Reminder now 1 year on13 May 2024 12:56
16 May 2023 07:00
RNS Number : 4919Z
Zephyr Energy PLC
16 May 2023
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.
16 May 2023
Zephyr Energy plc
("Zephyr" or the "Company")
First Quarter 2023 results from Williston Basin portfolio;
State 36-2 LNW-CC well update
Zephyr Energy plc (AIM: ZPHR) (OTCQB: ZPHRF), the Rocky Mountain oil and gas company focused on responsible resource development from carbon-neutral operations, is pleased to provide initial first quarter 2023 ("Q1") results related to hydrocarbon production and cashflows from its non-operated asset portfolio in the Williston Basin, North Dakota, U.S (the "Williston project"), as well as an update on the State 36-2 LNW-CC well
Q1 Williston Basin Highlights
· Quarterly revenues totaled US$6.3 million, net to Zephyr, compared to fourth quarter 2022 ("Q4") revenues of US$7.4 million (subject to audit). Q1 revenues reflect the standard decline expected from the portfolio and the lower commodity price environment during the quarter.
· Q1 operating income was US$5.7 million (after taxes, lease operating expenses, realised hedging impacts, and gathering and marketing fees), compared to Q4 operating income of US$6.3 million.
· Q1 sales volumes averaged 1,093 barrels of oil equivalent per day ("boepd") compared to Q4 sales volumes average of 1,192 boepd. Q1 sales volumes were in line with management expectations.
· The Company hedged 36,000 barrels of oil in Q1 at a weighted-average price of US$90.05 per barrel of oil ("bbl").
· At 31 March 2023, 223 wells in the portfolio were available for production, including one well which came online during Q1.
o Net working interests across the Williston Basin portfolio now average 6.4% per well, equivalent to 15.1 gross wells in total, all of which utilised horizontal drilling and modern, hydraulically stimulated completions.
· The recently acquired Slawson Exploration ("Slawson") operated wellbore interests (as announced to the market on 21 December 2022) are now fully drilled and completed. Production from these working interests had been forecast to be online by July 2023, and are now forecast to be online by October 2023 due to minor delays related to the completion of surface facilities on the well pad. The Company will provide an update in relation to FY 2023 production guidance when those wells are brought online.
Paradox Basin - State 36-2 LNW-CC well update
Following the well control incident announced on April 11, 2023, the Company reports that the State 36-2 LNW-CC well remains stable and under control while additional well repair work is ongoing. Zephyr plans to commence a production test of the well as soon as all neces