Business
New strategic partnership to provide up to US$100m
New strategic partnership to provide up to US$100m.
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.\n13 May 2025\nZephyr Energy plc\n(\"Zephyr\" or the \"Company\")\n \nNew strategic partnership to provide up to US$100m\nFormation of Zephyr Hawk LLC\n \nZephyr Energy plc (AIM: ZPHR) (OTCQB: ZPHRF) is pleased to announce it has entered into an agreement (\"Agreement\") with a U.S.-based capital provider focused in the energy sector (the \"Investor\") to fund growth in the Company's non-operated asset portfolio in the Williston Basin in North Dakota and Montana, U.S. (\"Transaction\"). As part of the Transaction, Zephyr also announces the formation of an acquisition vehicle, Zephyr Hawk LLC, a subsidiary of Zephyr which will hold the Company's non-operated working interests acquired pursuant to the Agreement.\n \nUnder the terms of the Agreement, Zephyr will be responsible for acquiring non-operated assets (\"Non-Op Assets\") and the Investor will make available up to US$100 million to fund 100% of capital expenditures (\"CAPEX\") related to the drilling, completing and equipping of those Non-Op Assets, which will be contained within a defined geographical area (the \"Program Area\"). The Program Area consists of counties located in the Williston Basin, although both parties may consider opportunities in other Rocky Mountain basins upon mutual consent. The Investor may elect to participate in opportunities at its discretion, on a case-by-case basis, after conducting its own financial and technical verification. Zephyr retains the right (but not the obligation) to fund up to 33% of pro rata CAPEX. The Investor will earn a majority of the cash flows generated by its pro rata working interest in each well until an agreed upon initial hurdle rate is met.\n \nThe Agreement is for an initial term of six months. Whilst there can be no guarantee that appropriate opportunities will be forthcoming or lead to funding, Zephyr expects that it will be in a position to present a number of opportunities to the Investor over the initial six months of the Agreement from its current and expected pipeline.\n ...