Zephyr Energy PLC (AIM:ZPHR, OTCQB:ZPHRF) has announced a substantial increase in recoverable reserves at its Paradox Basin project in Utah, with an updated Competent Person’s Report by Sproule-ERCE International.
Proved recoverable reserves (1P) have increased 93-fold, Zephyr said, rising to 14.8 million barrels of oil equivalent.
The report also showed a 25-fold increase in proved and probable (2P) reserves to 35.3 million barrels of oil equivalent.
Sproule estimated that the undiscounted free cash flows from the project would exceed $400 million.
"We are delighted with the results of the CPR, which clearly demonstrate the excellent progress made at the Paradox project through our successful operations," chief executive Colin Harrington said.
"The CPR further validates the considerable scale of the Paradox project, which is why we have launched a process to identify partners to accelerate drilling and the delivery of value from the asset."
Harrington added: "The completion of the CPR is an exciting moment for the company as we seek to advance the Paradox project into full commercial production and secure a project partner."
Notably, the Sproule report focused on the Cane Creek reservoir in a 20,000-acre portion of the 46,000-acre Paradox project for which Zephyr has 3D seismic data.
It also estimates total recoverable resources across the Cane Creek reservoir at 74.2 million barrels of oil equivalent, worth over $880 million, as well as 270 million barrels of prospective resources.
Zephyr has now opened a data room to multiple potential partners, which are currently reviewing the project data, and the company expects the CPR will now allow for more substantive discussions to take place.