Business
Debt for equity exchange & State 36-2R well update
Debt for equity exchange & State 36-2R well update.
About this update from Zephyr Energy Plc
[{"type":"text","content":"\n\nPrior to publication, the information contained within this announcement was deemed by the Company to constitute inside information as stipulated under the UK Market Abuse Regulation. With the publication of this announcement, this information is now considered to be in the public domain.\n \n3 May 2024\nZephyr Energy plc\n(\"Zephyr\" or the \"Company\")\n \nDebt for equity exchange and\nState 36-2R well drilling update\n \nZephyr Energy plc (AIM: ZPHR) (OTCQB: ZPHRF), the Rocky Mountain oil and gas company focused on responsible resource development from carbon-neutral operations, announces that the Company has retired US$3.88 million (£3.11 million) of existing debt (\"Repayment Amount\") through the issuance of US$3.88 million (£3.11 million) of equity comprised of 64,045,768 new ordinary shares of 0.1 pence (\"p\") each in the Company (\"Repayment Shares\"), at a price of 4.85p per Repayment Share (the \"Issue Price\"). \n \nThe Issue Price of the Repayment Shares is the undiscounted mid-market closing price of the Company's shares on 2 May 2024.\n \nThe Repayment Shares are being issued to SGR Investments, LLC (\"SGRI\"), a US-based institutional investor with a 50-year investment track record. In December 2022, SGRI provided debt funding (the \"SGRI loan note\") to Zephyr Williston LLC, a subsidiary of the Company, to enable Zephyr's group to acquire a portfolio of Williston Basin wells operated by Slawson Exploration. The obligation to repay the Repayment Amount was novated to the Company prior to the allotment of the Repayment Shares.\n \nThe Repayment Shares are being issued using existing share authorities granted to the Board at the Company's annual general meeting held on 26 July 2023.\n \nThe residual portion of the SGRI loan note is in the process of being refinanced through the Company's existing commercial banking facilities as part of its regularly scheduled semi-annual redetermination process which is expected to be concluded in May 2024. Post-redetermination, Zephyr's forecast gross debt is expected to be circa US$30 million.\n \nThe Repayment Shares represent approximately 3.7 per cent of the enlarged share capital of the Company as enlarged by the issue of the Repayment Shares and will rank pari passu with the existing ordinary shares of 0.1 p eac...