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WWW.ZARGON.CA
Corporate Presentation May 14, 2012
Advisory – Forward-Looking Information
Forward-Looking Statements - This presentation offers our assessment of Zargon's future plans and operations as at May 14, 2012, and contains forward-looking statements. Such statements are generally identified by the use of words such as "anticipate", "continue", "estimate", "expect", "forecast", "may", "will", "project", "should", "plan", "intend", "believe" and similar expressions (including the negatives thereof). In particular, this presentation contains forward-looking information as to Zargon’s corporate strategy and business plans, Zargon’s oil exploration project inventory and development plans, Zargon’s dividend policy, Zargon’s expectation for uses of funds from financing, Zargon’s capital expenditure program and the allocation and the sources of funding thereof, Zargon’s cash flow and dividend model and the assumptions contained therein and the results there from, 2012 production and other guidance and the assumptions contained therein, estimated tax pools, Zargon’s reserve estimates, Zargon’s hedging policies, Zargon’s drilling and development plans and projects and the results there from and Zargon’s ASP project costs and rates of return. By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond our control, including such as those relating to results of operations and financial condition, general economic conditions, industry conditions, changes in regulatory and taxation regimes, volatility of commodity prices, escalation of operating and capital costs, currency fluctuations, the availability of services, imprecision of reserve estimates, geological, technical, drilling and processing problems, environmental risks, weather, the lack of availability of qualified personnel or management, stock market volatility, the ability to access sufficient capital from internal and external sources and competition from other industry participants for, among other things, capital, services, acquisitions of reserves, undeveloped lands and skilled personnel. Risks are described in more detail in our Annual Information Form, which is available on our website. Forward-looking statements are provided to allow investors to have a greater understanding of our business.
You are cautioned that the assumptions, including, among other things, future oil and natural gas prices; future capital expenditure levels; future production levels; future exchange rates; the cost of developing and expanding our assets; our ability to obtain equipment in a timely manner to carry out development activities; our ability to market our oil and natural gas successfully to current and new customers; the impact of increasing competition; our ability to obtain financing on acceptable terms; and our ability to add production and reserves through our development and acquisition activities used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. Our actual results, performance, or achievement could differ materially from those expressed in, or implied by, these forward-looking statements. We can give no assurance that any of the events anticipated will transpire or occur, or if any of them do, what benefits we will derive from them. The forward-looking information contained in this presentation is expressly qualified by this cautionary statement. Our policy for updating forward-looking statements is that Zargon disclaims, except as required by law, any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Barrels of Oil Equivalent - Natural gas is converted to a barrel of oil equivalent (“Boe”) using six thousand cubic feet of gas to one barrel of oil. In certain circumstances, natural gas liquid volumes have been converted to a thousand cubic feet equivalent (“Mcfe”) on the basis of one barrel of natural gas liquids to six thousand cubic feet of gas. Boes and Mcfes may be misleading, particularly if used in isolation. A conversion ratio of one barrel to six thousand cubic feet of natural gas is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of 6:1, utilizing a conversion ratio on a 6:1 basis may be misleading as an indication of value.
Highlights(As at May 11, 2012 unless otherwise stated)
• Founded in 1993
• Listed on Toronto Stock Exchange (Symbols: ZAR; ZAR.DB)
• Common Shares Outstanding: 29.47 million (basic)
• Market Capitalization: $348 million
• Annualized Dividend: $1.20/share (10% yield) (1)
• Q1 2012 Oil Weighting: 62%
• 2P Reserves (Dec 31/11): 34.3 million boe (RLI: 10.1 years)
• NAV/Share (Dec 31/11): $16.45 (basic shares)
• Tax Pools (Mar 31/12): $349 million
• Net Undev. Land (Mar 31/12): 411 thousand acres
• Net debt (Mar 31/12): $124.3 million on a $180 million bank line
(1) Based on a current monthly dividend rate of $0.10/share using May 11, 2012 closing share price of $11.80.
