REG - Zephyr Energy PLC - Operations Update

Zephyr EnergyAnnouncement

09/07/2024 07:00

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RNS Number : 5853V  Zephyr Energy PLC  09 July 2024

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.

 

9 July 2024

Zephyr Energy plc

(the "Company" or "Zephyr")

 

Operations Update

 

State 36-2R well production test commenced

 

 

Zephyr Energy plc (AIM: ZPHR) (OTCQB: ZPHRF), the Rocky Mountain oil and
gas company focused on responsible resource development and carbon-neutral
operations, is pleased to announce the commencement of the well production
test on the State 36-2R LNW-CC well (the "well") at the Company's flagship
project in the Paradox Basin, Utah (the "Paradox project").

 

The well is currently flowing both natural gas and condensate, and the Company
is encouraged by initial results.

 

Over the next two weeks, the well will be flowed and production tested to more
rigorously determine the reservoir pressure, fluid composition, well flow rate
and bulk reservoir permeability, and to deliver an early estimate of the
overall potential recoverable resources.

 

Zephyr intends to announce initial results and analysis as soon as possible at
the end of this two-week period, assuming no unexpected delays to the
production test programme.

 

Colin Harrington, Zephyr's Chief Executive, said:

 

"Zephyr's operations team has worked extremely hard to deliver this well, and
I am delighted that we are already flowing both natural gas and condensate.
While the preparation for flow testing was extended due to the impact of the
heavy weight drilling fluids in the wellbore, coupled with the need for
careful operating procedures in a high-pressure environment, I believe the
efforts have resulted in a well that has now fully cleaned up and appears to
be in a very good state for flow testing.

"We look forward to observing the hydrocarbon volumes produced, the gas/oil
ratios and the reservoir pressures during this test, after which we will
announce our findings.  We've appreciated the support of our shareholders
during the run-up to this exciting event for the Company."

 

 Contacts                                                       Tel: +44 (0)20 7225 4590

 Zephyr Energy plc

 Colin Harrington (CEO)

 Chris Eadie (Group Finance Director and Company Secretary)

 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

 Hugh Rich / James Sinclair-Ford

 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 46,000-acre leaseholding located in
the Paradox Basin, Utah, 25,000 acres of which has been assessed to hold,
net to Zephyr, 2P reserves of 2.6 million barrels of oil equivalent ("mmboe"),
2C resources of 34 mmboe and 2U resources 270 mmboe.

 

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.  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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