(Alliance News) - Zephyr Energy PLC on Friday said initial production from the Slawson-operated wells has exceeded expectations, boosting its quarterly sales.
Shares in Zephyr Energy were up 4.8% at 2.52 pence each in London on Friday morning.
Zephyr Energy is an oil and gas company focused on resource development from carbon-neutral operations in the Rocky Mountain region of the US.
The company said that the wells, which are operated by Slawson Exploration Co and are part of its non-operated asset portfolio in the Winston Basin, North Dakota, have averaged a flow rate of 897 barrels of oil equivalent per day.
As a result, Zephyr expects its full-year production to be between 1,450 and 1,700 boepd. This reflects a a 51% increase from 1,043 boepd in the third quarter of the year, and a 43% rise from a rate of 1,103 boepd in 2022.
Zephyr's working interests in the six Slawson wells ranges from 11% to 32%, which it acquired last December.
The company also announced that progress planning for the "twinned" redrill of the State 36-2 well continues at its Paradox project.
Chief Executive Officer Colin Harrington said: "We are extremely pleased to report the strong initial production rates from the Slawson wells, which now form a significant portion of our non-operated Williston Basin portfolio. The new volumes will provide a significant boost to our [fourth quarter 2023] sales and provide additional cash flows to the company in line with our stated strategy of leveraging non-operated investments to fund the ongoing development of the Paradox project."
By Sabrina Penty, Alliance News reporter
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Zephyr Energy (ZPHR)