Business
$36m acquisition of non-operated production assets
$36m acquisition of non-operated production assets.
About this update from Zephyr Energy Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 0474T\n Zephyr Energy PLC\n 22 November 2021\n \n \n \n \n Prior 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 \n \n \n \n \n \n \n \n 22 November 2021\n \n \n Zephyr Energy plc \n \n \n (\"Zephyr\" or the \"Company\")\n \n \n \n \n \n Transformational US$36 million acquisition of non-operated production assets in the Williston Basin\n \n \n \n \n \n Zephyr Energy plc (AIM: ZPHR) (OTCQB: ZPHRF), the Rocky Mountain oil and gas company focused on responsible resource development from carbon-neutral operations, is pleased \n to announce that it has entered into a binding agreement (the \"Agreement\") to acquire further non-operated working interests in currently producing and near-term production wells in the Williston Basin, North Dakota, USA (the \"Assets\") (the \"Acquisition\"). \n \n \n \n \n \n The Directors of Zephyr (the \"Directors\" or \"Board\") believe that the Assets will be an ideal addition to Zephyr's existing asset portfolio and that the cashflows generated from the Acquisition will enable the Company to proceed with, amongst other things, the fast-track development of its flagship Paradox project.\n \n \n \n \n \n Summary\n \n \n \n \n \n Zephyr has entered into a binding agreement with Kaiser Acquisition and Development - Sanish Non-op, LLC, a privately owned exploration and production company based in the USA (the \"Seller\") to acquire a portfolio of non-operated working-interests in wells located in the same Williston Basin field as a number of Zephyr's existing non-operated assets. The assets being acquired are operated by Whiting Petroleum Corporation (\"Whiting\"), one of the largest and most experienced operators in the Williston Basin and which already serves as the operator of a number of Zephyr's existing non-operated wells. The Acquisition has an effective date of 1 October 2021 (the \"Effective Date\").\n \n \n \n \n \n · \n Under the terms of the Acquisition, which is expected to close by 22 December 2021, Zephyr will acquire working interests in 163 currently producing wells (the \"PDP ...