RE: New Turner Pope Research note just out20 Jan 2023 12:20
Zephyr’s Board has not yet formally decided on the Well’s next stages of development. These are expected to be considered over the next three or four weeks, whereupon the detail will be provided to shareholders. While potential volumes remain unknown, a ‘significant kick’ was witnessed upon reaching the Cane Creek reservoir. Subsequent ‘wet’ flaring indicates a range in the expected hydrocarbon mix (gas/oil/condensate).
The Board’s most likely choice is expected to be to complete a standard natural fracture well, while still retaining the option to return to its originally proposed hydraulically stimulated lateral at a later stage depending on the underlying rate of decline. The alternative could be to keep with existing planning while seeking to manage pressure blowouts as they occur. Based on the more likely choice, the Well could be on schedule for a production test during Q1 2023.