Zephyr Energy reports strong initial results from Paradox Basin well in Utah

(WO) — Zephyr Energy plc has released initial results from the State 36-2R well at its Paradox Basin project in Utah. The early production test shows promising outcomes for the well, which was evaluated at various rates and choke settings.

Key observations include:

• High Reservoir Deliverability: Initial reservoir pressures were approximately 8,600 pounds per square inch.
• Peak Production Rates: The well achieved a peak rate of 1,350 barrels of oil equivalent per day, even with constraints.
• Increased Condensate Yield: The well produced condensate at an average rate of 180 barrels per 1,000 mscf, with peaks over 600 barrels per day. This is more than three times the rate of previous wells in the Paradox project. The high API gravity of 58 degrees makes this condensate highly desirable in the Utah refinery market. It was sold at a price close to current WTI crude oil prices.

The well showed minimal water production, which could enhance economic returns by reducing disposal needs. However, there were signs of potential blockage in the natural fracture network, possibly due to drilling mud or faulting.

Zephyr plans to “acidise” the well in early August to clear any obstructions and enhance reservoir connectivity. This will be followed by a second production test. The company is also exploring broader development options to leverage the high condensate yield and reservoir deliverability.

Colin Harrington, Zephyr's Chief Executive, expressed satisfaction with the initial test results.

“The well demonstrated excellent deliverability and consistently higher condensate yields than expected both of which are highly encouraging signs for the underlying value of our wider Paradox asset base,” he said. “Our next step is to further clean out the nearby reservoir to attempt to maximise the well’s connectivity with the larger reservoir, and then immediately run a second production test.”