Second-quarter production of 914 boepd topped management's forecast and lender FIBT reaffirmed Zephyr Energy's facility after valuing its production base at $43 million.
The board has approved extra funding to design a gas processing system capable of handling 15 million cubic feet a day, three times its earlier base case, as it prepares for first gas ahead of a pending pipeline approval.
The oil and gas group has inked a letter of intent with Atlas Oil for prepaid commodity purchase financing that carries no equity dilution or asset sale.
"With every acquisition of regional acreage, we consolidate and increase the attractiveness of our regional holdings," said chief executive Colin Harrington.
The AIM-listed oil and gas company has acquired additional Utah acreage at a critical point in its Paradox project farm-out process, while completing the sale of non-core Wyoming assets for $2.2 million.
Zephyr Energy said its Q1 non-operated production averaged 918 barrels of oil equivalent per day, above management's forecast and supporting stronger cash flow.
Analysis identified four short sections totalling 25 feet for visual inspection to confirm integrity at the uprated pressure, inspections Enbridge described as routine and not a material risk to achieving first gas even if a repair were required.
The small-cap is divesting 1,837 acres of undeveloped, non‑core acreage in Wyoming's Powder River Basin for aggregate gross proceeds of US$2.275 million.