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Highlights

  • State 36-2R well estimated to yield up to 1.24 million barrels of oil equivalent.

  • Potential for 20-well development with total recovery of 501 Bcf gas and 29 million barrels of condensate.

  • New $100M-backed Zephyr Hawk unit reviewing $30M in drilling prospects across the U.S.

Zephyr Energy PLC (AIM:ZPHR) has unveiled the results of a detailed post-well analysis for the State 36-2R well at its Paradox Basin project in Utah, highlighting a significant resource opportunity in one of the most promising unconventional plays in the U.S.

According to the company, the well is projected to recover between 4 billion and 6 billion cubic feet (Bcf) of natural gas and 160,000 to 240,000 barrels of condensate over its lifetime. This equates to a total estimated 830,000 to 1.24 million barrels of oil equivalent (boe).

Further upside is possible, as Zephyr noted that deploying extended lateral drilling could boost the per-well recovery potential to as much as 37.5 Bcf. The company’s conceptual development plan outlines a phased approach that could include up to 20 wells, potentially unlocking 501 Bcf of gas and 29 million barrels of condensate.

Commenting on the update, CEO Colin Harrington said the findings underscore the large-scale potential of the Paradox project. "The scale of the project has the potential to grow considerably, and we look forward to sharing further information with both the market and potential partners as work continues,” he noted.

Harrington also emphasized the exceptional quality of data used in the evaluation, which focused solely on the Cane Creek reservoir, an area Zephyr describes as potentially comparable with the most prolific oil and gas plays in the U.S. Importantly, there are eight additional overlying reservoir zones at the Paradox site that remain untapped, representing what Harrington called "further substantial potential."

In addition to its Paradox Basin update, Zephyr reported first-quarter production figures from its Williston Basin assets, with output averaging 756 barrels of oil equivalent per day (boepd). This marked a slight dip from 829 boepd in Q4, primarily attributed to temporary operator downtime. The Williston portfolio now includes 228 producing wells, where Zephyr holds an average working interest of 7%.

Meanwhile, the company’s newly established business arm, Zephyr Hawk, formed earlier this month through a $100 million investment agreement with U.S.-based partners, is now actively reviewing a $30 million portfolio of drilling opportunities. As part of the strategic partnership, the new investor will fund 100% of the drilling costs, while Zephyr will retain a 30% stake in each project.