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Zephyr Energy says new acquisitions add ‘building blocks’ for major production boost in 2023.
It intends to release production data from16 -2 well on completion of production tests, which is expected in early January.
Harrington commented: “Having announced the acquisitions yesterday, it is our intention to provide the market with a full update of our investment plans for 2023 early in the New Year.
"2022 has been another year of transformation for Zephyr and the acquisitions being announced yesterday are a great way for us to end this year and to set up for the next. 2023 promises to be an exciting time for the company as we continue with the development of our asset portfolio.”
There is so much information in the interview..... Watch it and then watch again and again.
Brilliant that CH is sharing Blue Sky vision here.
https://youtu.be/ikSfypcKo8o
papaduke, that's not quite correct Zephyr sold the initial test production oil from 16-2.
The RNS tells you fromwhen the extra shares may hit the market.... that is if RSOC decide to sell. The warrants are obviously when the directors decide to purchase.
Looks like a Master Stroke by the BOD.. whilst keeping RSOC in the frame with shares.
Having been served notice to provide its share of funding for these two items, the Company was informed that the vendor was unable to fund its 25 per cent. interest in the State 36-2 Well within the required timeline. This inability to fund the project provided an opportunity for Zephyr to explore a corporate solution with RSOC - and as the vendor wished to retain exposure to the project, an agreement was reached for Zephyr to acquire the vendor's stake through the issue of shares in the Company.
The terms of the Paradox Acquisition are as follows:
· Total consideration of up to US$3 million, payable by way of the issue of new ordinary shares of 0.1 pence each in the capital of the Company ("Ordinary Shares"), to be issued under existing share authorities, at a price of 6.05p per Ordinary Share, representing a circa 11% premium to the Company's mid-market closing share price on 20 December 2022.
o A first tranche of 13,483,095 new Ordinary Shares will be issued to the vendor on the completion of the Paradox Acquisition in January 2023;
o A second tranche of 26,966,189 new Ordinary Shares will be issued to the vendor upon Zephyr's final investment decision with respect to the contract award to a primary contractor to commence construction activities to make the Powerline Road gas processing plant operational; and
o All equity issued to the vendor will be subject to a lock-up period which expires at the earlier of the date that first gas from the State 36-2 Well is sold via the Dominion Energy Utah, LLC ("Dominion Energy") 16-inch gas export pipeline; or 15 December 2023.
That RNS gives a clear indication of what 2023 is goingto bring. further updates in January should give clear indication of the trajectory of this company.
16-2 stable and increasing production - what we have been waiting for.
Open in informing the share holders.. Great RNS
However in light of current market conditions, and having canvassed key shareholders, the board is unanimous that Cancellation and advancing the Group's potential in an unlisted environment is right now in the best commercial interests of all shareholders".
We will continue to serve the best interests of shareholder to ultimately deliver value for them".
As maybe.... but I ain't selling now!
5p placing has given a massive cashflow that allows the Paradox to be drilled and oil to flow, infastructure to be put in place and 2P reserves to dramatically increase.
I suppose it depends on your entry point, personally I am quite a happy chappy.
Q2 2023 could be very very interesting here.
Zephyr Energy Plc quote is equal to 0.0555 GBP at 2022-11-16. Based on our forecasts, a long-term increase is expected, the "ZPHR" stock price prognosis for 2027-11-05 is 1.180 GBP. With a 5-year investment, the revenue is expected to be around +2026.45%. Your current $100 investment may be up to $2126.45 in 2027.
Hold Folks!!