Well cased, natural fracture reservoir to be production tested
Future horizontal lateral potential remains
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 36-2 LNW-CC well (“the well”) at the Company’s flagship project in the Paradox Basin, Utah, U.S.
As announced by the Company on 19 January 2023, the well intersected a major natural fracture network in the Cane Creek reservoir which led to a significant influx of hydrocarbons into the wellbore. This influx was managed and safely controlled, which subsequently allowed for the drilling of an additional 132 feet into the fractured and productive Cane Creek reservoir, at which point the Company elected to run production casing down the total depth of the well.
Operations to run 7-inch production casing were successful. The well has now been made fully safe and the CWC Ironhand 118 drilling rig has been released. In the coming weeks and subject to service availability, the Company plans to commence production testing and potential completion of the fractured Cane Creek reservoir interval.
In addition to near-term testing, the running of the 7-inch casing string provides the Company with the optionality to return to the well (should it elect to do so) to drill an extended lateral at a later date. A subsequent lateral would enable the Company to test for further natural fracture presence at this location within the Cane Creek reservoir, and also enable the well to be completed by hydraulic stimulation across a longer lateral should Zephyr seek to increase well productivity in the future.
Initial results indicate that the well penetrated a folded and naturally fractured Cane Creek reservoir, features which have been highly productive in other Cane Creek wells. Pore pressure analysis suggests that the well encountered very high reservoir overpressure, with formation pressures estimated at around 9,300 pounds per square inch (which is broadly consistent with previously drilled offset wells).
The well further delineates the presence of natural gas and condensate within a large structural compartment, and at a new location within Zephyr’s acreage and 3D seismic coverage – which provides additional confirmation of Zephyr’s model for hydrocarbons in place across the acreage position.
Colin Harrington, Zephyr’s Chief Executive, said:
“The State 36-2 LNW-CC well was a challenging and lengthy operation, more difficult than expected but not atypical when drilling in an immature, remote and highly over-pressured basin. Despite the challenges, we have managed to move the bar again and delivered what would appear to be another productive well on our acreage.
“It is worth noting that previous operators drilled three vertical wells on this acreage, only one of which was productive. Zephyr has now drilled two wells in the Cane Creek reservoir, both of which appear to be productive – a fact which highlights the benefits of utilising modern 3D seismic data and drilling with modern oilfield technologies, practices and services.
“Our next step is to commence the well test which we aim to get underway in the coming weeks, subject to weather and service availability. Production at the State 16-2 LN-CC remains ongoing as well, and the Company will update the market as soon as that test has concluded.”
Contacts
Zephyr Energy plc
Colin Harrington (CEO)
Chris Eadie (CFO)
Tel: +44 (0)20 7225 4590
