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Zephyr Energy PLC (LSE:ZPHR) has addressed recent market speculation by clarifying that it is not in the process of raising new capital through an equity offering. In a formal statement, Zephyr Energy affirmed that there are no current plans for an equity fundraise, nor is the company engaging in any such activity at this timeAdditionally, the company has responded to recent fluctuations in its share price, indicating that it has no information about any substantial factors contributing to the price volatility.
The primary asset of Zephyr Energy is a substantial 46,000-acre leasehold in the Paradox Basin, UtahThis asset includes assessed reserves of 2.6 million barrels of oil equivalent and potential additional resources estimated at up to 270 million barrels of oil equivalentAlongside this, Zephyr Energy holds interests in producing wells within the Williston Basin, leveraging cash flows from these operations to support its activities in the Paradox Basin.
Recently, Zephyr Energy reported notable progress in its operations with the second phase of production testing for the State 36-2R well, which achieved peak production rates exceeding 2,100 barrels of oil equivalent per dayThis result is particularly significant for the company and marks a notable milestone in its development effortsThe application of acidisation stimulation in this well represents the first recorded instance of this technique being utilized within the Paradox Basin, yielding promising outcomes.
Colin Harrington, Chief Executive Officer of Zephyr Energy, emphasized the importance of this achievement in early September, describing the use of acidisation stimulation as a major development for the White Sands Unit and the broader project acreageThe results have demonstrated notable improvements in the well’s deliverability and permeability, contributing to the observed high production rates.
Additionally, Zephyr Energy has been engaging in discussions with industry partners based in the United States to explore potential opportunities for advancing the appraisal of the Paradox project.
