Zephyr Energy PLC (AIM:ZPHR, OTCQB:ZPHRF, FRA:VD5N) expects to raise $2.275 million from the sale of further undeveloped non-core acreage in the Powder River Basin, Wyoming, as it continues efforts to extract value from assets acquired last year.
The AIM-quoted oil and gas company announced it is selling 1,837 acres across two separate transactions, with proceeds subject to closing adjustments. The divestment has an effective date of 1 June and is expected to complete, with payment received, in the week beginning 15 June.
The acreage formed part of Zephyr’s $7.3 million acquisition of producing wells and largely undeveloped acreage, completed in August 2025.
Following the latest divestment, the acquisition will have generated around $7 million from asset sales alone, including $5.8 million of cash proceeds and the removal of about $1.2 million of near-term plugging, abandonment and capital liabilities.
It also generated $1.7 million of revenue from acquired production through to 31 December 2025.
Chief executive Colin Harrington said: "I am delighted to report on the further generation of value from the undeveloped acreage acquired [last year] ... Since the completion of the $7.3 million acquisition in August last year, we have generated over $8.7 million in revenues, cash from acreage disposals and from other cost savings.
"In doing so, we have also retained the vast majority of production from the transaction, demonstrating the excellent economics of the deal."
Zephyr said it is evaluating options for the remaining undeveloped acreage and will provide further updates in due course.