Zephyr Energy PLC (LON:ZPHR) continues its countdown to the start of drilling later this month.
The company, in a statement, highlighted that the State 16-2 well in Utah’s Paradox basin is slated to spud by December 31 and it remains “firmly on track” to deliver this key objective.
It noted significant progress on and off site over the past two months – including the assembly of a project team, permitting, site and road works, the appointment of rig contractor, and securing funding support.
A conductor rig is presently on site and has begun operations to establish a stable base for the Cyclone Rig #34 which will drill the well.
It is expected that the rig will arrive on site next week, rig-up will take a week and once it spuds the well will take between 30 and 40 days to drill.
"Given these unusual times, I'm particularly proud that our team continues to work through significant hurdles in order to deliver the drilling of this well on the timeline - and in the responsible manner - that we originally promised,” said Colin Harrington, Zephyr chief executive.
“It's an exciting moment for the company and its stakeholders as we begin to unlock the considerable value from our Paradox project."
Zephyr noted that it has now received the second US$600,000 tranche of the US$2mln grant funds allocated by the US Department of Energy. A further S$600,000 is due once drilling has commenced and the final balance of US$200,000 will be received by Zephyr once additional routine well development milestones are met.