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.
16 October 2024
Zephyr Energy
plc
("Zephyr" or the
"Company")
Semi-annual redetermination
reaffirms Revolving Credit Facility;
Reduction in borrowing
costs
Zephyr Energy plc (AIM:
ZPHR) (OTCQB: ZPHRF), the Rocky Mountain oil and gas
company focused on responsible resource development and
carbon-neutral operations, is pleased to announce that the
Company's lender, North-Dakota based First International Bank
& Trust ("FIBT"), has completed its semi-annual redetermination
of the Company's revolving credit facility ("RCF").
The redetermination process
reaffirmed the total collateral value of Zephyr's non-operated
asset portfolio and resulted in no change to the amount available
under Zephyr's existing US$15.15 million RCF. In addition, the
interest rate on the RCF has been reduced to 10% per annum (from
11% per annum).
Following the redetermination
process, the Group borrowings are circa US$27.4 million, a
reduction from US$35.3 million at 1 January 2024, and consist
of:
· US$7.2 million
of amortising term loan (at 6.74% interest per
annum)
· US$5.2 million of
amortising term loan (at 10% interest per annum)
· US$15.0 million of debt
drawn on the RCF (at 10% interest per annum).
The impact of the revised borrowing
rates has resulted in a reduction in the Company's blended interest
rate to 9.1% (down from 9.5% at 30 June 2024) and an overall
reduction in annualised interest costs of circa
US$150,000.
The next semi-annual redetermination
for the RCF is scheduled to take place in the second quarter of
2025.
Colin Harrington, Zephyr's Chief
Executive, said:
"I am delighted at the outcome of this semi-annual
redetermination which both affirms the substantial value of our
non-operated portfolio and further reduces our cost of
capital.
"Our non-operated assets are long-lived and high margin and
continue to provide a stable platform for our growth. I would
once again like to thank our partners at FIBT for their strong
support of Zephyr."
Contacts:
|
Zephyr Energy plc
Colin
Harrington (CEO)
Chris Eadie (Group Finance
Director and Company Secretary)
|
Tel:
+44 (0)20 7225 4590
|
|
Allenby Capital Limited - AIM Nominated
Adviser
Jeremy Porter / Vivek
Bhardwaj
|
Tel:
+44 (0)20 3328 5656
|
|
Turner Pope Investments - Joint-Broker
James Pope / Andy
Thacker
Panmure Liberum Limited - Joint-Broker
Mark Murphy / Kieron
Hodgson / James Sinclair-Ford
Celicourt Communications - PR
Mark Antelme / Felicity Winkles
/ Ali AlQahtani
|
Tel:
+44 (0)20 3657 0050
Tel: +44
(0) 20 7886 2500
Tel: +44 (0) 20 7770 6424
|
Qualified Person
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 46,000-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 270
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. 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.