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(ROSE) Rose Petroleum-General Share Chat

Discussion in 'General Share Chat (ROSE)' started by Azrael, Apr 12, 2016.

  1. Groucho

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    LSE interview
     
  2. Groucho

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    1 April 2021

    Zephyr Energy plc

    (the "Company" or "Zephyr")


    Completion of acquisition of oil producing interests in the Bakken Formation, USA


    Zephyr Energy plc (AIM: ZPHR), the Rocky Mountain oil and gas company focused on responsible resource development, is pleased to announce the completion of its acquisition of non-operated working interests in currently producing and near-term production wells in the Bakken Formation, North Dakota, USA (the "Acquisition" or the "Bakken project"), as announced on 29 March 2021.

    All conditions of the Acquisition were satisfied yesterday, including the transfer of title of the Bakken Interests to Zephyr and the release of the Operator liens, and all payments due in respect of the Acquisition have also been made, including payment of approximately $3.7 million for historical capital expenditure obligations and $300,000 to the Seller ($50,000 having already been paid in a non-refundable deposit).

    Following the completion of the Acquisition and the subsequent release of the liens, the Company is now an oil-producer and first production payments associated with the currently producing well in the Bakken project are expected to be received by Zephyr at the end of April 2021. Completion of the other four wells in the Bakken project is expected in May, and the Company will keep Shareholders updated on progress.

    Details of the Acquisition, and the corresponding Placing, were announced by Zephyr on 29 March 2021, and defined terms used in this announcement have the same meaning as those set out in that announcement.

    The second tranche of the Placing of £6 million is conditional, inter alia, on the approval by the Company's Shareholders of resolutions to be proposed at the General Meeting on 16 April 2021, notice of which was sent to Shareholders in a Circular on 30 March 2021 and is available on the Company's website.
    https://www.zephyrplc.com/investors/documents-circulars/
     
  3. Groucho

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    4 May 2021

    Zephyr Energy plc

    (the "Company" or "Zephyr")


    First North Dakota production revenues received;

    completion of four North Dakota wells underway ahead of schedule;

    acquisition of acreage in North Dakota;

    Paradox project update


    Zephyr Energy plc (AIM: ZPHR), the Rocky Mountain oil and gas company focused on responsible resource development, is pleased to provide an update on its recently acquirednon-operated working interests in North Dakota, USA (the "Whiting wells"),to announce the acquisition of additional near-term production interests in the nearby area (the "Continental acreage "), and to provide an update on its project in the Paradox Basin, Utah.


    North Dakota assets: operations update

    The recently acquired Whiting wells target production from the Bakken and Three Forks Formations in the Williston Basin of North Dakota, USA and consist of non-operated working interests in five wells located across three separate pads:

    · The Iverson 11-14HU well, a well which is currently producing.

    · The S-Bar 11-7HU and 11-7TFHU wells, which are drilled but uncompleted ("DUC") wells.

    · The Feehan 11-9HU and 11-9TFHU wells, which are also DUC wells.


    The Company is pleased to announce that it received its first monthly revenue payment for production from its interest in the Iverson well. The payment of $140,662 is related to volumes produced in the month of February, during which net production averaged 110 barrels of oil equivalent per day ("BOE")*.

    In addition, the Company reports that completion operations are already underway on its four S-Bar and Feehan DUC wells, ahead of earlier operator forecasts. It is expected that all DUC wells will be subsequently tied into infrastructure and achieve first production by the end of July, with Zephyr expected to receive monthly revenue payments for production from all five Whiting wells by September 2021.

    When the S-Bar and Feehan wells are brought online, these interests are expected to provide the Company with substantial additional oil production. The resulting cashflows, which will be sheltered from federal tax due to Company's historical tax loss position of circa US$16 million, will be utilised to fund additional development of the Company's Paradox Basin project or to acquire other attractive non-operated assets such as the Williston acquisition announced today.


    Acquisition of additional interests in the Williston Basin, North Dakota

    The Company is pleased to announce the acquisition of 11.6 acres in the Williston Basin, North Dakota (the "Continental acreage") which gives Zephyr working interests in a drilling spacing unit ("DSU") operated by Continental Resources Inc. ("Continental"), the largest operator in the Williston Basin. The Continental acreage is located approximately ten miles from the Company's Whiting wells, in a highly attractive part of the Basin. The cost of the acreage acquired by Zephyr was approximately US$170,000 and was paid for from the Company's existing cash resources.

    Continental has already commenced drilling two initial wells on the DSU ("Initial wells"), with up to an additional 22 future wells ("Future wells") forecast to be drilled by 2023.

    · For the Initial wells currently being drilled, Zephyr's forecasted net capital expenditure (CAPEX) is approximately $135,000 and will be funded from existing cash resources.

    · For the 22 Future wells proposed, Zephyr's net CAPEX is forecast to be approximately $710,000, which could also be funded from the Group's internal cash resources.

    · CAPEX on the Future wells is discretionary, and Zephyr's Board of Directors will elect whether to participate in those wells on a case-by-case basis.


    The Continental acreage has, net to Zephyr, Company estimated 2P reserves (from all 24 wells) of circa 60,000 barrels of oil equivalent ("BOE"), which were acquired at a price of approximately $2.83 per BOE. The 1P reserves on the Continental acreage are, net to Zephyr, estimated at circa 41,000 BOE and the 3P reserves at circa 72,000 BOE.

    This opportunistic acquisition has strong forecast economics and provides the Company with further exposure to low risk, near-term production. Initial revenues from the acquisition are expected to be received in the second half of this year.

    Preparations for State 16-2 CC LN well in Paradox Basin continue on schedule, resource evaluation work continues

    The Company continues to make progress with permitting, detailed drill planning and vendor selection related to the drilling of the State 16-2 CC LN well on the Company's flagship project in the Paradox Basin, Utah. The Company remains on track to drill the well in July 2021, and Zephyr will update Shareholders regularly as key well planning milestones are met.

    In addition to drilling preparations, the detailed resource evaluation work remains ongoing, both in regard to the potential in overlying reservoirs above the Cane Creek reservoir, and in respect to the potential for a resource play development across the Company's Paradox leasehold. Zephyr continues to work with its partners at the University of Utah, the Utah Geological Survey and third-party consulting firms to develop an updated geological model and resource estimates. The Company will update Shareholders when this evaluation work is complete.


    Colin Harrington, Chief Executive of Zephyr, said: "Following the completion of our fundraise and acquisition earlier this month, I'm delighted that the Company has officially delivered a key corporate objective in becoming a cash-flowing oil producer. Furthermore, with the completions of the four Whiting DUC wells underway ahead of schedule, we look forward to substantially increased cashflows in the very near term. This provides us with an excellent platform on which to build, particularly with the envisioned incremental production coming online at a time of strong commodity pricing.

    "Over the last few weeks, Zephyr has transformed into a fully-funded, self-sustaining platform with the potential for significant organic growth from the forthcoming drilling programme on our Paradox project. In addition, we will continue to be opportunistic in the pursuit of attractive, near-term, high-return, low-risk non-operated assets, especially as current market conditions are favourable for growth through acquisition.

