Zephyr Energy PLC Award of Federal Drilling Permits (0493F)
November 02 2022 - 3:01AM
UK Regulatory
TIDMZPHR
RNS Number : 0493F
Zephyr Energy PLC
02 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.
2 November 2022
Zephyr Energy plc
("Zephyr" or the "Company")
Award of Federal Drilling Permits
Zephyr Energy plc (AIM: ZPHR) (OTCQB: ZPHRF), the Rocky Mountain
oil and gas company focused on responsible resource development
from carbon-neutral operations, is pleased to announce that,
further to the Company's announcement on 24 October 2022, it has
received approval of its Application for Permit to Drill ("APD")
from the U.S. Bureau of Land Management (the "BLM"), the final
regulatory approval required to spud the State 36-2 LNW-CC well on
its project in the Paradox Basin, Utah, U.S. (the "Paradox
project"). Zephyr simultaneously received approval of its APD for
the State 36-3 LN-C9 exploration well, which has been permitted to
target the shallower C9 reservoir and which is planned to be
drilled from the same well pad.
The State 36-2 LNW-CC well is fully-funded and will target the
Cane Creek reservoir. Drilling is planned to a total depth 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).
In parallel with the permitting process, Zephyr has completed
all road and site preparation work at the well-site in order to
spud the well as soon as possible following the execution of a rig
contract. The Company is in the process of finalising a rig
contract, and will update the market on the expected timeline for
the spud of the well upon award of the contract. The timeline for
drilling two additional wells (the State 36-3 LN-C9 exploration
well and the non-operated Kirkwood Oil & Gas well targeting the
oil-prone Cane Creek reservoir near the Cane Creek Field) will be
determined after the State 36-2 LNW-CC has been drilled, factoring
in infrastructure capacity and rig availability.
Colin Harrington, Zephyr's Chief Executive, said:
"We are delighted to have cleared the final regulatory hurdle
for the spud of the 36-2 LNW-CC well and are close to finalising
the rig contract. Once the rig contract is awarded, Zephyr will
recommence its Paradox drilling activity which we believe will be a
major step forward in our efforts to unlock what may be substantial
potential across our 45,000 acres of Paradox Basin holdings.
"We look forward to sharing further updates on the drilling
programme, including expected completion and testing schedules,
once the rig contract has been awarded.
" As we embark on this potentially transformational drilling
programme, I would like to reiterate that our mission, as always,
is to be responsible stewards of investors' capital while also
being responsible stewards of the environment."
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 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 is planning a three well
drilling program commencing later this year 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$35-40 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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