Zephyr Energy PLC on Wednesday said it acquired the remaining 25% working interest in the Paradox Basin in the US state of Utah, and a working interest in a further six wells in the Williston Basin in North Dakota.

The London-based oil and gas exploration and production company acquired the interest in the core acreage across the White Sands unit in the Paradox project for up to $3 million. The interest was acquired from exploration firm Rockies Standard Oil Co LLC, as that company was unable to fund its interest.

Zephyr Energy said the consideration will be paid by issuing new shares at a price of 6.05 pence per share. Zephyr was up 8.1% to 5.89p on Wednesday morning in London.

Zephyr Energy added that it acquired a working interest in a further six wells in the Williston Basin in North Dakota, for a total of $2.9 million.

Zephyr Energy said the acquisition will provide the company with further low-risk oil production, and it is expected to generate ‘substantial cashflows’ which Zephyr Energy added can be reinvested into the Paradox project development.

The company will pay the $8.9 million incremental future capital expenditure associated with the working interests to bring the wells into production. To part fund the Williston acquisition and ensure Zephyr generates additional cashflow to fund associated capital expenditure, the company has secured a $8 million asset-backed bridge loan facility.

The new Williston wells are expected to provide a near-term production boost, Zephyr Energy said, having been spud in November 2022, and first sales volumes are expected in the first quarter of 2023.

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