    "The acquisition of prime Bakken acreage announced today, in a DSU operated by a first-class Williston Basin participant, is a strong example of what can be achieved in the current market. The acreage is in an excellent location and provides both near-term drilling exposure and future drilling optionality. While the initial scale of the acquisition is small, for a minimal upfront cost Zephyr now has potential to participate in up to 24 highly economic wells over the next two years. Given the continued improvement in drilling costs and robust oil price environment, the Company believes this acreage will provide attractive near-term cash flow returns and is an excellent complement to our growing portfolio of non-operated production assets.

    "The next few months are expected to bring news flow on all fronts as we target initial production on our Paradox project, further define our Paradox resource and begin to generate significant cash flow from our non-operated asset portfolio - including cash flow from today's newly acquired asset.

    "We look forward to keeping Shareholders updated as we look to deliver on these key objectives. As always, we will continue to strive to be responsible stewards of our investors' capital and responsible stewards of the environment in which we work."
     
  4. Groucho

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    Today’s news is excellent across the board, from North Dakota where it is significantly ahead of expectations and with revenue already coming in beats any whisper that I have seen. Having said that the board have been busy, the Continental acquisition has been done at very attractive prices and on excellent economics and of course the work at Paradox continues and with both in regard to the potential in overlying reservoirs above the Cane Creek reservoir, and in respect to the potential for a resource play development across the Company’s Paradox leasehold I am becoming increasingly optimistic.

    As the shares go back above 3p and start to go into new territory not seen for many years investors should be delighted, I don’t think you could rule out a ten-bagger from here.

    https://www.malcysblog.com/2021/05/oil-price-zephyr-far-trinity-sdx-helium-one-and-finally/
     
    JJ15 likes this.
  5. Groucho

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    $ZPHR Zephyr Energy confident all newly acquired wells will be online by July
     
  7. Groucho

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  8. Groucho

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    7 June 2021

    Zephyr Energy plc

    (the "Company" or "Zephyr")

    Final Results and notice of AGM


    Zephyr Energy plc (AIM: ZPHR), the Rocky Mountain oil and gas company focused on responsible resource development, announces its audited results for the year ended 31 December 2020.


    Overview

    During the 2020 financial year and in the period since, Zephyr underwent a wholesale transformation as it evolved from a single project exploration company to a self-sustaining oil producing group with a diverse portfolio of assets in two established oil producing basins in the United States of America (the "U.S.").

    The Company expects to accumulate substantial cash flows over the next twelve months from its recently acquired non-operated assets in the Williston Basin, North Dakota, U.S. In addition, Zephyr is poised for significant near-term organic growth as it plans to drill and target first production from its flagship appraisal project in the Paradox Basin, Utah, U.S (the ''Paradox project"). The Company also expects to complete its initial analysis of the geologic data acquired from the recently drilled State 16-2 "dual-use" well shortly, in both the Cane Creek and the multiple overlying reservoirs.


    Rick Grant, Zephyr's Non-Executive Chairman, said "The period under review was one of remarkable progress for Zephyr, and I'm confident that in the coming months we will continue to see a flurry of corporate activity. Upcoming operational milestones are expected to occur across our asset portfolio - we expect all of our acquired wells in the Williston Basin to be online and generating significant near-term cash flow soon, and our upcoming drilling and ongoing geologic evaluation activity has the potential to generate considerable value from our Paradox project.

    "I am gratified by the growth achieved and I'm proud that we are executing successfully on our twin core values: to be responsible stewards of our investors' capital, and to be responsible stewards of the environment in which we work.

    "The extent of the Company's recent progress is even more extraordinary when one considers that it was achieved against the turmoil, economic uncertainty and restrictive environment stemming from the COVID-19 pandemic, and I'd like to thank the Zephyr team and our partners and advisers who demonstrated great loyalty, professionalism, tenacity and skill while navigating us successfully through the challenging global environment. Most of all, I would also like to thank our Shareholders for their ongoing support.

    "These are exciting times for Zephyr, and we look forward to keeping our stakeholders updated on our continued progress over the coming period."


    Annual report and notice of Annual General Meeting

    The Company's Annual General Meeting ("AGM") will be held on 30 June 2021 at 11.00 a.m. Further details are set out in the notice of AGM.

    It is the Company's preference to welcome shareholders in person to the AGM, particularly given the constraints faced in 2020 due to the COVID-19 pandemic. However, with consideration to the Government's current response to the COVID-19 pandemic and given the uncertainty around potentially tighter restrictions due to the COVID-19 pandemic, which could change at short notice, it cannot be known with certainty whether (or how many) Shareholders will be able to attend the AGM. Accordingly, all shareholders are encouraged to vote by proxy following the instructions set out in the notice of AGM.

    A copy of the Company's annual report and accounts, which include the notice of AGM, will be available on its website, http://www.zephyrplc.com, shortly and will be sent to Shareholders later today.

    Extracts from the Annual Report are set out below.


    Chairman's Statement


    OVERVIEW
    During the 2020 financial year and in the period since, Zephyr Energy plc (formerly Rose Petroleum plc), ("Zephyr", the "Company" or the "Group") has undergone a wholesale transformation, evolving from a single project exploration company to a self-sustaining oil producing group with a diverse portfolio of assets in two established oil producing basins in the United States of America (the "U.S.").

    The speed and depth of the Group's transformation is even more remarkable when one considers that it was achieved against the turmoil, economic uncertainty and restrictive environment stemming from the global COVID-19 pandemic. Our progress during this tumultuous period was largely due to the extraordinary effort of the Zephyr team, which demonstrated loyalty, professionalism, tenacity and skill throughout this very challenging period.

    Progress was made across our portfolio, on both operated and non-operated assets. Zephyr's operated asset is its flagship project in the Paradox Basin, Utah, U.S. (the "Paradox project"). Following the successful completion of the State 16-2 "dual-use" stratigraphic test well (the "State 16-2 well") which also provided an extensive amount of new geologic data, the project is poised for significant near-term growth as we plan to drill and target first oil production in the coming months. Our non-operated portfolio of assets now includes producing, near-term production and near-term drilling assets in the Williston Basin, North Dakota, U.S., one of the country's most prolific oil producing basins, and we expect to see substantial cash flows from these over the next twelve months.

    In short, I am gratified by the growth achieved and proud that we are successfully executing on our twin core values: to be responsible stewards of our investors' capital, and to be responsible stewards of the environment in which we work.

    BACKGROUND
    When I wrote my Chairman's Statement for the 2019 Annual Report, we had recently completed the first phase of the Group's restructuring, a process which involved augmenting the Board, reducing our operational cost base by way of an essential cost cutting programme, restructuring our Paradox Basin joint venture and acreage position, exiting from all non-core legacy assets and, finally, implementing a new strategy to position the Group for responsible growth and profitability. This groundwork paved the way for the corporate and operational achievements of the last twelve months.

