Zephyr Energy PLC Debt facility update (9103F)
November 10 2022 - 1:00AM
UK Regulatory
TIDMZPHR
RNS Number : 9103F
Zephyr Energy PLC
10 November 2022
10 November 2022
Zephyr Energy plc
("Zephyr" or the "Company")
Semi-annual redetermination results in
30% increase to availability under Revolving Credit Facility
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 that the
Company's lender, North-Dakota based First International Bank and
Trust ("FIBT"), has completed its regularly scheduled semi-annual
redetermination of the Company's revolving credit facility
("RCF").
The redetermination process resulted in a 30% increase to the
RCF, with the new borrowing base set at US$13 million. As of today,
US$8 million is currently outstanding on the RCF, providing the
Company with an additional US$5m of liquidity which can be drawn at
Zephyr's discretion. In addition to the RCF, at 1 November 2022,
Zephyr had an additional US$15.8 million of outstanding borrowings,
the majority of which is comprised of a senior bank term loan with
FIBT.
As of today's date the Company has more than US$18.5m in
available liquidity taking into account its current cash balances
and the increased headroom on the RCF.
The next semi-annual redetermination of the RCF is scheduled to
take place in the second quarter of 2023.
Colin Harrington, Zephyr's Chief Executive, said: "The
successful redetermination and resulting 30% increase to the RCF
borrowing base is an excellent testament to the strength of
Zephyr's underlying assets - and the increased debt capacity is
particularly notable in light of the Company's production revenues
of over US$25 million during the first half of 2022.
"We expect to continue to generate strong free cash flow for the
foreseeable future, which in turn will fund the planned expansion
of both our operated and non-operated asset portfolios.
"I would like to thank FIBT, a regional bank with over 110 years
of history in North Dakota, and its team for their continued strong
support of Zephyr."
Contacts:
Zephyr Energy plc Tel: +44 (0)20 7225
Colin Harrington (CEO) 4590
Chris Eadie (CFO)
Allenby Capital Limited - AIM Nominated Tel: +44 (0)20 3328
Adviser 5656
Jeremy Porter / Vivek Bhardwaj
Turner Pope Investments - Joint-Broker Tel: +44 (0)20 3657
James Pope / Andy Thacker 0050
Panmure Gordon (UK) Limited - Joint-Broker
John Prior / Hugh Rich / James Sinclair-Ford Tel: +44 (0) 20 7886
/ Harriette Johnson 2500
Celicourt Communications - PR
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 by third party consultants Sproule International to hold,
net to Zephyr, 2P reserves of 2.1 million barrels of oil equivalent
("mmboe"), 2C resources of 27 mmboe and 2U resources 203 mmboe.
Following the successful initial production testing of the recently
drilled and completed State 16-2LN-CC well, Zephyr has planned a
three well drilling program commencing in 2022 to further delineate
the scale and value of the project.
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
US$35-40 million of revenue, net to Zephyr, in 2022. 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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