Zephyr Energy PLC (AIM:ZPHR, OTCQB:ZPHRF) told investors its non-operation production, from the Williston Basin in North Dakota, averaged 1,151 barrels of oil equivalent per day (boepd).
It was a 9% increase from the 1,053 boepd reported for the preceding quarter.
While production from the six wells operated by Slawson Exploration Company was temporarily shut-in over the winter months due to adverse weather conditions and infrastructure constraints, production resumed in late January 2024.
The company, in a statement, said the average daily production rate from the portfolio in March 2024 was 1,212 boepd, reflecting the impact from the Slawson wells being online, albeit not at full capacity.
At the end of the quarter, Zephyr's portfolio comprised 230 wells, an increase from 225 wells at the end of the prior quarter.
Zephyr’s net working interests across the portfolio averaged 7.1% per well, equivalent to 16.3 net wells.
In February 2024, ten wells operated by Continental Resources began production. Early production data indicates these wells are performing ahead of expectations, contributing approximately 75 boepd net to Zephyr.
The company hedged 27,000 barrels of oil in the quarter, at a weighted-average price of US$82.20 per barrel. Additionally, Zephyr hedged a total of 76,000 barrels of oil for the remainder of the year, with 40,500 barrels hedged at US$80.91 and the rest secured through financial collars.