    In late 2019, we unveiled the Group's new strategy which, in addition to developing the Paradox project, was focused on the acquisition of production and development opportunities in the upstream oil and gas sector in the Rocky Mountain region of the U.S., an area with a significant number of opportunities suited to Zephyr's strengths and size. Our stated goal was to produce a cost-effective path to near-term oil production and cash flow while simultaneously progressing our Paradox project and we have successfully delivered on these two key objectives.

    OPERATIONAL ACTIVITY
    Over the past year, we made substantial headway on our operated Paradox project and Zephyr is now on the cusp of a drilling programme that will target first production after many years of hard work and considerable investment in the project. We believe, perhaps more now than ever, that the Paradox project has the potential to be a project of significant scale and profitability.

    Having completed the restructuring of the Paradox project in late 2019, it was important to make progress on (and under) the ground in 2020. I was therefore delighted that we were able to secure United States dollars ("US$") 2 million in U.S. Government grant funding, which enabled us to proceed with the drilling of the State 16-2 well. Securing the funding was a fantastic achievement and one that proved to be an important catalyst for the future development of the project, representing a major step towards realisation of the project's considerable potential while minimising the capital risk to the Group. It is rare to secure grant funding from the U.S. Government for drilling activities of this nature, and this bespoke funding is testament to both the potential of our Paradox project and the efforts of our project team who conceived of, negotiated and delivered this funding successfully.

    Once funding was secured, our focus immediately turned to well planning and operations. Zephyr's drilling team executed the drilling programme in a highly-commendable fashion, through harsh winter conditions, to successfully complete the well in record time for the basin. Drilling operations were safe, effective, conducted in accordance with Covid-19-related guidance and restrictions, and were completed well within the Group's forecast timeframe. We were also able to gather significant amounts of reservoir data which, after several months of review and appraisal, gave us the confidence to make the subsequent decision to plan to drill the sidetrack lateral off the State 16-2 well (the "State 16-2LN CC" or "the lateral") as soon as practicable. Following the successful completion of our fundraise in April 2021, we are now fully funded to initiate this drilling programme.

    The lateral will target first production from the Cane Creek reservoir and, importantly, will utilise the pre-existing roads, pad and wellbore from the State 16-2 well as a low-cost, low environmental impact sidetrack host. We continue to progress the permitting, drilling plan, contracting and resource evaluation ahead of the drilling programme and we remain on track to drill the well in July 2021.

    The significant core and log data acquired from the State 16-2 Cane Creek reservoir corroborated and supported the Board's long-held view that the Paradox has the potential to be a project of considerable scale. The drilling of the lateral well, which has robust and highly attractive forecast economics, has the potential to be a pivotal moment for the Group, and comes after seven years of substantial effort and investment in the asset.

    In parallel with delivering on our strategy for the Paradox project, we have also been able to deliver on the second of our corporate objectives, by securing highly economic existing and near-term production through the acquisition of assets in the Williston Basin (the "Williston project") in Q1 2021, and through our subsequent acquisition of 11.6 acres in the Williston Basin (the "Continental acreage") in Q2 2021.

    The acquired assets are ideal additions to our asset portfolio and an excellent complement to our Paradox project. Since mid-2019, the Group has evaluated a significant number of potential acquisitions, and the Board believed the assets ultimately acquired to be particularly attractive. We negotiated the Williston project acquisition on highly favourable economic terms, especially in light of the considerable rise in oil prices which occurred during the period between the initial agreement on purchase terms and the ultimate closing of the acquisition. The fact that the first five Williston wells acquired had all drilling risk removed was also a major bonus, and the resulting cash flows expected from the project will enable us to begin to utilise the Group's historical tax losses of more than US$16 million.

    The substantial cash flows expected to be generated from the Williston project and the Continental acreage have the potential to be reinvested into the development of the Paradox project or into other opportunities, again demonstrating the strength of a balanced portfolio of project assets.

    The Board retains interest in progressing the Company's potential working interest acquisition in the McCoy lease in the Denver-Julesburg Basin ("DJ Basin") in Weld County, Colorado, U.S. (the "McCoy acquisition"). However, while the potential acquisition continues to meet the Company's key acquisition criteria, the timeline for development has been put on hold by the current operator of the project while an expansion of the project is considered. Zephyr will continue to monitor progress and will look to make an investment decision once a firm development schedule is established and if revised terms can be negotiated. In the meantime, given the amount of forthcoming activity on the Company's Paradox and Williston projects, the Board does not intend to seek to negotiate an extension to Zephyr's existing option on the McCoy acquisition beyond the current expiry date of 30 June 2021. That said, the seller of the McCoy asset has confirmed that the Company will be given a right of first refusal for participation in the project, should the seller seek funding once development plans are solidified.

    ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG)
    During 2020, we executed a complete rebranding of the Group, including the change of the Company's name. Just as importantly, the Board spent significant time formulating and agreeing upon the core principles and values under which Zephyr will operate. In short, Zephyr's team will always strive to be responsible stewards of its investors' capital and responsible stewards of the environment in which we work. We believe that good environmental performance, together with good governance practices, will translate into good business performance and therefore are focused on delivering strong economic returns in the most environmentally responsible manner practical.

    Under my Chairmanship, I want to ensure that every action and investment decision we make is considered against our core values. This includes the following points of focus:

    · we will continue to protect the Group, safeguard its existing asset base and position it for attractive growth opportunities;

    · we will continue to seek creative and beneficial funding opportunities in an effort to unlock value from our existing asset portfolio, as evidenced by the U.S. Government funding we received for our recent drilling programme on the Paradox project;

    · we will continue to adopt a disciplined focus on growth via the acquisition of producing or near-term development opportunities in the Rocky Mountain region. Even in this unusual economic environment, we believe that attractive, value-additive acquisitions are available and may be acquired using non-traditional funding structures;

    · we will continue with our programme of tight financial controls and cash preservation which will enable the Group to continue trading effectively; and

    · we will continue to ensure management and the Board are aligned with our Shareholders through significant ownership of shares - the Board currently controls over 14 per cent of the Company's issued Share Capital.

    OUTLOOK
    The period under review was one of substantial progress for the Group - I am confident that over the next few months we will continue to see a flurry of corporate and operational activity as we target production from the Paradox project and accumulate significant cash flows from our non-operated assets in the Williston Basin. These are exciting times, and we look forward to keeping all our stakeholders updated on our progress.

    A final word must be said about our team and their extraordinary efforts to build value for all Shareholders. During the difficult days in late spring 2020, with the COVID-19 pandemic raging across the globe, our people and partners showed great loyalty in staying committed at a time when we had to implement a radical cost-cutting programme to ensure the survival of the Company. Our team's tenacity and resilience ensured we kept momentum at a crucial time which enabled us all to enjoy the operational successes of recent months. I would like to thank each and every one of them for their hard work, sacrifice and dedication.

    Just as importantly, I would like to extend my heartfelt gratitude to our Company's Shareholders and advisers for their support during a year which contained both unimaginable global turmoil and significant corporate growth. You have demonstrated great loyalty during this transformative period in the Company's history, and on behalf of the entire management team and Board of Directors, I thank you.

