RE: Good ole Malcy11 Nov 2021 11:48
2nd part
While these initial results are highly encouraging, it’s important to remember that production testing remains ongoing and key parameters such as fluid mix are still variable and volatile. That said, what we’ve seen so far lends support to our vision of opening up a new hydraulically stimulated play in the United States, and over the coming months we fully expect to deliver additional wells that target the Cane Creek reservoir as well as the overlying reservoirs. The increased production from our non-operated portfolio in the Williston Basin, during this time of strong commodity pricing, is expected to generate substantial cashflows to fund future development efforts in the Paradox.
“I would like to once again thank our technical team and dedicated contractors for their ongoing efforts in delivering a successful well. Having invested so much time and resource into the Paradox project, delivering the first production from our Paradox position is a true landmark event for the Company, and I look forward to providing further updates in the near future.
“Finally, but very importantly, I want to remind Shareholders that all produced hydrocarbons are carefully measured and always subject to our carbon mitigation efforts. While natural gas volumes are being flared through this testing phase, Zephyr remains committed, at the highest level, to providing carbon-neutral operations through the purchase of Verified Emission Reduction credits to offset our Scope 1 emissions. Moreover, we are well underway evaluating a number of profitable long-term solutions for the sale of any future natural gas volumes produced, including via interconnection with the nearby pipeline system as well as options to monetise produced gas directly on site. As always, our goal is to deliver strong Shareholder value while being responsible stewards of investors’ capital and responsible stewards of the environment.”
I am in London today so will comment briefly now, I have a call with Colin this afternoon so will update tomorrow. Having said that this announcement pretty much speaks for itself, it is really fantastic news for the company and shareholders and subject to all the usual caveats whilst testing the management, who are not known for exaggeration seem remarkably chipper about this news.
Whilst the share price has moved strongly upwards during the Paradox journey this news can only lead to significant further moves as markets realise just how big this company could be. Note mentions of potential further growth from increased laterals, completion techniques and that this well is restricted by surface facilities which should see production rates rising in due course.
With the production that Zephyr bought to give funding flexibility and now a really great result from the Paradox Basin I’m sure that when I speak to Colin later it will be a positive but as ever measured conversation, I shall be less measured, this sets Zephyr on the road to being
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