Zephyr Energy RNS Released 14 Jan - State 16--2 Well drilling completed - initial indications sugges14 Jan 2021 07:12
https://www.londonstockexchange.com/news-article/ZPHR/state-16-2-well-update/14826154
Colin Harrington, Zephyr’s Chief Executive, said "This is a fantastic result - we delivered on our two major objectives by successfully drilling to our target depth ahead of forecast, and by collecting significant amounts of reservoir data across multiple zones that suggest hydrocarbon presence.
“Our drilling team and contractors worked diligently to deliver a safe and effective operation – one which reached our Cane Creek target within 19 days from spud. When compared to all historical wells in the vicinity, this was a 50% reduction in time versus the previous record holder, and a 58% reduction in time versus the average of those historical wells. In addition to the rapid drilling results, hole conditions and well stability remained excellent throughout the operations.
“The ability to reduce drilling time is important in many ways. Most significantly, it demonstrates that with a modern drilling rig, advanced tools and an experienced operations team, development of our leasehold may be executed more quickly and at a lower cost than previous estimates, which therefore increases our already bullish view of future project economics and value.
“The securing of the continuous core is also significant. Our State 16-2 drilling operation successfully acquired the first substantive rock samples from the Cane Creek reservoir in this northern part of the Paradox play. In addition, our sidewall coring collected the first rock capable of measurement from seven additional overlying reservoirs. We also gained high quality log data across the majority of the Paradox Formation. The analysis and interpretation of this data has now commenced and will serve to substantially improve our understanding of the geology, the potential upside – and, when integrated with our existing 3D seismic, how best to target and test the natural fractures that exist in the play.
“It’s important to bear in mind the relatively untested potential of the Paradox Basin. The Cane Creek reservoir has produced over 10 million barrels of oil to date. However, the US Geologic Survey estimates a basin-wide, mean potential 1.2 billion barrels of oil equivalent in the Cane Creek reservoir alone*, indicating a substantial potential yet to be targeted. Further prospectivity also exists in other overlying reservoirs from which we secured data, and these additional reservoirs also appear to hold the presence of hydrocarbons. The data acquired from the State 16-2, when integrated using modern tools and the resources of our world class academic and industry partners, is a massive step forward in our pursuit to unlock the value which we believe is inherent in our Paradox project and across this Basin.
“I’d like to conclude with a note of gratitude for our team, our partners and our contractors. This well was drilled around the clock in challenging conditions, through snow storms and sub-zero
Sign In
Follow the stocks
