Founded in 2002, Zephyr Energy Plc is a technology-led exploration and production company, which aims to deliver superior economic return by investing in responsibly developed oil and gas projects in the Rocky Mountain region located in the United States. The company changed its name from Rose Petroleum Plc to Zephyr Energy plc in July 2020. Since the company was founded, its management has aimed to combine their experience, innovative technology, with purchase and develop choice assets at an attractive valuation to provide high value and return to its shareholders, customers, and the broader community. It maintains relationship with its communities and other stakeholders to provide economic value effectively and responsibly and is committed to best environmental practices. After significant disruption in the oil and gas sector in the US, the company is further seeking opportunities to expand through strategic acquisition that are measured by their future contribution to the company’s cash flow.
The company primarily focuses on upstream development in the Rocky Mountain located in the American West and it is aiming to develop its flagship operated assets in Utah to with the motive to generate significant profit and growth, it is funded by the low risk and highly profitable non-operated production assets located in Rocky Mountain basin. The acquisition efforts of the company also look to maximize economic benefit from its historical US $16 million tax loss asset. To maximize its growth with minimum dilution for its shareholders, the company tries to maintain its relationship with large public and private companies such as the US Department of Energy and private institutional co-investors. The company has acquired DJ Basin’s Stillroven field from Anadarko and then sold to Great Western in less than two years and sold Cabot LNG for US $800 million.
Its assets are located in the Paradox Basin, Utah, Williston Basin, North Dakota and DJ Basin, Colorado. The Paradox Basin located in Utah is operated in the leased 25,353 acres of land with 75% working interest since 2014 and has excellent 3D seismic across most of its position. It also has potential for natural fracture development with better economics than existing assets. To enhance its understanding and awareness regarding geology and industry, it has partnered with Energy funded research team of the US Department. Further, has granted funding to drill the state 16-2 “dual use” in December 2020, which can provide extensive core and log data to be tied into existing geologic analogue analysis and it started drilling the state 16-2LN-CC in 2021.
Williston Basin, North Dakota and Montana consist of the Bakken and three-fork foundation reservoirs. It is the most active and prolific oil basins located in the US and currently owns non-operates interests in 5 wells in Williston. Its assets include one producing well, four drilled but uncompleted wells, 2P reserves with approx 449,434 boe and three pads with working interest range from 16.8% to 37.2%, its wells are operated by Whiting Petroleum.
The DJ Basin, situated in Wyoming and Colorado, is a high-quality liquid rich resource interest with low-risk horizontal wells that has been started again as vertical production replaced with over 4,000 horizontal wells. In November 2019, the company announced to sign a letter of intent with Captiva Energy Holdings II, LLC, in respect of a working interest acquisition in the McCoy lease in DJ Basin that delivers short-term, low-risk horizontal development drilling exposure in the Niobrara interest.
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