    RL Grant
    4 June 2021



    Strategic report


    PRINCIPAL OBJECTIVES AND STRATEGIES
    Zephyr Energy plc is an Oil & Gas ("O&G") exploration and production company. The Company's key objective is to deliver sustainable Shareholder growth through the responsible development of oil and gas assets in the Rocky Mountain region of the U.S.


    To achieve this objective, the Group prioritised:

    · the hiring of Board professionals with significant experience in the O&G sector, with a particular focus on operations, development, governance, finance, merger and acquisition and turnaround experience;

    · a sharpening of focus - we are wholly focused on responsible Exploration and Production ("E&P") investment in the Rocky Mountain region and have exited all other legacy sectors and geographies;

    · the acceleration of data acquisition and development efforts on our flagship Paradox project;

    · the redoubling of ESG efforts, including corporate governance compliance and proactive engagement with the communities in which we operate;

    · the leveraging of partnerships (such as the U.S. Department of Energy, experienced operators in the Basins in which we operate, and private equity investors);

    · the design and build of a technology-led acquisition process which can rapidly assess and acquire distressed E&P assets in our geographical area of focus;

    · the potential addition of further interests through acquisition, farm-in agreements or joint venture arrangements; and

    · tight financial control and cash conservation.

    REVIEW OF OPERATIONS AND FUTURE DEVELOPMENTS
    Background

    In the Company's Interim Results announcement for the six months ended 30 June 2020, we stated that following the completion of significant restructuring efforts, the Company was well positioned as a clean, low-overhead, unlevered and value-focused vehicle from which to build - with a strategy and value set designed to deliver responsible growth for all stakeholders. Furthermore, we went on to say that "over the coming months we expect to see further exciting developments on the Paradox project as well as the expansion of our asset portfolio through acquisitions or partnerships."


    We are proud to report that, just eight months after making these statements, we have been able to meet and exceed those objectives. Zephyr is now a cash-generating, oil producing Group with significant organic growth prospects. We believe our recent operational successes have been achieved not just by sheer hard work, but by being bold, opportunistic and agile in a marketplace experiencing turmoil and disruption due to the impacts of the global pandemic.


    Paradox project

    During the period under review and in the following months, the Company made impressive headway on the Paradox project where Zephyr has operatorship and a 75 per cent working interest in over 25,000 gross leased acres. We are happy to report that we are now on the brink of a drilling programme that will target first production on the project, which comes after many years of considerable investment in these assets. We believe, more than ever, that the Paradox project has the potential to be a project of significant scale and profitability.

    By way of illustration, in their Competent Persons Report ("CPR") prepared for the Group in June 2018, Gaffney Cline and Associates ("Gaffney Cline") estimated that on a project-wide 2C basis (50% chance of exceedance), the Cane Creek reservoir on the Group's acreage (which includes the proposed State 16-2LN CC) holds estimated recoverable resources of over 12 million barrels of oil equivalent ("mmboe") and a net present value of approximately US$156 million using a flat oil price of US$60 per barrel of oil ("bo") and a ten per cent discount rate. This highlights the considerable opportunity we have with the project - it is now our task to unlock this value.


    Background

    During the latter part of 2019, the Board completed a comprehensive review of the Paradox project and elected to pursue a strategy which, in its opinion, would optimally position the project for future growth. This included the following steps:

    · focusing on the most prospective acreage (as identified by the 3D seismic acquisition undertaken by the Group and from the subsequent verification work carried out by Schlumberger);

    · releasing acreage that the Group believed to be non-prospective or on too short a lease to merit further exploration work and / or expenditure; and

    · actively acquiring further contiguous acreage in areas we consider most prospective.

    Stakeholders will continue to see a reshaping of the Paradox acreage position as we proactively manage our leasehold position, and the work to secure longer lease terms and contiguous acreage in areas we consider most prospective remains ongoing.

    This 'high-grading' process was absolutely key for the future success of the project and enabled us to secure the project for the long-term while at the same time reducing carrying costs. The Board believes that a concentrated focus on the most highly prospective acreage not only created a long-term sustainable future for the project, but will also make the organic development of the acreage more economically advantageous.

    Having secured the tenure of the most attractive project acreage, our next task was to commence operations on the ground and begin the process of unlocking the considerable potential value of the project. We were therefore delighted to announce, in September 2020, a partnership to drill a "dual-use" research well on our acreage.


    State 16-2 well

    Following many months of intense effort, negotiation and planning, Zephyr was able to secure US$2 million of U.S. Government grant funding which enabled us to proceed with the drilling of the State 16-2 well, in conjunction with a project team led by the University of Utah's Energy & Geoscience Institute ("EGI") with participants including the Utah Geological Survey (the "UGS") and other Utah-based partners. The project was sponsored by the U.S. Department of Energy and its National Energy Technology Laboratory (the "DOE"), and securing the funding was a notable achievement for the Group and a significant catalyst for accelerated development of the project.

    The DOE's ongoing project is entitled "Improving Production in Utah's Emerging Northern Paradox Unconventional Oil Play". Its goal is to assess and perform optimisation analyses for more focused, efficient and less environmentally-impactful oil production strategies in the northern Paradox Basin, particularly in the Pennsylvanian Paradox Formation's Cane Creek reservoir (the "Cane Creek") and adjacent overlying reservoirs.

    As part of this study, the EGI and UGS originally planned to drill a vertical stratigraphic test well to gather data to improve the understanding of the Paradox Basin play. The proposed well would target the Cane Creek reservoir and potentially the C18/19 reservoirs, acquiring both core data and a comprehensive well log suite in order to provide valuable new basin data.

    Over a period of several months, the project team analysed multiple potential well locations across the Northern Paradox Basin, and we were delighted that the EGI and UGS selected Zephyr's Paradox acreage as the location on which to drill the well. Our acreage was selected for a number of reasons, including the quality of our underlying 3D seismic data (which is being tied into the well results to build a stronger integrated predictive model) as well as a favourable surface location located on a pre-existing pad.

    After our acreage was selected as the location for the test well, we worked with our project partners to design the well in such a way that it could be used not only to obtain the data required by the research project, but so that it could be re-used as a low-cost, low environmental-impact host for a future lateral appraisal well.

    After a period of intense activity to complete all drill planning activities (including site preparation, road work, permit approvals and vendor selection) we were delighted to announce on 18 December 2020 that the well had been spud - and 19 days later we announced that the well had been successfully drilled to a measured depth of 9,745 feet total depth ("TD"). Drilling operations were safe and effective, conducted in accordance with Covid-19 related guidance and restrictions, and were completed well within the Group's forecast timeframe. This was a fantastic achievement by everybody involved.

    Our primary objective was to drill and set casing at 6,450 measured depth ("MD") in order to provide a host wellbore for a future horizontal side track. This goal was achieved within thirteen days from spud. As mentioned above, we subsequently reached TD within nineteen days of spud, a marked improvement over historical drilling efforts in this part of the Paradox Basin. The reduction in drilling time represented a major operational success and demonstrated that the cost of future development wells could be significantly reduced from earlier estimates, thereby improving the overall potential value of the Paradox project for Shareholders.

