REG - Zephyr Energy PLC - State 36-2 LNW-CC well production test to commence

Zephyr EnergyAnnouncement

20/03/2023 07:00

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RNS Number : 4938T  Zephyr Energy PLC  20 March 2023

 

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.

 

20 March 2023

Zephyr Energy plc

(the "Company" or "Zephyr")

 

State 36-2 LNW-CC well production test to commence

 

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 provide an update on operations on the State 36-2
LNW-CC well (the "State 36-2 well" or the "well") at the Company's flagship
project in the Paradox Basin, Utah, U.S.

 

Commencement of State 36-2 well production test

 

On 8 March 2023 the Company announced, amongst other matters, that planning
for the State 36-2 well production test had completed and that all services
for the test have been procured.

 

The Company is pleased to announce that a Zephyr-contracted service rig has
now been mobilised to the well-site and operations on the ground have
commenced. This has been achieved in spite of the difficult winter weather
conditions recently encountered in Utah.

 

Workover operations (which will include perforating the well in the productive
portion of the Cane Creek reservoir) and subsequent production testing are
estimated to take four to six weeks, with the ultimate timeline dependent upon
field conditions.

 

As the well is expected to flow from natural fractures, no hydraulic
stimulation is expected at this time. The production testing is therefore
expected to be completed quicker than the equivalent testing on the Company's
hydraulically stimulated State 16-2 LN-CC well (as there are no significant
completion fluids to flow back during well clean-up operations).

 

The production test will be paid for from the Company's existing cash
resources.

 

 

Colin Harrington, Zephyr's Chief Executive, said:

"I am pleased to announce our continued progress on the State 36-2 well,
especially in light of the challenging weather conditions, and I want to thank
our operations team for continuing to move the project forward in a safe and
effective manner.

"We look forward to the results of the production test, which we expect will
provide critical information to help us determine the optimal development
programme for the Paradox project.

"We look forward to updating Shareholders once the test has been completed."

 

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

 Celicourt Communications - PR

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

 

 

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 45,000-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 240 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.

 

The Williston portfolio currently consists of working-interests in over 200
modern horizontal wells which are expected to provide production of 1,550 -
1,750 barrels of oil equivalent per day, net to Zephyr, in 2023.  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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