Zephyr Energy PLC - oil and gas company focused on the US upstream oil and gas sector - Early observations from the 9,745 foot total depth State 16-2 well at Paradox project in Utah show it penetrated 21 clastic reservoirs in the Paradox formation. "Substantial" drilling gas shows observed across 5 reservoirs, including Cane Creek prime target, with "robust" shows from another 10 reservoirs. A decision on whether to drill the side tack lateral will be made once Zephyr has full results from all data, likely by March end, it says. Zephyr has applied for permits to drill a horizontal lateral leg of the well which, once granted, would allow the company to fully test Cane Creek's commerciality with the aim of achieving near-term oil and natural gas production. Notes that US President Joe Biden's executive order pausing the sale of new oil and natural gas leases on public lands does not impact its current leases.
Chief Executive Colin Harrington: "These initial results provide positive evidence of the presence of multiple stacked continuous oil and gas plays on our Paradox acreage, in addition to the previously outlined potential of the Cane Creek reservoir. Just as importantly, the logs suggest hydrocarbon saturation across a majority of these overlying potential reservoirs.
"These additional zones, if confirmed by further analysis, would generate a much better understanding of the overall scale and value of our prospective resource. Efforts are now underway to calibrate log to core data, in order to evaluate which additional zones have the most volumetric potential to act as viable reservoir targets."
Current stock price: 2.20 pence; down 16% on Friday
Year-to-date change: more than doubled from 0.88p December 31
By Anna Farley; annafarley@alliancenews.com
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Zephyr Energy (ZPHR)