Zephyr Energy PLC - Newbury, England-based exploration & production company - Will raise GBP12 million through an equity issue and a senior debt facility worth USD28 million, which will go towards the acquisition of non-operated production assets in the Williston Basin, North Dakota.
Zephyr will issue 240.0 million shares at a price of 5.0 pence each, raising GBP12 million. Proceeds will also go towards funding near term production growth in the Williston.
In November, Zephyr agreed to acquire non-operated interests in the basin for USD36 million, namely 163 current producing wells with 871 barrels of oil equivalent per day net to the assets being produced in September.
"After closing this highly accretive acquisition, Zephyr will have nearly tripled its existing non-operated production - and pro forma forecast cash flow per fully-diluted share will have more than doubled through the addition of this high-quality, high-margin production base with significant near-term growth potential. Most importantly, the acquisition's resultant cashflows have the potential to power growth across our broader portfolio," says Chief Executive Colin Harrington.
Current stock price: 5.30 pence, down 7.0% on Wednesday
12-month change: up sharply from 2.35 pence
By Dayo Laniyan; dayolaniyan@alliancenews.com
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Zephyr Energy (ZPHR)