RNS -Further Williston Basin acquisitions & JV8 Sep 2021 08:12
Further Williston Basin acquisitions & JV
ZEPHYR ENERGY PLC
Released 07:00:06 08 September 2021
RNS Number : 0443L
Zephyr Energy PLC
08 September 2021
Prior to publication, the information contained within this announcement was deemed by the Company to constitute inside information as stipulated under the UK Market Abuse Regulation. With the publication of this announcement, this information is now considered to be in the public domain.
8 September 2021
Zephyr Energy plc
(the "Company" or "Zephyr")
Non-operated asset portfolio update;
acquisition of further Williston Basin working-interests;
joint-venture with Purified Resource Partners
Zephyr Energy plc (AIM: ZPHR), the Rocky Mountain oil and gas company focused on responsible resource development, is pleased to provide an update on its non-operated working interests in the Williston Basin, North Dakota, U.S., to announce the acquisition of two additional non-operated near-term production portfolios in the Williston Basin (the "new acquisitions"), and to announce a joint-venture ("JV") with Purified Resource Partners LLC ("Purified") related to ongoing non-operated business development efforts.
Overview
· Current production update: Zephyr owns minority working interests in seven non-operated producing wells in the Williston Basin. These wells were acquired in the first half of 2021 with a goal of delivering a diversified and stable cash flow stream which could be used to fund additional operated Paradox Basin drilling and/or potential new acquisitions.
o The Company is pleased to report that production from the seven wells was, net to Zephyr, 509 barrels of oil equivalent per day ("boepd") during August 2021.
o Four of the wells continue to be brought into full production, with oil production still rising, water cuts reducing and stable gas oil ratios.
o 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.
· New Acquisitions: Zephyr is also pleased to announce the completion of two additional non-operated portfolio acquisitions in the Williston Basin.
o The first acquisition purchased 72.5 net acres, resulting in an average 5.6% working interest ("WI") in four drilled but uncompleted ("DUC") wells operated by Prima Exploration Inc. ("Prima") which target production from the Middle Bakken reservoir in Richland County, Montana, U.S.
o The second acquisition purchased an average 3.1% WI in 11 wells (one currently being drilled and 10 DUC wells) operated by Whiting Petroleum Corporation
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