Zephyr Energy PLC (LON:ZPHR) has announced the start of drilling for the State 16-2 well in Utah’s Paradox basin.
Detailing the programme, Zephyr noted that the well will be drilled as a “mildly deviated” well (at a maximum inclination of 8 degrees) down to a vertical target depth of 9,815 feet. It aims to acquire up to 100 feet of continuous core from the targeted Cane Creek reservoir.
Chief executive Colin Harrington described the start of drilling as “a watershed moment” for the company.
Zephyr intends to run a comprehensive well log suite across the entire Paradox Formation, which includes the primary Cane Creek reservoir target and at least five other potential reservoir zones.
It expects that the drilling operations will take 30-40 days. Detailed results are then expected within three months from completion of the well.
The company noted that the well will be temporarily plugged back at around 6,450 feet, from which point there would be an opportunity to re-use the vertical well bore to host a new sidetrack or horizontal appraisal well. This approach can shave around US$3mln off the cost of a second well.
In a statement, Harrington said: "There has been significant time, money and effort expended by many people over many years to get to this point - from the original leasing program to the considerable investment in modern 3D seismic to the detailed technical work we've undertaken in conjunction with our world-class project partners.
“All of this work has been funded by the Company's Shareholders, and - from my vantage point on site at the State 16-2 well - I am delighted to be able to personally witness the tangible results of this historical effort and investment.
“We are now 100% focused on achieving our operational goals in the safest and most effective manner possible. I look forward to keeping the market updated on our progress."
Zephyr also noted that the spud of State 16-2 is the trigger for the company to draw down its third tranche of funding (US$600,000) under the US$2mln US Department of Energy grant funding.