Zephyr Energy adds Utah acreage, expands Paradox basin footprint
(WO) — Zephyr Energy has expanded its operated position in Utah's Paradox basin through the acquisition of an additional 2,294 acres of Utah Trust Lands Administration (TLA) leases, increasing its regional footprint to more than 72,000 gross operated acres.
The newly acquired acreage lies immediately north of the company's White Sands Unit and was secured through a sealed-bid auction conducted by the Utah Trust Lands Administration.
The leases carry a five-year primary term and a 16.67% royalty. Zephyr said the acquisition was funded from existing cash resources.
The transaction follows the company's acquisition of approximately 27,000 acres announced in late June. Zephyr now operates more than 72,000 gross acres across the Paradox basin, the majority of which is held with a 100% working interest.
"I am pleased with the successful outcome from the TLA auction, the results of which further enhance the scale of our Paradox project," said Colin Harrington, Zephyr's chief executive. "With every acquisition of regional acreage, we consolidate and increase the attractiveness of our regional holdings."
Harrington said the company will continue pursuing additional opportunities to expand its acreage position as it advances development of its assets in the northern Paradox basin.
