REG - Zephyr Energy PLC - Completion of Paradox project acquisition

Zephyr EnergyAnnouncement

10/02/2023 08:00

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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                                                   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 / 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

 John Prior / Hugh Rich / James Sinclair-Ford / Harriette Johnson

 Celicourt Communications - PR

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

 

 

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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