Shares of Zephyr Energy PLC (LON: ZPHR) rallied 11.1%, reversing three days of losses after investors noticed that the company was the best performer in the UK during the first half of the year.
Several publications yesterday pointed out the Zephyr Energy had outperformed all its peers listed on the London Stock Exchange despite the energy index falling 8.3% and the basic resources index falling 17%.
Zephyr’s impressive run had seen it rally from its opening price of 0.85p in January to just under 8p a few days ago. As a result, investors who bought Zephyr Energy’s shares at the beginning of the year are sitting on gains of above 500% despite the selloff in energy stocks.
The energy company’s rally was fueled by factors such as its zero debt, low fixed costs and active deal pipeline. The firm has projects in Utah, North Dakota, and Colorado.
Zephyr recently announced a drilling contract with Cyclone Drilling Inc for its State 16-2LN-CC well in the Paradox Basin project located in Utah.
The company noted that it would use the Cyclone Rig #34, which successfully drilled the State 16-2 well to a total depth of 9,745 feet in under 19 days last winter.
The oil company also revealed that the data from the State 16-2 had revealed multiple viable scenarios with considerable upside for exploration.
Zephyr also recently applied to have its shares cross-listed in the US OTCQB market, a process that shall be completed in six weeks.
The company is on track to achieve 100% carbon-neutral operation by September 2021, a significant milestone for an oil company given the increasing regulatory pressure on oil companies regarded as significant polluters.
Zephyr Energy’s fundamentals are pretty solid given its project pipeline and the speed at which the company is executing its strategy, indicating that there could be future gains for investors.
*This is not investment advice.
Zephyr Energy share price.
Zephyr Energy share price rallied 11.09% to trade at 6.11p, rising from Thursday’s closing price of 5.50p.