Adam Davidson, CEO of Trident Royalties, discusses offtake milestones and catalysts to boost FY24. Watch the video here.
I am particularly pleased with this piece of news from Zephyr today as it does a number of things in one go. Firstly the well is drilling ahead according to plan, box ticked, secondly the debt swap for equity reveals real quality management at work.
At the time of the Williston acquisition the company needed some safe production to be the backbone of the company just in case anything went wrong with the E in E&P, even if it was an accidental well blowout. Debt came from SGRI to buy the production, it has done the trick and Zephyr live to fight another day.
With Zephyr now coming out of the process with a great deal of confidence, SGRI are exhibiting a real show of strength by slipping across the sofa and becoming a perfect cornerstone investor. With no discount for an effective raise and a stronger balance sheet as a result Zephyr are set fair which just leaves us the small matter of the Paradox…
From Malcy's blog..
This could supply some decent upside for Zephyr, helium is a growing market in the USA and Zephyr may have plenty here. Subject to a potential farm-out this may become a nice little earner for the company. More later…
More later... wonder what he learnt from his talk with Colin recently
Bit of light reading
From a report dug up by Tim Adams on twitter
EXPORING FOR NEW OIL IN OLD FIELDS,
SALT WASH FIELD:
A CASE STUDY
https://ugspub.nr.utah.gov/publications/open_file_reports/OFR-307.pdf
Malcy talks with Colin
Zephyr shareholders should be aware that we are entering a period of significant news flow for the company, I spoke to Colin yesterday and he is delighted with operational progress and in particular with this rig signing.
The company is described as being of ‘gold standard’ especially working under high pressure conditions and is currently drilling a few miles away. Given that there are a few things still being prepared, such as the casing and some pad work a drill date of, say, mid April is on the cards.
Zephyr’s engineers are ready to encounter all the difficulties that they saw last time, such as high pressure and heavily faulted rocks but are confident that they can handle everything and are looking forward to the challenge that the Paradox presents. With a great deal of upside, this summer should be something special.
Malcy planning to chat with Colin this week
I can’t believe that there is much that the operational team at Zephyr don’t know about the drilling conditions that they expect to encounter at the well and whilst that might be a touch optimistic it helps that after the problems last time to be on guard against potential pitfalls.
I’m planning to have a chat with Colin this week to be able to update myself fully on the upcoming operations.
Auctus research note is now on Zephyr website
https://www.zephyrplc.com/auctus4mar24/
I'm assuming Malcy still has Zephyr in his bucket list
He's still bigging them up
The starter on the menu for this years repast is rather pleasing, the quality of the management at Zephyr means that they did indeed mend the roof when the sun shone, here providing some basic nourishment from the Williston assets whilst the main course of the Paradox is being prepared.
The non-operated assets are providing much needed cash flow and as above the Slawson wells ‘have the potential to materially increase our 2024 cash flows’ and the same goes for the Harms Federal and Quale Federal wells after initial strong performance.
So now to the main course, Zephyr are making good progress on the restart at the Paradox Basin where momentum is building towards a drill which make the spring and summer an exciting time for shareholders.
Note
Q4 production volumes are based on a combination of state reported production volumes and field estimate production reports supplied by certain operators. Both production data sets are two phase reports (oil and well head gas) as opposed to sales volume reporting which is three phase and consists of oil, processed sales gas and NGL volumes. While Zephyr previously reported three phase sales volumes, going forward the Company will report two phase production volumes on a quarterly basis and three phase sales volumes on an annual basis. This change has been necessitated by the timing of the receipt of sales volume data from certain operators.
By the time they actually start this drill, there won't be any time for a second drill before the weather closes in...
It worries me ... the future time scales of actually developing this field, when it's a struggle drilling one well
Losing the faith Colin...you really need to give us something more
Bit late this .... You may have already seen it, BUT
.... zphr tweeted on the 10th
Zephyr Energy
@ZephyrEnergyPlc
The University of Utah’s Energy & Geosciences Institute (“EGI") remains one of #ZPHR's most valued and trusted partners. While Zephyr’s team continues to plan the redrill of the State 36-2, EGI recently deployed its own team to install a passive seismic array at Zephyr’s...
White Sands Unit in an effort to develop greater knowledge of the region’s #geologic layers. Learnings will be incorporated into a larger basin model with a goal of optimizing future #development.
https://twitter.com/ZephyrEnergyPlc/status/1745013073369329702