22nd Nov 2021 19:10
Zephyr Energy PLC - Newbury, England-based exploration & production company - Agrees to acquire non-operated working interests in currently producing and near-term production wells in the Williston Basin, North Dakota for USD36 million.
Will acquire an interest in 163 current producing wells with 871 barrels of oil equivalent per day net to the assets being produced in September. Of the consideration, USD3 million will be paid immediately as a deposit, while Zephyr evaluates several financing alternatives to fund the remainder through structured debt.
"The acquisition announced today is another landmark deal for Zephyr and will further transform the company by adding a significant, low-decline, low-risk, high margin production base - with both near and long-term upside exposure into a further 65 wells, thirteen of which have already been drilled and are expected to be online soon," says Chief Executive Colin Harrington.
"Upon closing, the acquisition is expected to more than double Zephyr's non-operated production levels and related cashflow over the next twelve months. The acquisition will provide Zephyr with significantly more resources with which to accelerate the development of its Paradox Basin project. This year, cashflows generated by our existing non-operated portfolio have already been utilised on our Paradox project, have enabled us to acquire additional leases, and have allowed us to acquire further non-operated assets with production coming online shortly," Harrington adds.
Current stock price: 7.15 pence, up 5.2% on Monday
Year-to-date change: up sharply from 0.88p
By Dayo Laniyan; [email protected]
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