based in Calgary, Alberta, Zargon's securities trade on the Toronto Stock Exchange and there are currently 16.789 million trust units (ZAR.UN) and 2.207 million exchangeable shares (ZOG.B) outstanding. After giving effect to the conversion privilege of the exchangeable shares and the January 15, 2007 revised exchange ratio there would be a total of 19.443 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