(Alliance News) - Zephyr Energy PLC on Wednesday said it had begun rigging up operations to start the drilling process at the State 36-2R well, as part of its flagship Paradox project.
Zephyr Energy is an oil and gas company focused on resource development from carbon-neutral operations in the Rocky Mountains region in North America. Its flagship project is operating in the Paradox Basin in the US state of Utah.
Following its announcement last month, Zephyr Energy said the Helmerich & Payne Rig 257 has begun operations to spud the surface section of the new well over the next few days. Ancillary service providers are on the site for support, too.
The well is expected to recover all the drilling costs incurred by the well control insurance policy that the company had in place for the original State 36-2 well, Zephyr Energy said.
It added new well will target the Cane Creek reservoir and the over-pressured, gas bearing natural fracture system that was proven when the first well was drilled.
Drilling for the new well will reach a total measured depth of 10,362 feet, with the design also allowing the later drilling of a 10,000-foot horizontal section, if needed.
Zephyr Energy said its project is intended to confirm the presence of hydrocarbons in the new well, as well as assess the productivity of the Cane Creek reservoir through flow testing.
Drilling operations will take place 30 days from the beginning of the spud.
Zephyr Energy Chief Executive Officer Colin Harrington said: "We are excited about the commencement of drilling operations with a goal to deliver a safe and timely drilling operation followed by a successful well test. We look forward to keeping our stakeholders updated as drilling progresses and believe that these operations will be the catalyst to further unlock the significant potential of the Paradox project."
Zephyr Energy shares were up 2.8% to 4.42 pence each in London on Wednesday morning.
By Emily Parsons, Alliance News reporter
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Zephyr Energy (ZPHR)