Zephyr Energy PLC (AIM:ZPHR, OTCQB:ZPHRF) told investors that it has now begun production testing at the State 36-2R LNW-CC well, at the company's flagship project in the Paradox Basin, Utah.
It said the well is producing both natural gas and condensate and it described initial results as encouraging.
Over the next two weeks, the well will undergo a comprehensive flow and production test to determine the reservoir's fluid composition, flow rate, and bulk reservoir permeability.
It expects to announce results and analysis at the end of the two weeks, assuming no unexpected delays occur.
Chief executive Colin Harrington said he was delighted that the well is already flowing hydrocarbons.
“While the preparation for flow testing was extended due to the impact of the heavy-weight drilling fluids in the wellbore, coupled with the need for careful operating procedures in a high-pressure environment, I believe the efforts have resulted in a well that has now fully cleaned up and appears to be in a very good state for flow testing,” Harrington added.
"We look forward to observing the hydrocarbon volumes produced, the gas/oil ratios and the reservoir pressures during this test, after which we will announce our findings.
“We've appreciated the support of our shareholders during the run-up to this exciting event for the company."