Zephyr Energy PLC (AIM:ZPHR, OTCQB:ZPHRF) told investors it generated some US$6 million of third-quarter revenue from its non-operated production assets in North Dakota’s Williston Basin.
Sales volumes averaged 1,043 barrels oil equivalent per day (boepd), down from 1,385 boepd in the same period last year. The company noted that the production performance was in line with expectations and represented a standard level of decline in the portfolio.
Net sales amounted to 93,186 barrels - comprising 91% oil, 3% natural gas and 6% natural gas liquids.
Average sales prices averaged US$64.35 per barrel in the quarter, compared to US$56.64 a year ago. Production revenue reduced year on year from US$7.1 million.
Zephyr meanwhile said it saw operating income of US$4.3 million versus US$4.2 million last year.
Production recently began from a six-well pad site operated by Slawson Exploration and Zephyr highlighted that it expects these new wells will trigger a material increase in production rates during the fourth quarter. It said it will update the market on the flow rates from these new wells after the first 30 days of stabilised production.
"Our non-operated assets continue to deliver strong and robust cash flows, allowing Zephyr to continue to fund investment and growth across both our operated and non-operated portfolios,” chief executive Colin Harrington said in a statement.
"I'm pleased that this year's investment in the Slawson wells is expected to materially boost production rates in the current quarter, and the resulting cashflows will be utilised to deliver additional growth as we intensify our operational activity."
The company had 220 wells available for production in its portfolio at the end of September.