Zephyr Energy Share Discussion Threads

[loglorry1] 19/12/2024 08:41

Getting 50% of production revenue would be hugely preferential. There are huge costs and taxes associated with oil production. Would it be such a great deal if the other 50% that zphr get all goes to paying costs and taxes?

All depends on how net revenue is defined which as usual is not made clear. For all we k ow it might be gross revenue minus some small transport costs.

[fenners66] 18/12/2024 18:56

I was really referring to the no catch up period or preferential rights part of that line - which might or not be interpreted as they invest and only get any return in line with the split of production , if it ever happens

[tag57] 18/12/2024 17:19

Loglorry, you are grasping at straws! ;-)

[loglorry1] 18/12/2024 11:50

" Net revenues from the well will be split 50:50 between Zephyr and the wellbore investor from the time of first production, with no catch-up period or other preferential rights to the investor."

I guess it depends on how you define "net revenue" as to how 50/50 it really is.

Suppose you produce $10,000 of oil in a day and to produce that there are costs of $4000 (these might be direct operating costs but also could include all sorts of other costs like insurance, etc.).

One interpretation is that net revenue is $6,000 which is split 50:50 and so ZPHR get $3000 and the investor gets $3000.

Now suppose you only count $1000 of costs, taxes etc. (but ZPHR really has to pay the other $2000). Now the investor gets $9000/2 = $4500 and ZPHR gets $4500 but has to take off the other $2000 so is getting in effect $2500 much less.


I will be accused of grasping at straws and maybe I am. As I said I have no position here now.

[fenners66] 18/12/2024 11:23

loglorry1

To be fair , what is the interpretation of this sentence with regards to first dibs etc.

"Net revenues from the well will be split 50:50 between Zephyr and the wellbore investor from the time of first production, with no catch-up period or other preferential rights to the investor."

[assagai] 18/12/2024 10:20

Don't think you can look at the value of 36-2 online in isolation. Although of course we will need a "counter" just for that well to establish the "investor's cut". 16-2 and federal 28-11 Will also be plumbed into the plant at some stage and potentially other Wells so this is very much. Just the tip of the iceberg for zephyr.

PS I'm sure that Loglorry will say I'm talking "utter tosh" again....

[thinking] 18/12/2024 10:11

Has anyone worked out what the value of 50% of a successful well would be to Zephyr based on the estimated well volume and what the share value would be?

[assagai] 18/12/2024 09:59

Now that the 36-2 story seems to be clearly mapped out I expect we will start hearing about plans for all the other wells incl Saltwash

[kingston78] 18/12/2024 09:27

If you look at the line share chart it has already broken the down trend (in other words it has broken the resistance and the price will go up).

If you look at the candle share chart it has a strong white candle (up and away). The relative strength indicator is moving upwards. The MACD ( a more reliable indicator for the medium term) is about to cross (a strong BUY signal once the signal line has crossed). All very positive.

[jackthecat1] 18/12/2024 09:14

Just a thought, but if the US Investor is game for $7.5m with no real security, then surely it wouldmake sense for them to buy several Million $@s of ZPHR shares?. Or is that insider dealing?.

Very exciting times ahead. I can see 5p ++ early 2025 pre

[loglorry1] 18/12/2024 08:48

Yep the deal terms on the face of it look decent. As I wrote some weeks ago I have no position. I think it could run up into the next well result if ppl are patient enough.

I made good noney here and will probably do so again.

[parsons4] 18/12/2024 08:25

fenners66 yes but we did hit a big one !!!!

[fenners66] 18/12/2024 08:20

Of course they "think" they are going to get a significant return
does not mean they will - time will tell.

Have you ever added up the - I would say $billions that have been "invested"
in Utah chasing oil that has come to nothing?

Every one of those investors thought the same.

[tag57] 18/12/2024 08:15

Fenders, do you honestly think the investor would put up the full
Cost of the drill for only 50% of the working interest if they didn’t think they were going to get a significant return on their investment?

[kingston78] 18/12/2024 08:15

The share chart looks strong and it is poised to move up to the top of the trading band at 4.4 p.

[oilbuy] 18/12/2024 08:10

Or a lack of understanding on your behalf with regards to development of a new oil play.

[kingston78] 18/12/2024 08:09

I think that it is a good deal to secure finance for the next stage of drilling the well. It is better to have something to look forward to than to sit on an asset that is not producing anything.

It is time to move forward the project with confidence.

[fenners66] 18/12/2024 08:07

Or
$7.5m to sell 50% of next to nothing - is a good deal another potential buyers regret down the line... we'll see.

[tag57] 18/12/2024 08:04

Pretty happy with this RNS as was expecting initial production to have to cover investor costs first.
50:50 split, no equity issue, looks pretty good to me.

[ride daice] 18/12/2024 07:55

Given that "EURs from the well could be as high as two million boe once the extended lateral is completed" the investor has potentially bought a million barrels of oil with this investment.

[assagai] 18/12/2024 07:51

3-0🤣

[jackthecat1] 18/12/2024 07:48

I like this part of the RNS. Looks like once the drill contract is signed, we will hear news on the "WIDER DEVELOPMENT" for Paradox in 2025. Excellent

The Company will provide further details on the timing of drilling operations and the broader development outlook for 2025 once the rig contract has been signed.

[jackthecat1] 18/12/2024 07:41

100% Ccrrect Parsons. They given away a slightly higher %, but gained another $500,000 into the pot. Thats good negotiating in my view.