Business
State 16-2well, business development & '21 outlook
State 16-2well, business development & '21 outlook.
About this update from Zephyr Energy Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 3830K\n Zephyr Energy PLC\n 04 January 2021\n \n \n \n \n \n \n 4 January 2021\n Zephyr Energy plc\n (the \"Company\" or \"Zephyr\")\n \n Update on State 16-2 well, business development and outlook for 2021\n \n \n \n Zephyr Energy plc (AIM: ZPHR), the Rocky Mountain oil and gas company focused on responsible resource development, \n is pleased to provide the following operational update:\n \n \n \n \n \n State 16-2 well, Paradox Basin, Utah, U.S.\n \n \n \n \n \n · \n Drilling crews at the State 16-2 well site have been operating around the clock since the December spud, and progress to date is fully in line with the Company's expectations. \n \n \n \n \n \n · \n Following the spud of the State 16-2 well, the Company received the third US$600,000 tranche of the US$2 million grant funds allocated by the U.S Department of Energy and its National Energy Technology Laboratory (the \"DOE\") for the drilling of the well. The final balance of US$200,000 will be received following the completion of drilling operations.\n \n \n \n \n \n Business Development activity\n \n \n \n \n \n · \n While the safe and successful completion of the State 16-2 well drilling operation is the Company's top priority, the Company's key goal for 2021 is to establish production and positive cash flow, either through our existing portfolio, via acquisition, or through a combination of both. We aim to end 2021 with a balanced asset base, one that contains a mix of current production and substantial long-term development upside.\n \n \n \n \n \n · \n Management continues to assess acquisition opportunities with the potential to deliver near-term cash flow at attractive valuations. Potential acquisitions under consideration have the following criteria which meet the Company's strategic profile:\n \n \n \n \n \n o \n Oil and gas interests located in the greater Rocky Mountain region of the U.S.;\n \n \n o \n Current or near-term production potential, in order to balance the significant long-term upside potential provided by the Company's Paradox project;\n \n \n o \n Low-risk, low-entry cost assets located in core areas of established, historically prolific basins;\n \n \n o \n Ability to generate near-term v...