Zephyr Energy PLC Award of drilling contract to Cyclone Drilling Inc (2330D)

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RNS Number : 2330D

Zephyr Energy PLC

28 June 2021

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.

28 June 2021

Zephyr Energy plc

("Zephyr" or the "Company")

Award of drilling contract to Cyclone Drilling Inc.

Zephyr Energy plc (AIM: ZPHR), the oil and gas company focused on responsible resource development and carbon-neutral operations in the Rocky Mountain region , provides an update on its project in the Paradox Basin, Utah, U.S. (the "Paradox project") where the Company is preparing to spud the State 16-2LN-CC appraisal well (the "well").

The Company is pleased to announce the signing of a drilling contract with Cyclone Drilling Inc. ("Cyclone"). This follows a competitive selection process involving extensive technical and commercial evaluation of multiple potential drilling contractors. Zephyr is delighted to be working with Cyclone again, following their efficient completion of the State 16-2 stratigraphic test well (the "16-2 well") for Zephyr and its project partners earlier this year.

The Cyclone Rig #34 will again be the unit used for the drilling programme - the same rig that successfully and safely drilled the State 16-2 well to a total depth ("TD") of 9,745 feet in less than 19 days last winter, a record performance versus historical drilling efforts in the northern part of the Paradox Basin. Rig #34 is fully capable of drilling to the planned depths and pressures that are expected at the State 16-2LN-CC well.

Colin Harrington, Zephyr's Chief Executive, said "We welcome the opportunity to resume our partnership with Cyclone as we prepare to drill the State 16-2LN-CC well. In addition to our positive experience working alongside their team earlier this year, Cyclone has a long history of drilling safe and successful wells in the Rocky Mountain region. I am confident in their ability to help us deliver this well in a safe, efficient and responsible manner.

"Cyclone Rig #34 has remained active in recent months, is well known to our drilling team, is available on Zephyr's timeline and is currently located in Utah, providing savings on mobilisation and demobilisation costs.

"With the well now fully permitted and the rig contract signed, we look forward to commencing operational activity on the ground in July as envisaged."

For further information please visit https://www.zephyrplc.com/ or contact:

 
 Zephyr Energy plc                                   Tel: +44 (0)20 7225 4590 
  Colin Harrington (CEO) 
  Chris Eadie (CFO) 
 Allenby Capital Limited - AIM Nominated             Tel: +44 (0)20 3328 5656 
  Adviser 
  Jeremy Porter / Liz Kirchner 
 Turner Pope Investments - Broker                    Tel: +44 (0)20 3657 0050 
  James Pope / Andy Thacker 
  Flagstaff Strategic and Investor Communications 
  Tim Thompson / Mark Edwards / Fergus                   Tel: +44 (0) 20 7129 
  Mellon                                                                 1474

Background to Cyclone

Cyclone, based in Gillette, Wyoming, U.S. is one of the leading providers of rigs in the Rocky Mountain region (the "Rockies"). Cyclone's fleet of modern rigs was purpose-built for operating in the remote locations and rugged environment of the Rockies, and they hold one of the best drilling safety records in the U.S. oil and gas industry.

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