GCIZephyr Energy: Turner Pope
(ZPHR has released its half-year results up to the end of June 2024. The report highlights significant progress at its flagship asset in the Paradox Basin, alongside consecutive quarterly growth in non-operated production from the Williston project. Financial performance during the period was in line with expectations, which shifts investor focus towards the next steps following the recent success of the second phase production test at the State 36-2R LN-CC well (‘State 36-2R’).
The acidization operation at the State 36-2R well successfully removed near-wellbore formation damage, resulting in high reservoir deliverability. A notable improvement in near-wellbore reservoir permeability was observed after each treatment. Peak production rates during the second test exceeded 2,100 barrels of oil equivalent per day (boepd), an increase from the 1,350 boepd reported after the first test. These figures are especially impressive for an onshore US well with only 130 feet of completed reservoir interval. Additionally, elevated liquid yields were recorded, with almost no water production observed.
The Board has highlighted an unexpected benefit of the acidization process: a significant enhancement in near-wellbore reservoir quality. This suggests that applying similar techniques across a longer lateral section could offer a cost-effective alternative to hydraulic stimulation, which is commonly used in other US resource plays. Given the positive implications for the broader Paradox project and shareholder value, it is particularly noteworthy that Zephyr’s process of identifying asset-level and/or wellbore partnership opportunities with US-based institutional investors has already advanced. These partnerships aim to accelerate further appraisal and field-wide development
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