Zephyr Energy is placing at least 240 million new shares at a price of 5.0p per share to raise gross proceeds of £12m. In tandem with this, the company has also confirmed a US$28m senior debt facility.
The combined proceeds will be used to complete the US$36m acquisition of a large portfolio of non-operated working interests in 228 wells located in the Williston Basin, North Dakota and also to fund further activities in the Paradox Basin.
We believe that this transaction will be transformational for the Company, contributing an additional 1,100 boepd net to the Company initially with output expected to increase steadily as more wells are brought on stream over the coming months.
We would draw your attention to the various disclaimers in the document both at the beginning and at the end of the note. Retail clients (as defined by the rules of the FCA) must not rely on the research document. In particular you should note that the research document is a non-independent marketing communication. The analyst who has prepared the research is aware that TPI provides research to Zephyr Energy plc. Accordingly the research has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibitions on dealing ahead of its dissemination.
The information in the document is published solely for information purposes and is not to be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. The material contained in the document is general information intended for recipients who understand the risks associated with equity investment in smaller companies. It does not constitute a personal recommendation as defined by the FCA or take into account the particular investment objectives, financial situation or needs of individual investors nor provide any indication as to whether an investment, a course of action or the associated risks are suitable for the recipient.
Copyright © 2022 Turner Pope Investments (TPI) Limited, all rights reserved.
