Zephyr Energy swings to profit in 2021 as starts producing oil

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Zephyr Energy PLC on Thursday said it swung to a profit in 2021 as it started making revenue following its first flow of hydrocarbons. Pretax profit was $848,000 versus a loss of $2.3 million in 2020.

Revenue increased to $6.0 million from nothing in 2020, the London-based oil & gas exploration & development firm focused on the Rocky Mountains in the US said. In Utah, at its State 16-2LN-CC well, it reported its first flowing of hydrocarbons.

‘During this period the group evolved from a single project exploration company into a self-sustaining, cash generating, oil producing group with a balanced portfolio of operated and non-operated assets located in two established oil producing basins in the US,’ said Chair Rick Grant.

‘The 2022 fiscal year promises to be an equally exciting time for our shareholders as we aim to bring our State 16-2LN-CC well into commercial production and commence our proposed three well drill programme on the Paradox project,’ he added.

In the first quarter of 2022, at its Williston Basin in North Dakota, the firm sold 1,600 barrels of oil equivalent per day for $11.5 million. At that basin, the company says its non-operated portfolio is ‘expected to have turnover of $35 to $40 million in 2022, providing significant operating cash flow available for reinvestment into the Paradox project development.’

Zephyr Energy shares were 0.4% higher at 4.01 pence each in London on Thursday morning.

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