Zephyr Energy PLC Award of rig contract to CWC Ironhand Drilling (6011F)

TIDMZPHR

RNS Number : 6011F

Zephyr Energy PLC

08 November 2022

Prior 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.

8 November 2022

Zephyr Energy plc

("Zephyr" or the "Company")

Award of rig contract to CWC Ironhand Drilling

Zephyr 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 announce the signing of a rig contract with CWC Ironhand Drilling ("CWC") for its Ironhand Rig 118 ("Rig 118") to be used to drill the Company's State 36-2 LNW-CC well, the first of three wells designed to further delineate Zephyr's acreage position on its project in the Paradox Basin, Utah, U.S.

Rig 118 will mobilise to site over the coming days, with the well expected to spud in the second half of this month. In the interim, the Company expects to set the conductor casing ahead of rig arrival prior to the commencement of the greater drilling operation.

Colin Harrington, Zephyr's Chief Executive, said:

"Following the recent final permit award, Zephyr's operational team moved quickly to secure the rig contract with CWC. We are pleased with the operational momentum and look forward to getting the drilling campaign underway this month.

"We look forward to keeping investors informed as operations progress at the well site."

Contacts

 
 Zephyr Energy plc                                  Tel: [phone] 
  Colin Harrington (CEO)                                           4590 
  Chris Eadie (CFO) 
 Allenby Capital Limited - AIM Nominated            Tel: [phone] 
  Adviser                                                          5656 
  Jeremy Porter / Vivek Bhardwaj 
 Turner Pope Investments - Joint-Broker             Tel: [phone] 
  James Pope / Andy Thacker                                        0050 
 
  Panmure Gordon (UK) Limited - Joint-Broker 
  John Prior / Hugh Rich / James Sinclair-Ford     Tel: [phone] 
  / Harriette Johnson                                              2500 
 
  Celicourt Communications - PR 
  Mark Antelme / Felicity Winkles 
                                                   Tel: [phone] 
                                                                   2643 
 

Notes to Editors

Zephyr Energy plc (AIM: ZPHR) (OTCQB: ZPHRF) is a technology-led oil and gas company focused on responsible resource development from carbon-neutral operations in the Rocky Mountain region of the United States. The Company's mission is rooted in two core values: to be responsible stewards of its investors' capital, and to be responsible stewards of the environment in which it works.

Zephyr's flagship asset is an operated 45,000-acre leaseholding located in the Paradox Basin, Utah, 25,000 acres of which has been assessed by third party consultants Sproule International to hold, net to Zephyr, 2P reserves of 2.1 million barrels of oil equivalent ("mmboe"), 2C resources of 27 mmboe and 2U resources 203 mmboe. Following the successful initial production testing of the recently drilled and completed State 16-2LN-CC well, Zephyr has planned a three well drilling program commencing in 2022 to further delineate the scale and value of the project.

In addition to its operated assets, the Company owns working interests in a broad portfolio of non-operated producing wells across the Williston Basin in North Dakota and Montana.

The Williston portfolio currently consists of working-interests in over 200 modern horizontal wells which are expected to provide US$35-40 million of revenue, net to Zephyr, in 2022. Cash flow from the Williston production will be used to fund the planned Paradox Basin development. In addition, the Board will consider further opportunistic value-accretive acquisitions.

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November 08, 2022 02:00 ET (07:00 GMT)