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.
25 April 2024
Zephyr Energy plc
("Zephyr" or the
"Company")
Start of well drilling
operations
Zephyr Energy plc (AIM: ZPHR) (OTCQB: ZPHRF),
the Rocky Mountain oil and gas company focused on responsible
resource development and carbon-neutral operations, is pleased
to announce the spud and start of the main
drilling operation on the State 36-2 LNW-CC-R well
(the "well") at Zephyr's flagship project in the Paradox Basin,
Utah, U.S. (the "Paradox project").
Further to the Company's
announcement on 17 April 2024, the rig-up operation for the
Helmerich & Payne Rig 257 (the "Rig")
was completed yesterday, 24 April, and shortly
thereafter the surface section of the well was
spud.
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Figure 1: Helmerich &
Payne Rig 257 in situ at the Paradox project
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The well, for which the Company
expects to recover substantially all the drilling costs incurred
through the well control insurance policy that it had in place for
the State 36-2 LNW-CC well (the "original well") will target
the Cane Creek reservoir and the
highly productive natural fracture system encountered by
the original well.
Drilling is planned to a total depth ("TD") of
10,362 feet measured depth (9,600 feet true vertical depth) and
will incorporate a short, 270-foot horizontal reservoir section.
The well has been designed and permitted such that the horizontal
section can be extended to a further 10,000 feet in the Cane Creek
reservoir, should that be required in the future.
Drilling operations are expected to
take approximately 30 days. After reaching TD and setting a
production liner, the Rig will be demobilised and the well will be
prepared for production testing.
Colin
Harrington, Zephyr's CEO commented: "After months of meticulous planning we
are delighted to have commenced full drilling operations with the
prime objectives of delivering a safe and timely drilling operation
followed by a successful well test.
"We look
forward to providing regular updates as drilling
progresses."
Contacts:
Zephyr Energy plc
Colin Harrington (CEO)
Chris Eadie (Group Finance
Director)
|
Tel:
+44 (0)20 7225 4590
|
Allenby Capital Limited - AIM Nominated
Adviser
Jeremy Porter / Vivek
Bhardwaj
|
Tel:
+44 (0)20 3328 5656
|
Turner Pope Investments - Joint Broker
James Pope / Andy
Thacker
|
Tel:
+44 (0)20 3657 0050
|
Panmure Gordon (UK) Limited -
Joint Broker
Hugh Rich / James
Sinclair-Ford
|
Tel:
+44 (0) 20 7886 2500
|
Celicourt Communications - Public Relations
Mark Antelme / Felicity Winkles /
Ali AlQahtani
|
Tel: +44 (0) 20 7770 6424
|
Qualified Person
Dr Gregor Maxwell, BSc Hons. Geology
and Petroleum Geology, PhD, Chief Operating Officer of Zephyr
Energy plc, who meets the criteria of a qualified person under the
AIM Note for Mining and Oil & Gas Companies - June 2009, has
reviewed and approved the technical information contained within
this announcement.
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 lease holding of over 46,000 gross acres located in
the Paradox Basin, Utah, 25,000 acres of which has
been assessed to hold, net to Zephyr, 2P reserves of 2.6 million
barrels of oil equivalent ("mmboe"), 2C resources of 34 mmboe and
2U resources 270 mmboe.
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. 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.