|
Zephyr Energy PLC on Friday said it completed the second phase of the production test on the State 36-2R LNW-CC well in the Paradox Basin of the US state of Utah. The Rocky Mountain region-focused oil and gas company aims for responsible resource development and carbon-neutral operations. Paradox is its flagship project. The second test found peak production rates of more than 2,100 barrels of oil equivalent per day, a ‘very significant’ rate for an onshore U.S. well with just 130 feet of completed reservoir interval. The test’s acidisation operation also removed any remaining near-wellbore formation damage and generated very high reservoir deliverability. This has could mean the removal of the costly hydraulic stimulation typically needed in US onshore resource plays, Zephyr highlighted. Chief Executive Colin Harrington said: ‘This is a highly significant milestone for the company in its development of the White Sands Unit and its wider Paradox project acreage. This is the first known use of acidisation stimulation in the Paradox Basin and the results have been extremely encouraging - the well’s deliverability and permeability are particularly notable, leading to the strong peak production rates witnessed. ‘The board is now considering all options, including producing from the State 36-2R and the potential to materially increase the drained area of the well via the extension of the current lateral. Safe operations and capital efficiency will be taken into consideration when evaluating the next steps for the Paradox project.’ Zephyr reported it had commenced discussions of potential well and wider Paradox project developments with US-based industry partners. Shares in Zephyr Energy were up 13% at 4.28 pence each in London on Friday morning. Copyright 2024 Alliance News Ltd. All Rights Reserved.
|
