Zephyr Energy PLC (AIM:ZPHR, OTCQB:ZPHRF) told investors it saw 96,324 barrels of oil equivalent production from its non-operated assets in North Dakota during the third quarter.
The daily rate from the Williston Basin wells averaged 1,047 barrels per day (boepd), it said. This is in line with management expectations, though it includes a natural decline from the preceding three months.
For the full year, Zephyr continues to forecast an average rate between 1,100 and 1,300 boepd, which would beat last year’s average of 1,040 boepd.
Zephyr said it has hedged 27,500 barrels of oil for the fourth quarter of 2024, with floor and ceiling prices ranging from US$71.35 to US$84.38 per barrel.
"Our non-operated asset portfolio continues to deliver strong cash flows and production rates in line with expectations,” chief executive Colin Harrington said in a statement.
“Cash generated from the portfolio covers all corporate costs and allows us to continue to advance the Paradox project, where we are preparing to commence drilling operations for the extended lateral section of the State 36-2R LNW-CC well early next year.”
Harrington added: “I am pleased to report that our asset-level funding process for our forthcoming drilling operations continues to progress well and in line with our expectations.
“We fully anticipate signing the binding documentation for the asset-level funding later this month.”
Zephyr also announced an extension to the exercise period of 89,566,666 Warrants, initially set to expire in February 2025.
Following the agreement with warrant holders, the expiry date has been moved to September 2026. If exercised, they are expected to generate £6.7 million in proceeds for the company.