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(Sharecast News) - Zephyr Energy said on Friday that it had acquired a further 27,000 acres of federal and state leases in Utah, doubling its acreage footprint around the White Sands Unit at its operated Paradox Basin project.
The AIM-traded company said about 24,000 acres were acquired through a US Bureau of Land Management competitive lease sale, with the balance secured through direct negotiation with the Utah Trust Lands Administration.
The new acreage sits largely contiguous to the south and west of the White Sands Unit, giving Zephyr increased access to the Cane Creek reservoir and the wider Paradox Formation oil and gas play, as well as potential helium targets below the formation.
Including the new leases, Zephyr now operates about 70,000 gross acres in the basin, mostly with a 100% working interest.
Zephyr also confirmed the completion of two previously announced disposals of undeveloped, non-core acreage in the Powder River Basin, generating net proceeds of about $2.2m.
Chief executive Colin Harrington said the Paradox acquisition "will significantly enhance the commercial value of the Paradox project", adding that it came at a critical stage as the company progressed farm-out discussions.
At 1202 BST, shares in Zephyr Energy were down 1.5% at 3.15p.
Reporting by Josh White for Sharecast.com.
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