Zargon Oil & Gas Ltd. has closed its previously announced $36 million sale of 275 barrels of oil per day pertaining to all of its southwest Manitoba assets and selected properties in the Elswick area of southeast Saskatchewan. The proceeds from the transactions have been used to reduce bank indebtedness.

With the closing of these property sales, Zargon has entered into renewed committed syndicated credit facilities with a borrowing base of $165 million. The credit facilities are fully revolving for an additional 364 day period with the provision for an annual extension at the option of the lenders and upon request from Zargon.

Tags: Zargon Oil & Gas Ltd.