    Our secondary objective was to acquire a significant amount of new data to improve our understanding of our Paradox acreage. We were pleased to report that Zephyr's data acquisition programme secured the following:

    · approximately 113 feet of continuous whole core across the historically productive Cane Creek reservoir interval - the first whole Cane Creek core ever to be retrieved in the northern part of the Paradox Basin;

    · rotary side wall cores in eleven shallower exploration targets; and

    · gamma ray, neutron density, resistivity, formation litho scanner and sonic wireline log data across the bulk of the Paradox Formation, which secured significant additional petrophysical data.

    Following the completion of drilling and data acquisition operations, the State 16-2 well was temporarily plugged at 6,450 feet TD, stable and for future re-use as a lateral wellbore host.


    Decision to proceed with the State 16-2LN CC lateral well

    The core and log data acquired from the State 16-2 Cane Creek reservoir both corroborated and supported the Board's long-held view that the Paradox has the potential to be a project of considerable scale.

    On 15 March 2021, we announced a detailed update on the Paradox project, which included confirmation of evidence of hydrocarbon saturation across the entirety of the continuous core acquired from the Cane Creek reservoir. When integrated with the recently acquired log data, existing 3D seismic data, geologic and regional analogue analysis, the resulting analysis gave the Board strong justification for advancement to the next phase of project. The Board therefore elected to proceed with detailed planning for the near-term drilling of the lateral, and following the successful completion of a fundraise in April 2021, the Company is fully funded to commence the drilling of the lateral portion of the well.

    The lateral will test the potential productivity and target initial production from the Cane Creek reservoir natural fracture system, and will utilise the pre-existing roads, pad and wellbore from the State 16-2 as a low-cost, low environmental impact sidetrack host. We continue to progress the permitting, drilling plan, contracting and resource evaluation ahead of the drilling programme and the Company remains on track to drill the well in July 2021. It is estimated that the cost of the lateral well will be approximately US$3.8 million, including contingency funds.

    We have continued to refine the cost and economic benefits of the lateral, which is forecast to have strong economics based on its 2C estimate, including:

    · A single-well net present value of approximately US$8.2 million at US$60.00 /bo and at a ten per cent. discount rate (NPV-10);

    · a cash flow breakeven oil price of US$20.55 /bo; and

    · a single-well estimated ultimate recovery of 694,000 boe.


    The Board recognises that commercial production from the Paradox Formation across the Zephyr lease holding has not yet been proven. The State 16-2LN-CC well will represent another milestone in testing this potential and the effectiveness of the Cane Creek reservoir and natural fracture system. The well has been designed to target a series of 3D seismic attributes that are often associated with natural fractures. This will test both the reservoir effectiveness at the well location and the ability of the 3D to predict fracture presence and productivity elsewhere within the 3D area. The team is also evaluating the potential to hydraulically stimulate the well if the natural fracture system is not productive at this location. This may be a secondary route to delivering a profitable well and greater development.

    The drilling of the State 16-2LN CC well, with its robust and highly attractive forecast economics, has the potential to be a pivotal moment for the Group, and comes on the back of seven years of substantial time and investment in the asset. We are excited for this next phase of development.


    Further upside to Paradox project

    In addition to the potential of the Cane Creek reservoir, the Board remains encouraged by indications that demonstrate the potential for multiple stacked overlying reservoirs across our Paradox resource base. Initial log analysis from the State 16-2 well suggested hydrocarbon saturation across the bulk of these reservoirs, a result consistent with offset wells and which provided compelling evidence for the presence of stacked continuous oil and gas plays - plays which could potentially be drained should viable natural fracture networks be identified or should artificial hydraulic stimulation completion techniques be applied successfully. Unlike the Cane Creek reservoir, these overlying secondary zones have not demonstrated historical production and therefore require significant additional evaluation before a resource base assessment can be concluded. We are directing a considerable amount of effort to this at present and will keep the market updated as the detailed analysis progresses.

    A key consideration for the Board was how to optimally fund additional development of the Paradox project. I was therefore delighted that we were able to complete the acquisition of the Williston project which has the potential to provide the Company with cash flow to fund future additional Paradox activity well beyond the near-term drilling of the State 16-2LN CC.


    Williston Project

    In March 2021, the Group completed the purchase of the Williston project which is expected to provide the Group with low-risk oil production from five already drilled wells which are, as mentioned above, expected to generate substantial cash flows that can be utilised across the Group.

    The initial cost of the acquisition was US$350,000 (payable to the seller of the assets). In addition, the Company made a payment of approximately US$3.7 million to the project Operator for historical capital expenditure ("CAPEX") obligations on the project.


    The key details of the project were as follows:

    · acquisition of non-operated working interests in five wells (one producing well and four drilled but uncompleted wells (a "DUC" or "DUCS") in Mountrail County, North Dakota, U.S.;

    · the working interests on the five wells ranged from 16.8% to 37.2%;

    · the wells are operated by Whiting Petroleum, an active and highly experienced operator in the Williston Basin;

    · the Group agreed headline terms with the vendor when the oil price was at US$45 /bo;

    · the producing well has been on production since March 2020 and first revenue payments have now been received by Zephyr;

    · the completions on the four DUCs commenced in April and production revenues are targeted to be received on all four wells by September 2021;

    · 2P Reserves acquired were estimated at 449,434 boe to the Group; and

    · the five wells are spread across three separate drilling pads, creating attractive production diversification.


    The key benefits of the Williston acquisition were as follows:

    · a low-risk acquisition with substantial near-term cash flow expected;

    · no remaining drilling risk - all five wells were already drilled successfully to target depth;

    · excellent complement to (and funding source for future development on) the Paradox project; and

    · no federal tax payments payable in the short-term as profits can be offset against the Group's historic tax losses.


    Zephyr is now responsible for payment of future CAPEX obligations related to the Williston project as the DUCs are completed and tied in. These costs are estimated to be approximately US$4.2 million, and will become due after the wells are completed.

    The economics on the Williston project, as calculated by the Group, are extremely attractive and the acquisition established the Group as an immediate oil producer. Once the four DUC wells are online in summer 2021, the Group forecasts that the acquisition will provide:

    · up to US$8 million of undiscounted cash flow over the next 12 months, and a total of US$15 million of undiscounted cash flow over the lifetime of the project, for Zephyr to deploy into the Paradox development or into additional projects (assuming an oil price of US$60/bo);

    · 2P net present value at NPV-10 of US$4.3 million;

    · a cash flow breakeven oil price of US$36.69/bo (inclusive of all CAPEX expended);

    · approximately 720 barrels of oil equivalent per day ("boepd") average production anticipated in H2 2021;

    · a one-year cash payback; and

    · the opportunity to shelter U.S. federal tax payments by utilising the Group's historical tax losses of more than US$16 million.

    Continental acreage

    In May 2021, Zephyr announced the acquisition of the Continental acreage, which gave the Group a working interest in a drilling spacing unit ("DSU") operated by Continental Resources Inc ("Continental"), the largest operator in the Williston Basin. The Continental acreage is located approximately ten miles from the Company's Williston project, in a highly attractive part of the Basin. The cost of the acreage acquired by Zephyr was approximately US$170,000 and was paid for from the Company's existing cash resources.

