By Jaime Llinares Taboada
Zephyr Energy PLC stated Thursday that it provides acquired interests in 10 wells all of which will invest around drilling a further eight sites across its non-operated portfolio in the Williston Basin, North Dakota. This is what the oil-and-gas corporation had to say:
“Over the past two many months, Zephyr elected to be involved in seven new Sanish Field infill wells to help be drilled within going and spacing units around which Zephyr currently contains working interests.”
“Zephyr has acquired working interests within a further 11 wells…most which have already recently been drilled and they are awaiting finalization.”
“Total consideration for typically the 11 acquired wells is usually circa $301,000, which in turn has been paid coming from existing cash resources”
“Zephyr’s normal working interests across typically the 18 new wells is usually circa 1.4% for every well, or possibly a total blend of circa 24.4% of one net properly, and are comprised regarding two and three-mile hydraulically stimulated horizontal wells.”
“In conjunction with the acquisition selling price purchased the newly purchased 11 wells, Zephyr can fund the discretionary online capital expenditure relating to help the drilling and finalization for all 18 regarding the new wells. Zephyr’s net CAPEX is believed to be circa US$1.8 million which can be payable over 2022, and the Board desires to fund this investment decision from the existing cash assets.”
“The Company expects most 18 of the fresh wells being on manufacturing by the end 2022, resulting in an predicted 80,000 barrels regarding oil equivalent reserve improvement to Zephyr.”
“The 20 new wells are anticipated to help generate an incremental 200-250 barrels of oil equal per day, although sources is going to be brought online from varying points over typically the second 50 % of 2022. This particular incremental production will function to offset typical diminish in Zephyr’s existing making wells.”
“Zephyr’s non-operated collection averaged 1,600 boepd in the first 1 / 4 of 2022. Updated manufacturing and revenue totals, along with revised forecasts, will always be provided after 2Q 2022 revenue totals and costs data are received coming from our Operators.”
Write to help Jaime Llinares Taboada from jaime.llinares@wsj.com; @JaimeLlinaresT
