Zephyr Energy PLC Award of Grant Funding (1439J)
December 09 2022 - 2:00AM
UK Regulatory
TIDMZPHR
RNS Number : 1439J
Zephyr Energy PLC
09 December 2022
Prior to publication, the information contained within this
announcement was deemed by the Company to constitute inside
information as stipulated under the UK Market Abuse Regulation.
With the publication of this announcement, this information is now
considered to be in the public domain.
9 December 2022
Zephyr Energy plc
(the "Company" or "Zephyr")
Award of Grant Funding
Additional $1m from U.S. Department of Energy
to further develop understanding of Cane Creek and overlying
reservoirs
Zephyr Energy plc (AIM: ZPHR) (OTCQB: ZPHRF), the Rocky Mountain
oil and gas company focused on responsible resource development and
carbon-neutral operations , is pleased to announce the signing of
an amended cooperation agreement detailing an additional US$1.0
million in non-dilutive research grant funding for the Company.
These funds will be utilised for data gathering purposes during the
ongoing drilling of Zephyr's State 36-2 LNW-CC well (the "well") in
the Paradox Basin, Utah, U.S. (the "Paradox project").
Zephyr initially received a total of US$2.1 million in U.S.
government-backed research grant funding for operations at its
State 16-2 well in 2020 and 2021 (as first announced by the Company
on 2 September 2020). Since then, Zephyr's technical team has
worked closely with the research project team which is led by the
University of Utah's Energy & Geoscience Institute ("EGI") in
collaboration with the Utah Geological Survey (the "UGS") and other
Utah -based partners. The project funding continues to be sponsored
by the U.S. Department of Energy and its National Energy Technology
Laboratory (the " DOE ").
The objective of the additional funding is to acquire further
geological data to assist in the understanding of the Cane Creek
reservoir and of the additional reservoirs overlying the Cane Creek
reservoir.
The following is a summary of the main objectives related to the
additional grant monies:
-- To fund a Distributed Acoustic Sensor (DAS) fibre in the
lateral portion of the well in order to evaluate the stimulation
and any post-stimulation fluid production. This will assist Zephyr
and the EGI with understanding frac geometry and will latterly
measure inflow rates along the horizontal part of the well.
-- To deploy QuadCombo and lithoscanning logging tools, to
further evaluate the shallow Paradox Formation, and the C9 clastic
zone in particular.
-- To obtain additional cuttings for use in fracture analysis.
Zephyr will acquire the data during the ongoing drilling
operations on the well and will have full access to the results of
the research project, which are expected to provide significant
insight into both the Cane Creek and overlying reservoirs.
The Board hopes the results will materially assist Zephyr in its
efforts to maximise the chance of success and optimise efficiencies
with future well planning and drilling operations, especially in
relation to planned exploration drilling in the overlying Paradox
Formation exploration zones and the C9 reservoir zone in
particular.
Colin Harrington, Zephyr's Chief Executive, said: "I am
delighted to announce the award of this incremental research
funding, the results of which are expected to further enhance our
technical understanding of the Cane Creek and overlying reservoirs.
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.
I would like to thank the DOE, the EGI and the UGS for their
continued focus and investment in the Paradox, and we are excited
to be further aligned with their respective organisations.
We look forward to keeping our stakeholders updated with the
results from this research and from our ongoing drilling and
production test operations."
Contacts
Zephyr Energy plc Tel: +44 (0)20 7225
Colin Harrington (CEO) 4590
Chris Eadie (CFO)
Allenby Capital Limited - AIM Nominated Tel: +44 (0)20 3328
Adviser 5656
Jeremy Porter / Vivek Bhardwaj
Turner Pope Investments - Joint-Broker Tel: +44 (0)20 3657
James Pope / Andy Thacker 0050
Panmure Gordon (UK) Limited - Joint-Broker
John Prior / Hugh Rich / James Sinclair-Ford Tel: +44 (0) 20 7886
/ Harriette Johnson 2500
Celicourt Communications - PR
Mark Antelme / Felicity Winkles
Tel: +44 (0) 20 8434
2643
Notes to Editors
Zephyr Energy plc (AIM: ZPHR) (OTCQB: ZPHRF) is a technology-led
oil and gas company focused on responsible resource development
from carbon-neutral operations in the Rocky Mountain region of the
United States. The Company's mission is rooted in two core values:
to be responsible stewards of its investors' capital, and to be
responsible stewards of the environment in which it works.
Zephyr's flagship asset is an operated 45,000-acre leaseholding
located in the Paradox Basin, Utah, 25,000 acres of which has been
assessed by third party consultants Sproule International to hold,
net to Zephyr, 2P reserves of 2.1 million barrels of oil equivalent
("mmboe"), 2C resources of 27 mmboe and 2U resources 203 mmboe.
Following the successful initial production testing of the recently
drilled and completed State 16-2LN-CC well, Zephyr has planned a
three well drilling program - commencing in 2022 with the State
36-2 LNW-CC well - to further delineate the scale and value of the
project.
In addition to its operated assets, the Company owns working
interests in a broad portfolio of non-operated producing wells
across the Williston Basin in North Dakota and Montana.
The Williston portfolio currently consists of working-interests
in over 200 modern horizontal wells which are expected to provide
US$40-45 million of revenue, net to Zephyr, in 2022. Cash flow from
the Williston production will be used to fund the planned Paradox
Basin development. In addition, the Board will consider further
opportunistic value-accretive acquisitions.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
UPDEADAPEEAAFAA
(END) Dow Jones Newswires
December 09, 2022 02:00 ET (07:00 GMT)
Zephyr Energy (AQSE:ZPHR.GB)
Historical Stock Chart
From Jul 2024 to Aug 2024
Zephyr Energy (AQSE:ZPHR.GB)
Historical Stock Chart
From Aug 2023 to Aug 2024