Zephyr Energy PLC (AIM:ZPHR, OTCQB:ZPHRF) has now completed its US$7.3 million acquisition in the Rocky Mountains basins, adding working interests in producing assets.
The transaction, effective from 1 June 2025, also includes undeveloped reserves and additional acreage for potential future development.
The company said the new acquisition will add about 388 barrels of oil equivalent per day of net production after adjusting for the divestment.
“We are delighted to complete the acquisition, which adds high-margin production and additional proved reserves to our existing asset base,” chief executive Colin Harrington said. He added that the deal also creates immediate opportunities under Zephyr’s US$100 million Hawk joint venture.
"We now have cash-flowing non-operated investments across key Rocky Mountain regions, our longstanding area of focus. In particular, this enhanced geographical position will give us a new foothold into active developments in the Powder River Basin, as well as increased exposure in the Williston Basin," the Zephyr boss added.
Zephyr, meanwhile, also revealed that it had sold some of the newly acquired operated wells in North Dakota and Wyoming to a neighbouring operator in a deal worth US$1.5 million - receiving US$679,000 in cash upfront, and handing off some US$822,000 of plugging and abandonment liabilities.
Harrington commented: "Zephyr has always actively managed its asset portfolio to create Shareholder value, and the Acquisition has offered immediate opportunities to do so ... the sale of the divested assets also saves significant future costs related to maintaining operatorship in two new jurisdictions.
"As such, we elected to divest these wells immediately after their acquisition, without significant impact to our previously released Acquisition production forecasts."
Zephyr noted that it intends to produce a new Competent Person's Report for its assets 'in the near-term'.