Zephyr Energy PLC has upped its forecasts for production and revenue this year from its assets in the Williston Basin, North Dakota, after another strong quarter.
Revenues in the three months to end-September 2022 totalled US$9.6mln net to Zephyr, making US$35.5mln for the nine months this year so far.
Sales volumes averaged 1,313 barrels of oil equivalent per day, though production eased slightly to 1,208 boepd net due to maintenance work.
Operating income was US$7.9mln, making US$29.8mln in the year to date.
Zephyr added it now expects revenue in a range of US$40mln-US$45mln, up by US$5mln due to the strong performance in 2022, with production to meet its forecast of 500,000-550,000 barrels of oil equivalent in aggregate.
Cashflow from the Willeston assets is helping to fund drilling at its Paradox site in Utah, where production testing is scheduled to commence in the second half of November 2022.
Pre-test operations included a coil unit cleanout of the well's 5.5-inch production casing and the completion of procedures designed to enhance the well's flow assurance. Work to connect the surface facilities is underway, Zephyr added.
Colin Harrington, chief executive, said: "I continue to be delighted with the strong cash flows generated from our non-operated Williston Basin portfolio.
"The numbers from the portfolio speak for themselves. Over the last 18 months, Zephyr raised and deployed US$19.6mln of equity into the Williston portfolio - and in the first three quarters of 2022 alone, that portfolio generated over US$35mln in revenue and US$29.8mln of operating income.
"As a direct result of the portfolio's strong performance, during 2022 we've been able to reduce the company's borrowings from an already conservative US$29.9mln to US$24.8mln, expand our Paradox acreage position from 36,000 to 45,000 acres and acquire the pipeline and processing infrastructure across our White Sands Unit.”