23rd Jul 2024 16:14
(Alliance News) - Zephyr Energy PLC on Tuesday announced the completion of the initial production test on the State 36-2R well at the company's flagship project in the Paradox Basin in Utah, US.
Zephyr is a Rocky Mountain region-focused oil & gas company focused on responsible resource development and carbon-neutral operations.
Zephyr reported that the peak production rate achieved during the test was 1,350 barrels of oil equivalent per day.
Zephyr said that the test had a significantly higher condensate-yield than its previously drilled Paradox project well.
Chief Executive Officer Colin Harrington said: "We're delighted with the results from the initial production test. The well demonstrated excellent deliverability and consistently higher condensate yields than expected."
Zephyr did sound one note of caution, noting that whilst the initial test was successful, there was some evidence that the natural fracture network may be partially obstructed from the greater reservoir at this well location.
Zephyr explained the fracture network may be plugged by the heavyweight drilling mud used for well control purposes or compartmentalised by faulting.
However, the company plans to "acidise" the well to remove any drilling mud emulsions, and to maximise the well's connectivity with the larger reservoir. This operation is expected to take place in early August and will be followed by a second production test.
Zephyr shares were down 14% to 4.00 pence per share in London on Tuesday afternoon.
By Lydia Doye, Alliance News reporter
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