The oil and gas sectors are now naturally in sharp focus among investors due to the current volatility in the sector. One of the oil and gas companies that investors may consider looking into at this point in time is Zephyr Energy Plc (OTCMKTS:ZPHRF).
Trading Data
On Monday, ZPHRF stock ended flat at $0.0540 with more than 10K shares, compared to its average volume of 7.88K shares. The stock moved within a range of $0.0540 – 0.0540 after opening trade at $0.0540.
Completion Of Acquisition Of Infrastructure Assets
As it happens, the company was in the news yesterday after it announced that it had been successful in completing the acquisition of a collection of oil and gas assets situated around the Paradox project that that Zephyr owns. The assets are situated in Utah in the United States. It should however be noted that the actual details of the above mentioned acquisition had been announced by the company last month on September 14.
The package of assets that had been acquired by the company is made up of natural gas gathering lines stretching across an area of as much as 21 miles, the right of way for the construction of more gathering lines and the Powerline Gas processing plant. In addition to that, the assets are also going to include additional acreage and as many as five existing wellbores. The company completed the acquisition for a consideration of $750000.
Key Quote
Colin Harrington, Zephyr’s Chief Executive, said: “I am delighted that we have now completed the Acquisition which is expected to bring multiple commercial benefits to the Company. “Firstly, it allows us to greatly reduce the capital needed to build out the gas infrastructure required to sell our produced gas volumes from the Paradox project into the market. Secondly, it completes the acquisition of all key acreage covered by the WSU 3D and thirdly, it provides us with an additional well pad already tied to the pipeline, which in combination with the newly acquired acreage will simplify future development drilling. Similarly, the gas plant, while currently not in use, has excellent potential for reintroduction to service and can potentially act as a WSU supply base.
