Zephyr Energy PLC 36-2 LNW-CC well -- Drilling Operations Commenced (0352H)
November 21 2022 - 2:00AM
UK Regulatory
TIDMZPHR
RNS Number : 0352H
Zephyr Energy PLC
21 November 2022
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.
21 November 2022
Zephyr Energy plc
(the "Company" or "Zephyr")
State 36-2 LNW-CC well - Drilling Operations Commenced
Zephyr Energy plc (AIM: ZPHR), the Rocky Mountain oil and gas
company focused on responsible resource development and
carbon-neutral operations , is pleased to announce that drilling
operations have commenced on the State 36-2 LNW-CC well (the
"well") at its flagship project in the Paradox Basin, Utah, in the
United States of America ("U.S.") (the "Paradox project").
Summary of drilling operations
Over the last week, CWC Ironhand Drilling Rig 118 ("Rig 118")
mobilised to the well-site, where it was subsequently assembled and
tested. In addition, all necessary ancillary service providers
arrived on site to support drilling operations.
The fully-funded well will target the Cane Creek reservoir, and
drilling is planned to a total depth ("TD") at 20,456 feet measured
depth (9,598 feet true vertical depth) incorporating a 10,346 feet
horizontal reservoir section. The well's objective is to further
delineate the Cane Creek reservoir beyond the productive State 16-2
LN-CC well and the nearby Federal 28-11 well (which was recently
acquired by Zephyr and is currently shut-in due to infrastructure
constraints, details of which were announced by the Company on 14
September 2022).
Drilling operations are expected to take approximately 30 days.
After reaching TD and dependent on schedule and availability, a
completion crew will subsequently be mobilised by the Company to
hydraulically stimulate the horizontal portion of the well,
immediately after which production testing shall commence. Further
updates will be provided in due course.
Colin Harrington, Zephyr's Chief Executive, said: "The
commencement of drilling of the State 36-2 LNW-CC well is another
landmark moment for the Company in its pursuit of unlocking the
significant potential upside value from the Paradox project.
I'd like to thank our many partners and contractors who worked
tirelessly through challenging conditions to meet our ambitious
timeline following receipt of the final permit earlier this month.
The focus now turns to drilling and operating in the safest and
most effective manner possible, and I know this commitment is
shared by all personnel on the drill site.
"While Zephyr's primary objective for the well is to target
production from the Cane Creek reservoir, we also plan to use the
drilling operation to acquire important additional data from
overlying reservoir targets.
"We look forward to keeping our stakeholders informed as
drilling progresses over the coming weeks, and, as always, we will
endeavour to operate in line with our core mission: to be
responsible stewards of our investors' capital and responsible
stewards of the environment in which we work."
Dawn rises over the CWC Ironhand Drilling Rig 118 at the State
36-2 LNW-CC well
Contacts
Zephyr Energy plc Tel: +44 (0)20 7225
Colin Harrington (CEO) 4590
Chris Eadie (CFO)
Allenby Capital Limited - AIM Nominated Tel: +44 (0)20 3328
Adviser 5656
Jeremy Porter / Vivek Bhardwaj
Turner Pope Investments - Joint-Broker Tel: +44 (0)20 3657
James Pope / Andy Thacker 0050
Panmure Gordon (UK) Limited - Joint-Broker
John Prior / Hugh Rich / James Sinclair-Ford Tel: +44 (0) 20 7886
/ Harriette Johnson 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 16-2LN-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.
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