Turner Pope Research Note, 3 December 2024
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| Further to the Paradox project update of 14 November 2024, CEO Colin Harrington has today confirmed his Board’s expectation that Zephyr will be in a position to sign binding documentation to secure asset level funding for State 36-2R well’s (‘the Well’) forthcoming drilling operations later this month. This important update accompanied a more routine and largely anticipated release detailing both Williston Basin’s 3Q 2024 production numbers and a warrant exercise period extension. The fact that the Group has managed to advance its funding negotiations so rapidly after confirming positive result from Paradox’s second phase production test on 6 September, suggests both a high level of interest and confidence in a successful outcome. The final terms will of course be key, but the fact that the proposal contains no equity element while retaining operatorship and the majority of the Well’s economic benefits points to a positive scenario for shareholders. Other funding discussions with different industry and asset-level financial partners in respect of the larger, long-term development of the wider Paradox project remain ongoing. We would draw your attention to the various disclaimers in the document both at the beginning and at the end of the note. Retail clients (as defined by the rules of the FCA) must not rely on the research document. In particular you should note that the research document is a non-independent marketing communication. The analyst who has prepared the research is aware that TPI provides research to Zephyr Energy plc. Accordingly the research has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibitions on dealing ahead of its dissemination. The information in the document is published solely for information purposes and is not to be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. The material contained in the document is general information intended for recipients who understand the risks associated with equity investment in smaller companies. It does not constitute a personal recommendation as defined by the FCA or take into account the particular investment objectives, financial situation or needs of individual investors nor provide any indication as to whether an investment, a course of action or the associated risks are suitable for the recipient. |
