CALGARY, Alberta, Jan. 11, 2019 (GLOBE NEWSWIRE) -- Zargon Oil & Gas Ltd. ("Zargon" or the "Company") (TSX:ZAR; ZAR.DB.A) announces that it has completed a transaction (the "Transaction") to settle its $41.94 million principal amount of outstanding 8.00% convertible unsecured subordinated debentures ("Debentures") due December 31, 2019 in exchange for common shares in the capital of Zargon (the "Common Shares").

Pursuant to the Transaction, all of the Debentures were settled and all claims of the holders of Debentures ("Debentureholders") were extinguished in exchange for an aggregate of 428,878,324 Common Shares, including the payment, in the form of Common Shares, of the accrued and unpaid interest owing on the Debentures from and including September 30, 2018 to but not including January 11, 2019, being the effective date of the completion of the Transaction, in each case on the basis of a price of $0.10 per Common Share.

Immediately before the Transaction, 30,932,912 Common Shares were issued and outstanding. Following the completion of the Transaction, 459,811,236 Common Shares are issued and outstanding.

Upon closing of the Transaction, all Debentures were settled and all claims of Debentureholders were extinguished.

For further information, please contact:

C.H. Hansen
President and Chief Executive Officer

Zargon Oil & Gas Ltd.
Telephone: 403-264-9992