Zephyr Energy PLC, the Rocky Mountain oil and gas company, said State 36-2 LNW-CC “would appear to be another productive well on its acreage” in Utah’s Paradox Basin.
As reported on 19 January 2023, the well intersected a major natural fracture network in the Cane Creek reservoir, resulting in a significant influx of hydrocarbons into the wellbore.
Investors were told the influx was safely controlled, allowing for an additional 132 feet to be drilled.
Plans are now underway to commence production testing and potential completion of the reservoir interval in the coming weeks, subject to weather and service availability.
Pore pressure analysis suggests that the well encountered very high reservoir overpressure, with formation pressures estimated at around 9,300 pounds per square inch, broadly consistent with previously drilled offset wells.
Further identified was the presence of natural gas and condensate within a large structural compartment and at a new location within the acreage and 3D seismic coverage.
This, it said, provided additional confirmation of the model for hydrocarbons in place across the acreage position.
Chief executive Colin Harrington said: "The State 36-2 LNW-CC well was a challenging and lengthy operation, more difficult than expected but not atypical when drilling in an immature, remote and highly over-pressured basin.
“Despite the challenges, we have managed to move the bar again and delivered what would appear to be another productive well on our acreage."
Harrington also noted the benefits of modern 3D seismic data and drilling with modern oilfield technologies, practices and services.
The previous operators drilled three vertical wells on the acreage, only one of which was productive. Zephyr has now drilled two wells in the Cane Creek reservoir, both of which appear to be productive, highlighting the effectiveness of the company's approach.
Production at another well - State 16-2 LN-CC - remains ongoing, and the company will update the market as soon as that test has concluded, the market was told.