Financial & Operational Highlights(Quarter ended March 31, 2012)
• Q1 2012 Financial Highlights
• Funds flow – $0.46/diluted share ($13.5 million)
• Dividends – $0.30/share ($7.5 million net of the DRIP)
• Capex – $21 million, focused entirely on oil exploitation strategy
• Net debt – $124.3 million (March 31, 2012)
– Approximately $56 million of available credit facilities
• Initiated cost cutting initiatives, with ultimate goal of lower per boe G&A and operating costs
• Q1 2012 Production Highlights
– Average Production 8,834 boe/d
• Oil: 5,496 bbl/d (62% of production)
• Gas: 20.03 mmcf/d
• Year End 2011 Reserves
– McDaniel Proved and Probable Reserve Estimate (76 percent developed producing)
• Oil & Liquids: 24.1 mmbbl (11.7 year reserve life index)
• Gas: 61.4 bcf (7.7 year reserve life index)
• Equivalent: 34.3 mmboe (70 percent oil and liquids)
Convertible Subordinate Debenture Offering
• Bought Deal financing announced April 11/12, closed May 1/12.
• Aggregate original principal amount: $50.0 million.
• Over-allotment option: $7.5 million fully exercised, closed May 4/12.
• Maturity Date: June 30, 2017.
• Interest rate: 6.0%, paid semi-annually, commencing Dec 31/12.
• Conversion price: $18.80/share redeemable on or after June 30/15.
• Proceeds from the offering will be initially used to reduce bank
indebtedness, which in turn provides additional financial flexibility for our
oil exploitation initiatives.
Mission Statement
“Zargon Oil & Gas Ltd. seeks to deliver superior long term
financial returns through focused oil exploitation
programs while working in a partial cash flow
distributing business model.”
This objective is to be achieved by developing a long-life
portfolio of low-decline, profitable oil exploitation
projects. Our projects are:
Alberta Plains North: Hamilton Lake, Killam and Bellshill Lake
Alberta Plains South: Taber South and Little Bow ASP
Williston Basin: Midale drainage, Frobisher, Multi-frac and tight oil
Focused Oil Exploitation Strategy
Oil Exploitation
• Increase oil recovery factors in existing pools by horizontal drilling, production
optimizations, waterflood implementations and now, tertiary Alkaline Surfactant Polymer
(“ASP”) methods.
Focused
• Capital is being allocated to eight discrete and technically complex, but very profitable oil
exploitation projects.
• Long term projects will provide a stable oil production profile, with ASP related production
growth commencing in 2014.
Risk Management
• Protect investor’s underlying asset base with conservative hedging, debt and financing
practices.
Disciplined
• Disciplined cash flow dividend model encourages efficiencies and returns.
Growing Oil Production
In Q3 2007, a strategic decision was made to focus solely on oil exploitation projects and
subsequently:
• oil and liquids production has increased 53%.
• oil and liquids production weighting has increased from 42% to 62% on a 6:1 basis
(64% projected in 2012).
• 2012 oil and liquids production guidance of 5,400 barrels per day, significant ASP oil
production volumes to come in 2014.
3,000
3,500
4,000
4,500
5,000
5,500
6,000
Q3
07
Q1
08
Q3
08
Q1
09
Q3
09
Q1
10
Q3
10
Q1
11
Q3
11
Q1
12
Shut-in Volumes
0
25
50
75
Q3
07
Q1
08
Q3
08
Q1
09
Q3
09
Q1
10
Q3
10
Q1
11
Q3
11
Q1
12
Shut-in Volumes
Oil Production ( bbl/day ) Production Weighting to Oil ( % )
Dividends/Distributions and Tax Pool History
0
50
100
150
200
250
300
350
400
Tax Pools ($million) 79 90 113 148 188 293 346 346
Distributions ($million) 11 37 36 37 39 46 47 38
2004 2005 2006 2007 2008 2009 2010 2011
Zargon built a significant Canadian tax shelter by operating in the tax efficient trust format for
78 months and at March 31, 2012 had $349 million of tax pools of which approximately 45
percent are high quality non capital losses or CEE pools.
Our forward looking models indicate that our Canadian operations will not be taxable until
2016 or later.
Stability History (from an oil perspective)
Q1 2012 2011 2010 2009 2008 2007 2006 2005 2004
2P reserves (bbl/share) n/a 0.82 0.79 0.77 0.84 0.79 0.82 0.81 0.77
Avg. production
(bbl/d per million shares) 186 190 213 211 207 187 198 197 184
Avg. base cash dividend/distribution
($/share/month) 0.10 0.13 0.18 0.18 0.18 0.18 0.18 0.15 0.14
Reserve life index (2P) (years) n/a 11.7 10.7 10.0 11.0 11.7 11.5 10.4 10.9
Stability (from an oil perspective) while making dividends and
distributions:
Over the last eight years, Zargon has been able to maintain oil reserves and oil
production on a per share basis, while returning $15.68 per share of dividends and
distributions to our shareholders (as at May 11/12).
