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
Zephyr Energy plc
Colin
Harrington (CEO)
Chris Eadie (Group Finance
Director and Company Secretary)
|
Tel:
+44 (0)20 7225 4590
|
|
Allenby Capital Limited -
AIM Nominated Adviser
Jeremy Porter / Vivek
Bhardwaj
|
Tel:
+44 (0)20 3328 5656
|
|
Turner Pope Investments -
Joint-Broker
James Pope / Andy
Thacker
Panmure Gordon (UK) Limited - Joint-Broker
Hugh Rich / James
Sinclair-Ford
Celicourt Communications - PR
Mark Antelme / Felicity
Winkles
|
Tel:
+44 (0)20 3657 0050
Tel: +44
(0) 20 7886 2500
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.