Zephyr Energy PLC’s much-anticipated updated Competent Person’s Report (CPR) highlights the substantial remaining potential of its assets in the Paradox Basin, Utah, Turner Pope Investments said.
“Combining Zephyr’s total Paradox Basin 2P Proved Reserves with those of its existing Williston Basin non-operated portfolio now produces an estimated net present value at a ten per cent discount rate (‘NPV-10’) of over US$111 million (up from zero value ascribed in 2018) with substantial multiples of additional upside potential from success cases related to its contingent and prospective resources,” the research house reported.
“Management’s ambition is now to increase all reserve and resource classes by this time next year and, ultimately to unlock the next unconventional onshore resource play in the US,” it added.
Industry consultant Sproule has estimated the Paradox Project’s unrisked recoverable (3P/3C/3U) barrels of oil equivalent (boe) to be more than three times previously stated management guidance, which “demonstrates the true scale of this opportunity”, Turner Pope said.
The company is generating cash through its portfolio of non-operated working interests, which will provide the necessary funding for the next phase of development at the Paradox Project.