Zephyr Energy PLC (AIM:ZPHR, OTCQB:ZPHRF) has confirmed the receipt of $7.5 million in funding to cover the full costs of drilling, completing, and production testing the extended lateral on its State 36-2 LNW-CC-R well in Utah.
Drilling is expected to begin in mid-January. The cash injection came from a US-based industry investor in exchange for a 50% non-operated working interest in the well.
The investor will be on the hook for its proportional share of operating costs and overheads, while net revenues from the well will be split equally from the start of production.
Zephyr retains an option to repurchase the working interest at a discounted rate should the investor choose to sell.