Business Plan
Oil Exploitation (increasing reservoir oil recovery factors)
• Increase oil production, reserves and ultimate recoveries from existing oil pools through waterfloods, development drilling and other production optimization methods that now include ASP tertiary recovery projects.
• The business plan’s feedstock are underdeveloped oil-in-place assets. We are working on eight complex, discrete but very profitable projects with 200 to 1,500 barrels of oil per day of incremental potential.
Accretive Corporate and Property Acquisitions (2008-2010)
• During the 2008-2010 period, we acquired and expanded our oil exploitation project base through acquisitions.
Execution Phase and Non-Strategic Property Dispositions (2010-2012+)
• Zargon’s acquisition phase is now complete and we are focusing on oil exploitation project execution. With the non-strategic properties we are working to simplify our property footprint and concentrate on cost containment initiatives. Non-strategic assets will be sold when attractive valuations can be realized.
Dividend Policy
• Zargon is committed to deliver steady, but supportable dividends. Dividend payout levels are ultimately targeted to be 35% of cash flow and should not significantly exceed 50% of cash flow for an extended period of time.
Successful Oil Acquisition and Disposition Strategy
In 2008-2010, we completed five corporate acquisitions and one significant property acquisition that brought oil exploitation opportunities:
– Rival Energy Ltd. (public TSX) $47.8 million for 1,020 boe/d; Jan. 2008 – oil at Bellshill Lake
– Newpact Energy Corp. (private) $12.0 million for 350 boe/d; May 2008 – oil at St. Anne
– Masters Energy Inc. (public TSX) $40.0 million for 1,275 boe/d; April 2009 – oil at Little Bow
– Churchill Energy Inc. (public TSX) $16.3 million for 400 boe/d; Sept. 2009 – tax pools, oil at Brazeau and Grand Forks
– Little Bow property acquisition $25.0 million for 350 boe/d; May 2010 – oil at Little Bow
– Oakmont Energy Ltd. (private) $9.4 million for 280 boe/d; Sept. 2010 – oil at Taber and Grand Forks
In 2010-2011, we worked to improve our property footprint through focused property disposition programs:
– 2010 property high-grades $30.9 million 400 boe/d; 2010 – oil at Pinto, Moose Valley, etc., Saskatchewan
– 2011 net property dispositions $23.4 net million 260 bbl/d; Summer 2011 – oil at Antler and Manor, Saskatchewan, undeveloped land at Whitecourt, Alberta; offset by 1.3 mmcf/d of Jarrow acquisitions
Oil Exploitation Properties
Oil Exploitation Projects: Many Years of Drilling
Large inventory of oil exploitation opportunities135+Total Available
High-Graded Program
Daly, Truro, Virden, Workman
Weyburn, Steelman, Mackobee
Elswick, Midale, Weyburn, Ralph, Steelman
Project
Implement & optimize ASP
Expand & enhance waterflood
Develop new pool
Increase fluid withdrawal
Multi-frac horizontals
Project
High-graded program will promote better returns100
Multi-frac horizontals concurrently developed with waterflood; large upside, but early days
30+Tight Oil
Undrained seismically defined horizontal targets15+Frobisher
Horizontal drainage wells; pressure support required in some cases
30+Midale Drainage
CommentsNet
LocationsWilliston Basin
Phases 1 and 2 only require well reactivationsNilLittle Bow
Expand waterflood; includes Taber Southeast pool10Taber South
Implement waterflood concurrently with development15Killam Glauconite
Facility Optimization; Infills and step-outs5Bellshill Lake
Will require waterflood re-implementation, large upside30+Hamilton Lake
CommentsNet
LocationsAlberta Plains
Production Guidance (May 14, 2012 Update)
• Oil and liquids:- Q3 2011 5,200 barrels per day (delivered 5,330 bbl/d) - Q4 2011 5,400 barrels per day (delivered 5,619 bbl/d) - Q1 2012 5,400 barrels per day (delivered 5,496 bbl/d)