    Continental has already commenced drilling two initial wells on the DSU ("Initial wells"), with up to an additional 22 future wells ("Future wells") forecast to be drilled by 2023.

    · Zephyr's forecast net CAPEX for the initial wells is approximately US$135,000 which will be funded from existing cash resources.

    · Zephyr's net CAPEX for the proposed 22 Future wells is forecast to be approximately US$710,000, which could also be funded from the Group's existing cash resources.

    · CAPEX on the Future wells is discretionary, and Zephyr's Board of Directors will elect whether to participate in those wells on a case-by-case basis.


    The Continental acreage has, net to Zephyr, Company estimated 2P reserves (from all 24 wells) of circa 60,000 boe which were acquired at a price of approximately US$2.83/ boe. The 1P reserves on the Continental acreage are, net to Zephyr, estimated at circa 41,000 boe and the 3P reserves at circa 72,000 boe.

    This opportunistic acquisition has strong forecast economics and provided the Company with further exposure to low risk, near-term production. Initial revenues from the acquisition are expected to be received in the second half of this year.

    The acquisition of the Continental acreage, in a DSU operated by a first-class Williston Basin participant, is a strong example of what can be achieved in the current market. The acreage is in an excellent location and provides both near-term drilling exposure and future drilling optionality. While the initial scale of the acquisition is small, for a minimal upfront cost Zephyr now has potential to participate in up to twenty-four highly economic wells over the next two years. Given the continued improvement in drilling costs and robust oil price environment, we believe this acreage will provide attractive near-term cash flow returns and is an excellent addition to our asset portfolio.


    McCoy update

    In November 2019, the Group announced that it had entered into a Letter of Intent ("LOI") with Captiva Energy Holdings II, LLC ("CEH") in respect of the proposed McCoy acquisition.

    The McCoy acquisition would provide the Group with near-term, low-risk horizontal development drilling exposure in the prolific Niobrara resource play, and on acreage contiguous to other major DJ Basin operators including Occidental Petroleum Corporation, Great Western Operating Company LLC (a subsidiary of Great Western Petroleum), and Crestone Peak Resources. The DJ Basin is a mature oil and gas basin currently undergoing a resurgence as vertical production is replaced with successful one-, two-, and three-mile horizontal well developments. The McCoy lease is located in an active part of the DJ Basin and a horizontal redevelopment of the existing productive lease is proposed.

    The Board retains interest in progressing the McCoy acquisition. However, while the asset continues to meet the Company's key acquisition criteria, the timeline for development has been put on hold by the current operator of the project while an expansion of the project is considered. Zephyr will continue to monitor progress and will look to make an investment decision once a firm development schedule is established and if revised terms can be negotiated. In the meantime, given the amount of forthcoming activity on the Company's Paradox and Williston projects, the Board does not intend to seek to negotiate an extension to Zephyr's existing option on the McCoy acquisition beyond the current expiry date of 30 June 2021. That said, the seller of the McCoy asset has confirmed that the Company will be given a right of first refusal for participation in the project, should the seller seek funding once development plans are solidified. The Board will continue to monitor the situation on the project and plans to review the project again once development milestones are more clearly defined.


    FINANCIAL REVIEW

    Income Statement
    Zephyr reports a net loss after tax from continuing operations of US$2.3 million or a loss of 0.66 cents per Ordinary Share for the year ended 31 December 2020 (2019: net loss after tax from continuing operations of US$3.0 million or 1.74 cents per Ordinary Share). The operating loss for the year was US$2.36 million, which was lower than that in the prior year (2019: US$2.81 million) primarily due to a reduction in administrative expenses as a result of the cost cutting programme implemented during the period.

    The first production revenues from the Williston project will be evident in the interim financial statements for the 2021 financial year.


    Balance Sheet
    Total investment in the Group's intangible exploration and evaluation assets as at 31 December 2020 was US$13.9 million (2019: US$13.5 million) reflecting continuing investment in the Paradox project. The Group's expenditure on intangible exploration and evaluation assets is shown net of US$1.8 million funded by the DOE during the year.

    Cash and cash equivalents as at 31 December 2020 were US$3.9 million (2019: US$1.1 million). During the period, the Company raised gross proceeds of US$2.9 million (2019: US$2.0 million) through the placing of new Ordinary Shares in the Company. In March 2021 the Company announced that it had raised a further US$13.6 million (before expenses) through the placing of new Ordinary Shares in the Company.


    Significant decisions made
    During the year under review, the Directors secured US$2 million in U.S. Government grant funding to facilitate the drilling of the State 16-2 well. The decisions to proceed with the grant funding and the drilling on the State 16-2 well were logical decisions to ensure the advancement of the Paradox project and were unanimously deemed by Board members to be in the best interests of the Company.

    In addition, and to facilitate the drilling of the State 16-2 well, the Company completed an equity fundraise through the issue of Ordinary Shares in the Company. Details of this fundraise can be found in the relevant sections of the Annual Report. In arriving at the decision to proceed with the fundraise the Directors considered the cash position of the Company, the dilution impact that the respective fundraises would have on the existing Shareholders of the Company and the importance of progressing the Paradox project. After due consideration, the Directors considered the fundraise to be in the best interests of the Company and its Shareholders.

    We would like to thank all Shareholders for their continued support.


    On behalf of the Board
    JC Harrington
    Chief Executive Officer
    4 June 2021

    Zephyr Energy PLC - Final Results and notice of AGM #ZPHR @ZephyrEnergyPlc https://www.voxmarkets.co.uk/rns/announcement/506415f5-5845-4cbe-9643-16bb8fe051c6 #voxmarkets
     
    Last edited: Jun 7, 2021
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  9. Groucho

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    Zephyr Energy
    Zephyr has announced final results for 2020, during the 2020 financial year and in the period since, Zephyr underwent a wholesale transformation as it evolved from a single project exploration company to a self-sustaining oil producing group with a diverse portfolio of assets in two established oil producing basins in the United States of America.

    The Company expects to accumulate substantial cash flows over the next twelve months from its recently acquired non-operated assets in the Williston Basin, North Dakota, U.S. In addition, Zephyr is poised for significant near-term organic growth as it plans to drill and target first production from its flagship appraisal project in the Paradox Basin, Utah, U.S. The Company also expects to complete its initial analysis of the geologic data acquired from the recently drilled State 16-2 “dual-use” well shortly, in both the Cane Creek and the multiple overlying reservoirs.


