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Hi JohnDough... not sure why you have raised this as being odd now since SGR have provided finance to the company since Dec 2022. However, having said that you have sparked my interest.
There has been a change of tack on a percentage of the funding which stated in Dec 2022:-
ridge loan
To help fund the Williston Acquisition and associated CAPEX, and having explored multiple fundraising options including equity financing, the Company has secured a US$8 million asset-backed bridge loan facility ("Loan"). The facility has been provided by a U.S. based family office which has historically co-invested with certain members of Zephyr's management team on multiple occasions on other projects.
The key terms of the Loan are as follows:
· Loan secured by the New Williston Wells;
· 1% royalty interest in the New Williston Wells;
· Twelve-month term;
· 1% origination fee; and
· 12% per annum interest rate
(and the interesting bit)..................
There is no equity component attached to the Loan. It is expected that the Loan will be repaid through cash flows generated by the Company from the New Williston Wells or via proceeds from the Company's existing reserve backed loan facility after its next redetermination in the second quarter of 2023.
Obviously reduced cash flows since Jan 23 etc have caused the company to re-evaluate the loan.... To Good effect and good management IMO.
So!
SGI Investment.
Tyndall Investment Management increase holding.
Chunky Buys on Friday
JV Suggestions
As you say very very very interesting.
Malcy has a 20p target price. https://www.malcysblog.com/2023/12/oil-price-zephyr-wentworth-challenger-and-finally/
If we get the results we are hoping for. If the drilling is successful(possibly 6-7p), if the test results are good(7-8p), if the test results are really good(9-11p).
Do these values ask realistic or am I being too optimistic?
Atb,
Northern
Cheers Tim for that list. I am also very pleased to see the share volumes have been building. Although there have been some very chunky buys, all investments are serious for that individual no matter the size. The addition of our cornerstone investor (as a previous cornerstone loan provider) puts a whole scaffold of support to our capital requirements going forward in my mind. It's great to know what's being achieved over the pond whilst we enjoy a bank holiday weekend. VBWMM
ZPHR news this week on cornerstone investor was significant. See details on Sam Rose.
Williston update in next 2 weeks - maybe $10m cash from Q1
36-2R drilling now - news on next 2 or 3 weeks. It's a redrill of a blowout so very high chance success.
Proving up Paradox basin opens up possibilities of a grid layout 100-200 wells.
Salt Wash drill in Jun for known helium prospect that has additional o&g remaining from previous vertical drill - should see modern horizontal
Infrastructure in place to get gas away by year end.
CPR update later this year
Farm-in to accelerate plans?
more here:
https://twitter.com/tima441/status/1786623626642362705?t=kvQNAyZeOz2uXilXdoB4Ig&s=19
Especially with H and P at the Helm.So buzzing for this..its been a long painful wait!
It already was tamed by the well control team after the valve failed. So it can be done.
'ALL' they have to do is tame the Paradox and we know the flow rates will be very good.The right team are in place to do that.... what could possibly go wrong!
5 x 250k trades and 1 x 400k trade buys after 4pm today..... Hopefully bodes well for next week.. Good weekend all!
I am particularly pleased with this piece of news from Zephyr today as it does a number of things in one go. Firstly the well is drilling ahead according to plan, box ticked, secondly the debt swap for equity reveals real quality management at work.
At the time of the Williston acquisition the company needed some safe production to be the backbone of the company just in case anything went wrong with the E in E&P, even if it was an accidental well blowout. Debt came from SGRI to buy the production, it has done the trick and Zephyr live to fight another day.
With Zephyr now coming out of the process with a great deal of confidence, SGRI are exhibiting a real show of strength by slipping across the sofa and becoming a perfect cornerstone investor. With no discount for an effective raise and a stronger balance sheet as a result Zephyr are set fair which just leaves us the small matter of the Paradox…
I presume the permit will be granted in a timely manner, so Zephyr can at least spud the well before end of June 2024.
I
The permit is in progress
I've just re-read the RNS, should be some news soon regarding drilling:
"The key terms of the farm-in are as follows:
· Initial payment of US$600,000 (fully paid in FY 2023)
· Zephyr to drill, log and case one vertical delineation well (the "Commitment well"), with spudding prior to 30 June 2024, to top basement rock (circa 11,000ft measured depth) to obtain a one hundred per cent share in the leasehold.
· The incumbent leaseholder (the "seller") will have the option to back-in to the leaseholding at a 25% working interest, with no historic cost exposure, once the delineation well is drilled and a field development plan has been proposed by Zephyr. From that point forward, the seller would become a fully paying 25% working interest partner.
· Zephyr has begun the work to integrate the well planning for the Commitment well within its wider Paradox project development. Should the Company not meet its condition to drill the Commitment well during H1 2024, it could lose its rights to the leaseholding...."
I've averaged up today, another 140k shares across three trades. Good luck all.
Or $5,256000 a year.
That is just the gas for one well.
Natural gas is sold by the Mcf, which is 1,000 cubic feet of gas (the gas industry uses the old Roman designation for 1,000). So, one million standard cubic feet is 1,000 Mcf, which sells for about $1.80 per Mcf at the wellhead currently, amounting to $1,800 per one million cubic feet.
X 8 = $14,400
Yes exactly, protect your losses when it's dropping. Don't stifle your gains when it's rising.
I should add that was on paper....
Speaking as someone who shipped the best part of £100k on the drop from 7p to 2p, I would recommend protecting your capital every time.
Ah, investment psychology - now we're getting into the nuts and bolts of the game! Try to ignore what the price is doing and focus on fundamentally why you're still holding. You need to reverse engineer your mind, the correct approach is to be optimistic/confident when the price is rising and fearful when it's dropping but we naturally struggle with this.
Turner pope reference 8m cubic foot per day in Q4 and Q1.
Anybody know what that is in terms of daily revenue.
Many thanks
Anyway kipper the odds of that happening again have hopefully been mitigated.Theres obviously no guarantees but this is a different beast to the first time around.
Not just sell 50% the now then
Then look what happened. as i sit here i am 44.49% up...on 40 grand. so i am watching like a hawk...poised for the exit, no way am i risking 3p again..