Member Info for Adon30

I think that they are waiting on the production concession being authourised. Hence the regulatory wait. And the signing of any gas sales contract will not be far behind that. Just waiting for the first domino to fall.

Someone asked earlier:

Unfortunately these events are all too commonplace in today’s environment and the good news is that Zephyr report that this incident should not have an impact on their ability to do business and therefore there will be no disruption to operations at either the Paradox or Williston basins. With higher oil prices, largely unhedged production, and excess proceeds from recent acreage sales, I can see why this would be the case

As a result of this targeted attack, additional layers of security have been put in place and with Zephyr fully funded for its current operations shareholders should be looking forward to plenty more good news in the pipeline I hope.

Accordingly I remain upbeat about prospects for Zephyr and with my TP of 20p very much intact as is its place in the Bucket List, the next few months are looking very promising.

Looks like a big buy around 80p as still looking to get stock at above 78p to fill it.

It was spud and cased to the waterline to fulfil commitments. Forget the correct name for it now…

The pad is all cleared with embankments and fencing to stop people using it as an RV park. Just waiting on funds/ partners/ farm out to complete the drill. It’s just waiting there in the background.

It was never 200 individual wells. But a number of wells with laterals to different parts of the reservoirs as Pikestaff has mentioned.

I would expect further laterals at State 16 and Federal 28 once things get going and even testing of overlying reservoirs. All funding dependant.

The pipeline was extended and installed in 2023 by Enbridge/ Dominion to supply Green River with gas. Of which Zephyr was ideally placed to contribute to the gas supply.

Https://www.investegate.co.uk/announcement/rns/prospex-energy--pxen/formal-offer-of-onshore-polish-licences-/9487874

Https://www.investegate.co.uk/announcement/rns/zephyr-energy--zphr/operations-update/9487903

We have a plant. As in an area that has previously been designated for processing hydrocarbons. I very much doubt anything of any use other than all the gathering lines and main connection points are present at it.

TXP recently bought a large working gas plant from shell. Think it’s worth something like $40-60m. I also seem to remember SENX had gas processing equipment worth $2-8m for some wells which was more than the MCAP of the company. Complexity of the equipment will be dependent on the hydrocarbon mix. Dry gas a lot easier to deal with than wet mix. But both need equipment.

I’m sure whoever owned the plant before would have removed and sold on the equipment as it can be refurbished for others to use. It’s not something you throw away or leave to rust in the desert. Zephyr picked it up for next to nothing as a land package.

The good thing about having the designated plant area is there should be minimal requirements for making it operational. Compared to having to start on a fresh piece of land and several years of permitting.

The main problem is that zephyr were expecting liquids and also at a high liquids price. However that has switched around as they got a lot more gas than they imagined. And also demand and long term pricing for gas has increased. Both are good problems. Except with gas you can’t just pull it out of the ground and truck it. It requires static pipelines that have been tested and regulated. It requires compressors, condensers and separators to ensure the gas is clean and dry enough for the carrier network. This requires a gas plant with all working safety equipment, control valves and compliance specifically for the volume and type of gas it is producing. Unfortunately this is the expensive side of things but once built are there for life. A reasonable size gas plant can easily be $40-50m and take a year to build. Then requires regular maintenance. Not saying Zephyr needs a full blown gas plant at this stage as small scaleable kit may be suitable for initial volumes. But it still needs to be specific to their needs and custom built still costs. Hopefully they can use this skid/ trailer based systems to produce. I’m surprised they haven’t gone for a CNG trailer system to start production which is a bit of a half way house. But maybe there isn’t the market or profit for CNG and also I think they have there eye on the bigger potential prize of a full scale producing asset. So are currently in that awkward spot of being too small to take that on themselves and also not wanting to waste resources on a small scale production. It leaves them in a bit of a limbo for now but have the right working partners to put the bigger pieces in place, which will take time, but will achieve the ultimate goal eventually.

Not sure if it has been mentioned as I don't follow the board much lately. But there are some new areas in the Bonanase that have been cleared.

