10th Oct 2022 12:25
Zephyr Energy PLC - Oil & gas exploration and development in US Rocky Mountains - Acquires a package of oil and gas assets located on and around its Paradox project in Utah. Acquisition comprises 21 miles of natural gas gathering lines, the Powerline Road gas processing plant, active permits, five existing wellbores and additional acreage. Says the acquisition will "substantially reduce the capital required to build the necessary gas export infrastructure" for its expected gas production from the Paradox project.
Zephyr pays USD750,000 and takes on responsibility for liabilities associated with the assets.
Chief Executive Officer Colin Harrington says: "(The acquisition) allows us to greatly reduce the capital needed to build out the gas infrastructure required to sell our produced gas volumes from the Paradox project into the market. Secondly, it completes the acquisition of all key acreage covered by the White Sands Unit 3D and thirdly, it provides us with an additional well pad already tied to the pipeline, which in combination with the newly acquired acreage will simplify future development drilling. Similarly, the gas plant, while currently not in use, has excellent potential for reintroduction to service and can potentially act as a WSU supply base."
Current stock price: 5.52 pence, down 3.2% on Monday afternoon in London
12-month change: down 15%
By Chris Dorrell; [email protected]
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