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Zephyr Energy PLC - oil & gas exploration and development in US Rocky Mountains - Enters binding agreement to acquire package of oil and gas assets located on and around Paradox project in Utah, US.
Package includes 21 miles of gas gathering lines, the Powerline Road gas processing plant, active permits, five existing wellbores and additional acreage. Zephyr will pay USD750,000 in cash, and will also assume responsibility for all eventual decommissioning, plugging and abandonment liabilities, which is estimated to be around USD2.5 million.
"We've often compared our Paradox project development to a jigsaw puzzle with a number of requisite pieces to be assembled prior to the commencement of commercial production - and today's announcement is another substantial piece now in place. By acquiring this package of surface infrastructure, we are moving rapidly from a programme of value delineation to a tangible development programme which is expected to facilitate cashflows from the project in a more rapid timeframe," says Chief Executive Colin Harrington.
Current stock price: 4.75 pence, up 4.4% on Wednesday
12-month change: down 23%
By Dayo Laniyan; dayolaniyan@alliancenews.com
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