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Covid delays Zephyr acquisition of North Dakota interests
20th Dec 2021 14:22
(Sharecast News) - Rocky Mountains-focussed oil and gas company Zephyr Energy updated the market on the proposed acquisition of non-operated working interests in the Williston Basin of North Dakota on Monday, which was first announced in November with an expected closing date of 22 December.
The AIM-traded firm said that, given the ongoing disruption caused by the Covid-19 pandemic, in particular the rapid advance of the Omicron variant since its initial announcement, it now anticipated that completion of the acquisition would take place in January.
Although the completion had been delayed, the board said it had made "excellent progress" towards securing the structured debt funding necessary for completion.
"The board prides itself on setting and meeting ambitious targets and deadlines for the company," said chief executive officer Colin Harrington.
"Unfortunately, the spread of the Omicron variant has made the delay to completion unavoidable, in spite of our best efforts to finalise the transaction prior to the commencement of the holiday period.
"While it is frustrating that completion won't occur in the 2021 calendar year, we remain 100% committed to the transaction and continue to believe that the assets being acquired will be a fantastic addition to our portfolio."
At 1406 GMT, shares in Zephyr Energy were down 4.78% at 6.57p.
The AIM-traded firm said that, given the ongoing disruption caused by the Covid-19 pandemic, in particular the rapid advance of the Omicron variant since its initial announcement, it now anticipated that completion of the acquisition would take place in January.
Although the completion had been delayed, the board said it had made "excellent progress" towards securing the structured debt funding necessary for completion.
"The board prides itself on setting and meeting ambitious targets and deadlines for the company," said chief executive officer Colin Harrington.
"Unfortunately, the spread of the Omicron variant has made the delay to completion unavoidable, in spite of our best efforts to finalise the transaction prior to the commencement of the holiday period.
"While it is frustrating that completion won't occur in the 2021 calendar year, we remain 100% committed to the transaction and continue to believe that the assets being acquired will be a fantastic addition to our portfolio."
At 1406 GMT, shares in Zephyr Energy were down 4.78% at 6.57p.