Zephyr Energy PLC (AIM:ZPHR, OTCQB:ZPHRF) has received an additional US$250,000 of non-dilutive funding thanks to its latest research grant from the US Department of Energy (DOE).
Proceeds will support well-testing activities on the State 36-2R LNW-CC well at the company's project in the Paradox Basin, Utah.
Total DOE grant funding to Zephyr Energy now amounts to US$3.65 million.
The DOE grant is administered by the University of Utah's Energy & Geoscience Institute (EGI), which is collaborating closely with Zephyr’s team – with the EGI, the Utah Geological Survey (UGS), and other Utah-based partners seeking to fully evaluate the production potential of the Paradox Basin.
"We are incredibly grateful to the DOE and our Utah research partners for their ongoing support, both financially and in terms of our broader collaboration as we jointly seek to understand and optimize the full potential of the Paradox project,” Zephyr chief executive Colin Harrington said 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 even further aligned with their respective organizations.
“We feel their involvement is a strong endorsement of the Paradox project and of the professional, detailed way in which we are operating in Utah."
Drilling update
Zephyr also told investors that drilling operations on the State 36-2R well are proceeding in line with management's expectations.
The 8 ½ inch section has reached a depth of 9,940 feet, with the planned section total depth of 10,075 feet expected to be reached imminently, it noted.
After setting and cementing a casing string just above the final Cane Creek reservoir target, drilling will resume to intersect the Cane Creek reservoir and perform approximately 270 feet of horizontal drilling.
Colin Harrington added: “I am highly pleased to report that drilling operations on the State 36-2R well continue safely and with such precision.
“We will continue to keep our stakeholders fully informed about ongoing drilling operations and the subsequent production test.”