REG - Zephyr Energy PLC - Award of rig contract to CWC Ironhand Drilling

Zephyr EnergyAnnouncement

08/11/2022 07:00

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RNS Number : 6011F  Zephyr Energy PLC  08 November 2022

Prior to publication, the information contained within this announcement was
deemed by the Company to constitute inside information as stipulated under the
UK Market Abuse Regulation. With the publication of this announcement, this
information is now considered to be in the public domain.

 

 

8 November 2022

 

Zephyr Energy plc

("Zephyr" or the "Company")

 

Award of rig contract to CWC Ironhand Drilling

 

Zephyr Energy plc (AIM: ZPHR) (OTCQB: ZPHRF), the Rocky Mountain oil and gas
company focused on responsible resource development from carbon-neutral
operations, is pleased to announce the signing of a rig contract with CWC
Ironhand Drilling ("CWC") for its Ironhand Rig 118 ("Rig 118") to be used to
drill the Company's State 36-2 LNW-CC well, the first of three wells designed
to further delineate Zephyr's acreage position on its project in the Paradox
Basin, Utah, U.S.

 

Rig 118 will mobilise to site over the coming days, with the well expected to
spud in the second half of this month.  In the interim, the Company expects
to set the conductor casing ahead of rig arrival prior to the commencement of
the greater drilling operation.

 

Colin Harrington, Zephyr's Chief Executive, said:

 

"Following the recent final permit award, Zephyr's operational team moved
quickly to secure the rig contract with CWC.  We are pleased with the
operational momentum and look forward to getting the drilling campaign
underway this month.

 

"We look forward to keeping investors informed as operations progress at the
well site."

 

 

Contacts

 

 Zephyr Energy plc                                                   Tel: +44 (0)20 7225 4590

 Colin Harrington (CEO)

 Chris Eadie (CFO)

 Allenby Capital Limited - AIM Nominated Adviser                     Tel: +44 (0)20 3328 5656

 Jeremy Porter / Vivek Bhardwaj

 Turner Pope Investments - Joint-Broker                              Tel: +44 (0)20 3657 0050

 James Pope / Andy Thacker

 Panmure Gordon (UK) Limited - Joint-Broker                         Tel: +44 (0) 20 7886 2500

 John Prior / Hugh Rich / James Sinclair-Ford / Harriette Johnson

 Celicourt Communications - PR

 Mark Antelme / Felicity Winkles                                    Tel: +44 (0) 20 8434 2643

 

 

Notes to Editors

 

Zephyr Energy plc (AIM: ZPHR) (OTCQB: ZPHRF) is a technology-led oil and
gas company focused on responsible resource development from carbon-neutral
operations in the Rocky Mountain region of the United States.  The
Company's mission is rooted in two core values: to be responsible stewards of
its investors' capital, and to be responsible stewards of the environment in
which it works.

 

Zephyr's flagship asset is an operated 45,000-acre leaseholding located in
the Paradox Basin, Utah, 25,000 acres of which has been assessed by third
party consultants Sproule International to hold, net to Zephyr, 2P reserves
of 2.1 million barrels of oil equivalent ("mmboe"), 2C resources of 27 mmboe
and 2U resources 203 mmboe. Following the successful initial production
testing of the recently drilled and completed State 16-2LN-CC well, Zephyr has
planned a three well drilling program commencing in 2022 to further delineate
the scale and value of the project.

 

In addition to its operated assets, the Company owns working interests in a
broad portfolio of non-operated producing wells across the Williston
Basin in North Dakota and Montana.

 

The Williston portfolio currently consists of working-interests in over 200
modern horizontal wells which are expected to provide US$35-40 million of
revenue, net to Zephyr, in 2022.  Cash flow from the Williston production
will be used to fund the planned Paradox Basin development. In addition, the
Board will consider further opportunistic value-accretive acquisitions.

 

 

 

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