Zephyr Energy PLC (AIM:ZPHR, OTCQB:ZPHRF) announced an uptick in its fourth-quarter production volumes, which averaged 1,053 barrels oil equivalent per day (boepd), a 7% increase from the previous quarter.
The company, in a statement, highlighted significant contributions from the Slawson wells, which, despite temporary setbacks due to weather and infrastructure challenges, resumed production in January 2024.
For all of 2023, Zephyr's production averaged 1,040 boepd, all from the firm’s non-operated assets in the Williston Basin, North Dakota, and, the company said it expects to report revenue at around $26.3 million for the year.
Zephyr noted that it expanded its well inventory during the year, ending 2023 with 225 wells, and, that its hedging arrangements covered some 27,000 barrels of oil for its first quarter of 2024 (sold for $82.20).
"Our non-operated assets continue to deliver strong and robust cash flows, allowing us to proceed with the next phase of our Paradox project in the near-term,” chief executive Colin Harrington said.
"The initial indications of the performance of the Slawson wells continue to exceed our estimates and the wells have the potential to materially increase our 2024 cash flows.
“Very strong initial performance from the Harms Federal and Quale Federal wells is also highly encouraging."
Regarding Zephyr’s operated projects in Utah, Harrington added: “We continue to make good progress ahead of the commencement of drilling on the Paradox project and will be providing a further update on this in the coming days."