REG - Zephyr Energy PLC - Start of well drilling operations

Zephyr EnergyAnnouncement

25/04/2024 07:15

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240425:nRSY0048Ma&default-theme=true

RNS Number : 0048M  Zephyr Energy PLC  25 April 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.

 

25 April 2024

 

 

Zephyr Energy plc

("Zephyr" or the "Company")

 

Start of well drilling operations

 

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 spud and start of the main drilling
operation on the State 36-2 LNW-CC-R well (the "well") at Zephyr's flagship
project in the Paradox Basin, Utah, U.S. (the "Paradox project").

 

Further to the Company's announcement on 17 April 2024, the rig-up operation
for the Helmerich & Payne Rig 257 (the "Rig") was completed yesterday, 24
April, and shortly thereafter the surface section of the well was spud.

 

 Figure 1: Helmerich & Payne Rig 257 in situ at the Paradox project

 

 

The well, for which the Company expects to recover substantially all the
drilling costs incurred through the well control insurance policy that it had
in place for the State 36-2 LNW-CC well (the "original well") will target
the Cane Creek reservoir and the highly productive natural fracture system
encountered by the original well. Drilling is planned to a total depth ("TD")
of 10,362 feet measured depth (9,600 feet true vertical depth) and will
incorporate a short, 270-foot horizontal reservoir section. The well has been
designed and permitted such that the horizontal section can be extended to a
further 10,000 feet in the Cane Creek reservoir, should that be required in
the future.

Drilling operations are expected to take approximately 30 days.  After
reaching TD and setting a production liner, the Rig will be demobilised and
the well will be prepared for production testing.

Colin Harrington, Zephyr's CEO commented: "After months of meticulous planning
we are delighted to have commenced full drilling operations with the prime
objectives of delivering a safe and timely drilling operation followed by a
successful well test.

"We look forward to providing regular updates as drilling progresses."

 

Contacts:

 

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

 Colin Harrington (CEO)

 Chris Eadie (Group Finance Director)

 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

 

Qualified Person

Dr Gregor Maxwell, BSc Hons. Geology and Petroleum Geology, PhD, Chief
Operating Officer 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 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.

 

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  UPDIAMATMTATMBI