Zephyr Energy PLC (AIM:ZPHR, OTCQB:ZPHRF) has denied it is raising new capital via an equity raise.
Responding to market speculation, in a statement, Zephyr said it has no plans to conduct an equity fundraise and is not currently undertaking any such action.
The company also addressed the recent volatility in its share price, stating that it is unaware of any notifiable reason for the significant price movement.
Zephyr Energy’s key asset is a 46,000-acre leaseholding in the Paradox Basin, Utah, with assessed reserves of 2.6 million barrels of oil equivalent (mmboe) and additional resources of up to 270 mmboe.
It also holds interests in producing wells across the Williston Basin, using cash flows from these assets to support its operations in the Paradox Basin.
A week ago, Zephyr reported the second phase of production testing for the State 36-2R well with peak production rates of more than 2,100 barrels of oil equivalent per day (boepd).
It was a significant result for the AIM-quoted firm.
The company successfully used acidisation stimulation in the well, which was the first known instance of the technique in the Paradox Basin.
"This is a highly significant milestone for the company in its development of the White Sands Unit and its wider project acreage,” chief executive Colin Harrington said in early September.
“This is the first known use of acidisation stimulation in the Paradox Basin and the results are extremely encouraging - the well's deliverability and permeability are particularly notable, leading to the high production rates witnessed."
Zephyr previously noted that it was engaging in talks with US-based industry partners regarding potential development opportunities to accelerate the appraisal of the Paradox project.