Zephyr Energy PLC (LON:ZPHR) has completed the acquisition of non-operated working interests in producing and near-term production wells in the Bakken Formation in North Dakota, US.
The deal, first announced earlier this week, transforms the company into a producer and provides it with a source of cash flow, with first payments to Zephyr expected before the end of April.
Presently, production comes from one well and in today’s statement Zephyr highlighted that completion of four wells drilled last year is expected in May.
The acquisition was supported by a £10mln equity fundraise, which included the issue of 500mln new shares to institutional investors, family offices, Zephyr board members and other investors. The new shares were priced at 2p each, marking a 2.5% discount to last Friday’s closing share price.