Zephyr Energy progresses oil drilling in Utah, reports production shut-ins in North Dakota

February 11, 2024

(WO) – Rocky Mountain oil and gas company Zephyr Energy plc provided an update on its project in the Paradox basin, Utah, and its non-operated project in the Williston basin, North Dakota.

Paradox basin asset (Source: Zephyr Energy)

Paradox project. Zephyr’s operations team continues to progress planning for the forthcoming “twinned” redrill of the State 36-2 well.

In late 2023, to ensure an optimal drilling outcome for the State 36-2R well, Zephyr’s team commenced detailed internal well-planning processes (supplemented by multiple high-pressure/high temperature specialist service providers) and continued its extensive interaction with well control insurance providers. This process has now concluded and resulted in an updated drilling plan, which has been submitted to state and federal regulators for approval.

Recently competed operational work has included:

  • Completion of the State 36-2R well geologic program;
  • Completion of the well basis of design, and completion of all third-party reviews;
  • Completion of the site water plan;
  • Bid processes for major services, including the rig contract, which are ongoing with bids in hand and selection underway;
  • A sundry notice has been submitted to the State of Utah and the U.S. Bureau of Land Management to amend the existing drilling permit at the well site; and
  • Gas and Natural Gas Liquids processing and sales and marketing contracts (including gas transportation) are at an advanced state.

The sundry notice to the existing permit is expected to result in an expedited approval process from the State of Utah and the BLM. Once approved, the company plans to execute a rig contract and finalize the timing of the drilling.

Williston project. As widely reported in the media, the company notes this winter’s historically cold conditions in the Williston basin which resulted in temporary shut-ins to various portions of the basin’s overall oil production, primarily during the month of January.

Zephyr is in contact with its operating partners to assess the impact of any temporary disruptions as related to its own working interests.

Colin Harrington, Zephyr's CEO, commented, "Our team continues its intensive and robust planning process for the State 36-2R well, and once the sundry amendment to the drilling program is approved, we will seek to expedite operations at site to commence drilling operations as soon as possible.”

“The team has done excellent work in progressing major contracts and infrastructure solutions, and we look forward to providing continued news flow over the coming weeks and months.”

Lead image: Williston basin asset (Source: Zephyr Energy)

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