Zephyr Energy PLC (AIM:ZPHR, OTCQB:ZPHRF) has completed the second phase of production testing for the State 36-2R well with peak production rates of more than 2,100 barrels of oil equivalent per day (boepd).
It is a significant result for the AIM-quoted firm.
The company successfully used acidisation stimulation in the well, which was the first known instance of the technique in the Paradox Basin.
This removed near-wellbore formation damage and also enhanced reservoir deliverability, improving permeability and productivity.
Zephyr highlighted that the results show increasing liquid yields, with condensate and light volatile oil accounting for approximately 510 boepd.
Importantly, no water production was observed.
"This is a highly significant milestone for the company in its development of the White Sands Unit and its wider project acreage,” chief executive Colin Harrington said in a statement.
“This is the first known use of acidisation stimulation in the Paradox Basin and the results are extremely encouraging - the well's deliverability and permeability are particularly notable, leading to the high production rates witnessed."
Zephyr is engaging in talks with US-based industry partners regarding potential development opportunities to accelerate the appraisal of the Paradox project.