Member Info for davwal

Interesting acquisition announced by premier Milton at 6%.

Hic...

Remember, it’s an investment partnership, albeit with ZPHR the expert but junior partner. Zephyr has the option to invest immediately (and earn from immediately) up to 30% of deals which, due to the potential investment monies involved, would by far eclipse the quality of any deal the company could obtain on its own.

I presume the next announcement re 36-2 comes once they have the independent third-party’s expert opinion regarding the discovery numbers. Assuming there’s confirmation of Zephyr’s estimate, then might be able to provide more certainty on the route and timeline to production.

Zephyr is the operator, so they will have the final call on proceeding or not. If the wellbore investor pulls out they lose their money.

Google US wellbore investors…

Subject to finding their maximum $33M pro-rata share, that being 33% of the up-to-$100M the investor is making available, ZPHR could make some decent profit from the scheme that can be reinvested in either side of the business. They have obviously set up a dedicated company to manage the non-op investments in order to not detract from the core business (in my view). As for the inference our management will drag their heels, I keep reminding folks of the other investor with $7M sunk down the hole - rather more than any of us. No way is CH going to be allowed to sit polishing his nails, even if he was so inclined - which I don’t think is the case. Production will occur as soon as technically possible, we can now bank on it.

Strange that with all the doom and gloom about offtake markets, low values etc, a specialist investor thought it a good idea to stick $7M into the wellbore after due consideration of a significant amount of real-time data. But hey, what do those fools know…?

CH stated the condensate found at 16-2 was very good quality which could achieve a higher price than oil. Hopefully it's the same grade across Paradox.

Shorters pedalling furiously…

It’s somewhat elastic. E.G. ask AI and it says…

The average cost of a well in the Williston Basin can vary widely, but generally falls between $4.9 million and $8.3 million. This range includes average completion costs, which usually range from $2.9 million to $5.6 million per well.

That said, our cost $14m to complete, albeit in two parts. The depth/length of the drill is obviously the main factor. At least Paradox is reasonably accessible. On the other hand, the geology is challenging and requires the A Team. Where the underlying geology permits, some wellbore scan have multiple lateral wellbores, which would improve the financial returns by reducing costs.

No doubt we’ll learn more in this regard from CH talking specifically about the next target. It it ain’t a few hunnard thousand, sadly.

The article shows just how many operators are involved at the Williston Basin, and how much M&A goes on. Therefore, it would seem inevitable that, in the event the Paradox field data is sufficiently promising, the bigger fish will be circling Zephyr with chequebooks in hand pdq.

DYOR, but buy, buy, buy!

If the mega volume of de ramping is anything to go by today, CH has done pretty dammm good!

Except it’s not a loan. They’re spending someone else’s money.

With the initial agreement set for just 6 months I'd guess the first joint deals will arrive pdq. Interesting arrangement.

There is a tag team of malevolent paid posters operating on the other side who have prior form with trying to trash other stocks. There's more than one way to get a profit and unfortunately AIM is a playground for scurrilous types. Zephyr seems to be being played at the moment.

Presumably they’ve completed sufficient production testing and gained enough data to fairly quickly establish optimal flow rates etc, size up the processing equipment in order to start shipping product down the Dominion pipeline which handily runs close by. One things for sure, the wellbore investor will expect a return on their $7.5m asap, so there should soon be developments in this regard. With reserves updated and production underway one finance option could be a loan against future production for developing the next well. Whatever route they take, I’m sure the opportunity factor has increased significantly.

No way is the Company involved in manipulating the sp. That’s for the birds…

Very good results with extremely positive implications for the Paradox development strategy. Will create great interest across the industry.