Zephyr Energy has entered into a binding agreement to acquire a large portfolio of working interests in 228 wells, of which 163 are already producing, from Kaiser Acquisition and Development – Sanish Non-op LLC for a consideration of US$36m.
This deal is forecasted to be highly accretive as well as non-dilutive for shareholders and following the payment of a non-refundable deposit of US$3.0m, the balance is expected to be funded through a structured debt facility.
We believe that this transaction will be transformational for Zephyr, contributing an initial 871 boepd of production to the company upon the anticipated closing date of 22 December 2021. However, we expect net output to increase to over 1,100 boepd net to Zephyr as additional wells are brought on stream in early 2022.
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