REG - Zephyr Energy PLC - Q1 2024 results from the Williston Basin portfolio

Zephyr EnergyAnnouncement

31/05/2024 07:00

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RNS Number : 5538Q  Zephyr Energy PLC  31 May 2024

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.

31 May 2024

Zephyr Energy plc

("Zephyr" or the "Company")

First Quarter 2024 production results from the 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 initial first quarter 2024 ("Q1") results
related to hydrocarbon production from its non-operated asset portfolio in the
Williston Basin, North Dakota, U.S (the "Williston project").

·    Q1 production averaged 1,151 barrels of oil equivalent per day
("boepd") compared to production in the fourth quarter of 2023 ("Q4") of 1,053
boepd, representing an increase of nine per cent quarter on quarter.

o  While production from the six wells operated by Slawson Exploration
Company (the "Slawson wells") was temporarily shut-in over the winter months
due to adverse weather conditions and infrastructure constraints, production
from the wells resumed in late January 2024.

o  The average daily production rate from the portfolio in March 2024 was
1,212 boepd reflecting the impact from the Slawson wells being online, albeit
not at full capacity as the wells were partially curtailed due to lingering
infrastructure constraints.

o  Q1 production rates from the remainder of the portfolio were in line with
management expectations.

 

·    At 31 March 2024, 230 wells in Zephyr's portfolio were available for
production (versus 225 wells at the end of Q4).

 

·    Net working interests across the Zephyr portfolio now average 7.1 per
cent per well (equivalent to 16.3 net wells).

 

·    During February 2024, ten wells in which Zephyr holds working
interests and which are operated by Continental Resources (Harms Federal and
Quale Federal) were placed in production. Early production data shows these
wells performing ahead of management expectations, adding initial production
rates, net to Zephyr, of circa 75 boepd.

 

·    The Company hedged 27,000 barrels of oil over Q1 at a
weighted-average price of US$82.20 per barrel.  The Company will continue to
evaluate its commodity price risk management strategy on a regular basis.

 

·    The Company has also hedged a total of 76,000 barrels of oil for the
remainder of the year. 40,500 barrels are hedged at a price of US$80.91 and
the remainder have been hedged by way of financial collars which enable the
Company to lock-in a minimum price for these barrels. Of the 35,500 financial
collars, 26,600 will give the Company a minimum price of US$74 per barrel of
oil with the remaining 9,000 guaranteeing a floor price in US$69 per barrel of
oil.

 

·    The Company will report sales and revenue results on a semi-annual
basis to coincide with its financial reporting requirements.

 

Contacts

 Zephyr Energy plc                                             Tel: +44 (0)20 7225 4590

 Colin Harrington (CEO)

 Chris Eadie (Group Finance Director and Company Secretary)

 Allenby Capital Limited - AIM Nominated Adviser               Tel: +44 (0)20 3328 5656

 Jeremy Porter / Vivek Bhardwaj

 Turner Pope Investments - Joint-Broker                        Tel: +44 (0)20 3657 0050

 James Pope / Andy Thacker

 Panmure Gordon (UK) Limited - Joint-Broker                   Tel: +44 (0) 20 7886 2500

 Hugh Rich / James Sinclair-Ford

 Celicourt Communications - PR

 Mark Antelme / Felicity Winkles / Ali AlQahtani              Tel: +44 (0) 20 8434 2643

 

Qualified Person

 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.

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 46,000-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 270 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.  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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