Business
Non-operated asset portfolio drilling update
Non-operated asset portfolio drilling update.
About this update from Zephyr Energy Plc
[{"type":"text","content":"\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 \n 16 June 2022\n \n \n Zephyr Energy plc\n \n \n \n \n (\"Zephyr\" or the \"Company\")\n \n \n \n \n \n \n \n \n \n Non-operated asset portfolio drilling update:\n \n \n \n \n acquisition of further Williston Basin working-interests\n \n \n \n \n \n \n \n \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, \n is pleased to provide an update on recent activity on its non-operated asset portfolio in the Williston Basin, North Dakota, U.S (the \"non-operated portfolio\"), including the acquisition of working-interests (\"WIs\") in a further 11 wells.\n \n \n \n \n \n Zephyr's non-operated portfolio now consists of WIs in 219 wells, the vast majority of which are currently in production.\n \n \n \n \n \n Highlights\n \n \n \n \n \n ·\n Zephyr's non-operated portfolio continues to grow, both through drilling on existing Zephyr acreage and through the acquisition of further \"bolt-on\" WIs in the Williston Basin.\n \n \n ·\n Over the past two months, Zephyr elected to participate in seven new Sanish Field infill wells to be drilled within drilling and spacing units (\"DSUs\") in which Zephyr currently holds WIs.\n \n \n ·\n Zephyr has also acquired WIs in a further 11 wells (these, together with the seven Sanish Field wells, the \"new wells\"), a majority of which have already been drilled and are awaiting completion. \n \n \n o \n Total consideration for the 11 acquired wells is circa US$301,000, which has been paid from existing cash resources\n \n \n ·\n Zephyr's average WI across the 18 new wells is circa 1.4% per well, or a total aggregate of circa 24.4% of one net well, and are comprised of two and three-mile hydraulically stimulated horizontal wells.\n \n \n ·\n In addition to the acquisition price paid for the newly acquired 11 wells, Zephyr will fund the discretionary net capital expenditure (\"CAPEX\") relating to the ...