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Zephyr Energy PLC shares were up on Thursday after it said it has suspended operations at its Paradox project following a ‘significant influx’ of hydrocarbons.
Shares were up 15.4% to 6.98 pence each in London on Thursday afternoon.
Back in November, the London-based oil and gas exploration and production company started drilling operations on the state 36-2 LNW-CC well at its flagship project in the Paradox Basin, Utah.
The prime target of the operation was the Cane Creek reservoir.
On Thursday, Zephyr said it has reached 9,598 feet true vertical depth at the reservoir. The well has also experienced a ‘significant influx’ of hydrocarbons which consequently led to suspension of drilling operations while the well was stabilised.
‘The influx was caused by the well intersecting an apparent major natural fracture network in the reservoir, and the resultant flowing hydrocarbons are currently being diverted safely at surface through the drilling rig flare stack whereby they are subsequently flared,’ the company explained.
It added that during this period Zephyr’s operations team stabilised the well without incident. The company said it is now analysing options for the well’s safe completion.
Chief Executive Colin Harrington said: ‘I’d like to note that over the past two months, our operations team dealt with an exceedingly challenging drilling environment, which included mechanical issues and significant weather impacts from the historic atmospheric river system flowing over and from California.
‘While delays in isolation can be frustrating, the result is we now have confirmed hydrocarbon presence, significant reservoir over-pressure and the presence of a highly permeable natural fracture network at this location - all very encouraging signs for an economic and productive well.’
By Sophie Rose, Alliance News reporter
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