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.
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