Zephyr Energy PLC (AIM:ZPHR, OTCQB:ZPHRF) CEO Colin Harrington takes Proactive's Stephen Gunnion through the initial results from the State 36-2R production test.
Harrington detailed the multiple phases of the test, highlighting the well’s strong initial pressures and deliverability. He mentioned experimenting with different choke settings to determine both short-term and long-term productivity. A peak rate of 1,350 BOE per day was achieved, although conservatively choked to avoid impacting liquid rates.
A key takeaway was the significantly higher liquid response, with over 600 barrels of condensate per day and almost no water production, minimizing disposal costs. The high condensate levels positively impact the well's economics and the broader Paradox Play, where the southern acreage shows more liquid-rich potential than previously expected.
Regarding the next steps, Harrington discussed plans for a larger acid job to clean natural fractures and obtain a true picture of the well’s potential, scheduled for early to mid-August. Additionally, Zephyr Energy is preparing for further development of the Paradox Basin asset, exploring industry partnerships to accelerate growth.