Zephyr Energy PLC (LSE:ZPHR) chief executive Colin Harrington described the State 16-2LN-CC well as an excellent platform from which to assess wider field development options in Utah’s Paradox basin.
It comes as the company has opted to conduct a diagnostic fracture injection test (DFIT) on the horizontal well prior to production testing.
DFIT, which gets underway today, is expected to provide insights that will inform future decisions and plans for well stimulation as part of field development plans.
“As the State 16-2LN-CC is the first horizontal well in this part of the Paradox Basin, the ability to develop a strong understanding of reservoir mechanical properties is crucially important as we assess the series of options for wider potential development,” Harrington said in a statement.
“It's also important to note that if the HSRP completion route is selected, we believe it could allow for a simpler surface footprint and more predictable well patterns, including the grouping of multiple wells from a single pad, thereby maximising resource efficiency and project economics while minimising environmental and surface disruption.”
The State 16-2LN-CC well cut into some 4,555 ft of the Cane Creek reservoir in its horizontal section and today the company said analysis has now determined that approximately 85% of that section could be completed for production.
Analysis has also determined estimates that see some 1.2mln to 4.5mln barrels of oil equivalent hydrocarbons in place.
“The State 16-2LN-CC landed successfully in the Cane Creek reservoir with excellent positioning throughout the horizontal portion of the well,” Harrington said.
He added: "The current wellbore provides an excellent platform from which to assess these development options prior to production testing the well.
“We expect DFIT operations and monitoring to progress over the course of the next week, after which a final decision regarding selection of method for well completion will be made.
“Completion operations and production testing will begin as soon as possible thereafter, and we look forward to keeping shareholders informed as more milestones are reached."