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.
11 March 2024
Zephyr Energy plc
("Zephyr" or the
"Company")
Paradox project
update;
Drilling expected to commence in
mid-April
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
provide an update on its operated project in the Paradox Basin,
Utah, U.S. (the "Paradox project").
Zephyr continues to progress planning for the
forthcoming redrill of the State 36-2 well (the "State 36-2R
well"). The Company retains full well control insurance and expects
to recover a substantial majority of the costs associated with the
redrill.
At the well pad, all surface hole location
preparations have been completed to enable rig
mobilisation.
The Company plans to mobilise a spudder rig to
the well pad over the next two weeks to drill and set conductor
pipe and once these operations are complete, the
location will be ready to accept a drilling rig in early
April.
The Company is in the final stages of execution
of a rig contract with the intent to begin full drilling operations
in mid-April 2024.
In addition, Zephyr has now received vendor
bids for substantially all remaining well services, and has sourced
all casing and long lead items required for the well. As
previously reported the Company has received all regulatory
approvals required to proceed with the spud of the well.
Colin
Harrington, Zephyr's CEO, commented:
"We are looking
forward to commencing drilling operations on the 36-2R well.
After a highly intensive period of planning, preparation, and
vendor selection, we are confident the next few months offer
significant potential for the Company and will keep the market
updated as drilling commences and progresses."
Contacts :
Zephyr Energy plc
Colin Harrington (CEO)
Chris Eadie (CFO)
|
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
|
Tel:
+44 (0)20 3657 0050
|
Panmure Gordon (UK) Limited -
Joint Broker
Hugh Rich / James
Sinclair-Ford
|
Tel:
+44 (0) 20 7886 2500
|
Celicourt Communications - Public Relations
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 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.