REG - Zephyr Energy PLC - Issue of equity and change to total voting rights

Zephyr EnergyAnnouncement

01/02/2023 07:00

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RNS Number : 4991O  Zephyr Energy PLC  01 February 2023

1 February 2023

Zephyr Energy plc

(the "Company" or "Zephyr")

 

Issue of equity and change to total voting rights

 

Zephyr Energy plc (AIM: ZPHR) (OTCQB: ZPHRF), the Rocky Mountain oil and gas
company focused on responsible resource development and carbon-neutral
operations, announces that application has been made to the London Stock
Exchange for 13,483,095 new ordinary shares of 0.1 pence each in the Company
(the "new Ordinary Shares") to be admitted to trading on AIM ("Admission").

 

The issue of the new Ordinary Shares is the first tranche of the consideration
for the acquisition of the remaining 25 per cent working interest across the
White Sands Unit in the Paradox Basin, Utah, U.S. (the "Paradox
Acquisition"), as announced on 21 December 2022. It is expected that Admission
will occur on or around 10 February 2023 whereupon the Paradox Acquisition is
expected to complete.

 

The second and final tranche of the acquisition consideration is payable by
the issue of 26,966,189 ordinary shares of 0.1p each in the Company to the
vendor upon Zephyr's final investment decision with respect to the contract
award to a primary contractor to commence construction activities to make the
Powerline Road gas processing plant operational.

 

The new Ordinary Shares will be subject to a lock-up period which will expire
at the earlier of the date that first gas from the State 36-2 LNW-CC well is
sold via the Dominion Energy 16-inch gas export pipeline or 15 December
2023.

 

 

Total voting rights

 

The issued share capital of the Company on Admission will be 1,596,501,823
ordinary shares of 0.1 pence each with one voting right per share. The Company
does not hold any shares in treasury. The total number of ordinary shares and
voting rights in the Company is therefore 1,596,501,823. With effect from
Admission, this figure may be used by shareholders in the Company as the
denominator for the calculations by which they will determine if they are
required to notify their interest in, or a change to their interest in, the
share capital of the Company under the FCA's Disclosure Guidance and
Transparency Rules.

 

 

 

 

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 by third
party consultants Sproule International to hold, net to Zephyr, 2P reserves
of 2.1 million barrels of oil equivalent ("mmboe"), 2C resources of 27 mmboe
and 2U resources 203 mmboe. Following the successful initial production
testing of the recently drilled and completed State 16-2LN-CC well, Zephyr has
planned a three well drilling program - commencing in 2022 with the State 36-2
LNW-CC well - to further delineate the scale and value of the project.

 

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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