WOW....Whats wrong with that then???6 Sep 2024 07:17
Zephyr Energy PLC - Successful State 36-2R well production test result6th September 2024Prior to publication, the information contained within this announcement was deemed by the Company to constitute inside information as stipulated under the UK Market Abuse Regulation. With the publication of this announcement, this information is now considered to be in the public domain. 6 September 2024 Zephyr Energy plc("Zephyr" or the "Company") Successful result of State 36-2R well second phase production test Zephyr Energy plc (AIM: ZPHR) (OTCQB: ZPHRF), the Rocky Mountain oil and gas company focused on responsible resource development and carbon-neutral operations, is pleased to provide an update on operations on the State 36-2R LNW-CC well (the "well") at the Company's flagship project in the Paradox Basin, Utah, U.S. (the "Paradox project"). The Company has completed the second phase of the production test on the well (the "second test"), as announced on 23 July 2024, and is pleased to report the following key observations:· Peak production rates achieved during the second test were over 2,100 barrels of oil equivalent per day ("boepd"), a very significant production rate for an onshore U.S. well with only 130 feet of completed reservoir interval.· The acidisation operation successfully removed any remaining near-wellbore formation damage and generated very high reservoir deliverability, with a notable improvement to near-wellbore reservoir permeability after each acid treatment. As such, the operation not only removed damage but also enhanced reservoir productivity.· This is the first known example of acidisation stimulation in the Paradox Basin, and the result is highly positive for the development of the play, with the potential for substantially reduced reservoir risk and removal of the need for costly hydraulic stimulation as used in other U.S. onshore resource plays.· Variable liquid-yields were observed over the second test, all of which are higher than that at the Company's State 16-2 LN-CC well (the "State 16-2 well") in the northern part of Zephyr's Paradox project acreage. At the peak production rates in the second test, condensate/light volatile oil represented approximately 510 boepd, and these liquid yields were on an increasing trend at the conclusion of the test.o The elevated liquid yield has the potential to be a significant driver of improved economics and may increase recoverable liquid volumes across the Company's Paradox project acreage.o A detailed fluid laboratory analysis is currently underway, and the results will help the Company further characterise the field's fluid fill and composition.· Continued evidence of almost zero water production, another potential boost to the well's economics by material reducing the need for expensive water disposal.· Given the highly positive observations, Zephyr has commenced the process of discussing potential well and wider Parad