REG - Zephyr Energy PLC - AGM Statement

Zephyr EnergyAnnouncement

21/07/2022 07:00

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RNS Number : 1763T  Zephyr Energy PLC  21 July 2022

 

 

21 July 2022

Zephyr Energy plc ("Zephyr" or the "Company")

 

AGM Statement

 

Zephyr Energy plc (AIM: ZPHR) (OTCQB: ZPHRF), the Rocky Mountain oil and gas
company focused on responsible resource development from carbon-neutral
operations, will hold its Annual General Meeting ("AGM") at 10am BST today, at
the offices of Zephyr Energy plc, First Floor, Newmarket House, Market Street,
Newbury, Berkshire, RG14 5DP.

 

Ahead of the AGM today, Rick Grant, Zephyr's Non-Executive Chairman, has made
the following statement:

 

"The past year has been a period of substantial growth for Zephyr which has
seen the Company transform into a carbon neutral, cash generative,
self-sustaining oil production company with a balanced portfolio of both
operated and non-operated assets located in two established oil producing
basins in the U.S.

 

We continue to make sustained progress on our stated mission - to open up the
next prolific onshore U.S. oil and gas play. To this end, we have added value
through initial drilling success at our flagship operated Paradox project in
Utah, U.S., culminating in defining the first project reserves and
significantly increasing both the contingent and prospective resources, while
simultaneously highlighting the scale and future production potential of the
project. We aim to materially increase the project reserves when we target
undertaking extended production testing from our State 16-2LN-CC well by the
end of September 2022 and through our three well drilling programme which is
expected to commence in the second half of 2022 and for which detailed
planning has long been underway.

 

In addition to our operated Paradox project, we are producing significant
levels of cash flow from our non-operated Williston Basin assets in North
Dakota, U.S. ("Williston project"). First quarter 2022 ("Q1") revenues from
the portfolio totalled US$11.5m, generated from an average of 1,600 barrels of
oil equivalent per day, net to Zephyr, at an average sales price for the oil
of US$90.11 per barrel.   Q1 operating cash flow (net of royalty, tax and
operating expenditure) was US$9.8 million, which demonstrates the high profit
margin realised from the hydrocarbons sold during the period. Today, we
reiterate our previous full-year 2022 revenue forecast of US$35-40 million,
which is based on a forecast production range of 500,000 - 550,000 barrels of
oil equivalent for the year. We also continue to evaluate opportunistic
acquisitions to further grow our production portfolio during 2022 and beyond.

 

Importantly, even through this period of significant production and cashflow
growth, the Company will always strive to operate within our core values of
being responsible stewards of both our investors' capital and of the
environment in which we operate. We believe that we are ideally positioned to
deliver on our stated strategy and we look forward to keeping the market
updated as the Paradox drilling programme commences, alongside other
milestones.

 

On behalf of the Board, I would like to thank everyone within Zephyr for their
unswerving hard work and commitment during this transformational period. I
would also like to extend my heartfelt gratitude to our Shareholders and
advisers for their continued support.

 

Due to the achievements of 2021, we look to the future with a high degree of
confidence and excitement as we continue our pursuit of building a group of
which all our stakeholders can be proud."

 

Williston production and sales update

 

The Company expects to update the market on second quarter 2022 production and
sales volumes from its Williston non-operated portfolio in early August 2022.
Going forward, and given the timing of the provision of production and sales
data to Zephyr from the well operators, the Company intends to provide
quarterly updates on its non-operated portfolio performance with updates
published within 45 days of the relevant quarter end.

 

 

 

Contacts:

 

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

 Colin Harrington (CEO)

 Chris Eadie (CFO)

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

 Jeremy Porter / Liz Kirchner / Vivek Bhardwaj

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

 James Pope / Andy Thacker

 Celicourt Communications                         Tel: +44 (0) 20 8434 2643

 Mark Antelme / Felicity Winkles

 

 

 

 

 

 

 

 

 

 

 

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