Zephyr Energy PLC Commencement of drilling of State 16-2LN-CC well (9925E)
July 13 2021 - 2:00AM
UK Regulatory
TIDMZPHR
RNS Number : 9925E
Zephyr Energy PLC
13 July 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.
13 July 2021
Zephyr Energy plc
(the "Company" or "Zephyr")
Commencement of drilling of State 16-2LN-CC well;
Additional funding from the U.S. Department of Energy for
further data acquisition
Zephyr Energy plc (AIM: ZPHR), the Rocky Mountain oil and gas
company focused on responsible resource development and
carbon-neutral operations, provides an update on its flagship
project in the Paradox Basin, Utah (the "Paradox project").
Commencement of drilling
The Board of Zephyr is delighted to announce the commencement of
drilling operations on the State 16-2LN-CC appraisal well, ahead of
the Company's month-end target date.
Over the last week, Cyclone Drilling Inc.'s Rig #34 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.
Drilling is expected to take approximately 20 days and further
updates will be provided in due course.
Non-dilutive funding for additional data acquisition
The primary objective of the State 16-2LN-CC drilling operation
is to drill a safe, responsible and successful well to test the
natural fracture play in the Cane Creek reservoir - with a goal to
deliver the Company's first production from the Paradox project. A
second key objective is to gather additional data from the eight
high-graded reservoirs overlying the Cane Creek to help determine
the potential of these reservoirs, should operational conditions
allow.
Over the last year, Zephyr has worked closely with a project
team led by the University of Utah's Energy & Geoscience
Institute ("EGI"), in collaboration with the Utah Geological Survey
(the "UGS") and other Utah-based partners (together, the "Project
Team"). The Project Team's analysis of the Paradox Basin is
sponsored by the U.S. Department of Energy and its National Energy
Technology Laboratory (the "DOE"), and in 2020 the Project Team
provided $2 million to assist with drilling and data acquisition
costs related to Zephyr's State 16-2 "dual-use" well which was
completed in January 2021.
Today, Zephyr is pleased to announce that EGI has agreed to fund
additional data acquisition efforts, specifically including the
funding of Dipole Sonic logs to be deployed during the drilling
operations of the State 16-2LN-CC well. This additional funding and
continued collaboration will be useful to help both the Company and
the Project Team further define the potential of the overlying
reservoirs.
Colin Harrington, Zephyr's Chief Executive, said: "The
commencement of drilling of the State 16-2LN-CC well is a pivotal
moment in our efforts to unlock value from the Paradox project. I'd
like to thank our many partners and contractors who worked
tirelessly to help meet our ambitious timeline and pre-drill
objectives. The focus now turns to drilling and operating in the
safest, most effective manner possible - and I know this commitment
is shared by everybody on the drill site.
" While our primary goal is to seek production from natural
fractures across the Cane Creek reservoir, we also plan to use the
drilling operation to acquire important additional data from our
eight high-graded overlying reservoir targets.
"Additional data is a critical component in the effort to define
and develop a viable pathway to the considerable potential upside
which we believe exists in our overlying reservoirs. The same data
is useful to the EGI Project Team's efforts to improve the
understanding and production of the larger emerging Paradox Basin
play. We are extremely grateful for our collaboration with the
Project Team and look forward to a continuation of these efforts
going forward.
"We will continue to keep our stakeholders informed as
operations progress over the coming weeks, and - as always - we
will adhere to our core mission to be responsible stewards of our
investors' capital and responsible stewards of the environment in
which we work."
Contacts:
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
Andy Thacker / James Pope
Flagstaff Strategic and Investor Communications
Tim Thompson / Mark Edwards / Fergus Tel: +44 (0) 20 7129
Mellon 1474
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