Completion of acquisition of oil-producing interests in the Bakken Formation, USA
Zephyr Energy plc (AIM: ZPHR), the Rocky Mountain oil and gas company focused on responsible resource development, is pleased to announce the completion of its acquisition of non-operated working interests in currently producing and near-term production wells in the Bakken Formation, North Dakota, USA (the “Acquisition” or the “Bakken project”), as announced on 29 March 2021.
All conditions of the Acquisition were satisfied yesterday, including the transfer of title of the Bakken Interests to Zephyr and the release of the Operator liens, and all payments due in respect of the Acquisition have also been made, including payment of approximately $3.7 million for historical capital expenditure obligations and $300,000 to the Seller ($50,000 having already been paid in a non-refundable deposit).
Following the completion of the Acquisition and the subsequent release of the liens, the Company is now an oil-producer and first production payments associated with the currently producing well in the Bakken project are expected to be received by Zephyr at the end of April 2021. Completion of the other four wells in the Bakken project is expected in May, and the Company will keep Shareholders updated on progress.
Details of the Acquisition, and the corresponding Placing, were announced by Zephyr on 29 March 2021, and defined terms used in this announcement have the same meaning as those set out in that announcement.
The second tranche of the Placing of £6 million is conditional, inter alia, on the approval by the Company’s Shareholders of resolutions to be proposed at the General Meeting on 16 April 2021, notice of which was sent to Shareholders in a Circular on 30 March 2021 and is available on the Company’s website.
