Zephyr Energy plc (AIM: ZPHR), the Rocky Mountain oil and gas company focused on responsible resource development, is pleased to provide an update on its non-operated working interests in the Williston Basin, North Dakota, U.S., to announce the acquisition of two additional non-operated near-term production portfolios in the Williston Basin (the “new acquisitions”), and to announce a joint-venture (“JV”) with Purified Resource Partners LLC (“Purified”) related to ongoing non-operated business development efforts.
Colin Harrington, Chief Executive of Zephyr, said: “While the safe and successful completion of the State 16-2 LN-CC well on our Paradox project remains the Company’s top priority, I’m delighted to report continued progress and significant growth on the non-operated side of our business.
“As we outlined to Shareholders in January, Zephyr’s key goal for 2021 was to establish production and positive cash flow – either through our existing portfolio, via acquisition, or through a combination of both. We will end 2021 having significantly exceeded my expectations. We have now closed five separate acquisitions this year – and these deals created a balanced asset base of interests in 22 producing or near-term production wells, provided exposure to additional non-operated drilling expected in 2022, added significant new operated acreage in the Paradox Basin, and tie together nicely with the State 16-2LN-CC well which is lined up for near-term completion and production testing.
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I’m particularly pleased that the current blend of strong commodity prices and highly economic production has the potential to generate enough cash flow to self-fund additional Paradox Basin development, as we work to delineate and deliver significant potential upside from the hydraulic stimulation of that asset.
“The acquisitions announced today are in prime locations, and the majority of the wells are operated by Whiting, a leading Williston Basin producer already serving as operator of a number of our existing wells. Sourcing and structuring these deals takes detailed basin knowledge and deep local experience, which is why I’m delighted to further our relationship with the Purified team. I’ve known the Purified principals for over two decades, and have watched as they successfully assembled a top-notch portfolio of Williston Basin non-operated interests for their former sponsor. Over the last year, we’ve worked together even more closely to successfully close our initial Williston Basin acquisitions, and I look forward to continued collaboration and co-investment from their team.
“The next few months are expected to bring news flow on all fronts as we target completion of our operated State 16-2LN-CC well in October, further define our Paradox resource potential, achieve carbon neutrality across our asset base and receive increased cash flow from our non-operated asset portfolio – including cash flow from our new acquisitions.
“We look forward to keeping Shareholders updated as we deliver on our strategy and achieve additional objectives across the portfolio. In the process of doing so, as always, we will strive to be responsible stewards of our investors’ capital and responsible stewards of the environment in which we work.”
