Zephyr Energy PLC - Paradox Project Update
Prior to publication, the information contained within this announcement was deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR"). With the publication of this announcement, this information is now considered to be in the public domain.
Zephyr Energy plc
(the "Company" or "Zephyr")
Initial tranche of grant funds received;
appointment of Drilling Manager; and
further State 16-2 well updates
Zephyr Energy plc (AIM: ZPHR), an oil and gas company focused on responsible resource development in the
As previously announced, Zephyr is working 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
With the funding of the State 16-2 well secured, Zephyr's team is focused on the operational preparations for the drilling of the well. New milestones achieved include the following:
· Zephyr has bolstered its operations team with the appointment of
· A detailed initial well design is largely completed, which has allowed the Company to commence the tender process for project contracts. Project contracts currently out for bid include the solicitation of major items such as the rig contract. The newly bolstered Zephyr project team has expedited this process in order to award contracts in a timely manner to continue to ensure drilling activities before the end of the year.
"In particular, I'm very pleased to welcome Bruce to our project team - I'm not aware of anyone who's drilled more successful horizontal
"Bruce's direct drilling experience in the
"I'd also like to continue to thank the EGI and our other
"We will keep the market updated regularly as we work to unlock the value from our
Zephyr Energy plc
Tel: +44 (0)20 7225 4590
Allenby Capital Limited - AIM Nominated Adviser
Tel: +44 (0)20 3328 5656
Turner Pope Investments - Broker
Flagstaff Strategic and Investor Communications
Tel: +44 (0)20 3657 0050
Tel: +44 (0) 20 7129 1474
Background to the 16-2 well
As announced on 2nd
As part of this study, the EGI and UGS originally planned to drill a vertical stratigraphic test well to gather data to improve the understanding of the
Over a period of several months, the project team analysed multiple potential well locations across the
The Company's location was selected for a number of reasons, including the quality of the Group's underlying 3D seismic data (which can be tied into the well results to build a stronger integrated predictive model) as well as a favourable surface location which will be sited on a pre-existing pad.
Since Zephyr's Paradox acreage was selected as the location for the test well, Zephyr has been working with its project partners to construct a project plan that maximises the opportunity for all parties.
A key part of this plan is to design the well in such a way that not only can it be used to obtain all the data required by the research project, but that it can also be re-used by the Company in the future as the host for a lateral appraisal well. This approach not only reduces environmental impact but it will also potentially significantly reduce future well costs for the Company.
It is currently expected that the total cost of the vertical well activity is forecast to be between
The primary objectives of the initial stratigraphic well are to drill vertically to an approximate true vertical depth ("TVD") of 9,850 feet, and to acquire up to 90 feet of continuous core from the
Once the vertical well is completed it will be temporarily plugged back to 6,500 feet TVD. Zephyr (or a farm-in partner) will then have the opportunity to re-utilise the vertical wellbore as a sidetrack host from which a horizontal appraisal well can drilled. By re-utilising the vertical portion of the stratigraphic well, the Company estimates the total costs of drilling a future horizontal appraisal well will be reduced from circa
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