(World Oil)– Zephyr Energy has completed its $7.3 million acquisition of working interests in accretive, mature proved developed producing (PDP) assets in core Rocky Mountain basins. The acquisition has an effective date of 1 June 2025, with cash flow accruing to Zephyr from that date.
In addition to the PDP assets, the acquisition includes attractive, near-term proven undeveloped (PUD) upside and additional acreage with potential for future development.
Zephyr also elected to divest a small package of the newly acquired operated wells in North Dakota and Wyoming to a neighboring private upstream operator for total consideration of $1.5 million.
Based on management forecasts, the acquired assets will add production of approximately 388 boed net to Zephyr in the first month of production.
In addition to the existing production, the acquisition has already provided investment opportunities suitable for Zephyr Hawk LLC, the $100 million strategic partnership announced by Zephyr in May 2025. From the June 1, 2025 effective date, the acquisition has provided 18 new development well participation opportunities suitable for joint venture funding (an increase from the five opportunities at the time the transaction was initially agreed upon).
“We are delighted to complete the Acquisition, which adds high-margin production and additional proved reserves to our existing asset base,” commented Colin Harrington, Zephyr’s CEO. “We now have cash-flowing non-operated investments across key Rocky Mountain regions, our longstanding area of focus. In particular, this enhanced geographical position will give us a new foothold into active developments in the Powder River Basin, as well as increased exposure in the Williston Basin.”
