TIDMZPHR
RNS Number : 6780G
Zephyr Energy PLC
28 July 2021
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.
28 July 2021
Zephyr Energy plc
(the "Company" or "Zephyr")
State 16-2LN-CC drilling update and
acquisition of additional acreage in the Paradox Basin
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 16-2LN-CC drilling operations as well as to announce an
increase in its operated land position through the acquisition of
an additional 12,260 acres (the "new acreage") in the Paradox
Basin, Utah, U.S. ("Paradox Basin").
State 16-2LN-CC drilling update
The Company is pleased to report that drilling operations have
proceeded in line with Company expectations. At present, the well
has been drilled to a total depth of 10,100 feet and has
successfully landed in the Cane Creek reservoir (the "Cane Creek")
at an approximate 85 degree angle. The objective of the next phase
of drilling is to safely and successfully drill approximately 5,000
feet of horizontal lateral to intersect with the open natural
fracture systems which are believed to exist across this portion of
the Cane Creek reservoir.
Acquisition of additional acreage in the Paradox Basin
Zephyr is also pleased to announce an agreement to increase its
land position in the Paradox Basin through the targeted acquisition
of an additional 12,260 leased acres deemed by the C ompany to be
prospective for mid- to long-term development.
The new acreage is located on Utah School and Institutional
Trust Lands Administration ("SITLA") lands - the acreage position
was nominated for auction by Zephyr and was secured during the most
recent SITLA auction. A portion of the new acreage is proximal to
the Company's existing Paradox acreage position, with additional
new acreage located in both the historically productive Cane Creek
Field and Salt Wash Field which lie to the south of Zephyr's
existing land position.
Over the past two years, Zephyr's technical team has worked to
develop an improved understanding of the potential for additional
development of the Paradox Basin. Results from this work have
provided a number of insights, including:
-- The potential for multiple methods to develop reserves in the
region - including the proven method involving the targeting of
natural fractures, or by a hydraulically stimulated resource play
which may facilitate a broader alternative means of asset
development;
-- Additional reservoir potential beyond the proven Cane Creek
reservoir, including eight high-graded overlying reservoirs which
are likely to be hydrocarbon filled and which demonstrate adequate
thickness for potential future development; and
-- Improvements in drilling technology, 3D seismic and
operational capabilities, as demonstrated during Zephyr's
experience drilling the State 16-2 well in the last year, which may
lead to faster and more economic future development.
The Company seeks to utilise its unique knowledge base and
vantage point to grow its Paradox Basin lease position concurrent
with its efforts to test potential commercial development with the
State 16-2LN-CC well.
The nomination and acquisition of the new acreage is part of
Zephyr's ongoing portfolio management of its Paradox Basin
position, in which less prospective acreage has been relinquished
and replaced by leases with 5-year terms which the Directors of
Zephyr believe have more potential to add value in the medium to
long term. This active land management strategy has resulted in a
defensible and growing portfolio of development opportunities which
Zephyr's Board believes is increasingly difficult to replicate in
today's regulatory and political environment.
Consideration for the new acreage will be satisfied from the
Company's existing cash resources. Following the closing of the
acquisition of the new acreage, the Company will operate a total of
37,613 gross acres in the Paradox Basin, the majority of which the
Company holds as operator with a 75% working interest.
Colin Harrington, Zephyr's Chief Executive, said : " We are
pleased that the State 16-2LN-CC drilling operation is progressing
well and according to plan. Drilling continues 24 hours a day,
seven days a week, and we look forward to this next phase of
horizontal drilling with the utmost anticipation.
In addition, I am thrilled to be able to bolster the scale of
our Paradox project at this point in time. Our team is developing a
unique understanding and data set across the Paradox Basin - and
we're excited about this timely opportunity to expand our operated
asset base.
The opportunity to nominate and acquire, at auction, leasehold
positions of our choosing was a key consideration and we're
grateful for the opportunity to once again transact with the
professionals at SITLA. In addition, we are always mindful of our
core mission to be responsible stewards of the environment in which
we operate, and we have taken great care to only acquire leases
which we believe can be developed with a minimum of surface and
environmental disruption.
It's an exciting time for the Company, filled with short-term
operational activity and long-term strategic potential. Today's
news is progress on both fronts, all in the pursuit of delivering
significant value creation for our Shareholders for many years to
come."
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 / James Pope
Flagstaff Strategic and Investor Communications
Tim Thompson / Mark Edwards / Fergus Tel: +44 (0) 20 7129
Mellon 1474
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
UPDFFFELDFIDFIL
(END) Dow Jones Newswires
July 28, 2021 02:00 ET (06:00 GMT)
Rose Petroleum (LSE:ROSE)
Gráfica de Acción Histórica
De Mar 2024 a Abr 2024
Rose Petroleum (LSE:ROSE)
Gráfica de Acción Histórica
De Abr 2023 a Abr 2024
