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
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.