Zephyr Energy PLC (AIM:ZPHR, OTCQB:ZPHRF) has updated investors on the development of its Paradox Basin project in Utah, alongside details of its refinancing activities.
Work is underway to connect three previously drilled wells to nearby pipeline infrastructure, with regulatory approvals and commercial arrangements progressing with Enbridge.
"We continue to be fully focused on delivering first production from our Paradox project, and the exciting conclusions from the recent CPR, matched with strong well test results and excellent proximity to buoyant US gas markets, have helped to raise the overall profile of the project significantly," said chief executive Colin Harrington.
"We are working diligently with our partners to execute the operational and regulatory tasks needed to tie in our three wells that are currently capable of production, and we are vigorously pursuing our ongoing project partnership discussions."
Zephyr has, meanwhile, consolidated its borrowings with First International Bank & Trust into a single term facility at a lower interest rate and secured an additional US$2 million loan from a strategic lender to support bonding requirements and potential acreage acquisitions.
"I am happy to report the outcome of our refinancing, which reaffirms the substantial current value of our non-operated portfolio and reduces our overall cost of debt. The cash flow generated from our non-operated assets continues to provide a stable platform for our company," Harrington added.
"Securing additional funding for Paradox growth, which enhances our operational flexibility as we look to expand our Paradox project footprint with as little dilution as possible to our shareholders, is another positive step."