Zephyr Energy PLC Update on proposed acquisition in Williston Basin (1186W)
December 20 2021 - 2:00AM
UK Regulatory
TIDMZPHR
RNS Number : 1186W
Zephyr Energy PLC
20 December 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.
20 December 2021
Zephyr Energy plc
("Zephyr" or the "Company")
Update on proposed acquisition of non-operated production assets
in the Williston Basin
Zephyr Energy plc (AIM: ZPHR) (OTCQB: ZPHRF), the Rocky Mountain
oil and gas company focused on responsible resource development
from carbon-neutral operations, provides an update on its proposed
acquisition of non-operated working interests in the Williston
Basin, North Dakota, U.S. (the "Acquisition").
On 22 November 2021, Zephyr announced the Acquisition and
outlined a proposed closing date of 22 December 2021. However,
given the ongoing disruption caused by the global pandemic, and in
particular the rapid advance of the Omicron variant since the
initial announcement of the Acquisition, the Company now
anticipates that completion of the Acquisition will occur during
January 2022 (the "completion").
Although the completion has been delayed, the Company has made
excellent progress towards securing the structured debt funding
necessary for completion, and the Company's Board of Directors (the
"Board") looks forward to providing further updates in the New
Year.
Colin Harrington, Chief Executive of Zephyr, said : "The Board
prides itself on setting and meeting ambitious targets and
deadlines for the Company. Unfortunately, the spread of the Omicron
variant has made the delay to completion unavoidable, in spite of
our best efforts to finalise the transaction prior to the
commencement of the holiday period.
"While it is frustrating that completion won't occur in the 2021
calendar year, we remain one hundred per cent. committed to the
transaction and continue to believe that the assets being acquired
will be a fantastic addition to our portfolio."
"In the interim, I'd like to wish all of our stakeholders a
peaceful and healthy holiday period, and I'd like to thank our
staff and Shareholders for their incredible support over the past
twelve months.
"I am exceptionally proud of the Company's achievements in 2021
- it was a period of intense activity and tremendous progress, as
Zephyr transformed from a single project exploration company into a
self-sustaining, cash-generating, carbon-neutral oil and natural
gas producer. On our Paradox project, we delivered multiple
exciting milestones in pursuit of a goal to open up a new
hydraulically-stimulated resource play in the U.S. In December, our
operated efforts culminated with a highly successful 23-day
production test during which the State 16-2LN-CC, the Paradox
Basin's first modern hydraulically-stimulated horizontal oil &
gas well, flowed higher than expected volumes of hydrocarbons and
demonstrated much greater reserve potential than forecast.
"In addition, we sourced and completed five separate
acquisitions throughout the year, resulting in a growing portfolio
of operated and non-operated production and growth assets across
two established U.S. oil producing basins, all during a time of
significant disruption in the upstream industry. I'm particularly
proud that we executed our strategy while staying directly in line
with our mission to be responsible stewards of investors' capital
and responsible stewards of the environment in which we work.
"As we approach the end of 2021, Zephyr is ideally positioned as
a cash-generating platform with significant near-term growth
potential, from which we aim to deliver substantial additional
value for our Shareholders in 2022."
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
Tim Thompson / Mark Edwards / Fergus Tel: +44 (0) 20 7129
Mellon 1474
Dr Gregor Maxwell, BSc Hons. Geology and Petroleum Geology, PhD,
Technical Adviser to the Board of Zephyr Energy plc, who meets the
criteria of a qualified person under the AIM Note for Mining and
Oil & Gas Companies - June 2009, has reviewed and approved the
technical information contained within this announcement.
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