Zephyr Energy (AIM:ZPHR) reported Q1 non-operated production averaged 918 barrels of oil equivalent per day net to the company, above management's forecast.
The output, 71% oil and modestly below the fourth-quarter average of 983 boepd as expected natural decline rates took effect, delivered stronger cash flow aided by higher commodity prices and the recovery of a US$1.0 million bad debt previously written off in 2024.
"The quarter's robust production levels combined with our recent opportunistic undeveloped acreage disposals and strong commodity prices provided considerable resources to the Company which can be recycled back into the Paradox project," said Colin Harrington, Chief Executive.
At 31 March the portfolio comprised interests in over 600 gross wells (approximately 30 net) and acreage across Utah, Colorado, Wyoming, Montana and North Dakota, providing production diversity across multiple operators and basins.
During Q1 the company was hedged for 8,000 barrels, around 14% of the quarter's production, at a weighted average price of US$64.25 per barrel.
Zephyr said the non-operated holdings are supported by a US$100 million strategic partnership intended to accelerate growth and enhance cash flow.
The company said it will continue to monitor global events and be responsive on further portfolio management and hedging as opportunities arise.
