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Initial results from State 36-2R production test
Initial results from State 36-2R production test.
About this update from Zephyr Energy Plc
[{"type":"text","content":"\n\n \nPrior 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 \n23 July 2024\nZephyr Energy plc\n(the \"Company\" or \"Zephyr\")\n \nInitial results from State 36-2R well production test\n \nZephyr 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 provide an update on operations on the State 36-2R LNW-CC well (the \"well\") at the Company's flagship project in the Paradox Basin, Utah, U.S. (the \"Paradox project\"). \n \nThe Company has completed the initial phase of the production test on the well, in which the well was tested at multiple rates and choke settings to ascertain its production potential.\nInitial production test observations include:\n· High reservoir deliverability and high initial reservoir pressures (approximately 8,600 pounds per square inch absolute).\n· Peak production rates achieved during the production test were 1,350 barrels of oil equivalent per day, at which level the well was still choked back and constrained. \n· Significantly higher condensate-yield than Zephyr's previously drilled Paradox project well (with more than a three-fold increase in condensate rate versus that from the State 16-2LN-CC well). Future production rates would likely be controlled to facilitate stable flows and maximise economics from the high condensate yield.\no Condensate yield averaged 180 barrels per 1,000 mscf produced and peaked at over 600 barrels of condensate per day. Condensate produced had an average American Petroleum Institute (\"API\") gravity of 58 degrees, making it a highly desirable barrel for Utah's refinery market. The condensate produced from the well to date was sold to a Utah refinery at a price close to current WTI crude oil prices (inclusive of trucking costs).\no This elevated liquid yield has the potential to be a significant driver of improved economic...