Response to market speculation
Zephyr Energy plc (AIM: ZPHR) (OTCQB: ZPHRF), the Rocky Mountain oil and gas company focused on responsible resource development and carbon-neutral operations, notes recent market speculation that the Company is in the process of, or planning for, an equity fundraise.
The Company confirms that it has not been undertaking nor is it intending to undertake an equity fundraise, and that it knows of no notifiable reason for the Company’s recent material share price movement.
Zephyr Energy’s primary asset is a 46,000-acre leaseholding in the Paradox Basin, Utah, which has assessed reserves of 2.6 million barrels of oil equivalent (mmboe) and additional resources estimated at up to 270 mmboe.
The company also has interests in producing wells throughout the Williston Basin, utilizing cash flow from these assets to fund its operations in the Paradox Basin.
Last week, Zephyr announced the second phase of production testing for the State 36-2R well, which achieved peak production rates exceeding 2,100 barrels of oil equivalent per day (boepd). This result was a significant milestone for the AIM-listed company.
The well’s success was attributed to the use of acidisation stimulation, marking the first known application of this technique in the Paradox Basin.
“This is a highly significant milestone for the company in its development of the White Sands Unit and its wider project acreage,” said CEO Colin Harrington in early September. “This is the first known use of acidisation stimulation in the Paradox Basin, and the results are extremely encouraging. The well’s deliverability and permeability are particularly notable, leading to the high production rates witnessed.”
Zephyr has also previously mentioned engaging in discussions with U.S.-based industry partners about potential development opportunities to accelerate the appraisal of the Paradox project.
