Zephyr Energy PLC (LON:ZPHR) has updated investors on its analysis of the State 16-2 well results which include positive indications of stacked, continuous oil and gas plays.
The well, drilled in the Paradox Basin, Utah, USA, penetrated a total of 21 clastic reservoirs within the Paradox formation, and hydrocarbon saturation is indicated across most of them, Zephyr noted.
It added that substantial drilling gas shows were observed across five of the reservoirs including the primary target, Cane Creek. Robust drilling gas shows were observed across a further ten of the reservoirs.
Further analysis is required, the company said, and it has taken core samples from twelve reservoirs for testing.
"We continue to make excellent progress in the work to unlock value from our Paradox acreage,” said Colin Harrington, Zephyr chief executive in a statement.
“Although Zephyr is in the earliest phase of its data evaluation process, and there is a significant amount of additional data to come, these initial results provide positive evidence of the presence of multiple stacked continuous oil and gas plays on our Paradox acreage, in addition to the previously outlined potential of the Cane Creek reservoir.
"These additional zones, if confirmed by further analysis, would generate a much better understanding of the overall scale and value of our prospective resource.”
Harrington added: “Efforts are now underway to calibrate log to core data, in order to evaluate which additional zones have the most volumetric potential to act as viable reservoir targets.
"We are also evaluating multiple alternatives for the future commercial development of these assets.”