Zephyr Energy says £10.5m oversubscribed investment round will be 'immediately accretive'
Published: 02:10 25 Jun 2025 EDT
Zephyr Energy PLC (AIM:ZPHR, OTCQB:ZPHRF), the London-listed oil and gas company focused on US shale, has raised £10.5mn through an oversubscribed share placing and director subscription to support its drilling and acquisition plans in the States.
The company said it had secured £9.8 million from institutional and other investors at 3p per share through a process known as an accelerated bookbuild, where shares are offered to investors over a short timeframe.
A further £700,000 is expected to be raised from Zephyr’s directors and senior management, who plan to subscribe for additional shares once the company publishes its 2024 financial results.
Chief executive Colin Harrington said the investment would generate 'immediate accretive production'.
It follows a series of developments that have significantly strengthened Zephyr’s operational and financial outlook.
In Utah, the company’s production test on its State 36-2R well recorded a peak flow of 2,848 barrels of oil equivalent per day, without the need for hydraulic fracturing.
Zephyr said the results placed the well among the most productive in the mainland United States, known as the Lower 48. The company expects that longer horizontal wells in the same region could deliver even stronger returns.
Investors will recall the group has also secured a US$100 million investment commitment from a large American oil investor to help fund drilling in its Williston Basin portfolio, where it owns non-operating stakes in producing wells.
The partnership aims to scale up cash flow and improve returns, leveraging Zephyr’s knowledge of the area alongside its partner’s capital backing.
Separately, Zephyr has agreed a deal to acquire additional producing assets that will add around 400 barrels per day to its output and 600,000 barrels of proven reserves.
Harrington told shareholders: "In summary, we are ready to capitalise on the recent progress made across our asset portfolio, and, as always, our company's management and board remain fully aligned with our shareholders."