Zephyr Energy PLC on Tuesday announced a new strategic partnership, and announced the formation of an acquisition vehicle named Zephyr Hawk LLC.
The Rocky Mountain region-focused oil and gas company said it entered into an agreement with a US-based capital provider focused in the energy sector to fund growth in Zephyr’s non-operated asset portfolio in the Williston Basin in North Dakota and Montana.
Zephyr said it will be responsible for buying non-operating assets, for which the investor will make available up to $100 million to fund all capital expenditures related to the drilling, completing and equipping of those non-operating assets.
Zephyr’s acquisition vehicle Zephyr Hawk will hold the company’s non-operated working interests bought in relation to the agreement, which is for an initial term of six months.
‘Whilst there can be no guarantee that appropriate opportunities will be forthcoming or lead to funding, Zephyr expects that it will be in a position to present a number of opportunities to the investor over the initial six months of the agreement from its current and expected pipeline,’ the company said.
Zephyr Chief Executive Officer Colin Harrington said: ‘We are delighted to announce the entry into this strategic agreement with a highly respected energy-sector investor and the formation of Zephyr Hawk LLC. Zephyr’s management and deal sourcing capabilities should allow for significant new growth in our non-operated portfolio. We view this new agreement as an excellent way to utilise experienced industry capital to further grow our cash flow foundation.’
Zephyr shares were 3.6% higher at 4.13 pence each on Tuesday afternoon in London.
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