Business
Approval for the formation of a new Federal Unit
Approval for the formation of a new Federal Unit.
About this update from Zephyr Energy Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 6518Q\n Zephyr Energy PLC\n 29 October 2021\n \n \n \n \n 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.\n \n \n \n \n \n \n \n \n 29 October 2021\n \n \n Zephyr Energy plc \n \n \n (\"Zephyr\" or the \"Company\")\n \n \n \n \n \n Approval granted for the formation of a new Federal Unit\n \n \n \n \n \n Zephyr Energy plc (AIM: ZPHR) (OTCQB: ZPHRF), the Rocky Mountain oil and gas company focused on responsible resource development from carbon-neutral operations, provides an update related to the land position on its flagship project in the Paradox Basin, Utah (the \"Paradox project\"), where the Company is currently production testing the State 16-2LN-CC well. \n \n \n \n \n \n Zephyr is pleased to announce that following its recent activity on the State 16-2LN-CC well, the \n United States Bureau of Land Management (the \"BLM\") has \n approved the formation of a new 25,000-acre Federal Unit to be operated by Zephyr. The new unit, named the White Sands Federal Unit (the \"WSU\"), incorporates all the Company's existing leases covered by its historic 3D seismic survey, including the lease on which the State 16-2LN-CC well is situated. \n \n \n \n \n \n The WSU approval, effective 1 October 2021, is a key milestone in the Company's ongoing development of the Paradox project. By consolidating over twenty separate leases into one overarching land agreement, Zephyr can focus on an optimal long-term development plan for the project as a whole, rather than maintaining its lease position in an ad-hoc fashion. \n \n \n \n \n \n The BLM defines a Federal Unit as follows:\n \n \n \n \n \n \"A unit agreement is for oil and gas exploration, development and production for separately owned leases and interests within a set boundary. The entire unit area is operated as a single entity, without regard to lease boundaries, and allows for the maximum recovery of production from the reservoir. Costs are reduced because the reservoir can be produced by utilising the most efficient spacing pattern, separate tank b...