Williston Basin
We continue to deliver on our strategy to acquire working interest positions in value accretive, high quality, high-margin production assets with significant near-term growth potential in the Williston Basin
Zephyr Energy owns working interests in a broad portfolio of non-operated producing wells in the core of the Williston Basin in North Dakota and Montana.
Following 14 discrete acquisitions, the Williston project has generated strong cashflows for the Group, moving from zero production to over 1.5 million boe produced from 2021 to 2024. Cash flow from the Williston production will be used to fund the planned Paradox Basin development.
Asset Overview
- Proven acquisition track record
- Working with top-tier operators
- High-margin oil production
- Large PDP component with strong cash flows
- Primary operators are Chord Energy (Whiting + Oasis) and Continental Resources
- Primary reservoir targets are the Middle Bakken and the Upper Three Forks
- Demonstrated growth potential – through acquisition and drilling
Zephyr Hawk LLC
- Zephyr Hawk LLC: a new acquisition vehicle for non-operated interests in the Williston – and potentially other Rocky Mountain basins.
- Zephyr has entered into a strategic partnership (the “Agreement”) with a large U.S. based oil sector capital provider (the “Investor”).
Overview: Capital Calls
- The investor will provide up to US$100m to be used to fund 100% of capital expenditures (“CAPEX”) related to the drilling, completing and equipping of newly acquired non-operated assets in a defined Program Area
- The Program Area consists of counties in the Williston Basin and the partnership term is an initial six months
- The Investor will elect to participate in opportunities at its discretion, on a case-by case basis, after conducting its own financial and technical verification
- Zephyr will be responsible for any acquisition costs and will retain a right (but not an obligation) to co-fund up to 33% of pro rata CAPEX
- The Investor will earn a majority of the cash flows generated by its pro rata working interest in each well until a specified initial hurdle rate is met
- The combination of Zephyr’s deep regional expertise and the Investors’ financial strength is designed to accelerate the Company’s non-operated growth, enhance consolidated cash flow, and drive attractive returns for all stakeholders.
