Zephyr Energy PLC (AIM:ZPHR, OTCQB:ZPHRF) told investors it has successfully completed drilling the State 36-2R well, at its flagship project in the Paradox Basin, Utah, with the well's initial results indicating the presence of hydrocarbons.
Initial analysis of the drilling data indicates the presence of hydrocarbons within a large structural compartment in Zephyr's acreage, the company revealed.
Zephyr highlighted that the well encountered drilling mud gas shows similar to those observed in the original State well, with formation pressures estimated at approximately 9,300 pounds per square inch,
The next steps will see the company prepare the well for a production test.
"I am delighted to have concluded drilling operations safely and in line with our plans,” chief executive Colin Harrington said.
“We have intersected the reservoir remarkably close to the original well and early indications imply confirmation of hydrocarbons - and that we've likely been successful in hitting our natural fracture target with precision.
“Our next step is to commence the well production test in the coming weeks, subject to service availability.
“We look forward to keeping the market apprised as testing operations commence and a more fulsome evaluation of the well result becomes available."
The State 36-2R well was drilled to a total depth of 10,290 feet, and the company noted that it achieved its objective safely and efficiently.
In the field, the operations team is now preparing to set a production liner across the Cane Creek reservoir section.
Following this, the Helmerich & Payne Rig 257 will be demobilized from the site.
Over the next weeks, the company will mobilize equipment for the completion and production testing of the naturally fractured reservoir zone intersected during drilling.