From Auctus27 Jul 2022 15:03
Value build-up
Converting the Cane Creek’s 27 mmboe 2C resources into reserves by YE22 takes our Core NAV to £0.13/sh. Derisking 25 mmboe 2U resources in another reservoir by then would add a further £0.10/sh to £0.23/sh. With potentially 4 Paradox wells fully on stream from 3Q23, Zephyr could generate ~US$125 mm aggregate free cash flow (FCF) including the Williston over 2024-2026 (=130% of current market cap). Each additional reservoir (8 in total) has an unrisked value of £0.10/sh, adds 4-5 mboe/d net production and US$30-35 mm/y FCF.