- 2012 avg. 5,400 barrels per day, reflects a net $45 million 2012 field capital budget after $10 million of property dispositions
• Natural gas: - Q3 2011 22.0 million cubic feet per day (delivered 22.1 mmcf/d)- Q4 2011 21.6 million cubic feet per day (delivered 22.0 mmcf/d)- Q1 2012 18.6 million cubic feet per day (delivered 20.0 mmcf/d)
- 2012 avg. 18.6 million cubic feet per day after non-economic shut-ins
• 2012 Capital Assumptions:- Net capital budget of $45 million focused on seven quality oil exploitation projects- ASP capital expenditures of $21 million to permit Summer 2013 ASP project start-up
• 2012 Cost Assumptions:- Operating Costs less than $17 per boe- G&A Costs less than $5 per boe (excluding one time items)
Key Valuation Parameters (May 11, 2012)
• Enterprise Value (EV) as of May 11, 2012 – $472 million
– 29.47 million shares at $11.80 per share or $348 million
– Using approximate net debt of $124 million (March 31, 2012)
• EV of production – $53,400 per barrel of oil equivalent per day
– 8,834 barrels of oil equivalent per day (Q1 2012 actuals)
• 5,496 barrels of oil and liquids per day
• 20.0 million cubic feet of natural gas per day
• EV of McDaniels’ proved and probable reserves – $13.77 per barrel of oil equivalent
– 34.3 million barrels of oil equivalent (effective December 31, 2011)
• 24.1 million barrels of oil and liquids
• 61.4 billion cubic feet of natural gas
Net Asset Value Calculation (2011 Year End)
Proved + Prob. McDaniel Est. (PVBT 10%) $559 million
– Undeveloped Land $33 million
– Net Working Capital & Bank Debt ($109 million)
– Net Asset Value $483 million
Zargon Proved + Prob. Net Asset Value $16.45 per share
Total Proved McDaniel Est. (PVBT 10%) $412 million
– Undeveloped Land $33 million
– Net Working Capital & Bank Debt ($109 million)
– Net Asset Value $336 million
Zargon Total Proved Net Asset Value $11.44 per share
Proved + Prob. Producing McDaniel Est. (PVBT 10%) $484 million
– Undeveloped Land $33 million
– Net Working Capital & Bank Debt ($109 million)
– Net Asset Value $408 million
Zargon Proved + Prob. Producing Net Asset Value $13.90 per share
(Based on the McDaniel January 1, 2012 price forecast and 29.36 million basic Zargon shares as of December 31, 2011)
Hedging Strategy
• Zargon uses hedges as a risk management tool to assist in the funding of dividends and capital programs in the event of significant commodity price declines. Our policies allow for the sale of:
– up to a 50 percent maximum of our estimated oil production
– up to a maximum 24-month period
• Current Forward Oil Sales:
– Q2 2012: 2,700 bbl/d at $90.58 US/bbl (WTI)
– H2 2012: 2,500 bbl/d at $97.96 US/bbl (WTI)
– H1 2013: 1,450 bbl/d at $101.95 US/bbl (WTI)
– H2 2013: 600 bbl/d at $103.30 US/bbl (WTI)
Key Takeaways at Current Share Price (May 11, 2012)
• Zargon oil exploitation business provides considerable potential.
– Zargon has simplified its business to focus on the exploitation of eight profitable oil projects.
• Hamilton Lake, Killam, Bellshill Lake, Taber, Williston Basin (Midale, Frobisher and Multi-frac oil waterfloods) provide a three year inventory of profitable oil exploitation projects.
– These projects are economic to pursue at considerably lower oil prices.
• The Little Bow ASP project is very significant for Zargon.
– Little Bow success will lead to significant follow-on projects at Little Bow and other Zargon properties.
• Zargon shares represent good value at current share price.
– Investors buy Zargon at a 15 percent discount to the proved and probable developed producing year-end 2011 “blowdown” net asset value of $13.90 per share (basic). No value is ascribed to our rich inventory of oil exploitation projects (neither booked undeveloped reserves or “unbooked potential” reserves.
• Zargon provides a long dated call option on future oil prices and pays a 10% dividend in the interim.
– Downside is protected by a strong balance sheet.
