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Abstract
(Marketwire - April 29, 2009) - Zargon Energy Trust ("Zargon") (TSX:ZAR.UN) (TSX:ZOG.B) and Masters Energy Inc. ("Masters") (TSX:MSY) today closed the previously announced Plan of Arrangement (the "Arrangement"). Under the Arrangement, approximately 1.475 million Zargon trust units were issued and $5.7 million in cash was paid for the acquisition of all the issued and outstanding Masters common shares. Including the assumption of approximately $13.2 million of net debt (inclusive of adjustments and transaction costs), the total cost of the acquisition was approximately $41.4 million.
Based on Zargon's internal evaluation effective December 31, 2008, Zargon plans on booking 2.60 million barrels of oil equivalent of proved and probable reserves consisting of 1.55 million barrels of oil and 6.3 billion cubic feet of natural gas. These Zargon internal reserve estimates do not include any recognition for the probable and possible reserves relating to the proposed Little Bow ASP tertiary flood. The Masters acquisition also provides Zargon more than 100 thousand net acres of undeveloped Alberta land.