Zephyr Energy PLC (AIM:ZPHR, OTCQB:ZPHRF) has unveiled a new independent review of the Paradox project, in Utah, which sees the company’s first reserves and contingent resources double.
A competent person's report (CPR) authored by consultant Sproule has detailed some 2.1mln barrels oil equivalent of proved and probable (2P) reserves.
Sproule estimated 27mln barrels of contingent resources, up from 12.3mln barrels in 2018, across the Cane Creek reservoir. At the same time, the consultant quantified the potential of other, overlying reservoirs at the project with a new prospective resource estimate of 203mln barrels (unrisked) and said there would be a 33% chance of success for these exploration possibilities.
The independent review confirms Zephyr’s belief in the project’s “huge value and scale”, chief executive Colin Harrington said in an interview with Proactive.
“We are delighted with the conclusions drawn by Sproule, which both demonstrate the impact of our recent drilling success and which further highlight the substantial potential scale and profitability of the Paradox project,” Harrington said in this morning’s statement.
“Today's announcement of the results of the CPR is a key milestone for the company, outlining the value potential in our portfolio.”
He added: “We are on track to unlock even greater value as we prepare for the fully funded Cane Creek three well drilling campaign in 2022.
“By drilling additional delineation and exploration wells, our goal is to significantly advance the understanding of this play, its key risks and its potential upside.
“Our hope is to fuel further increases across all reserve and resource classes by this time next year, and ultimately to unlock the next great unconventional resource play in the onshore US. Our potential for funded, organic growth is significant and we look forward to executing this strategy over the remainder of 2022.”