WWW.ZARGON.CA
Oil Exploitation Projects
Alberta Plains North Orientation Map
Jarrow
Bellshill Lake
Hamilton Lake
Killam Glauc
StettlerProvost
Camrose
Wainwright
Hamilton Lake VikingMulti-stage Frac Development
Horizontal Wells Remaining 2012 Drilling Program Follow up locations
Viking B Sand TrendViking C Sand Contours
Ironhorse wells
Hamilton Lake Viking Horizontal Wells Production History
Hamilton Lake Viking Horizontal Oil Rate
0
20
40
60
80
100
120
140
160
180
0 50 100 150 200
Producing Days
Oil R
ate
(b
bl/d
)
00/16-16-036-11W4/0 02/04-34-035-10W4/0 00/03-24-036-12W4/0
00/16-13-036-12W4/0 02/16-15-036-11W4/0 Average
Killam Glauconite – Waterflood Development
26 Degree API sweet crude
Zargon drilled 7 Hz producers
100% WI in four sections
Significant waterflood upside
Bellshill Optimization
- Battery expansion
- Leduc disposal well
- Double battery fluid throughput
2012 Q3 - Q4 Program
- 3 hz re-entry candidates
Bellshill Lake – Stable Oil from Exploitation
Optimization
& Infill
Drilling
Alberta Plains South Orientation Map
Little Bow
Taber
Grand ForksRetlaw
Lethbridge
Taber
Enchant
Vauxhall
Taber South – Sunburst Hz Oil Development
• Potential 2012 Activities
• Complete drilling in south half of section 1 and offset 15-11 (Q1 2012) – 2 wells
• Monitor voidage in Phase 1 of Hz waterflood – Frac’d 8-36 hz injector, frac other 2 injectors later in 2012
• Expand Hz waterflood to Phase 2 (1 conversion - 02/06-01 hz – awaiting ERCB approval)
• Increase water handling capacity at 14-11 battery (FWKO & Injection well)
• Future Activities
• Drill 8-10 more horizontal wells over 2013 –2015
• Convert 2-4 additional wells to water injection to expand Sunburst waterflood
• Connect batteries 14-11 & 15-36 to optimize fluid handling and waterflood
Taber South – Sunburst Hz Oil Development
Williston Basin Orientation Map
North Dakota
Saskatchewan Manitoba
Haas
Truro
Mackobee Coulee
Virden
Daly
Frys
Steelman
Ralph
Elswick
Weyburn
WorkmanEstevan
Williston Basin Mississippian Stratigraphy
• Cross Section of Target Formations
– Multiple Conventional Oil Bearing Members:
• Midale Drainage (Marly, Vuggy, State A)
• Frobisher (Halbrite, Huntoon)
• Multi-Frac & Tight Oil (Bluell, Glenburn, Wayne, Lodgepole)
WEYBURN AREA
STEELMAN NORTH DAKOTA
Williston Basin – Projected Type Curves
Note this is an average Generic Analysis & IP rates are dependant on area & pressure regimes
0
25
50
75
100
125
150
0 6 12 18 24 30 36 42 48 54 60
Months
Frobisher Multi-Frac Midale Drainage
Rate
, Bbls
/d
Williston Basin – Multi-year Project Inventory
Mississippian Oil Play Targets
Midale Drainage High Porosity & Low Permeability. Waterflood Potential - SE Saskatchewan
Frobisher Low Porosity & High Permeability. High Fluid Handling - SE Saskatchewan & North Dakota
Tight Oil Low Porosity & Low Permeability. Large OOIP - SE Saskatchewan, Manitoba & North Dakota
Play Type Project Area Wells Comments
Midale Drainage Elswick, Midale, Weyburn, Ralph, Steelman 30+ Horizontal drainage wells; pressure support required in some cases
Frobisher Weyburn, Steelman, Mackobee 15+ Undrained seismically defined horizontal targets
Tight Oil Daly, Truro, Virden, Workman 30+ Multi-frac horizontals concurrently developed with waterflood; large upside, but early days
_____________________________________________________________________________Total Available 75+ Large inventory of oil exploitation
opportunities
Little Bow Alkaline Surfactant Polymer Flood
• High Quality Upper Mannville Reservoir
• Zargon WI: 100 %
• Permeability: 1500 mD (Avg.)
