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Zephyr Energy signs drilling contract with Cyclone
28th Jun 2021 13:55
(Sharecast News) - Rocky Mountains-focussed oil and gas company Zephyr Energy updated the market on its project in the Paradox Basin of Utah on Monday, where it is preparing to spud the State 16-2LN-CC appraisal well.
The AIM-traded firm confirmed the signing of a drilling contract with Cyclone Drilling, following a competitive selection process involving "extensive" technical and commercial evaluation of multiple potential drilling contractors.
Zephyr said it was upbeat to be working with Cyclone again, following that company's "efficient completion" of the State 16-2 stratigraphic test well for Zephyr and its project partners earlier in the year.
Cyclone Rig #34 would again be the unit used for the drilling programme, having "successfully and safely" drilled the State 16-2 well to a total depth of 9,745 feet in less than 19 days last winter, which was a record performance compared to historical drilling efforts in the northern part of the Paradox Basin.
Rig #34 is "fully capable" of drilling to the planned depths and pressures that were expected at the State 16-2LN-CC well, Zephyr said.
"We welcome the opportunity to resume our partnership with Cyclone as we prepare to drill the State 16-2LN-CC well," said chief executive officer Colin Harrington.
"In addition to our positive experience working alongside their team earlier this year, Cyclone has a long history of drilling safe and successful wells in the Rocky Mountain region.
"I am confident in their ability to help us deliver this well in a safe, efficient and responsible manner."
Harrington said Cyclone Rig #34 had remained active in recent months, adding that it was "well known" to the company's drilling team, was available on its timeline, and was currently located in Utah, providing savings on mobilisation and demobilisation costs.
"With the well now fully permitted and the rig contract signed, we look forward to commencing operational activity on the ground in July as envisaged."
At 1320 BST, shares in Zephyr Energy were up 19.01% at 7.5p.
The AIM-traded firm confirmed the signing of a drilling contract with Cyclone Drilling, following a competitive selection process involving "extensive" technical and commercial evaluation of multiple potential drilling contractors.
Zephyr said it was upbeat to be working with Cyclone again, following that company's "efficient completion" of the State 16-2 stratigraphic test well for Zephyr and its project partners earlier in the year.
Cyclone Rig #34 would again be the unit used for the drilling programme, having "successfully and safely" drilled the State 16-2 well to a total depth of 9,745 feet in less than 19 days last winter, which was a record performance compared to historical drilling efforts in the northern part of the Paradox Basin.
Rig #34 is "fully capable" of drilling to the planned depths and pressures that were expected at the State 16-2LN-CC well, Zephyr said.
"We welcome the opportunity to resume our partnership with Cyclone as we prepare to drill the State 16-2LN-CC well," said chief executive officer Colin Harrington.
"In addition to our positive experience working alongside their team earlier this year, Cyclone has a long history of drilling safe and successful wells in the Rocky Mountain region.
"I am confident in their ability to help us deliver this well in a safe, efficient and responsible manner."
Harrington said Cyclone Rig #34 had remained active in recent months, adding that it was "well known" to the company's drilling team, was available on its timeline, and was currently located in Utah, providing savings on mobilisation and demobilisation costs.
"With the well now fully permitted and the rig contract signed, we look forward to commencing operational activity on the ground in July as envisaged."
At 1320 BST, shares in Zephyr Energy were up 19.01% at 7.5p.