REG - Zephyr Energy PLC - Semi-annual redetermination update

Zephyr EnergyAnnouncement

16/10/2024 07:00

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RNS Number : 3232I  Zephyr Energy PLC  16 October 2024

Prior to publication, the information contained within this announcement was
deemed by the Company to constitute inside information as stipulated under the
UK Market Abuse Regulation. With the publication of this announcement, this
information is now considered to be in the public domain.

 

16 October 2024

 

Zephyr Energy plc

("Zephyr" or the "Company")

 

Semi-annual redetermination reaffirms Revolving Credit Facility;

Reduction in borrowing costs

 

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 that the Company's lender, North-Dakota
based First International Bank & Trust ("FIBT"), has completed its
semi-annual redetermination of the Company's revolving credit facility
("RCF").

 

The redetermination process reaffirmed the total collateral value of Zephyr's
non-operated asset portfolio and resulted in no change to the amount available
under Zephyr's existing US$15.15 million RCF. In addition, the interest rate
on the RCF has been reduced to 10% per annum (from 11% per annum).

 

Following the redetermination process, the Group borrowings are circa US$27.4
million, a reduction from US$35.3 million at 1 January 2024, and consist of:

·      US$7.2 million of amortising term loan (at 6.74% interest per
annum)

·      US$5.2 million of amortising term loan (at 10% interest per
annum)

·      US$15.0 million of debt drawn on the RCF (at 10% interest per
annum).

The impact of the revised borrowing rates has resulted in a reduction in the
Company's blended interest rate to 9.1% (down from 9.5% at 30 June 2024) and
an overall reduction in annualised interest costs of circa US$150,000.

 

The next semi-annual redetermination for the RCF is scheduled to take place in
the second quarter of 2025.

 

Colin Harrington, Zephyr's Chief Executive, said:

 

"I am delighted at the outcome of this semi-annual redetermination which both
affirms the substantial value of our non-operated portfolio and further
reduces our cost of capital.

 

"Our non-operated assets are long-lived and high margin and continue to
provide a stable platform for our growth.  I would once again like to thank
our partners at FIBT for their strong support of Zephyr."

 

Contacts:

 

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

 Colin Harrington (CEO)

 Chris Eadie (Group Finance Director and Company Secretary)

 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 Liberum Limited - Joint-Broker                        Tel: +44 (0) 20 7886 2500

 Mark Murphy / Kieron Hodgson / James Sinclair-Ford

 Celicourt Communications - PR

 Mark Antelme / Felicity Winkles / Ali AlQahtani               Tel: +44 (0) 20 7770 6424

 

Qualified Person

 

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.

 

 

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