Zephyr Energy PLC (AIM:ZPHR, OTCQB:ZPHRF, FRA:VD5N) told investors that second-quarter production from its non-operated US portfolio beat management forecasts and rose around 45% year on year, while its lender reaffirmed the group's borrowing facilities after valuing the production base at US$43 million.
Production averaged 914 barrels of oil equivalent per day, compared with 632 boepd a year earlier and 918 boepd in the first quarter. Oil accounted for 69% of volumes, with Zephyr saying higher-than-expected production and commodity prices generated strong cash flow during the period.
The company hedged 27,000 barrels of oil, equivalent to around 32% of quarterly oil production, at a weighted average price of US$65.91 a barrel. Its non-operated portfolio spans more than 600 gross wells across Utah, Colorado, Wyoming, Montana and North Dakota.
First International Bank & Trust reaffirmed Zephyr's existing borrowing facilities following its semi-annual review, with current borrowings of about US$19.9 million, down from US$35.3 million in January 2024. Zephyr also participated in four new Powder River wells drilled by Chord Energy using existing cash resources.
Chief executive Colin Harrington said the portfolio continues to generate cash capable of supporting Zephyr's operated Paradox Basin project in Utah. Revenue from the non-operated assets will be reported with interim results expected by 30 September 2026.