    Exciting times indeed and the management at Zephyr have without doubt made their mark on the sector with their progress in the Paradox Basin and to have followed that up with a deal such as they have done in the Williston is pure text book stuff. Investors have had a very good run in the shares which have already quadrupled this year to date but as I have said before I think that there is still significant upside. This should see exploration in the Paradox Basin and cash flow from the Williston and possibly more. I am interviewing CEO Colin Harrington this week and I look forward to getting up to date in that discussion.

    https://www.malcysblog.com/2021/06/oil-price-iog-zephyr-getech-group-and-finally/
     
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  10. Groucho

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    8 June 2021

    Zephyr Energy plc

    (the "Company", "Zephyr" or the "Group")


    Zephyr pledges to achieve 100% carbon-neutral operations by 30 September 2021;

    launch of carbon measurement and mitigation initiative with the Prax Group


    Zephyr Energy plc (AIM: ZPHR), the Rocky Mountain oil and gas company focused on responsible resource development, is pleased to announce that it intends to achieve carbon-neutrality across its operational footprint by 30 September 2021. This industry-leading pledge is a major first step towards near-term delivery of hydrocarbons produced with an operational "net-zero" carbon impact, and the Company's Board members are unanimously committed to this initiative.

    As an integral part of this undertaking, Zephyr has agreed to collaborate with the Prax Group, a British multinational independent oil refining, trading, storage, distribution and retail conglomerate dealing in crude oil, petroleum products and bio-fuels, headquartered in London, United Kingdom. The Prax Group, which has trading offices in London, Singapore and the United States of America ("US"), will work with Zephyr to measure, reduce and mitigate greenhouse gas ("GHG") emissions across Zephyr's businesses, with mitigation efforts primarily focused on the purchase of sustainability/decarbonisation offsets (called Verified Emission Reductions or "VER") from reputable pre-vetted developers of sustainable projects. This exercise will include Zephyr's current corporate activity, its non-operated production assets in the Williston Basin, North Dakota, US, and its upcoming appraisal drilling project in the Paradox Basin, Utah, US.

    The cost to purchase the appropriate number of VERs to offset Zephyr's growing operational footprint is expected to average well under $1 per barrel of oil equivalent produced, although the net cost to Zephyr may be considerably less given the potential to sell oil volumes at a premium as a result of the anticipated "net-zero" operational carbon status of those volumes. Purchases of VERs will be staged in increments matching Zephyr's forecast production profile to facilitate effective cash management. Recent market-based evidence suggests that purchasers and supply chain partners of "net-zero" operated volumes are willing to absorb costs associated with the purchase of VER offsets related to oil and gas production.

    Zephyr's initial efforts will be focused on its Scope 1 GHG impacts1, which cover all direct emissions from Zephyr-owned or controlled sources - from the drilling and production of operated and non-operated hydrocarbons through to transport to the refinery, as well as all other corporate emissions. Over the next few months, Zephyr and the Prax Group will focus on measuring, reducing and mitigating operational GHG emissions across the Company, and Zephyr's pledge to achieve carbon-neutral operations in a rapid manner is demonstrative of Zephyr's commitment to achieving sector-leading environmental standards.

    Zephyr's Board also understands that mitigating the Company's operational CO2 impact is only a first step - emissions from the ultimate end-use of produced volumes have a significant CO2 impact as well. Going forward, Zephyr pledges to work with potential end-users of its products to explore routes to more fully offset its product CO2 (Scope 3 Emissions1) to the greatest extent possible.

    In addition to the environmental benefits that will result from Zephyr's efforts to reach carbon-neutrality, the Company anticipates that this approach will also yield economic benefits - including expanded access to a wider group of potential institutional investors, as total ESG-focused assets under management are currently estimated to be over US$30 trillion globally. Moreover, the average cost of capital for companies with committed ESG and decarbonisation initiatives has been shown to be demonstrably less than that of traditional resource companies. The Board believes that incremental regulatory benefits may also materialise from Zephyr's actions.


    Colin Harrington, Chief Executive of Zephyr, said:

    "When we relaunched the Company as Zephyr almost a year ago, the Board unanimously agreed a policy to always operate with two core values in mind: to be responsible stewards of our investors' capital and to be responsible stewards of the environment in which we work.

    "These values are straightforward, fundamental, and at the forefront of every decision we make. It's why I'm excited that today's announcement, a pledge to offset 100% of carbon emissions from our operations starting this September, is both a groundbreaking initiative for Zephyr and a major step towards a tangible demonstration of our commitments.

    "Zephyr recently entered a new phase of growth - we are now a cash-generating oil producer with plans for near-term development on our flagship Paradox Basin appraisal project. This new phase comes with a corresponding new carbon impact, which is why the timing is right to launch what we believe is an industry-leading environmental commitment. As our existing asset portfolio consists of light, high-quality, low-GHG intensity resource developments, we have confidence that Zephyr is an ideal platform from which to launch this initiative.

    "The path forward, albeit nascent and experimental, is grounded in the sentiment that good environmental & operational performance + good governance = superior investor returns. Today's announcement is illustrative of this thesis. We believe that eliminating our operational carbon footprint is important from an environmental perspective - and we also feel that our shareholders will benefit from the potential for premium commodity pricing, access to a wider pool of institutional investors and cheaper cost of capital, as well as enhanced relations with our regulatory partners.

    "We've set ourselves an ambitious target to reach carbon neutrality for all operations by the end of September, and I am thankful for our collaboration with Christopher Dillman and his team at the Prax Group for assisting us with this endeavour. Their capabilities in structuring and executing bespoke actionable decarbonisation strategies makes them an excellent fit for Zephyr.

    "We look forward to working with the Prax Group team to deliver on this commitment to improve Zephyr's environmental performance and minimise the impacts of our corporate activity and hydrocarbon production."
     
  11. Groucho

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    CEO Colin Harrington discusses our new phase of growth and our path forward with @mgrahamwood #ZPHR
     
    Last edited: Jun 10, 2021
  12. Groucho

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    11 June 2021

    Zephyr Energy plc

    (the "Company", "Zephyr" or the "Group")


    Zephyr to submit application to cross trade on the U.S. OTCQB


    Zephyr Energy plc (AIM: ZPHR), the Rocky Mountain oil and gas company focused on responsible resource development and carbon-neutral operations, is pleased to announce that it is filing an application with the OTC Markets Group for the Company's Ordinary shares to be publicly cross traded on the OTCQB Market ("OTCQB") based in the United States ("U.S.").

    The OTCQB, also called "The Venture Market," was created in 2010 and is recognised as an Established Public Market by the U.S. Securities and Exchange Commission (the "SEC"). The OTCQB is a leading market for U.S. and international companies in the entrepreneurial and development stage. As a verified market with efficient access to U.S. investors, OTCQB helps companies build shareholder value with a goal of enhancing liquidity and achieving a fair valuation.

    The Company believes that having its Ordinary Shares traded on the OTCQB will provide enhanced investor benefits, including easier trading access for investors located in the U.S., and greater liquidity due to a broader geographic pool of potential investors. A market maker will be appointed in the U.S. to support the trading on the OTCQB.

    The process to enlist on the OTCQB is expected to take approximately 6 weeks, and trading on the market will have no impact on Zephyr's existing Ordinary shares which will continue to trade on the AIM Market of the London Stock Exchange, and no new Ordinary Shares will be issued as part of the cross trade on the OTCQB. Zephyr will continue to rely on the announcements and disclosures it makes to the London Stock Exchange and will have no Sarbanes-Oxley or SEC reporting requirements in connection with the proposed cross-trading on the OTCQB.

