Zephyr Energy PLC (AIM:ZPHR, OTCQB:ZPHRF) told investors that the next phase of production testing has now begun at the State 16-2 LN-CC well in Utah.
Testing in 2021 previously saw peak initial production rates of around 1,100 barrels of oil equivalent per day, constrained due to surface limitations.
The company, in a statement, noted that since then it has worked with specialist consultants to design and augment surface facilities.
"I am pleased to announce that following the completion of the significant upfront planning, design, construction and commissioning operations, the next phase of production testing has commenced and hydrocarbons are once again being produced from the well,” said chief executive Colin Harrington.
He added: “We look forward to keeping our stakeholders informed as the test progresses over the coming weeks - and, as always, we will endeavour to operate in line with our core mission: to be responsible stewards of our investors' capital and responsible stewards of the environment in which we work."
Zephyr meanwhile continues to drill its separate State 36-2 LNW-CC well.