REG - Zephyr Energy PLC - Paradox project update

Zephyr EnergyAnnouncement

08/04/2025 07:00

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RNS Number : 0118E  Zephyr Energy PLC  08 April 2025

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 April 2025

Zephyr Energy plc

("Zephyr" or the "Company")

Paradox project update

 

Zephyr Energy plc (AIM: ZPHR) (OTCQB: ZPHRF) is pleased to provide an update
on completion and production testing operations on the State 36-2 LNW-CC-R
well (the "well") at its project in the Paradox Basin, Utah, U.S.

Over the last two weeks, the lateral portion of the well was successfully
perforated with 98 cuts across a total of 16 stages targeting optimised
sections of the reservoir. As part of the operations, the Company deployed a
wellbore perforating technology developed by Halliburton which used a mix of
sand and water to cut cavities through the casing and into the reservoir in
order to maximise the reservoir's connectivity.

Pressure response during the cutting operations suggests the wellbore has good
connection to the highly pressured Cane Creek reservoir.  After perforations
were completed, the well was treated with acid, as planned, to maximise
near-wellbore formation permeability.

The Company will shortly commence production testing.  As part of the
operation, a fibre optic cable is planned to be deployed alongside the
production tubing to gather pressure and temperature data so that the
production rate of each individual stage may be assessed.  This will allow
Zephyr's team to further understand the production capacity of the reservoir
and to optimise stimulation techniques for future operations.

The Company continues to anticipate that initial production test results will
be available by the end of April 2025, subject to weather and vendor
schedules.

Colin Harrington, Zephyr's Chief Executive, said:

 

"We are highly encouraged by operations to date and are excited about the
imminent commencement of the production testing.

 

"We look forward to providing further updates in due course."

 

Contacts

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

 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

 Canaccord Genuity Limited - Joint-Broker                      Tel: +44 (0)20 7523 8000

 Henry Fitzgerald-O'Connor / Charlie Hammond

 Celicourt Communications - PR

 Mark Antelme / Felicity Winkles / Ali AlQahtani               Tel: +44 (0) 20 7770 6424

 

Qualified Person

Dr Gregor Maxwell, BSc Hons. Geology and Petroleum Geology, PhD, Technical
Adviser to the Board of Zephyr Energy plc, who meets the criteria of a
qualified person under the AIM Note for Mining and Oil & Gas Companies
- June 2009, has reviewed and approved the technical information contained
within this announcement.

 

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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