Zephyr Energy PLC (LON:ZPHR) said it has completed the State 16-2 well ahead of schedule, and the initial results are positive.
The company confirmed that the Utah well was drilled to a depth of 9,745 feet and indications from drilling data suggest the presence of hydrocarbons across multiple reservoir intervals.
It has taken 113 feet of core across the historically productive Cane Creek reservoir interval, plus core from seven shallower exploration targets.
Additionally, Zephyr noted that it captured new petrophysical information from the well.
"This is a fantastic result - we delivered on our two major objectives by successfully drilling to our target depth ahead of forecast, and by collecting significant amounts of reservoir data across multiple zones that suggest hydrocarbon presence,” said Colin Harrington, Zephyr chief executive in a statement.
The primary objective was to drill and set casing at 6,437 feet measured depth, in order to provide a host wellbore for a future horizontal sidetrack. This was achieved within 13 days of the programme, before reaching target depth after 19 days.
Zephyr’s secondary objective was to acquire new data to improve the understanding of its Paradox acreage position.
“The analysis and interpretation of this data has now commenced and will serve to substantially improve our understanding of the geology, the potential upside - and, when integrated with our existing 3D seismic, how best to target and test the natural fractures that exist in the play,” Harrington said.
"It's important to bear in mind the relatively untested potential of the Paradox Basin. The Cane Creek reservoir has produced over 10 million barrels of oil to date. However, the US Geologic Survey estimates a basin-wide, mean potential 1.2 billion barrels of oil equivalent in the Cane Creek reservoir alone, indicating a substantial potential yet to be targeted.”
He added: “The data acquired from the State 16-2, when integrated using modern tools and the resources of our world class academic and industry partners, is a massive step forward in our pursuit to unlock the value which we believe is inherent in our Paradox project and across this basin.”
