9th Dec 2022 12:14
(Alliance News) - Zephyr Energy PLC on Friday announced that it had secured an additional USD1.0 million in non-dilutive research grant funding from the US Department of Energy.
The London-based oil and gas exploration and development firm focused on carbon-neutral operations in the US Rocky Mountains said the funding will be used for data gathering during the ongoing drilling of Zephyr's State 36-2 LNW-CC well in its Paradox basin project in Utah, USA.
The company said the objective of the additional funding is to acquire geological data on its Cane Creek reservoir and the additional reservoirs overlying the one at Cane Creek.
This data gathering will include the use of a distributed acoustic sensor fibre to evaluate fluid production, the use of QuadCombo and lithoscanning logging tools to evaluate the shallow paradox formation and C9 clastic zone, and the attainment of additional cuttings for fracture analysis.
Chief Executive Officer Colin Harrington said: "The expected output from this analysis will assist with future well planning and drilling operations, particularly in relation to the C9 overlying reservoir, as we look to unlock further value from our Paradox project."
Zephyr received USD2.1 million in US government backed research grant funding for its State 16-2 well in 2020 and 2021, and has worked closely with the research project team led by the University of Utah's Energy & Geoscience Institute and the Utah Geological Survey. the project funding is sponsored by the US Department of Energy and its National Energy Technology Laboratory.
Zephyr shares were up 1.7% trading at 5.80 pence per share at midday on Friday in London.
By Harvey Dorset, Alliance News reporter
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