Zephyr Energy, the Rocky Mountain oil and gas company focused on responsible resource development from carbon-neutral operations, has provided initial third quarter 2023 results related to hydrocarbon production and cashflows from its non-operated asset portfolio in the Williston Basin, North Dakota, U.S.
Highlights
- Q3 revenue was US$6.0 million compared to second quarter 2023 ("Q2") revenues of US$7.1 million (subject to audit). Q3 revenues reflect the standard decline rates expected from the portfolio.
- Q3 sales volumes averaged 1,043 barrels of oil equivalent per day ("boepd") compared to Q2 sales volumes average of 1,385 boepd, in line with management expectations. The average sale price per barrel of oil equivalent ("boe") was US$64.35 per boe in Q3 compared to US$56.64 per boe in Q2 (not including realised hedging impacts).
- Q3 operating income was US$4.3 million (after taxes, lease operating expenses, realised hedging impacts, and gathering and marketing fees), compared to Q2 operating income of US$4.2 million (subject to audit).
- At 30 September 2023, 220 wells in Zephyr's portfolio were available for production (versus 223 wells at 30 June 2023).
- Net working-interests across the Zephyr portfolio now average 7% per well, equivalent to 14.7 gross wells in total.
- As announced on 1 November 2023, production has commenced from the pad site for six wells in which Zephyr acquired a working-interest, and which are operated by Slawson Exploration Company ("Slawson"). These wells are expected to lead to a material increase in production rates during the fourth quarter of 2023 ("Q4") and beyond, and Zephyr intends to update the market on flow rates after the first thirty days of stabilised production.
Colin Harrington, Chief Executive of Zephyr, said: 'Our non-operated assets continue to deliver strong and robust cash flows, allowing Zephyr to continue to fund investment and growth across both our operated and non-operated portfolios.
'Furthermore, I'm pleased that this year's investment in the Slawson wells is expected to materially boost production rates in the current quarter, and the resulting cashflows will be utilised to deliver additional growth as we intensify our operational activity.'
Source: Zephyr Energy
