Zephyr Energy PLC (AIM:ZPHR, OTCQB:ZPHRF) is set to be the recipient of an additional US$1mln of grant funding, as it signed an amended cooperation agreement as part of a research project backed by the US government.
The company has previously received US$2.1mln of grant funding supporting operations on the tate 16-2 well in 2020 and 2021, and, it has continued to work closely with researchers from Utah's Energy & Geoscience Institute and the Utah Geological Survey.
Today’s agreement results in further non-dilutive funding from the US Department of Energy and its National Energy Technology Laboratory.
Zephyr noted that this latest injection of funds is earmarked for the company to use for the acquisition of further geological data to assist in the understanding of the Cane Creek reservoir and of the additional reservoirs overlying the Cane Creek reservoir.
Data will be acquired alongside ongoing drilling operations and it is expected to provide significant insight into both the Cane Creek and overlying reservoirs, the company said.
“The expected output from this analysis will assist with future well planning and drilling operations, particularly in relation to the C9 overlying reservoir, as we look to unlock further value from our Paradox project,” said Colin Harrington, Zephyr chief executive, in a statement.
“I would like to thank the DOE, the EGI and the UGS for their continued focus and investment in the Paradox, and we are excited to be further aligned with their respective organisations.
“We look forward to keeping our stakeholders updated with the results from this research and from our ongoing drilling and production test operations," Harrington added.