Zephyr Energy PLC Paradox Acreage Chosen for Stratigraphic Well (7423X)
September 02 2020 - 1:04AM
UK Regulatory
TIDMZPHR
RNS Number : 7423X
Zephyr Energy PLC
02 September 2020
Prior to publication, the information contained within this
announcement was deemed by the Company to constitute inside
information as stipulated under the Market Abuse Regulations (EU)
No. 596/2014 ("MAR"). With the publication of this announcement,
this information is now considered to be in the public domain.
2 September 2020
Zephyr Energy plc
(the "Company" or "Zephyr")
Zephyr's Paradox Acreage Chosen for Stratigraphic Well
funded by the US Department of Energy
'Research focused well expected to be spudded by year end'
Zephyr Energy plc (AIM: ZPHR), the Rocky Mountain oil and gas
company focused on responsible resource development, announces the
following update on its project in the Paradox Basin, Utah, U.S.A.
( the "Paradox").
As referred to in previous announcements, Zephyr has been
working with a project team led by the University of Utah's Energy
& Geoscience Institute ("EGI") in collaboration with the Utah
Geological Survey (the "UGS") and other Utah-based partners. The
project is entitled "Improving Production in Utah's Emerging
Northern Paradox Unconventional Oil Play" - its goal is to assess
and perform optimisation analyses for more focused, efficient and
less environmentally-impactful oil production strategies in the
northern Paradox Basin, particularly in the Pennsylvanian Paradox
Formation's Cane Creek shale and adjacent clastic zones. This
project is sponsored by the U.S. Department of Energy and its
National Energy Technology Laboratory (the "DOE").
As part of this study, the EGI and UGS are planning to drill a
vertical stratigraphic test well to gather data to improve the
understanding of the Paradox Basin play. The proposed well would
target the Cane Creek and potentially the C18/19 reservoirs,
acquiring both core data and a comprehensive well log suite in
order to provide valuable new basin data.
Over a period of several months, the project team has analysed
multiple potential well locations across the Paradox Basin. Zephyr
is pleased to announce that, subject to negotiation of final
funding terms and permitting, the EGI and UGS have selected
Zephyr-leased acreage on which to drill the well. The Zephyr
location was selected for a number of reasons, including the
quality of Zephyr's underlying 3D seismic data which (can be tied
into the well results to build a stronger integrated predictive
model) as well as a favourable surface location which will be sited
on a pre-existing pad.
It is proposed that the test well will be spudded before the end
of this year and be funded by the existing DOE grant to EGI.
The spudding of this test well would provide multiple benefits
to Zephyr - not only will the Company be able to utilise valuable
data acquired from the test well, but Zephyr believes that data
gained from the well would be highly beneficial to the Company's
continuing farm-in and institutional funding discussions regarding
its Paradox acreage.
Zephyr looks forward to providing additional updates over the
next month as the project progresses.
Colin Harrington, Zephyr's Chief Executive Officer, said "I'm
delighted by this development which should see the first well
spudded on the Company's Paradox acreage before the end of this
calendar year.
"The spudding of this test well will be a significant milestone
for Zephyr, and the data gained will be of fundamental importance
as we move forward with farm-in discussions for our Paradox
project.
I would like to thank the DOE, EGI, and UGS for all their
efforts to date - we are excited to be partnering and working
alongside such respected organisations on this project.
In addition to progressing our Paradox Basin asset, our team
continues to evaluate production and development opportunities in
the DJ Basin, and we look forward to updating the market on both
fronts in the near term."
Contacts:
Zephyr Energy plc Tel: +44 (0)20 7225 4590
Colin Harrington (CEO)
Chris Eadie (CFO)
Allenby Capital Limited - AIM Nominated Tel: +44 (0)20 3328 5656
Adviser
Jeremy Porter / Liz Kirchner
Turner Pope Investments - Broker Tel: +44 (0)20 3657 0050
Andy Thacker / Zoe Alexander
Flagstaff Strategic and Investor Communications
Tim Thompson / Mark Edwards / Fergus Tel: +44 (0) 20 7129
Mellon 1474
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