• Depth: 3600 ft
• Porosity: 23% (Avg.)
• Net Oil Pay: 37 ft
• Oil Gravity: 21° API
• First Production: 1974
• Waterflood initiated: 1983
• Current Oil Rate: 395 bopd @ 2.9% oil cut
• Cumulative Oil: 12.9 mmbbl
Little Bow “I” Pool
“MM” Unit
“U&W” Unit“C8C” Pool
Little Bow “I” Pool
“MM” Unit
“U&W” Unit“C8C” Pool
Zargon Land
Zargon Wells
Zargon Land
Zargon Wells
“P” Pool
ASP Phase 1
ASP Phase 2
ASP Phase 2
Alberta
Little Bow
Alberta
Little Bow
100
1,000
10,000
Jan-75 Jan-80 Jan-85 Jan-90 Jan-95 Jan-00 Jan-05 Jan-10
Oil
Pro
du
ctio
n R
ate
( b
bl/
da
y )
1%
10%
100%
Oil
Cu
t (
% )
Waterflood
Alkaline Surfactant Polymer (“ASP”)Chemical Flood Recovers Bypassed Oil
Alkaline
• Alters properties of reservoir rock to increase surfactant efficiency
• Reacts with oil to form natural surfactants
Surfactant
• Reduces interfacial tension between oil and water, mobilizing trapped oil
Polymer
• Thickening agent. This increases the sweep efficiency of the process
1) ASP formula injected to mobilize trapped oil. 2) Polymer injection displaces mobilized oil to
producing wells. 3) Water injection continues the displacement.
Little Bow ASP Facility Site
16-31 Battery
08-29 Battery
04-13 Battery
Phase 1 Outline
Travers Gas PlantZargon 16-31
BatteryFuture ASP Facility
Taber Mannville B – Strong Analog Performance
100
1,000
10,000
100,000
20% 25% 30% 35% 40% 45% 50% 55%
Cumulative Oil Produced ( % OOIP )
Oil
Pro
d'n
& W
ate
r In
j'n
( b
bl/
da
y )
1%
10%
100%
1,000%
Oil
Cu
t (
% )
Taber Mannville 'B' Pool
Oil Cut
Oil Rate
Injection
Data are current to Feb-2012
ASP
Po
lyme
r
Terminal
Waterflood
12% OOIP
Taber S Mannville ‘B’ Pool OOIP 43.1 mmbbl (Alberta Energy Resources Conservation Board
Original Oil-In-Place Data)
Zargon ASP: Followup Targets
Phase 1 & 2
8100Little Bow “P” Pool
Followup
781C8C / X8X
1968U&W Unit
70Total
5100MM Unit
31100Little Bow “I” Pool
W.I. OOIP*
(mmbbl)ZAR
W.I. (%)
* Alberta Energy Resources
Conservation Board Original
Oil-In-Place Data
ASP Phase 1 & 2
“MM” Unit
“U&W” Unit“C8C/X8X” Pool
Zargon Land
Zargon Wells
15-018W415-019W4
14-018W414-019W4
McDaniel has assigned 3.8 million barrels
(approx. 10% recovery) of probable oil
reserves to Zargon’s interest in phase 1 and
2 of the Little Bow ASP project.
Little Bow ASP: Capital and Chemical Cost
ASP Project Capital Costs (Constant 2011 $ - Millions)
Phase 1 Phase 2 Total
Facilities and Batteries 29.6 1.0 30.6
Pipelines 1.0 1.7 2.7
Subsurface 1.8 1.8 3.5
Chemical 30.0 30.0 60.0
Total 62.4 34.5 96.8
Capital And Chemical Costs
0
2
4
6
8
10
12
2011 2012 2013 2014 2015 2016 2017 2018 2019
$ M
illio
ns
pe
r Q
ua
rter
0
20
40
60
80
100
120
Cu
mu
lativ
e ($
Millio
ns)
Chemical Capital Cumulative Costs
Zargon ASP: Future Phases
ASP Development Forecast
0
500
1000
1500
2000
2500
2011 2013 2015 2017 2019 2021 2023 2025 2027 2029
BO
PD
Base Phase 1 Phase 2 Phase 3 Phase 4
WWW.ZARGON.CA
Corporate Presentation May 14, 2012
