RNS - Brilliant news21 Apr 2022 08:25
Even with the Hedging the price per barrel is still way above the Nov 21 Sproule forecast. Brilliant
The Company estimates that the cash operating cost per barrel from its Williston Basin production will average approximately US$16 per barrel over the next 24 months, which implies strong profit margins for barrels hedged under the Programme. Further, when Sproule International completed its Competent Persons Report ("CPR") on Zephyr's non-operated portfolio in November 2021 (announced on 22 November 2021), it used an oil price per barrel of oil of US$71 for 2022, US$68 for 2023 and US$66 in 2024 for its valuation. The current implied valuation of Zephyr's non-operated portfolio has therefore increased materially as a result of the Programme and prevailing commodity prices.