Zephyr Energy shares surge as drilling starts at flagship project well

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Zephyr Energy PLC on Friday said initial drilling operations have begun on the State 36-2R well at its flagship project in the Paradox Basin in the US state of Utah.

Shares in Zephyr Energy rose 13% to 3.62 pence each in London on Friday morning.

Zephyr Energy is an oil and gas company focused on resource development from carbon-neutral operations in the Rocky Mountains region in North America.

Following the announcement on Friday last week, Zephyr Energy said a small and low-cost spudder drilling rig was mobilised to the well location on Wednesday this week.

The rig subsequently drilled a 30-inch hole to a depth of 96 feet before successfully setting 20-inch conductor casing, Zephyr Energy said, while all operations were conducted safely.

Zephyr Energy said the remaining sections of the well will be drilled using the Helmerich & Payne Rig 257, as also announced last week.

The H&P rig has now been mobilised to the well site and will begin rig-up activity in mid-April, Zephyr Energy said, prior to commencing the larger drilling operation.

‘We continue to make good progress at the well-site and are well prepared for the next phase of drilling which is expected to commence in mid-April,’ said Chief Executive Officer Colin Harrington.

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