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Zephyr Energy PLC - oil and gas company focused on the US upstream oil and gas sector - Says State 16-2 well at Paradox project, Utah has been plugged safely at 6,437 feet total depth following completion of data and data acquisition, with initial indications suggesting presence of hydrocarbons in multiple intervals. Cyclone Drilling's Rig 34 has been formally released. Notes that the State 16-2 wellbore is stable and available for re-use. Says Cane Creek core and overlying reservoir sidewall cores now transported to Houston laboratory for analysis, with results due in the coming weeks. Applies for necessary permits to drill horizontal lateral leg of the well.
"A decision on whether to drill the side track lateral will be made after Zephyr has full results from all of the data acquired, and the board currently expects to make a decision by the end of March," says Zephyr.
At current commodity prices and reduced drill costs demonstrated by State 16-2 well, the net proved and probable contingent resource for the Paradox acreage is now more than 12 million barrels of oil equivalent from three wells, with a net present value of around USD93 million using a flat USD50 per barrel oil price and 10% discount rate.
Current stock price: 2.65 pence; up 45% on Monday
Year-to-date change: up from 0.88p at the end of 2020.
By Anna Farley; annafarley@alliancenews.com
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