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Oil & Gas

Zephyr Energy advancing State 36-2 towards production test

Zephyr Energy PLC (AIM:ZPHR, OTCQB:ZPHRF) told investors it has now mobilised the service rig to site for the upcoming new perforation and production testing at the State 36-2 LNW-CC well, in Utah.

The company, in a statement, said that operations on the ground have now commenced. It added that it has made progress in spite of difficult winter weather conditions in Utah.

This latest programme – including perforating the well in the productive portion of the Cane Creek reservoir – and production testing, is scheduled to take four to six weeks to complete.

The well is expected to flow from natural fractures, and hydraulic stimulation is not expected at this time. Therefore, results are due sooner as there’s no need to recover any completion fluids during well clean-up operations.

"I am pleased to announce our continued progress on the State 36-2 well, especially in light of the challenging weather conditions, and I want to thank our operations team for continuing to move the project forward in a safe and effective manner,” said chief executive Colin Harrington.

"We look forward to the results of the production test, which we expect will provide critical information to help us determine the optimal development programme for the Paradox project.

"We look forward to updating Shareholders once the test has been completed."

Zephyr noted that the testing programme is funded from existing cash resources.

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