- Zephyr Energy
- 26 August 2025 13:36:18
Source: Sharecast
The AIM-traded company said the deal, effective from 1 June, included mature proved developed producing assets as well as proven undeveloped upside and additional acreage for future growth.
Following completion, Zephyr sold a small package of newly acquired operated wells in North Dakota and Wyoming to a neighbouring operator for $1.5m, comprising $679,000 in cash and the assumption of $822,000 in near-term plugging and abandonment liabilities.
After adjusting for the sale, the acquisition was expected to add around 388 barrels of oil equivalent per day of production in its first month, only slightly below the initial 400 daily barrels estimate.
Zephyr said the assets also provided 18 new development well opportunities for its $100m Zephyr Hawk joint venture, up from five at the time the deal was agreed.
“We are delighted to complete the Acquisition, which adds high-margin production and additional proved reserves to our existing asset base,” said chief executive Colin Harrington.
“We now have cash-flowing non-operated investments across key Rocky Mountain regions, our longstanding area of focus.
“In particular, this enhanced geographical position will give us a new foothold into active developments in the Powder River Basin, as well as increased exposure in the Williston Basin.”
He said the divestment delivered immediate cash and reduced future liabilities without significantly impacting production forecasts, adding that further updates on the acquisition and Zephyr’s Paradox project would follow in the coming months.
At 1246 BST, shares in Zephyr Energy were down 4.69% at 3.05p.
Reporting by Josh White for Sharecast.com.