RE: Looks like quite a few people are11 Jul 2023 11:31
Malcy's comments on yesterday's RNS
Zephyr are, whilst fully aware of the disappointment of the time taken on State 36-2 are taking their time to ensure that this extremely high pressure well is handled with care. To this end they have nearly taken all the tubing and joints out before cementing and reperforating and then testing.
The insurance cover for the well appears to be sound, the first invoice has been approved for just under $1m with more to come so financially Zephyr are unlikely to be worse off. Reorganisation of the WSU is also sensible as it has gained the parts with 3D seismic and parted with the area ‘not deemed to be prospective.
With the testing due in the near term Zephyr shareholders can start to think about progress at the Paradox which despite these delays has not seen any value erosion and I still consider Zephyr to be a potentially huge winner when it develops what I think will be a massive field.