REG - Zephyr Energy PLC - Operations update, warrant exercise and TVR change

Zephyr EnergyAnnouncement

14/05/2024 07:00

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RNS Number : 2575O  Zephyr Energy PLC  14 May 2024

14 May 2024

Zephyr Energy plc

("Zephyr" or the "Company")

 

Operations update, exercise of warrants

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 from carbon-neutral
operations, is pleased to provide an update on operations. In addition, Zephyr
received a notice for the exercise of warrants in the Company.

 

State 36-2R well drilling operations update

 

Further to its announcement on 3 May 2024, the Company is pleased to report
that operations on the State 36-2 LNW-CC-R well in the Paradox Basin, Utah
continue to progress in line with expectations.  The 12-¼ inch intermediate
section of the well was successfully drilled to the section total depth, after
which 9 5/8-inch casing string was set and cemented in place. The current hole
depth is 6,010 feet measured depth.

 

The next phase of operations will involve drilling through the Paradox
formation to the target Cane Creek reservoir zone. Drilling is planned to
reach a total depth of 10,362 feet measured depth (9,600 feet true vertical
depth) and will incorporate a short, 270-foot horizontal reservoir section.

 

Williston project update

 

At the Company's non-operated asset portfolio in the Williston Basin, North
Dakota, U.S. (the "Williston project"), hydrocarbon production in the first
quarter of 2024 ("Q1") was in line with management's expectations. The Company
expects to provide further details in a full Q1 update by the end of May 2024.

 

Exercise of Warrants

 

The Company received notice for the exercise of warrants to subscribe for
171,429 new ordinary shares of 0.1 pence each in the Company ("Ordinary
Shares").  The warrants were issued in June 2023 and had an exercise price of
4.375 pence per new Ordinary Share, which generated proceeds of approximately
£7,500 for the Company.

 

Application has been made to London Stock Exchange plc for the 171,429 new
Ordinary Shares to be admitted to trading on AIM ("Admission"). It is expected
that Admission will become effective and that dealings in the new Ordinary
Shares will commence on AIM at 8.00 a.m. on or around 16 May 2024.

 

Total Voting Rights

 

Upon Admission, the Company's issued share capital will consist of
1,750,719,020 Ordinary Shares with one voting right each. The Company does not
hold any Ordinary Shares in treasury. Therefore, the total number of Ordinary
Shares and voting rights in the Company will be 1,750,719,020. 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 (Group Finance Director)

 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 7770 6424

 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.

Certain statements in this announcement, are, or may be deemed to be, forward
looking statements. Forward looking statements are identified by their use of
terms and phrases such as ''believe'', ''could'', "should" ''envisage'',
''estimate'', ''intend'', ''may'', ''plan'', ''potentially'', "expect",
''will'' or the negative of those, variations or comparable expressions,
including references to assumptions. These forward looking statements are not
based on historical facts but rather on the Directors' current expectations
and assumptions regarding the Company's future growth, results of operations,
performance, future capital and other expenditures (including the amount,
nature and sources of funding thereof), competitive advantages, business
prospects and opportunities. Such forward looking statements reflect the
Directors' current beliefs and assumptions and are based on information
currently available to the Directors.

 

 

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