Zephyr Energy PLC Operations update (0143C)
June 16 2021 - 2:00AM
UK Regulatory
TIDMZPHR
RNS Number : 0143C
Zephyr Energy PLC
16 June 2021
Prior to publication, the information contained within this
announcement was deemed by the Company to constitute inside
information as stipulated under the UK Market Abuse Regulation.
With the publication of this announcement, this information is now
considered to be in the public domain.
16 June 2021
Zephyr Energy plc
(the "Company", "Zephyr" or the "Group")
Operations update
Zephyr Energy plc (AIM: ZPHR), the Rocky Mountain oil and gas
company focused on responsible resource development and
carbon-neutral operations, is pleased to provide an update on
recent progress on its non-operated assets in the Williston Basin,
North Dakota, United States of America ("U.S.") and on its flagship
project in the Paradox Basin, Utah, U.S (the "Paradox
project").
Williston Basin update
In March 2021, Zephyr completed the acquisition of non-operated
working interests in five wells located on three separate pads
operated by Whiting Petroleum Corporation ("Whiting"):
-- The producing Iverson 11-14HU well;
-- The S-Bar 11-7HU and 11-7TFHU wells (which were drilled but
not completed ("DUC" wells) at the time of acquisition); and,
-- The Feehan 11-9HU and 11-9TFHU wells (which were also DUC wells at the time of acquisition).
In the period since the acquisition closed, Zephyr has received
two scheduled monthly revenue payments from the Iverson well. In
addition, the S-Bar and Feehan wells were completed by Whiting -
completion operations progressed as envisioned, at expected lateral
lengths, and ahead of initial schedule.
Zephyr is now pleased to announce that the S-Bar wells have been
placed into production, also ahead of forecast schedule, and the
Feehan wells are expected to be placed into production within the
next month. Zephyr will update Shareholders on production rates in
the coming weeks, once the wells have cleaned up and reached peak
initial rate.
Paradox project
Preparations continue ahead of the drilling of the State 16-2LN
CC lateral appraisal well (the "lateral") which is scheduled to
spud in July and which will target the Company's first production
from the Paradox project. Final permitting is expected shortly and
vendor negotiations (including the rig contract) are expected to be
finalised in the coming weeks.
The additional evaluation work related to the overlying
reservoirs continues to progress, and it is the Company's intention
to update the market by the end of the month once final analysis
has been received from our third party partners and
consultants.
Investor presentation
A reminder that Colin Harrington, Zephyr's Chief Executive
Officer, will be presenting at Proactive Investors' One2One Virtual
Forum tomorrow, Thursday 17th June 2021.
Colin will be presenting ( via online webinar) at 6.00pm and
will give an update on the Company's ongoing activities, followed
by a Q&A session.
If you would like to join the event, please register in advance
at the following link:
https://event.webinarjam.com/register/1117/xyy9gsm54
Colin Harrington, Chief Executive of Zephyr, said : " We have a
great deal of activity going on across our project portfolio and
I'm delighted with how everything is progressing. We are
particularly gratified that Whiting, the operator of five of our
Williston wells, worked to accelerate the completion and production
dates on the four DUC wells. When we initially agreed to terms on
the acquisition of these interests, we ran our economics at a price
of US$45 per barrel of oil. With current pricing at over $70 per
barrel, we now envisage significant cash flow generation from this
part of our portfolio over the coming months.
"On our flagship Paradox project, we have a fascinating period
ahead of us. Preparations for our forthcoming drilling programme
continue to move ahead at full speed and we are also excited to
finish the evaluation work around the exploration potential of the
overlying reservoirs, with more detail on this to come shortly.
"There is significant activity expected across our asset
portfolio in the coming weeks, and I look forward to presenting our
story to investors tomorrow evening."
Contacts:
Zephyr Energy plc Tel: +44 (0)20 7225
Colin Harrington (CEO) 4590
Chris Eadie (CFO)
Allenby Capital Limited - AIM Nominated Tel: +44 (0)20 3328
Adviser 5656
Jeremy Porter / Liz Kirchner
Turner Pope Investments - Broker Tel: +44 (0)20 3657
James Pope / Andy Thacker 0050
Flagstaff Strategic and Investor Communications Tel: +44 (0) 20 7129
Tim Thompson / Mark Edwards / Fergus 1474
Mellon
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