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Press release from Marketwire

Zargon Oil & Gas Ltd. Confirms September 2012 Cash Dividends and Announces 2012 Fourth Quarter Cash Dividends

Monday, September 17, 2012

Zargon Oil & Gas Ltd. Confirms September 2012 Cash Dividends and Announces 2012 Fourth Quarter Cash Dividends17:01 EDT Monday, September 17, 2012CALGARY, ALBERTA--(Marketwire - Sept. 17, 2012) - Zargon Oil & Gas Ltd. (TSX:ZAR) (TSX:ZAR.DB) ("Zargon") confirms that the monthly cash dividend for the month of September in the amount of Cdn. $0.10 per common share will be paid on October 15, 2012 to shareholders of record on September 30, 2012. The ex-dividend date is September 26, 2012. On August 8, 2012, Zargon announced a revised monthly dividend policy in which the dividend will be reduced from $0.10 to $0.06 per share commencing in the fourth quarter of 2012. Our dividend policy is reviewed monthly and is based on a number of factors including current and future commodity prices, foreign exchange rates, our commodity hedging program, current operations, financial and legal requirements and other conditions existing at such future times. We will continue to carefully monitor the impact of all these issues and adjust our monthly dividend as conditions dictate. Zargon's 2012 fourth quarter cash dividend to shareholders of $0.06 per common share per month based on our 2012 guidance is as follows:Record DateEx-Dividend DateDividend Payment DateDividend Per ShareOctober 31, 2012October 29, 2012November 15, 2012$0.06 *November 30, 2012November 28, 2012December 17, 2012$0.06 *December 31, 2012December 27, 2012January 15, 2013$0.06 ** The above reflects an anticipated dividend based on Zargon's current projected commodity prices, commodity hedge positions and production volumes. Dividends are subject to change should there be a material change in expected cash flow for the respective periods. Unless otherwise indicated, all dividends paid by Zargon are "eligible dividends" for Canadian tax purposes. Based in Calgary, Alberta, Zargon's securities trade on the Toronto Stock Exchange and there are currently 29.739 million common shares outstanding. FORWARD-LOOKING STATEMENTSThis press release offers our assessment of Zargon's future plans and operations as at September 17, 2012, and contains forward-looking statements. All statements other than statements of historical fact may be 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 press release contains forward-looking statements pertaining to the following:our business plans and strategy;projections of market prices and costs and the related sensitivities of dividends;supply and demand for oil and natural gas;risk management strategy;our dividend policy and payment of dividends;the sources of funding of our dividends.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 and at www.sedar.com. 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 document 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.FURTHER INFORMATION Zargon Oil & Gas Ltd. is a Calgary based oil and natural gas company working in the Western Canadian and Williston sedimentary basins that has delivered a long history of returns, dividends (distributions) and value creation. Zargon's business is focused on oil exploitation projects where we employ a careful reservoir engineering inspired technical approach to profitably increase oil recovery factors from existing oil reservoirs. In order to learn more about Zargon, we encourage you to visit Zargon's website at www.zargon.ca where you will find a current shareholder presentation, financial reports and historical news releases. FOR FURTHER INFORMATION PLEASE CONTACT: C.H. HansenZargon Oil & Gas Ltd.President and Chief Executive Officer403-264-9992 or Toll Free: 1-855-464-9992zargon@zargon.caORVice President, Finance and Chief Financial OfficerJ.B. Dranchuk403-264-9992 or Toll Free: 1-855-464-9992zargon@zargon.cawww.zargon.ca