Zephyr Energy PLC Q4 2021 production update from Williston Basin (8138A)
February 07 2022 - 1:59AM
UK Regulatory
TIDMZPHR
RNS Number : 8138A
Zephyr Energy PLC
07 February 2022
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.
7 February 2022
Zephyr Energy plc
("Zephyr" or the "Company")
Fourth Quarter 2021 production update from non-operated
Williston Basin portfolio
Zephyr Energy plc (AIM: ZPHR) (OTCQB: ZPHRF), the Rocky Mountain
oil and gas company focused on responsible resource development
from carbon-neutral operations, is pleased to provide an update on
fourth quarter 2021 ("Q4") hydrocarbon production from its
non-operated asset portfolio in the Williston Basin, North Dakota,
U.S.
Williston Basin Production update
Q4 operational production rates from the Company's Williston
Basin portfolio averaged 548 barrels of oil equivalent per day
("boepd") net to Zephyr. In addition, three wells on the Sundance
Kid pad were brought online in late December, which added an
additional net 106 boepd on an operated basis. As a result,
Zephyr's existing non-operated portfolio produced at a total run
rate of 654 boepd by the end of Q4.
Zephyr sold 43,185 barrels of oil equivalent ("boe") during Q4,
and net sales to Zephyr for the quarter were broken out as
follows:
Oil: 35,895 barrels ("bbls") at an average sales price of $72.34 /bbl
Natural Gas: 19,081 million cubic feet ("mcf") at an average
sales price of $5.35 /mcf
Natural Gas Liquids: 5,132 bbls at an average sales price of
$56.56 per bbl
( Note: Fourth quarter production volumes and average sales
prices figures include field estimates in respect of December 2021
production and sales)
Zephyr began Q4 with interests in 7 non-operated producing
wells, with 8 additional wells brought onto initial production by
the end of the quarter. Newly producing wells include the Company's
interests in the Sundance Kid wells, which are currently producing
on flowback only - production from the pad is expected to further
increase when artificial lift is installed in mid-February. An
additional 7 wells in the existing portfolio are expected to come
on line during the first half of 2022.
Williston Basin Production Outlook
Production from the Company's non-operated portfolio is expected
to further increase over the coming months as additional wells from
the existing portfolio are brought online and when the Company's
proposed $36 million acquisition of further non-operated assets in
the Williston Basin is completed (the "proposed Acquisition") as
expected in mid-February.
On completion of the proposed Acquisition, working interests in
163 additional producing wells will be integrated into Zephyr's
portfolio. The proposed Acquisition has an effective date of 1
December 2021, and cash flows associated with the proposed
Acquisition's December and January production will accrue to
Zephyr's benefit post-closing. In December 2021, production from
the proposed Acquisition averaged 1,105 boepd, giving Zephyr's
non-operated business a net pro forma combined run rate of 1,759
boepd at the end of December.
Zephyr has not hedged any production to date. The Company plans
to hedge a substantial portion of the combined non-operated
production after completion of the proposed Acquisition.
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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