23rd Dec 2024 14:18
(Alliance News) - Zephyr Energy PLC on Monday said it has signed a rig contract with Nabors Drilling USA.
Nabors Industries Ltd is a Houston, Texas-based drilling contractor operating one of the world's largest land drilling fleets.
Zephyr Energy is a Rocky Mountain region-focused oil and gas company that aims for responsible resource development and carbon-neutral operations.
Zephyr said Nabors will drill an extended lateral hole from its existing wellbore at the State 36-2 LNW-CC-R well, at Zephyr's Paradox Basin project in Utah.
The rig and crew are expected to mobilise to the well site by mid-January, and results from the production test will be available by the end of March.
Chief Executive Colin Harrington said: "We are delighted to secure Nabor's B29 rig within our time frame, and we believe the rig is ideally suited to drill this well. Our primary goal is to deliver a safe and effective drilling operation, with full drilling operations expected to commence early in the new year.
"Now that the funding for this well is secured and the rig contract is in place, we can look forward to 2025 with optimism and confidence. I'm pleased we've reached the end of 2024 on such a positive note, with all the pieces in place for us to deliver on our key strategic objective of opening up the next prolific onshore US oil and gas play."
Shares in Zephyr Energy were up 0.7% at 3.02 pence each in London on Monday afternoon.
By Emily Parsons, Alliance News reporter
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