Member Info for Adon30

It is in the rns

"· An additional 13 wells scheduled to be drilled in the near-term, with CAPEX potentially funded by Zephyr's strategic partner, a U.S.-based capital provider focused on the upstream energy sector;"

It is as though people have not bothered to look at or read the latest presentation that the company did. If they did then they wouldn't contunually come out with frustrating comments.

He has 2.7m personally. And 177m (was 159m) in origin creek

You appear to have posted this on the Pxen thread as well….

He holds via a subsidiary with Grant. Original Creek.

We have been down the bitcoin mining route before with State 16 as it was and still is stranded gas. It is the only well that needs additional pipeline. I'm not on about the export pipeline. There was always one of those from the facility, otherwise why have a facility there in the first place. And they have since had the Enbridge/ Dominion pipeline extension built to Green River.

However I have made it clear that they should concentrate on providing a facility capable of taking gas from all 3 wells and just do that with a sales offtake agreement. Once that is done then they can faff around with things like bitcoin mining. I would be happy with CNG at state 16 and this was something I mentioned years ago that could have been done and Zephyr could have been producing and funding the paradox a lot sooner. It was a big opportunity missed during high gas prices.

The important bit about the paradox is the gas processing capex and the infrastructure. Without any of that the other stuff is irrelevant and a waste of money. They should forget about cng and bitcoin mining and concentrate on getting the facility up and running capable of producing current production capacity. Any future capacity can then go to the next highest bidder. They spaffed money at bitcoin before. Stop wasting investors time and money.

I was expecting a placement for paradox but still held out some hope on a farm in as having 100% ownership. Bit of a discount rate but probably reflects the current accounts situation also.

Got mine about 10 past 9 but had no signal. So when got back and signed in was nothing there. I’m guessing the offer wasn’t for x amount of shares for a certain quantity you hold and could just buy whatever. Hence why it’s gone.

Did I completely miss the book build? Was waiting for a notification then did some things. Had the email and nothing there….

As I posted before. The last CPR took 5 months. So there was not much chance of getting that completed before accounts due. They should have however known the account situation sooner and raised when the SP was higher. However they didn’t have a costing on paradox or a suitable asset fully lined up then. All much clearer in hindsight. Hopefully they have costed this asset on a much lower oil and gas price.

The $16m is a non-cash accounting impairment. They have written in down based on what they had originally planned to earn. This is across a large portfolio and is not a loss. It is just less earnings than they expected in total. They have always used excess cash to buy more assets so I always thought they would raise to complete Paradox but was expecting as soon as well test complete or after YE results. The lower oil price has not helped returns but these are still returns they are getting on production assets. It is not uncommon to have these right downs in accounts as they could cause problems in future.

The 20% discount for the raise is not great. But when is a raise ever at an acceptable SP level for any investor. Unless you are the one getting the cheap shares and Zephyr have never really opened any raise up to existing shareholders as have ran ABBs.

Accretive deal with less than 2 years payback as with similar assets they have purchased.

Also noticed that Crypto is back on the table for some of the potential gas sales with the rest going to pipeline....

Was waiting for that and it came sooner than I expected.

Think I worked out I got 75/76% of excess shares asked for. If everyone got that then the 10m was the over subscription and 25% of the excess. That would mean approximately 30m shares of the subscription were excess shares and only 22m were taken as offer.

Debt was forecast at 27.4m October 2024 so hopefully a little lower than that for latest figures. Like you waiting to see the YE results.

If you look at the latest presentation you will see that the money invested in non ops has already paid back. Any other money earned, other than that needed to pay down current debt, has also been reinvested in more wells. Yes they still have debt but these non-ops assets continue to pay back in increasing amounts. It’s a bit like getting compound interest on your interest. And eventually in the future the debt will be fully paid off. If Zephyr were to stop reinvesting or only invest a percentage it could still be self sustainable and pay off to shareholders. It is a very good money making model.

There is no detail as to what number are basic entitlement shares and what number are excess shares from the 62m total.

If say 42m are open offer that would mean 20m could be excess shares. So the excess shares would be cut by half and you’d receive 50% of what you asked for.

Or it could be that 50m are open offer and only 2m available as excess. In which case you’d get 16% of what you asked for.

Will all depend on the numbers. That’s how I think it works anyway.

The new shares will be issued to accounts upon receipt from the company, expected to be on 19th June 2025.

Zphr has had around ~$20m of cash flow (profit) from non ops per annum ($72m since inception to sept 24). Think I read that assets were valued at just under $100m including paradox (although need to double check this and it will change following new cpr). The existing bank loan was recently redetermined from 12% to 10% with all of the higher rate paid down. Debt was ~$27m at last accounts. New accounts are due end of this month.

Virtually every cent Zphr has earned from non-ops has been reinvested and they are continually purchasing new assets. Which are paying back in under 2 years. The investor has seen this return and is willing to fund further investments. Of which Zphr can also invest up to 33% of the purchase. The larger scale of these acquisitions allows Zphr to also achieve better returns than if they were just doing it out of their own cash flow. On top of this there will be benefit to Zphr, which may appear quite small to begin with but once assets are paying back it sounds as though the benefits will swing to Zphr having a larger return shared with the investor. This is not a short term gain but allows Zphr to build on what has already been a successful venture.

The last CPR completed took nearly 5 months. So I was not expecting it quickly. They have said by early Q4 so that gives them plenty of time to complete and may come a little earlier.

However suggesting first gas sales by year end does suggest they are working on things quite rapidly. Could be direct gas sales or localised G2P. Either is going to need rapid infrastructure development.