I can not remember the workover plans or if they were drilling some more new ones there. But progress being made during the dry season.

Nothing better than tying people down face to face rather than by virtual means.

Https://x.com/ZephyrEnergyPlc/status/2024417347340054998?s=20

Got to watch the interview last night.

Key points that came out are that it is a big project, too big for zephyr alone, however they have all the tools in their bag. Acerage, pipelines, gas plants. They are looking at getting further acerage and it sounds pretty pointless anyone else trying to go for it as Zephyr control the gathering lines.

They are ideally placed for the boom in gas production in the West. They have active partners that are worth billions in Enbridge and Williams. Even if they don't take a piece of the pie from Zephyr having such important allies along with NETL, Universities and other goverment partners is a big plus for Zephyr.

The regulatory processes will take time and I'm sure that having Enbridge alongside will not slow that process. To not put a timescale on this makes sense because if you did you would likely look a fool. These things can take varying time. Anyone who has invested in any other company will know that this can vary wildly. In Europe in can take years just to get past the first stage of a drill permit! And that is if it doesn't come back for a second or third review. I don't expect those kind of timelines for Zephyr based on the previous land uses in the paradox. And all that affects is short term traders as can be seen with recent share price action.

People seem to think that non-ops is worth nothing. But as CH has stressed the return is there and they will not invest or even divest if it is not. They have a pot for this but no point throwing it away if not good for them or their partners.

The share holders have already put up the 'risk' capital for the paradox so now they will seek alternative funding and partnerships that will benefit shareholders. The project is massive and they can go so far alone but will need that investment to amplify the project. I can see this happening. they have a very capable team in that regard as is proven with the non-ops. So despite what some might say this is very much game on.

Where was the RNS? As there wasn't one why where people expecting market sensetive information from a interview that has been scheduled, cancelled and rescheduled.....

Zephyr already lined out the plan in the last RNS if anything had changed from that shareholders would have been notified. I'll watch the interview when I get chance but it is not a priority at the moment.

I don’t think that they would look to issue a rns just because they are being interviewed by Malcy.

However it has been nearly 3 months of dead time since the 22nd November rns where they outlined their plan. Things will have been happening during that time and you would like to think that we are a lot closer now than we were back then. Regulatory approvals take time to complete and file and what for implementation. I expect zephyr and Enbridge have several of these in the pipeline. The big news which is imminent would be a gas contract, which according to the November rns was being finalised back then. A JV/ investment/ farm in would also be big news but zephyr have already said they would go ahead without one if they can’t agree good terms.

Personally I think (am hoping) that the gas contract will be with Enbridge as they are a local distributor, as long as good terms agreed.

Next steps still to agree would be gas plant operator. They had previously stated that they were designing/ specifying facility requirements. Some of this can take many months to procure and commission. So let’s hope that they have that one running well or maybe a new partner can bring something to the party.

Think they bored the first part below the water line to meet licensing agreements. Then cased at that point. The pad was prepared and secured prior to that to stop people using it as an RV park. So it’s all still there in the background. Another one waiting a partner.

Why would you have an existing facility that wasn’t previously tied into the main pipeline??

How did you think they sold the gas before?

It is a waste of time posting, as only 7 days ago the company provided an update and provided interviews. Yet people still moaning about things not happening. You can see how exasperated CH was by it and the lowly SP which is of course having an affect on discussions. People even write off the non-ops which is more important than they realise. And I have highlighted why.

You can please some of the people all of the time and all of the people some of the time. But you can't please everybody.

That type of lending is always going to have strings attached. But to be able to secure it is not a bad achievement. If you break it down it doesn’t look amazing. But the alternative would be dilution and raise. And with a suppressed sp that would be a lot of dilution.

Did notice this among the rns: In addition to the non-operated PDP assets, the Company holds significant non-operated proved undeveloped ("PUD") reserves which are currently being assessed in an updated internal valuation, the results of which will be released when available.

So it does look like they are trying to use reserves from the non ops to secure further financing. But it (again) is going to take some time to resolve. How much they could potentially get from that I do not know. Ideally an increase in oil prices would help them significantly.