Zephyr Energy PLC is advancing the State 16-2LN-CC well in-line with expectations, with operations in Utah’s Paradox basin now progressing in the horizontal section of the well.
The company told investors that State 16-2LN-CC had been drilled down to a depth of 10,100 feet and successfully landed into the Cane Creek reservoir, at an 85 degree angle.
Operations are continuing to drill a horizontal lateral to intersect with open natural fracture systems in the Cane Creek reservoir, a statement said.
“Drilling continues 24 hours a day, seven days a week, and we look forward to this next phase of horizontal drilling with the utmost anticipation,” said chief executive Colin Harrington.
“It's an exciting time for the company, filled with short-term operational activity and long-term strategic potential.”
In regard to long-term strategy, Zephyr today also announced it has made an agreement to expand its footprint in the Paradox basin acquiring some 12,260 leased acres which the company deem to be prospective for mid-to-long-term development.
A portion of the new acreage is said to be proximal to the existing acreage position, whilst additional new acreage is positioned in the historically productive Cane Creek field and Salt Wash field which lie to the south of Zephyr's current position.
Harrington added: “I am thrilled to be able to bolster the scale of our Paradox project at this point in time.
“Our team is developing a unique understanding and data set across the Paradox Basin - and we're excited about this timely opportunity to expand our operated asset base.”
Zephyr will now hold a total of 37,613 gross acres in the Paradox Basin, the majority of which is operated by the company with a 75% working interest.