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On 29 December 2022, Zephyr Energy plc announced that Origin Creek Energy LLC (OCE) and CFO Chris Eadie exercised 22,272,727 warrants at 2 pence per share, generating £445,454 for the Company. Application will be made for these new ordinary shares to be admitted to trading on AIM on or around 5 January 2023, at which point the Company's total voting rights will be 1,583,018,728 shares. Following this, OCE's beneficial interest will be 10.04%, and CEO Colin Harrington's total interest, including OCE, will be 10.13%.
| Date | 29 Dec 2022 |
| Time | 14:11:24 |
| Category | Director/PDMR dealings |
| ID | 2399L |
Prior to publication, the information contained within this announcement was deemed by the Company to constitute inside information as stipulated under the UK Market Abuse Regulation. With the publication of this announcement, this information is now considered to be in the public domain.
29 December 2022
Zephyr Energy plc
("Zephyr" or the "Company")
Exercise of warrants, change to total voting rights and Director/PDMR/PCA shareholdings
Zephyr Energy plc (AIM: ZPHR) (OTCQB: ZPHRF), the Rocky Mountain oil and gas company focused on responsible resource development from carbon-neutral operations, announces that further to the Company's announcement on 20 December 2022, it has today received notification for the exercise of warrants to subscribe for 22,272,727 new ordinary shares of 0.1 pence each ("Ordinary Shares") in the Company at a price of 2 pence per new Ordinary Share (the "Warrants").
In November 2019, Origin Creek Energy LLC ("OCE") (a Company in which Colin Harrington, CEO of Zephyr, and Rick Grant, Zephyr's Chairman, are both shareholders and directors, and Colin Harrington is indirectly the controlling shareholder of OCE) and Chris Eadie, CFO of Zephyr, were issued Warrants as part of their participation in a placing undertaken at that time. OCE and Chris Eadie have now served notice to exercise the Warrants over 21,818,182 new Ordinary Shares and 454,545 new Ordinary Shares respectively, for a total consideration of £445,454. Given the rapid development and multiple operational milestones and acquisitions completed by the Company, OCE and Mr Eadie have been unable to exercise the Warrants until now. Funds received by the Company will be put towards general working capital and CAPEX requirements of the Company.
Application will be made to the London Stock Exchange for the 22,272,727 new Ordinary Shares resulting from the exercise of the Warrants to be admitted to trading on AIM and it is expected that admission will occur on or around 5 January 2023 ("Admission").
Following Admission, OCE and Chris Eadie's respective beneficial interest in the Company will be as follows:
|
Shareholder |
Shareholding before Warrants exercised |
No. of Warrants exercised |
New total shareholding |
Percentage of issued share capital held |
|
OCE |
137,136,364 |
21,818,182 |
158,954,546 |
10.04% |
|
Colin Harrington (total interest including OCE) |
138,590,300 |
21,818,182* |
160,408,482
|
10.13% |
|
Chris Eadie |
6,775,095 |
454,545 |
7,229,640 |
0.46% |
*Comprising of OCE's Warrants only.
Total voting rights
The issued share capital of the Company on Admission will be 1,583,018,728 ordinary shares of 0.1 pence each with one voting right per share. The Company does not hold any shares in treasury. The total number of ordinary shares and voting rights in the Company is therefore 1,583,018,728. With effect from Admission, this figure may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company under the FCA's Disclosure Guidance and Transparency Rules.
