RE: is Zephr a pure Oil play ?5 Oct 2021 17:53
Hi MEM,
While seeking an answer to your question I needed to provide further clarification on actual gas sequestration. I contacted ZPHR directly and within 24 hours none other than CH himself had responded to me. A lot of it is as I thought but he did also point out some other parts.
So, all the wells produce oil, natural gas, condensate and even water (sometimes).
He told me that historically much of the revenue was generated from oil and condensates so data for gas alone was never really released. (However if you look at most of the RNS they state boe, barrels of oil equivalent, which will include gas etc).
Cane Creek reservoir in the Paradox is mainly an oil play again. Doesn't mean gas won't be present and he has told me that the plan is to tie into the existing gas infrastructure that runs across the leasehold. I didn't realise that they had this gas infrastructure already in place so that is great news. This will prevent needs to vent or burn the gas releasing CO2 and can provide extra cash flow.
30th June RNS describes the overlying targets in the paradox. There were 20 of which 8 were high graded. Amongst that you will find reference to Oil and Gas but remember none of these have been developed yet or further explored. Can't remember if there is anything in the more recent presentations on this also which may help. But that RNS is a good start and has a lot of info on that.
ZPHR is now carbon neutral and when bringing on the non operated interests ref: 8th September RNS
'Four of the wells were initially brought on at reduced production rates in order to minimise any gas flaring and CO2 emission impact while gas export infrastructure constraints were addressed, a CO2 mitigation effort very much welcomed by the Zephyr Board. Now that those infrastructure constraints have been resolved, the Company expects overall production to continue to rise during the next quarter and further updates will be announced as production data matures.'
This gas is now being captured and monitized in all non-op wells as they are connected to infrastructure and this was clarifyied by CH. Will also help with the companies ESG credentials.
Colin has also said that in future they may look to provide further guidance as to revenue streams from oil, gas and condensate separately as commodity prices increase.
So although I do not have any actual gas quantities I hope this helps.
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