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(Alliance News) - Zephyr Energy PLC on Wednesday said it received approvals for the amendment of its drilling permit for the forthcoming "twinned" redrill of the State 36-2 well in Paradox Basin, Utah, US.
The oil and gas company focused on resource development from carbon-neutral operations in the Rocky Mountain region of the US said the state and federal sundry notice approvals were the final regulatory approvals required to spud the State 36-2R well.
Zephyr will now move to execute a rig contract. It said it will update the market on the expected timeline for the spud upon award of the contract. Bid processes for other major services are also underway, Zephyr added.
"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," Zephyr said.
Chief Executive Officer Colin Harrington commented: "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."
Shares in Zephyr Energy were up 4.4% to 2.40 pence each in London on Wednesday morning.
By Greg Rosenvinge, Alliance News senior reporter
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