Completion of Paradox project acquisition

RNS Number : 5116P

Zephyr Energy PLC

10 February 2023

 

10 February 2023

Zephyr Energy plc

(the "Company" or "Zephyr")

Completion of Paradox project acquisition

Zephyr Energy plc (AIM: ZPHR) (OTCQB: ZPHRF), the Rocky Mountain oil and gas company focused on responsible resource development and carbon-neutral operations, is pleased to announce the completion of its acquisition of the remaining 25 per cent. working-interest in the White Sands Unit in the Paradox Basin, Utah, U.S. (the "Acquisition"), details of which were announced on 21 December 2022.  This follows the issue and admission to trading on AIM today of the 13,483,095 new ordinary shares of 0.1 pence each in the Company to satisfy the initial consideration for the Acquisition, as announced on 1 February 2023.

Colin Harrington, Zephyr's Chief Executive, said:

"I am delighted to announce the completion of the Acquisition which, I believe, represents a substantial building-block for the Company's future development and growth.

"The Acquisition is immediately accretive to our shareholders, given the increase in the Company's reserves and resources, and provides the Company with increased flexibility and optionality in terms of the future development of our Paradox assets.

"I would particularly like to thank the vendor, Rockies Standard Oil Company LLC, for their long term support and partnership over the years.  We welcome them onto our share register where they will remain positioned to participate in the existing and future potential value of the Paradox project."

Contacts

Zephyr Energy plc Colin Harrington (CEO) Chris Eadie (CFO)	Tel: [phone]
Allenby Capital Limited   - AIM Nominated Adviser Jeremy Porter / Vivek Bhardwaj	Tel: [phone]
Turner Pope Investments   - Joint-Broker James Pope / Andy Thacker  Panmure Gordon (UK) Limited -   Joint-Broker John Prior / Hugh Rich / James Sinclair-Ford / Harriette Johnson Celicourt Communications -  PR Mark Antelme / Felicity Winkles	Tel: [phone] Tel: [phone] Tel: [phone]

Notes to Editors

Zephyr Energy plc (AIM: ZPHR) (OTCQB: ZPHRF) is a technology-led oil and gas company focused on responsible resource development from carbon-neutral operations in the Rocky Mountain region of the United States.  The Company's mission is rooted in two core values: to be responsible stewards of its investors' capital, and to be responsible stewards of the environment in which it works.

Zephyr's flagship asset is an operated 45,000-acre leaseholding located in the Paradox Basin, Utah, 25,000 acres of which has been assessed to hold, net to Zephyr, 2P reserves of 2.6 million barrels of oil equivalent ("mmboe"), 2C resources of 34 mmboe and 2U resources 240 mmboe.

In addition to its operated assets, the Company owns working interests in a broad portfolio of non-operated producing wells across the Williston Basin in North Dakota and Montana. 

The Williston portfolio currently consists of working-interests in over 200 modern horizontal wells which are expected to provide production of 1,550 - 1,750 barrels of oil equivalent per day, net to Zephyr, in 2023. Cash flow from the Williston production will be used to fund the planned Paradox Basin development. In addition, the Board will consider further opportunistic value-accretive acquisitions. 

 

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