Member Info for THE_CHAIN

We need the Webinar for clarity Ezhik but I agree with your post. All permits are in hand for the gas works. So it is just refurb needed. And as we know, 36-2 is only 40 feet from the tie in point. So it all depends how long the refurb takes. Saying that, 36-2 is expected to have almost no gas.

Zephyr has now received approval of its Application for Permit to Drill from the U.S. Bureau of Land Management, the final regulatory approval required to spud the State 36-2 LNW-CC well on its project in the Paradox Basin.
• Zephyr has also signed a rig contract with CWC Ironhand Drilling for its Ironhand Rig 118. The State 36-2 LNW-CC well is expected to spud in the second half of November.
• Drilling of this type of well is expected to last for ~30 days. The well would be then fracked and tested for at least 30 days with results expected in 1Q23.
• The State 36-2 LNW-CC well would be tied-in as soon as the infrastructure is ready (we assume 2H23).
• The extended production test of the State 16-2 LN-CC well drilled in 2021 is expected to start in the next few days.
• We reiterate our target price of £0.16 per share. The upcoming 3 well drilling programme could take our Core NAV to £0.25/sh. A successful well test at State 36-2 LNW-CC well would confirm the commerciality of up to 32 mmboe net contingent resources (unrisked NAV of £0.11 per share). The second well of the campaign (State 36-3 LN-C9) would derisk a further ~25 mmboe net resources in a different reservoir. Capex phasing, debt funding and net debt Given the timing of the drilling programme, we have moved 80% of our forecasted FY22 capex for the Paradox to 2023. We anticipate the company to spend only ~US$2 mm in the Paradox in 4Q22 with a further US$9.5 mm moved to 1H23. The borrowing base of Zephyr’s revolving credit facility has been increased by 30% to US$13 mm (US$5 mm is undrawn). Net debt at the end of October is estimated to be US$11 mm, in line with our expectations. The company has now >US$18.5m in available liquidity taking into account its current cash balances and the increased headroom. Valuation We estimate that the share price implies EV/DACF of 3x in 2023. Our ReNAV stands at ~£0.16 per share.

"STATE 16-2 test to commence in the next few days."

Agree NTD. The extended test could begin anytime from next week. News on that will surely have a positive effect. Then as you say, if all is well we should be able to tie into infrastructure after the test. All the while 36-2 will be being drilled, and shortly there after will follow suit.

Going by OBMUJ's post below I'd hope the Williston update on Friday. I reckon the rig mobilisation rns will be a week to the day from the rig contract, pure conjecture but I think that was the time between the two RNS's for 16-2. Here's hoping!

Further reinforcement that we have access to plenty of cash for our drilling operations, and we have the backing of a major bank.

Yeah next week could be news rich. I'd hope to see the mobilisation rns Monday/Tuesday, I'd be very surprised to see it sooner. Perhaps news on 16-2 Thursday/Friday. And Williston basin update any day now.

Does seem like everyone is just waiting now doesn't it Doddy. Traders are out for now, the market awaits concrete news of success.
We could have commenced drilling by the last week of November. Perhaps sooner if we are lucky. There is a chance we could get drilling results in the week leading up to Christmas. Wouldn't that be a good early present!

Rig contract 28th June Rig mobilised 5th July Commenced drilling 13th July.

Hopefully we get our Ironhand Rig mobilised this week.

I was initially surprised to not see an updated webinar rns this morning. But actually, thinking about it, it would make even more sense to wait for the mobilisation rns and spud date. Here's hoping we find that out this week and our rise continues!

GLA
CHAIN

"This is regulation news from Zephyr who are now ploughing through the operational details which will eventually lead to the drilling programme in a matter of weeks. I expect the shares to rise substantially as the autumn progresses."

So we should get a mobilisation rns, potentially this week. The williston basin update. Next week or the following news on the 16-2 extended test coming online. And the spud rns second half of the month. I'd imagine we will get an rns tomorrow morning updating us on the new webinar date. I'd guess early next week? Looking good here toward year end.

Excellent news!

Rig contract for 36-2 this week and spud date. 16-2 commencing next week. Just conjecture but would make sense!

And possibly news on 16-2 Argylerich!

I'm really looking forward to the RNS in a week or two's time telling us 16-2 is back online. We will likely be spudding 36-2 at the around the same time as well. Put the handbags away all. Lots to look forward to here in the coming weeks!

I wouldn't write off the rest of the month to 6p just yet Bliss. People want action, including me! If we get a rig contract and spud date in the next week, speculative investment will begin driving us up again. I wouldn't want to be out of this when the first hydrocarbons rns lands.

About today. But tomorrow is a new day, hopefully we get a rig contract ASAP and a date for the webinar. Things will start to improve drastically when we get drilling, human nature, fomo will kick in. If we spud in the next couple of weeks we could have production from 36-2 early next year. 36-3 will follow suit shortly after. And 16-2 will also be up and running. 3 wells that very well could match if not supersede the williston production figures. If you think our SP will still be around 6p when we are raking in 200m a year you need your bumps felt!

Won't be long now as we know from this RNS 16-2 production inbound. 36-2 and 36-3 will be able to tie straight into infrastructure.

Further to Duffs post. Once drilled and completed 36-2 should be straight into production with only a 40ft pipeline required, if correct and its predominantly an oil well. If the flow rates are good....30 years of production. Really looking forward to updates on this moving forward. This could be company making ladies and gents.

I think we will get a slow build up to Christmas now IG. Don't want spikes of p&d, just fundamentals shining through and proper investors joining the share register.