Notification and public disclosure of transactions by persons discharging managerial responsibilities and persons closely associated with them
|
1. |
Details of the person discharging managerial responsibilities / person closely associated |
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|
a) |
Name |
Chris Eadie |
||||||||
|
2. |
Reason for the Notification |
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|
a) |
Position/status |
CFO |
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|
b) |
Initial notification/Amendment |
Initial notification |
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|
3. |
Details of the issuer, emission allowance market participant, auction platform, auctioneer or auction monitor |
|||||||||
|
a) |
Name |
Zephyr Energy plc
|
||||||||
|
b) |
LEI |
254900TAVH3MBZ1EMC29 |
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|
4. |
Details of the transaction(s): section to be repeated for (i) each type of instrument; (ii) each type of transaction; (iii) each date; and (iv) each place where transactions have been conducted |
|||||||||
|
a) |
Description of the Financial instrument, type of instrument |
Ordinary shares of 0.1p each in Zephyr Energy plc
|
||||||||
|
Identification code |
GB00BF44KY60 |
|||||||||
|
b) |
Nature of the transaction |
Exercise of Warrants to acquire Ordinary Shares in Zephyr Energy plc
|
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|
c) |
Price(s) and volume(s) |
|
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|
d) |
Aggregated information: ·Aggregated volume ·Price |
454,545 2.00p
|
||||||||
|
e) |
Date of the transaction |
29 December 2022 |
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|
f) |
Place of the transaction |
London Stock Exchange, AIM (XLON) |
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|
1. |
Details of the person discharging managerial responsibilities / person closely associated |
|||||||||
|
a) |
Name |
Origin Creek Energy LLC (indirectly controlled by Colin Harrington) |
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|
2. |
Reason for the Notification |
|||||||||
|
a) |
Position/status |
Colin Harrington is the CEO of Zephyr Energy plc |
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|
b) |
Initial notification/Amendment |
Initial notification |
||||||||
|
3. |
Details of the issuer, emission allowance market participant, auction platform, auctioneer or auction monitor |
|||||||||
|
a) |
Name |
Zephyr Energy plc
|
||||||||
|
b) |
LEI |
254900TAVH3MBZ1EMC29 |
||||||||
|
4. |
Details of the transaction(s): section to be repeated for (i) each type of instrument; (ii) each type of transaction; (iii) each date; and (iv) each place where transactions have been conducted |
|||||||||
|
a) |
Description of the Financial instrument, type of instrument |
Ordinary shares of 0.1p each in Zephyr Energy plc
|
||||||||
|
Identification code |
GB00BF44KY60 |
|||||||||
|
b) |
Nature of the transaction |
Exercise of Warrants to acquire Ordinary Shares in Zephyr Energy plc
|
||||||||
|
c) |
Price(s) and volume(s) |
|
||||||||
|
d) |
Aggregated information: ·Aggregated volume ·Price |
21,818,182 2.00p
|
||||||||
|
e) |
Date of the transaction |
29 December 2022 |
||||||||
|
f) |
Place of the transaction |
London Stock Exchange, AIM (XLON) |
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Contacts:
|
Zephyr Energy plc Colin Harrington (CEO) Chris Eadie (CFO)
|
Tel: +44 (0)20 7225 4590 |
|
Allenby Capital Limited - AIM Nominated Adviser Jeremy Porter / Vivek Bhardwaj
|
Tel: +44 (0)20 3328 5656
|
|
Turner Pope Investments - Joint-Broker James Pope / Andy Thacker
|
Tel: +44 (0)20 3657 0050 |
|
Panmure Gordon (UK) Limited - Joint-Broker John Prior / Hugh Rich / James Sinclair-Ford / Freddie Twist
|
Tel: +44 (0) 20 7886 2500
|
|
Celicourt Communications - PR Mark Antelme / Felicity Winkles
|
Tel: +44 (0) 20 8434 2643 |
Notes to Editors
Zephyr Energy plc (AIM: ZPHR) (OTCQB: ZPHRF) is a technology-led oil and gas company focused on responsible resource development from carbon-neutral operations in the Rocky Mountain region of the United States. The Company's mission is rooted in two core values: to be responsible stewards of its investors' capital, and to be responsible stewards of the environment in which it works.
Zephyr's flagship asset is an operated 45,000-acre leaseholding located in the Paradox Basin, Utah, 25,000 acres of which has been assessed by third party consultants Sproule International to hold, net to Zephyr, 2P reserves of 2.1 million barrels of oil equivalent ("mmboe"), 2C resources of 27 mmboe and 2U resources 203 mmboe. Following the successful initial production testing of the recently drilled and completed State 16-2 LN-CC well, Zephyr has planned a three well drilling program - commencing in 2022 with the State 36-2 LNW-CC well - to further delineate the scale and value of the project.
In addition to its operated assets, the Company owns working interests in a broad portfolio of non-operated producing wells across the Williston Basin in North Dakota and Montana.
The Williston portfolio currently consists of working-interests in over 200 modern horizontal wells which are expected to provide US$40-45 million of revenue, net to Zephyr, in 2022. Cash flow from the Williston production will be used to fund the planned Paradox Basin development. In addition, the Board will consider further opportunistic value-accretive acquisitions.