Non-operated
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.
Zephyr Energy owns working interests in a broad portfolio of non-operated producing wells.
Following 14 discrete acquisitions, the non-operated portfolio 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 non-operated 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 existing and 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 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.
