ZEPHYR ENERGY PLC

Earnings Release • May 11, 2022

National Storage Mechanism | Additional information

RNS Number : 0362L

Zephyr Energy PLC

11 May 2022

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.

11 May 2022

Zephyr Energy plc

("Zephyr" or the "Company")

First Quarter 2022 sales update from non-operated Williston Basin portfolio

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 provide an update on first quarter 2022 ("Q1") hydrocarbon sales from its non-operated asset portfolio in the Williston Basin, North Dakota, U.S.

Williston Basin Sales Update

Q1 sales from the Company's Williston Basin portfolio averaged circa 1,600 barrels of oil equivalent per day ("boepd") net to Zephyr, up from 548 boepd in Q4 2021. 

During the quarter, Zephyr sold 144,540 barrels of oil equivalent ("boe"), and net sales to Zephyr were as follows:

Oil:                                      109,940 barrels ("bbls") at an average sales price of US$90.11 /bbl

Natural Gas:                      114,096 million cubic feet ("mmcf") at an average sales price of US$5.40 /mcf

Natural Gas Liquids:        15,584 bbls at an average sales price of US$64.19 per bbl

(Note: First quarter production volumes and average sales prices figures include field estimates in respect of March 2022 gas and NGL sales volumes.)

At the end of Q1 Zephyr had 185 wells available for production, including seven wells that came online during the quarter.

First quarter revenues totalled US$11.5 million net to Zephyr, and  Q1 average operating expenditure was US$11.87 /boe demonstrating the high profit margin realised from the hydrocarbons sold during the period.

Williston Basin production outlook

16 new producing wells from Zephyr's existing portfolio are expected to be brought online during the next six months. 

The Company has currently hedged just under half of its forecast non-operated production over the next two years.  Using an average hedged production price of US$98 for the remainder of the year and using US$90 flat for the remainder of its anticipated production, the Company forecasts a range of US$35-40 million in revenue from production for FY 2022 from its non-operated portfolio based on forecast production range of 500,000 - 550,000 boe during the year.

Appointment of Capital Markets Adviser

The Company is also pleased to announce that it has engaged Auctus Advisors LLP (www.auctusadvisors.co.uk), a specialist equity capital markets and advisory business with a focus on institutional investment and the energy sector, to publish equity research on the Company and provide a range of institutional corporate broking and corporate finance advisory services.

Contacts:

Zephyr Energy plc Colin Harrington (CEO) Chris Eadie (CFO)	Tel: +44 (0)20 7225 4590
Allenby Capital Limited - AIM Nominated Adviser Jeremy Porter / Liz Kirchner / Vivek Bhardwaj	Tel: +44 (0)20 3328 5656
Turner Pope Investments - Broker James Pope / Andy Thacker  Celicourt Communications Mark Antelme / Felicity Winkles	Tel: +44 (0)20 3657 0050 Tel: +44 (0) 20 8434 2643

Dr Gregor Maxwell, BSc Hons. Geology and Petroleum Geology, PhD, Technical Adviser to the Board of Zephyr Energy plc, who meets the criteria of a qualified person under the AIM Note for Mining and Oil & Gas Companies - June 2009, has reviewed and approved the technical information contained within this announcement.

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