Zephyr Energy PLC Hedging programme update (9839X)
May 02 2023 - 2:00AM
UK Regulatory
TIDMZPHR
RNS Number : 9839X
Zephyr Energy PLC
02 May 2023
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.
Zephyr Energy plc
(the "Company" or "Zephyr")
2 May 2023
Hedging programme update
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 to announce an update
on its hedging programme related to oil production from its
non-operated asset portfolio in the Williston Basin, U.S. (the
"Programme").
With the majority of hedged volumes from last year's Programme
now produced, Zephyr's Board of Directors (the "Board") has elected
to enter into additional oil hedge agreements. Volumes hedged for
the nine months ending 31 December 2023 have increased from 94,000
barrels ("bbls") to 137,000 bbls, with BP Energy Company ("BP"),
one of the world's leading energy trading houses, continuing to
serve as the counterparty.
Under the terms of the Programme, Zephyr holds crude oil
commodity swap agreements, which settle on a monthly basis, at the
following prices:
-- Q2 2023: 52,000 bbls at an average US$86.84/bbl
-- Q3 2023: 45,000 bbls at an average US$83.57/bbl
-- Q4 2023: 40,000 bbls at an average US$83.42/bbl
-- Q1 2024: 27,000 bbls at an average US$82.20/bbl
The Programme has been structured to provide cashflow surety
related to the Company's debt obligations, as well as to derisk
funding requirements for the Company's activity at its flagship
project in the Paradox Basin, Utah, U.S while allowing for
additional exposure to future fluctuations in prices.
The Board will continue to monitor prices and may add additional
hedges if appropriate.
Contacts
Zephyr Energy plc Tel: +44 (0)20 7225
Colin Harrington (CEO) 4590
Chris Eadie (CFO)
Allenby Capital Limited - AIM Nominated Tel: +44 (0)20 3328
Adviser 5656
Jeremy Porter / Vivek Bhardwaj
Turner Pope Investments - Joint-Broker Tel: +44 (0)20 3657
James Pope / Andy Thacker 0050
Panmure Gordon (UK) Limited - Joint-Broker
John Prior / Hugh Rich / James Sinclair-Ford Tel: +44 (0) 20 7886
2500
Celicourt Communication - Public Relations
Mark Antelme / Felicity Winkles
Tel: +44 (0) 20 8434
2643
Notes to Editors
Zephyr Energy plc (AIM: ZPHR) (OTCQB: ZPHRF) is a technology-led
oil and gas company focused on responsible resource development
from carbon-neutral operations in the Rocky Mountain region of the
United States. The Company's mission is rooted in two core values:
to be responsible stewards of its investors' capital, and to be
responsible stewards of the environment in which it works.
Zephyr's flagship asset is an operated 45,000-acre leaseholding
located in the Paradox Basin, Utah, 25,000 acres of which has been
assessed to hold, net to Zephyr, 2P reserves of 2.6 million barrels
of oil equivalent ("mmboe"), 2C resources of 34 mmboe and 2U
resources 240 mmboe.
In addition to its operated assets, the Company owns working
interests in a broad portfolio of non-operated producing wells
across the Williston Basin in North Dakota and Montana.
The Williston portfolio currently consists of working-interests
in over 200 modern horizontal wells which are expected to provide
production of 1,550 - 1,750 barrels of oil equivalent per day, net
to Zephyr, in 2023.Cash flow from the Williston production will be
used to fund the planned Paradox Basin development. In addition,
the Board will consider further opportunistic value-accretive
acquisitions.
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END
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