Zephyr Energy plc has revealed the initial findings from its State 36-2R well located in the Paradox Basin project, Utah.
The early production test indicates encouraging results for the well, which was evaluated under various flow rates and choke settings.
Noteworthy Observations from the Test
The initial production test yielded several key observations:
- High Reservoir Deliverability: The well exhibited initial reservoir pressures of approximately 8,600 pounds per square inch.
- Peak Production Rates: Despite constraints, the well achieved a peak production rate of 1,350 barrels of oil equivalent per day (BOE/D).
- Increased Condensate Yield: The well produced condensate at an average rate of 180 barrels per 1,000 standard cubic feet (mscf) of gas, with peak rates exceeding 600 barrels per day. This is more than triple the condensate yield of previous wells in the Paradox project. The condensate’s high API gravity of 58 degrees makes it highly desirable in the Utah refinery market, commanding a price close to current West Texas Intermediate (WTI) crude oil prices.
Additional Findings and Mitigation Plans
The well also demonstrated minimal water production, potentially improving economic returns by reducing disposal requirements. However, there were indications of a possible blockage in the natural fracture network, likely due to drilling mud or faulting.
To address this, Zephyr plans to perform an acidizing procedure on the well in early August to clear any obstructions and enhance reservoir connectivity. Following this, a second production test will be conducted. The company is also exploring wider development options to capitalize on the high condensate yield and impressive reservoir deliverability observed in the initial test.
Positive Outlook for Future Development
Colin Harrington, Zephyr’s Chief Executive, expressed optimism about the initial test results, stating, “The well exhibited excellent deliverability and consistently higher condensate yields than anticipated, both of which are very encouraging signs for the underlying value of our broader Paradox asset base. Our next step is to further clean the nearby reservoir to maximize the well’s connectivity with the larger reservoir, followed immediately by a second production test.”