REG - Zephyr Energy PLC - State 36-2R well drilling update

Zephyr EnergyAnnouncement

03/06/2024 07:00

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RNS Number : 7525Q  Zephyr Energy PLC  03 June 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.

 

3 June 2024

Zephyr Energy plc

("Zephyr" or the "Company")

 

State 36-2R well drilling update

 

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 the State 36-2R LNW-CC well
(the "State 36-2R well") at its project in the Paradox Basin, Utah.

Drilling operations continue to proceed safely and effectively.

The 8 ½-inch section reached the planned section total depth of 10,084 feet,
after which the 7-inch casing string was set and cemented in place
successfully.

Drilling will shortly commence on the final section of the State 36-2R well.
The objective for this short section is to land the well safely within
the Cane Creek reservoir (the "Cane Creek") and drill the remaining 320 feet
(of which 270 feet will be drilled horizontally within the reservoir) to
intersect both the reservoir and the productive natural fracture system
encountered by the State 36-2LNW-CC well (the "original well").

After reaching total depth and setting a production liner, the drilling rig
will be demobilised and the well will be prepared for production testing.

At the current depth of 10,084 feet, the State 36-2R well is ten feet from the
original well.

Colin Harrington, Zephyr's Chief Executive, said: "I am pleased to report
that drilling operations on the State 36-2R well continue safely and with such
precision. Over the next few days we plan to intersect the Cane Creek and
target the same natural fracture network identified by the original well.

"We will keep our stakeholders updated as drilling operations progress."

 Contacts

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

 Colin Harrington (CEO)

 Chris Eadie (Group Finance Director & 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

 Panmure Gordon (UK) Limited - Joint-Broker                     Tel: +44 (0) 20 7886 2500

 Hugh Rich / James Sinclair-Ford

 Celicourt Communications - PR

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

 

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.

Certain statements in this announcement, are, or may be deemed to be, forward
looking statements. Forward looking statements are identified by their use of
terms and phrases such as ''believe'', ''could'', "should" ''envisage'',
''estimate'', ''intend'', ''may'', ''plan'', ''potentially'', "expect",
''will'' or the negative of those, variations or comparable expressions,
including references to assumptions. These forward-looking statements are not
based on historical facts but rather on the Directors' current expectations
and assumptions regarding the Company's future growth, results of operations,
performance, future capital and other expenditures (including the amount,
nature and sources of funding thereof), competitive advantages, business
prospects and opportunities. Such forward looking statements reflect the
Directors' current beliefs and assumptions and are based on information
currently available to the Directors.

 

 

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