Zephyr Energy PLC (AIM:ZPHR, OTCQB:ZPHRF) said it has decided to increase its hedging programme related to oil production in the Williston Basin, USA.
The oiler said it had used up most of the facility in place from last year’s programme and has put in place hedges for the nine months ending 31 December 2023 on volumes up to 137,000 barrels (bbls), with BP the counterparty.
Under the terms of the programme, Zephyr will settle on a monthly basis, at the following prices:
- ·Q2 2023: 52,000 bbls at an average US$86.84/bbl
- ·Q3 2023: 45,000 bbls at an average US$83.57/bbl
- ·Q4 2023: 40,000 bbls at an average US$83.42/bbl
- ·Q1 2024: 27,000 bbls at an average US$82.20/bbl
In its statement, Zephyr said the programme has been structured to provide cashflow surety related to the company's debt obligations, as well as to derisk funding requirements for the company's activity at its flagship project in the Paradox basin project in Utah.
Additional hedges might also be taken out dependent on price movements, Zephyr added.