REG - Zephyr Energy PLC - State 36-2R Drilling Permit Sundry Notice Approval

Zephyr EnergyAnnouncement

14/02/2024 07:00

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RNS Number : 0441D  Zephyr Energy PLC  14 February 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.

 

 

14 February 2024

 

Zephyr Energy plc

("Zephyr" or the "Company")

 

Approval of State 36-2R Well Drilling Permit Sundry Notice

 

Zephyr Energy plc (AIM: ZPHR) (OTCQB: ZPHRF), the Rocky Mountain oil and gas
company focused on responsible resource development from carbon-neutral
operations, is pleased to announce that it has received state and federal
Sundry Notice approvals for the amendment of the drilling permit related to
the forthcoming "twinned" redrill of the State 36-2 well (the "State 36-2R
well"). These are the final regulatory approvals required for the Company to
spud the State 36-2R well on its project in the Paradox Basin, Utah, U.S.

 

Zephyr will now move to execute a rig contract and will update the market on
the expected timeline for the spud of the State 36-2R well upon award of the
contract.  Bid processes for other major services are also underway.

The State 36-2R well's main objective is to target the same Cane Creek
reservoir natural fracture network which was successfully intersected by the
State 36-2 well last year. The Company expects to recover substantially all
State 36-2R well drilling costs under the well control insurance policy that
it has in place for the State 36-2 well.

 

Colin Harrington, Zephyr's Chief Executive, said:

 

"We are pleased to have cleared the final regulatory hurdles for the spud of
the State 36-2R well and look forward to next steps, including the execution
of a rig contract and mobilisation of operations to the site.

 

"This is a time of significant activity for the Company with the potential to
generate substantial new value for Shareholders, and we plan to provide
regular updates over the coming weeks and months as operations progress."

 

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

 Hugh Rich / James Sinclair-Ford

 Celicourt Communications - Public Relations       Tel: +44 (0) 20 7770 6424

 Mark Antelme / Felicity Winkles / Ali AlQahtani

 

 

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.

 

 

 

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