    To qualify for the OTCQB, Zephyr will demonstrate that it meets high financial standards, follows best practice corporate governance and that it complies with applicable securities laws.


    Colin Harrington, Chief Executive of Zephyr, said: "We believe dual trading on the OTC and AIM Markets represents another important step for the Zephyr corporate platform. Dual trading, combined with our recent pledge to achieve carbon neutrality across our operational footprint, will serve to diversify the share register and increase exposure to a broader range of investors, whether U.S.-based or ESG-focused. This action comes on the back of an already increased level of interest from U.S. investors as a result of the recent expansion of our operational footprint in the U.S.

    "Over the last 18 months, we've worked hard to complete Zephyr's corporate transformation, and following our admission to trade on the OTCQB, I believe our Company platform will now be optimally structured to benefit from the considerable operational activity planned for the coming months."
     
  13. Groucho

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  14. Groucho

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    14 June 2021

    Reach - non-regulatory announcement


    Zephyr Energy plc

    (the "Company" or "Zephyr")


    Colin Harrington, Zephyr's CEO, to present at the Proactive One2One Virtual Forum


    Zephyr Energy plc (AIM: ZPHR), the Rocky Mountain oil and gas company focused on responsible resource development and carbon-neutral operations, is pleased to announce that the Company will be presenting at Proactive Investors' One2One Virtual Forum on Thursday 17th June 2021.

    The event will commence at 6.00pm and will take place via online webinar. Colin Harrington, Zephyr's Chief Executive Officer, will be presenting at 6.00pm, followed by a Q&A session.

    The Company is committed to ensuring that there are transparent communication channels for all of its stakeholders so that its strategy, business model and performance are clearly visible and available to all.

    If you would like to join the event, please register in advance at the following link:
    https://event.webinarjam.com/register/1117/xyy9gsm54
     
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  15. Groucho

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    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."
     
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  16. Groucho

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    18 June 2021

    Zephyr Energy plc

    (the "Company", "Zephyr" or the "Group")


    Corporate Presentation and updated financials for Paradox project


    Zephyr Energy plc (AIM: ZPHR), the Rocky Mountain oil and gas company focused on responsible resource development and carbon-neutral operations, notifies that its presentation from last night's Proactive Investors' One2One Virtual Forum is now available on the Company's website www.zephyrplc.com.

    The Company has also provided updated financial information on its project in the Paradox Basin, Utah, United States of America ("U.S.") (the "Paradox" project) to reflect the current oil price environment.

    Zephyr is due to commence a drilling programme on the Paradox project in July. The planned appraisal well, the State 16-2LN-CC (the "lateral well), will target the Company's first production on the Paradox project. Using a flat oil price of US$70 per barrel of oil equivalent ("boe"), the Company estimates that the lateral well has a 2C single-well net present value at a ten percent discount rate ("NPV-10") of US$10.4 million. Using the same flat oil price of US$70 per boe, the prime reservoir target on its leaseholding - the Cane Creek reservoir - has estimated 2C resources with an NPV-10 of US$225 million.

    The above is based on metrics disclosed in the announcement on 29 March 2021 and is calculated in accordance with the Company's Competent Persons Report prepared by Gaffney Cline & Associates in June 2018.

    https://www.zephyrplc.com/presentation-feb-21-2/
     
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  17. Groucho

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    24 June 2021

    Zephyr Energy plc

    ("Zephyr" or the "Company")



    Grant of final approvals necessary to drill the State 16-2LN-CC well

    Zephyr Energy plc (AIM: ZPHR), the Rocky Mountain oil and gas company focused on responsible resource development and carbon-neutral operations, provides an update on its project in the Paradox Basin, Utah, U.S.A (the "Paradox project") where the Company is preparing to spud the State 16-2LN-CC appraisal well (the "well"). The well will seek to target the Company's first production on the Paradox project, and it is expected that drilling operations will commence in July as previously forecast.

    The Company is pleased to announce that it has received all final approvals and permits required to proceed with the drilling of the well. These approvals include surface rights and rights to drill from the Utah School and Institutional Trust Lands Administration ("SITLA"), approvals from the Bureau of Land Management ("BLM"), and Application to Drill ("APD") approval from the Utah Division of Oil, Gas and Mining ("DOGM"). In addition, the Company has received all necessary consents from its joint-venture partner on the Paradox project.

    With all approvals and permits now in place, the Company is working to finalise the project contracts needed to enable the Company to meet its proposed timeline of a July spud date.


    Colin Harrington, Zephyr's Chief Executive said "Securing all approvals and consents needed to drill the State 16-2LN-CC is another step in our efforts to unlock significant value from what we believe is a project of substantial scale.

    "I would like to thank all parties involved in this process, especially our advisers and the dedicated staff at SITLA, DOGM and the BLM. We are now well-positioned to finalise drilling preparations and third-party service contracts in advance of the proposed well spud next month."
     
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  18. Groucho

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    Zak Mir - #ZPHR Target 9p by end August (10:15 onwards)
     
  19. Groucho

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    28 June 2021

    Zephyr Energy plc

    ("Zephyr" or the "Company")



    Award of drilling contract to Cyclone Drilling Inc.


    Zephyr Energy plc (AIM: ZPHR), the oil and gas company focused on responsible resource development and carbon-neutral operations in the Rocky Mountain region, provides an update on its project in the Paradox Basin, Utah, U.S. (the "Paradox project") where the Company is preparing to spud the State 16-2LN-CC appraisal well (the "well").

    The Company is pleased to announce the signing of a drilling contract with Cyclone Drilling Inc. ("Cyclone"). This follows a competitive selection process involving extensive technical and commercial evaluation of multiple potential drilling contractors. Zephyr is delighted to be working with Cyclone again, following their efficient completion of the State 16-2 stratigraphic test well (the "16-2 well") for Zephyr and its project partners earlier this year.

    The Cyclone Rig #34 will again be the unit used for the drilling programme - the same rig that successfully and safely drilled the State 16-2 well to a total depth ("TD") of 9,745 feet in less than 19 days last winter, a record performance versus historical drilling efforts in the northern part of the Paradox Basin. Rig #34 is fully capable of drilling to the planned depths and pressures that are expected at the State 16-2LN-CC well.


    Colin Harrington, Zephyr's Chief Executive, said "We welcome the opportunity to resume our partnership with Cyclone as we prepare to drill the State 16-2LN-CC well. In addition to our positive experience working alongside their team earlier this year, Cyclone has a long history of drilling safe and successful wells in the Rocky Mountain region. I am confident in their ability to help us deliver this well in a safe, efficient and responsible manner.

    "Cyclone Rig #34 has remained active in recent months, is well known to our drilling team, is available on Zephyr's timeline and is currently located in Utah, providing savings on mobilisation and demobilisation costs.

    "With the well now fully permitted and the rig contract signed, we look forward to commencing operational activity on the ground in July as envisaged."
     
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  20. Groucho

    Groucho Member

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    Daily Mail 29/06/2021
     
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