Zephyr Energy PLC (LON:ZPHR) said drilling has started on the State 16-2LN-CC appraisal well, a couple of weeks ahead of schedule.
Drilling is expected to take around 20 days to complete and the company will provide further updates in due course.
"The commencement of drilling of the State 16-2LN-CC well is a pivotal moment in our efforts to unlock value from the Paradox project,” said chief executive Colin Harrington. “While our primary goal is to seek production from natural fractures across the Cane Creek reservoir, we also plan to use the drilling operation to acquire important additional data from our eight high-graded overlying reservoir targets.”
Zephyr added that it is to be supported by the University of Utah's Energy & Geoscience Institute (EGI), by the Utah Geological Survey (UGS) and other in-state stakeholders. Together this group is referred to as the Project Team. The work is sponsored by the US Department of Energy – US$2mln was provided to the project team in 2020.
The team previously assisted with drilling and data acquisition costs at Zephyr's State 16-2 "dual-use" well which was completed in January 2021.
The EGI will fund additional data acquisition efforts including the funding of Dipole Sonic logs to be deployed during the drilling operations.