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 announce that, following the completion of facilities construction and commissioning operations, the next phase of production testing has commenced on the State 16-2 LN-CC well (the “well”) and hydrocarbons are now flowing from the well.
The well is located on the Company’s flagship project in the Paradox Basin, Utah, in the United States of America (the “U.S.”) (together the “Paradox project”).
@ZephyrEnergyPlc New Corporate Presentation #ZPHR (29/11/22) https://t.co/JkpXBctkMy pic.twitter.com/8zPwqcNq4F
— Share_Talk ™ (@Share_Talk) November 29, 2022
The well was successfully drilled, completed, and tested in December 2021. Initial production rates peaked at approximately 1,100 barrels of oil equivalent per day despite production being constrained and heavily choked throughout the initial production test due to surface equipment limitations, details of which were announced by the Company on 8 December 2021.
Since the initial test, Zephyr’s operations team, working with specialised facility consultants, spent significant time designing and augmenting surface facilities at the well in order to:
a) test plans for improved flow assurance;
b) prepare for eventual gas export and continual production operations; and,
c) obtain further production data for overall well and field management.
Further updates from the production test are expected to be provided as appropriate in the coming weeks.
Colin Harrington, Zephyr’s Chief Executive, said: “I am pleased to announce that following the completion of the significant upfront planning, design, construction and commissioning operations, the next phase of production testing has commenced and hydrocarbons are once again being produced from the well.
” I would especially like to commend our operations team and contractors who worked tirelessly to get the facilities completed and the test underway, particularly as this work has taken place in parallel with the ongoing drilling of our State 36-2 LNW-CC well.
“We look forward to keeping our stakeholders informed as the test progresses over the coming weeks – and, as always, we will endeavour to operate in line with our core mission: to be responsible stewards of our investors’ capital and responsible stewards of the environment in which we work.”
Contacts
Zephyr Energy plc
Colin Harrington (CEO)
Chris Eadie (CFO)
Tel: +44 (0)20 7225 4590
