(Sharecast News) - Rocky Mountains-focussed oil and gas company Zephyr Energy said first quarter sales from its Williston Basin portfolio averaged around 1,600 barrels of oil equivalent per day net, up from 548 barrels per day in the fourth quarter.
The AIM-traded firm said it sold 144,540 barrels of oil equivalent in the quarter, and had 185 wells available for production at the end of the period, including seven that came online during the quarter.
First quarter revenues totalled $11.5m net to Zephyr, and average operating expenditure was $11.87 per barrel, which the board said demonstrated the high profit margin realised from hydrocarbons sold in the period.
Looking at Williston's production outlook, Zephyr said 16 new producing wells from its existing portfolio were expected to be brought online during the next six months.
"The company has currently hedged just under half of its forecast non-operated production over the next two years," the directors said in their statement.
"Using an average hedged production price of $98 for the remainder of the year and using $90 flat for the remainder of its anticipated production, the company forecasts a range of $35m to $40m in revenue from production for 2022 from its non-operated portfolio based on a forecast production range of 500,000 to 550,000 barrels of oil equivalent during the year."
At 1252 BST, shares in Zephyr Energy were up 1.27% at 5.18p.
Zephyr Energy (ZPHR)