REG - Zephyr Energy PLC - Hedging programme update

Zephyr EnergyAnnouncement

02/05/2023 07:00

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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 4590

 Colin Harrington (CEO)

 Chris Eadie (CFO)

 Allenby Capital Limited - AIM Nominated Adviser     Tel: +44 (0)20 3328 5656

 Jeremy Porter / Vivek Bhardwaj

 Turner Pope Investments - Joint-Broker              Tel: +44 (0)20 3657 0050

 James Pope / Andy Thacker

 Panmure Gordon (UK) Limited - Joint-Broker         Tel: +44 (0) 20 7886 2500

 John Prior / Hugh Rich / James Sinclair-Ford

 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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