Zephyr Energy PLC (AIM:ZPHR, OTCQB:ZPHRF) chief executive Colin Harrington, in today’s interim results, told investors he was delighted with recent testing, and in the coming months he looks forward to the ongoing transformation of the Paradox project into a revenue-generating asset.
At Paradox, in Utah, the focus has been on a phase of well testing designed to demonstrate the project’s viability and merit – it recently resulted in peak production rates of more than 2,100 barrels of oil equivalent per day from the State 36-2R well.
“H1 2024 was an active time for Zephyr, during which we invested a significant amount of capital into the Paradox project with the drilling of the State 36-2R well and the subsequent production tests,” Harrington said in the statement.
Harrington added: “We are in advanced conversations with U.S.-based institutions regarding wellbore and asset-level investment opportunities, and look forward to updating the market in the near term regarding our proposed next steps for the Paradox project.”
Elsewhere, across its non-operated portfolio of producing wells in the Williston Basin, the company underpins its financial position.
"Our Williston project continues to perform as a robust cash-flowing engine for the company, funding our G&A and debt service costs in addition to providing capital for the Paradox project and growth in the Williston (where production has increased for four consecutive quarters),” Harrington noted.
Revenue for the first half amounted to $13.6 million, up slightly from the $13.4 million achieved in the same period a year ago, with net sales volumes averaging 1,239 barrels of oil equivalent per day (for a total of 225,672 barrels for the six months).
Gross profit was reported at $10 million, reflecting the company's high-margin production and robust cashflows.
Looking ahead, Harrington commented: “We have an exciting period ahead of us and I believe, more than ever, that we have the pieces in place to enable us to deliver on our strategic objectives successfully."