Zephyr Energy : Auctus Advisers Research Note, 4 March 2024

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• 4Q23 production in the Williston was 1,053 boe/d. This only reflects oil and natural gas production. Adding our estimates of NGL production (reported in previous periods but not in 4Q23) would lead to ~1,200 boe/d (we forecasted ~1,400 boe/d).
• While production reached 1,440 boe/d in late November (~1,650 boe/d including NGL), 4Q23 production was negatively impacted by the curtailment of production from the new Slawson wells in mid-December due to adverse weather condition and infrastructure constraints.
• Production from the Slawson wells resumed in late January.
• During February, ten additional wells were placed on production adding ~75 boe/d net production. The wells are performing ahead of expectations.
• With regulatory approvals in place, depending on rig availability, drilling of the State 36-2 well could start in April or May.
• We are cautiously reducing our production forecast in 1Q24 to ~1.1mboe/d by deferring 1/3 of 1Q24 production to 2Q24 and 3Q24.
• As we revisit our production forecast and activity assumptions for the Paradox in 2024, we have changed our target price to £0.12/sh in line with our new ReNAV.
• Overall production is expected to increase by 250% by 4Q24 (compared to the FY23 average production) and the drilling programme could unlock the Paradox (£0.13/sh unrisked just for the 2C contingent resources) and the Salt Wash helium (£0.03/sh unrisked for the 0.13 bcf of helium)

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Zephyr Energy plc published this content on 04 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 March 2024 13:59:05 UTC.