Member Info for Adon30

Federal 28-11 Production for August

13 days

942 barrels of oil

2076 Mcf Gas

No water

and for September

8 days

125 barrels of oil

672 Mcf Gas

70 barrels of water

Boepd

Oil AND gas

What’s all the black stuff at MOU1?

"The proceeds from the sale of Common Shares were to satisfy the costs and withholding taxes associated with the Company's officer share option exercises announced on September 21, 2023."

It was for tax reasons

Https://x.com/ZephyrEnergyPlc/status/1714529480151101488?s=20

Ever since they drilled 36-2 and expected it to be prolific they canned 36-3 well and applied for 16-3 well. That is for overlying C9 reservoirs. Permit has been outstanding for over 6 months now.

The BLM application is more recent and maybe something that has arisen from the other permit request.

Income from El Romeral (Spain) is being kept to fund further developments there. Be that drilling or the solar expansion.

“ Surplus funds generated since acquisition are being retained in the joint-venture vehicle (Tarba Energía) to fund future development and diversification.”

Looks like a few more items have arrived at MOU1. Whether this is key items though or just the porta-loos remains to be seen...

Further flaring at Federal 28 last week. Hopefully get some figures for August or September soon

No one can be certain that every single cost will be met by the insurers. Zephyr have said they will recover all costs. Although that means all costs that the insurers agree to as they are working together. Anything outside of that agreement will be different. Those costs are not the issue though.

Getting to a test state 36, and soon, are the problem. There has unfortunately been no update on how long it will take as they really do not know. They could suddenly pull all remaining pipe in a day or could be fishing a few mangled feet for days on end. No one knows. What we do know though is at the end they will be testing something that is positively bursting with hydrocarbons.

Any further testing at 16-2, the new pipeline from 16-2 and the commissioning of the gathering lines will also be down to Zephyr. As will some of the work at the gas facility. However, they are looking for 3rd party involvement for the gas processing to reduce any upfront costs. So the initial equipment costs should in theory be covered by someone else. The completion of the Dominion pipeline will work in favour for the company in the further negotiations of this.

As CH said the delay to the Slawson wells and further income is annoying but they are coming online when oil is $20 a barrel higher so not all bad and will increase the portfolio and shorten the payback. We will not know until next year but the Q4 results could offer a good increase in cash received and 'if' they get to test the state 36-2 this year that will set up 2024 nicely.

It is now just a question of time, but also don't be fooled as things could also change rapidly.

“ At 5 September 2023, the Company had cash and cash equivalents of US$3.5 million.”

Be interesting to see how far they can stretch this…

Was thinking when the other shares were due to be issued when I mentioned a possible raise.

From June rns

The net proceeds of the Fundraising will be used to fund an estimated US$3.65 million of incremental near-term CAPEX at the Company's flagship project in the Paradox Basin, Utah, U.S. (the "Paradox project"). This is expected to include a production test on the Company's State 36-2 LNW-CC well (the "State 36-2 well") as well as future infrastructure and gas processing costs.

They still need to pay for refurbishing all the gas pipes on the land plus pay for the connection pipe to state 16. Not to mention fresh water transfer. But if they also said that money was for the facility then that is a bit underhand.

Got it now.

The Group has not yet put out an estimate on 36-2's possible flow rate range. Given the strength and characteristics of the recent blowout, this is of significant market interest, but will have to wait until the necessary kit has been installed to take such a measurement. In terms of processing extracted gas at the historic Powerline Road facility, Zephyr's Board has been working with potential third-party processing companies regarding potential proposals to fund, install, operate (and own) the plant in exchange for a tariff-based structure levied on throughput volume. Its goal is to minimize our upfront capital expenditure related to infrastructure, while at the same time engaging an experienced operator to run the plant. The solution will likely be comprised of modular, skid mounted units which can be deployed fairly quickly (as little as just 8-12 weeks) when it is ready to sell volumes. Clearly, the key is having detailed knowledge of the range of volumes, hence the need to undertake a production test on the well first.

Argyle, took me a while to find again! It’s in the Turner Pope research note. Went to copy it for you but iPad doing strange things…

Was going through my old posts as sure I’d mentioned something about the pipe being more difficult the further down they got. Couldn’t find it unless it was someone else that said it. But did spot I’d mentioned sidetrack several times and a long while back!

TC that was my thinking. Something has to give and the reward would easily outweigh the cost. They know they have good hydrocarbons at that point so that risk has gone. Can’t see the insurance paying for a full sidetrack or even a re drill. They may pay out the equivalent to the remaining work if they strike a deal and then it’s up to Zphr to cover the rest.

I did say that there would be disappointment if all the pipe wasn’t pulled and ready for a test. Doesn’t look like a test anytime soon either.

The sidetrack was mentioned by me on here a while back. Others have also mentioned it. They’ve had over 6 months of reworking this well. The plug should have been pulled on their current approach ages ago. Now they are at the mercy of the insurers and moving towards winter. Even if they get the go ahead they still need a rig contract which could also take months.

I see that they are now going to sub contract the facility for the gas out and although it shouldn’t cost them too much will be another small slice off the profits. But the facility is a long way off if they don’t have wells to produce from. It’s not been mentioned but I can possibly see another raise for a re drill. The status quo needs to be broken somehow otherwise they’ll never achieve shareholder value with just non ops.

They are dragging this out to the latest day in September for the Half Year Report in the hope that operations can actually give them something positive for investors to hear. Lets hope they have something.

Satellite images have shown continued activity but need info from the company to confirm what they have actually achieved.

It is a half year report. So maybe we will find out how much state 36 has cost so far?

I don’t think anyone will be happy if all the pipe has still not been pulled and new pipe has been (or is being) installed.