Content area
Abstract
(Marketwire - Oct. 19, 2010) - Zargon Energy Trust (TSX:ZAR.UN) (TSX:ZOG.B) ("Zargon") announces that the board of directors of Zargon Oil & Gas Ltd. has unanimously approved the conversion of Zargon Energy Trust to a corporation to be named Zargon Oil & Gas Ltd. The conversion is expected to be completed on December 31, 2010.
Pursuant to the conversion, unitholders will exchange their trust units on a one-for-one basis for common shares and exchangeable shareholders will exchange their exchangeable shares for common shares based on the exchange ratio in effect at the time of conversion. The conversion is expected to be a tax-deferred exchange for Canadian income tax purposes. The foregoing statement is not intended to be, and should not be construed as, tax advice. Investors should consult with their tax advisors regarding the tax consequences of the conversion and any dividends paid by Zargon Oil & Gas Ltd. following the conversion.
Forward-Looking Statements - This news release includes forward-looking statements about our future plans and operations that we believe allow readers to better understand our business and prospects. These forward-looking statements pertain to the proposed conversion (including the proposed structure, the timing relating to the approval and implementation thereof, the anticipated tax effect of the conversion on unitholders and exchangeable shareholders), our proposed dividend policy (including the amount of dividend proposed to be paid and our ability to sustain that dividend) and our business plan following the conversion.