Business
Update on helium project & State 36-2R well test
Update on helium project & State 36-2R well test.
About this update from Zephyr Energy Plc
[{"type":"text","content":"\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 \n29 August 2024\nZephyr Energy plc\n(\"Zephyr\" or the \"Company\")\n \nSalt Wash helium project update;\nState 36-2R well production test and evaluation nearing completion\n \nZephyr Energy plc (AIM: ZPHR) (OTCQB: ZPHRF), the Rocky Mountain oil and gas company focused on responsible resource development from carbon-neutral operations is pleased to provide an update on the production test on the State 36-2R LNW-CC well (the \"State 36-2R well\") and the Company's farm-in to the Salt Wash helium project (the \"farm-in\"), a previously producing asset with proven oil, gas and helium reserves located three miles to the south of Zephyr's Paradox project in Utah, U.S. (the \"Salt Wash project\").\nSalt Wash project update\nA key term in the farm-in agreement on the Salt Wash project is the requirement for Zephyr to commence drilling operations on a well on the farm-in acreage (the \"commitment well\") by 1 September 2024 (as announced by the Company on 26 June 2024).\nThe Company is pleased to report that initial operations at the site of the proposed commitment well have commenced, including drilling pad preparation and fencing the perimeter of the site. In the coming weeks, a spudder drilling rig will be mobilised to the well location and a 30-inch hole will then be drilled to a depth of approximately 100 feet and 20-inch conductor casing will be set.\nWhile activity on the pad has begun, the Company does not expect full drilling operations to commence until the first half of 2025, in line with its operational commitments to the field leaseholders.\nZephyr remains in active conversations with industry and financial parties regarding the potential funding of up to 100% of the costs of the well at the asset level, and the Company's board of directors continues to appraise the available options with the key objective of maximising value for Zephyr Shareholders.\nState 36-2R well production test update\nAt the State 36-2R well, the Company is pleased to confirm that, further to its announcement of 23 July 2024, the acidisat...