REG - Zephyr Energy PLC - Paradox project update

Zephyr EnergyAnnouncement

11/03/2024 07:00

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RNS Number : 2506G  Zephyr Energy PLC  11 March 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.

11 March 2024

Zephyr Energy plc

("Zephyr" or the "Company")

 

Paradox project update;

Drilling expected to commence in mid-April

 

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 provide an update on its operated project in the
Paradox Basin, Utah, U.S. (the "Paradox project").

Zephyr continues to progress planning for the forthcoming redrill of the State
36-2 well (the "State 36-2R well"). The Company retains full well control
insurance and expects to recover a substantial majority of the costs
associated with the redrill.

At the well pad, all surface hole location preparations have been completed to
enable rig mobilisation.

The Company plans to mobilise a spudder rig to the well pad over the next two
weeks to drill and set conductor pipe and once these operations are complete,
the location will be ready to accept a drilling rig in early April.

The Company is in the final stages of execution of a rig contract with the
intent to begin full drilling operations in mid-April 2024.

In addition, Zephyr has now received vendor bids for substantially all
remaining well services, and has sourced all casing and long lead items
required for the well.  As previously reported the Company has received all
regulatory approvals required to proceed with the spud of the well.

 

Colin Harrington, Zephyr's CEO, commented:

"We are looking forward to commencing drilling operations on the 36-2R well.
After a highly intensive period of planning, preparation, and vendor
selection, we are confident the next few months offer significant potential
for the Company and will keep the market updated as drilling commences and
progresses."

 

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

 Hugh Rich / James Sinclair-Ford

 Celicourt Communications - Public Relations       Tel: +44 (0) 20 7770 6424

 Mark Antelme / Felicity Winkles / Ali AlQahtani

 

 

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 lease holding of over 46,000 gross
acres 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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