Transformed Zephyr Energy Plc set for production led growth; new data reveals potential of Utah play
- Zephyr Energy increases investments in North Dakota and announces new JV
- Zephyr begin 'last piece of puzzle' a diagnostic fracture injection test (DFIT) at Paradox basin
Quick facts: Zephyr Energy PLC
Price: 5.55 GBX
Market Cap: £67.96 m
About the company
Zephyr is focused on upstream development in the Rocky Mountain region of the American West.
Following an acquisition in 2021, the company owns non-operated interests in 5 wells and is actively pursuing other transactions in this region.
How it is doing
Zephyr Energy PLC agreed further investments in the Williston Basin, North Dakota and announced plans to increase its working interests through a deal with Purified Resource Partners (PRP).
The Rocky Mountain oil and gas company already holds minority interests in seven non-operated production wells in the Williston Basin and has expanded the portfolio through two additional acquisitions. In total, it gains stakes in 15 additional wells which by the end of March 2022 are expected to yield around 200 to 300 barrels of oil per day to Zephyr.
Through a new joint venture with Purified Resource Partners it intends to identify and carry-out more acquisitions, to add further non-operated well interests. To date, Zephyr has been a partner with PRP in each of its four acquisitions in the Williston.
“I'm delighted to report continued progress and significant growth on the non-operated side of our business,” said chief executive Colin Harrington. “We have now closed five separate acquisitions this year - and these deals created a balanced asset base of interests in 22 producing or near-term production wells, provided exposure to additional non-operated drilling expected in 2022, added significant new operated acreage in the Paradox Basin, and tie together nicely with the State 16-2LN-CC well which is lined up for near-term completion and production testing.”
Zephyr Energy PLC revealed positive results from testing at its State 16-2LN-CC well in Paradox Basin, Utah, U.S., which yielded "strong evidence” to support further development.
The Rocky Mountain oil and gas company said the wellbore diagnostic fracture injection test (DFIT) provided strong evidence of the potential to successfully develop the Cane Creek reservoir as a hydraulically stimulated resource play (HSRP). It described the well as a potential proof of concept.
Zephyr Energy PLC (LSE:ZPHR) chief executive Colin Harrington described the State 16-2LN-CC well as an excellent platform from which to assess wider field development options in Utah’s Paradox basin.
It comes as the company has opted to conduct a diagnostic fracture injection test (DFIT) on the horizontal well prior to production testing.
What management says
Zephyr Energy PLC (LSE:ZPHR) chief executive Colin Harrington talks to Proactive London about wider field development options in Utah’s Paradox basin.
He explains why now the company has opted to conduct a diagnostic fracture injection test (DFIT) on the horizontal well prior to production testing.
The DFIT is expected to provide insights that will inform future decisions and plans for well stimulation as part of field development plans.
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