Zephyr Energy Plc has provided an update on its oil and gas production assets in the United States which by the end of the fourth quarter averaged 654 barrels oil equivalent per day (boepd).
The company said it had some 43,185 barrels oil equivalent of net sales in the quarter, comprising 35,895 barrels of oil priced at US$72.34 per barrel, 19,081 million cubic feet (mcf) of gas at an average price of US$5.35 per mcf, and 5,132 barrels of natural gas liquids at US$56.56 per barrel.
At the start of the quarter, Zephyr had interests in seven wells were producing in the Williston Basin, North Dakota, and eight more were added in this acreage by the end of the three- month period, including three wells at the Sundance Kid project which came online late in December.
Production is due to rise at Sundance Kid in the coming weeks through artificial lift enhanced production, which is being installed in mid-February. A further seven wells are due to come online in the first half of the year.
More significantly, Zephyr will hike its production volumes later this month as it completes the US$36mln acquisition of interest in more than 100 additional producing wells in the Williston Basin.
After the acquisition, Zephyr will own interests in some 163 wells. On a pro forma basis, production from owned and to-be-acquired wells would’ve averaged 1,759 boepd at the end of December.
The company said it has not hedged any production to date though it intends to hedge a substantial portion of its combined non-operated production after the acquisition.