Zephyr Energy plc (ZPHR)
Zephyr has provided an update on its Salt Wash Helium project (‘the Project’). While stating that it is not seeking for helium to become a primary focus of the Group, the Board do consider it offers significant and currently unrecognised potential value for Shareholders, particularly in consideration of the growing supply-demand imbalance that has recently been seen to drive prices up to US$1,000 per million standard cubic feet (‘mscf’), while also being able to further utilise its team’s significant experience in the Paradox Basin. Noting recent market interest in helium-related companies and considering that the economics for the Project are attractive based on its helium content alone notwithstanding further upside from oil and gas development, several funding options are now being appraised. Having received informal proposals, including potential funding for 100% of the drill at the asset level that falls within timing obligations of the Farm-in agreement (‘the Farm-in’), the Board is now considering the best alternative to maximise value. Zephyr will provide an update on the above matters in due course.
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