Zephyr Energy PLC (AIM:ZPHR, OTCQB:ZPHRF) detailed the financial performance of its portfolio of well assets in the Williston Basin in North Dakota, with US$6.3mln of net revenue generated in its first quarter of 2023.
It marks a decline from US$7.4mln in the fourth quarter as a result of lower commodity prices and standard production decline.
A total of 223 wells were in production during the quarter. The company sold an average of 1,093 barrels oil equivalent per day, in line with expectations, and some 36,000 barrels were hedged at an average price of US$90.05 per barrel.
"Over the last two years, Zephyr has built a successful and profitable non-operated asset base comprised of a diverse mix of working-interests in 223 low-risk, high-margin producing wells,” chief executive Colin Harrington said in a statement.
“This production is well-hedged at above current market prices, and delivers rapid payback and solid cash flows to fund future growth within both our operated and non-operated portfolios.”
Harrington added: "Near-term growth includes our investment in the newly drilled and completed Slawson-operated wells, wells which are expected to significantly boost non-operated production rates when brought online this Autumn.
"On our operated Paradox project, our near-term priority is to deliver a safe and successful production test of the State 36-2 LNW-CC well, and we look forward to updating shareholders when we commence that test."
At Paradox, in Utah, the company told investors that the State 36-2 LNW-CC well remains stable and under control while additional well repair work is ongoing.
It noted that given the high pressures and significant hydrocarbon volumes witnessed to date, the continued safety of all personnel on site and the mitigation of any environmental impact are the top priorities.
A new schedule for well testing is expected to be announced subsequently.