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Zephyr Energy provide operations update

Published by , Editorial Assistant
Oilfield Technology,

Zephyr Energy has provided an update on its operated project in the Paradox Basin, Utah and on its non-operated project in the Williston Basin, North Dakota.

Zephyr's operations team continues to progress planning for the forthcoming ‘twinned’ and fully-funded redrill of the State 36-2 well. The Company retains full well control insurance and expects to recover substantially all costs associated with the redrill.

In late 2023, to ensure an optimal drilling outcome for the State 36-2R well, Zephyr's team commenced detailed internal well-planning processes (supplemented by multiple high-pressure/high temperature specialist service providers) and continued its extensive interaction with the Company's well control insurance providers. This process has now concluded and resulted in an updated drilling plan which has been submitted to state and federal regulators for approval.

Recently competed operational work has included:

  • Completion of the State 36-2R well geologic programme;
  • Completion of the well basis of design, and completion of all third-party reviews thereon;
  • Completion of the site water plan;
  • Bid processes for major services, including the rig contract, which are ongoing with bids in hand and selection underway;
  • A sundry notice has been submitted to the State of Utah and the U.S. Bureau of Land Management (the BLM) to amend the existing drilling permit at the well site; and
  • Gas and natural gas liquids (NGL) processing and sales and marketing contracts (including gas transportation) are at an advanced state.

The sundry notice to the existing permit is expected to result in an expedited approval process from the State of Utah and the BLM and once approved, the Company plans to move rapidly to execute a rig contract and finalise timing of the drilling.

Although dependent on weather conditions and rig availability, it is management's intention to commence drilling as soon as possible once permits are received.

Colin Harrington, Zephyr's CEO, commented: "Our team continues its intensive and robust planning process for the State 36-2R well and once the sundry amendment to the drilling programme is approved, we will seek to expedite operations at site to commence drilling operations as soon as possible."

"The team has done excellent work in progressing major contracts and infrastructure solutions, and we look forward to providing continued news flow over the coming weeks and months."

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