If there is a farm in partner waiting in the wings, then they have just let 50% of our first potential well disappear underneath their nose (unless they funded the ongoing extension of course)
A company is more than 1 Quarters figures. They said there were consumer spending headwinds and January has stared well. All in all, this drop is a gift.
This could be based on my ignorance, but for me, ZPHR have one immediate priority....whatever you do, do not damage the 36-2R well. We cannot afford the time or cost.
On the 8th November GF spent best part of £2m of his own cash on VTY stock. If anyone would know there was more interbal, systemic, bad news to come, it would be him.
Helpful not sure where you get the $19.6m from. Are you combining the cost of the 36-2 and 36-2R drill ? Also indirectly the new investor is benefiting from previous spend but that’s neither here or there. The cost was incurred before they even came on the scene.
You also base the financials on 1000 bopd a day. I would say that would be a bad case scenario for Zephyr….we have 500 bopd with the vertical so we would be no better off if we had to split 1000 bopd 50:50 from the lateral. I imagine the company and investor are hoping for a lot more then 1000 bopd.
Assuming a successful lateral, to realise the full potential of Paradox speedily, it’s clear ZPHR clearly will need some form of farm-in / funding partner. Plenty of potential upside that’s for sure.