Zephyr Energy PLC (AIM:ZPHR, OTCQB:ZPHRF) told investors that its application for a permit to drill has been approved by the US Bureau of Land Management, meaning it can spud the State 36-2 LNW-CC well on its project in the Paradox Basin in Utah, USA.
At the same time, approval has been received for the State 36-3 LN-C9 exploration well, the AIM-listed company added, where the permit allows it to target the shallower C9 reservoir, which is planned to be drilled from the same well pad.
The State 36-2 LNW-CC well is fully-funded and will target the Cane Creek reservoir, Zephyr said.
Drilling is planned to a total depth at 20,456 feet measured depth, incorporating a 10,346 feet horizontal reservoir section.
Zephyr's objective with the well is to further delineate the reservoir beyond the productive State 16-2 LN-CC well and the nearby Federal 28-11 well, which was recently acquired by the company and is currently shut-in due to infrastructure constraints.
All road and site preparation work at the well-site is said to have been completed in order to spud the well “as soon as possible” following the execution of a rig contract.
A rig contract is “close” to being finalised, said Zephyr chief executive Colin Harrington, who added that more details on the expected completion testing schedules for the spud will be shared once the contract has been awarded.
Scheduling of the subsequent State 36-3 LN-C9 exploration well and the non-operated Kirkwood Oil & Gas well , which is targeting the Cane Creek reservoir near the Cane Creek Field, will be decided after this first well has been drilled.
“Once the rig contract is awarded, Zephyr will recommence its Paradox drilling activity which we believe will be a major step forward in our efforts to unlock what may be substantial potential across our 45,000 acres of Paradox Basin holdings,” said Harrington.
“As we embark on this potentially transformational drilling programme, I would like to reiterate that our mission, as always, is to be responsible stewards of investors' capital while also being responsible stewards of the environment," he added.