ZEPHYR ENERGY PLC

Capital/Financing Update • Oct 16, 2024

National Storage Mechanism | Additional information

RNS Number : 3232I

Zephyr Energy PLC

16 October 2024

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. 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

UPDUVVRRSRURAUA