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
Colin Harrington (CEO)
Chris Eadie (Group Finance Director)
|
Tel: +44 (0)20 7225
4590
|
Allenby Capital
Limited - AIM Nominated Adviser
Jeremy Porter / Vivek Bhardwaj
|
Tel: +44 (0)20 3328
5656
|
Turner Pope
Investments - Joint-Broker
James Pope / Andy Thacker
Panmure Gordon (UK)
Limited - Joint-Broker
Hugh Rich / James Sinclair-Ford
Celicourt
Communications - PR
Mark Antelme / Felicity Winkles / Ali AlQahtani
|
Tel: +44 (0)20 3657
0050
Tel: +44 (0) 20 7886
2500
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.