Zephyr Energy spuds State 16-2 well in Paradox Basin, Utah

UK-based oil and gas company Zephyr Energy has started drilling of the State 16-2 well in the Paradox Basin in Utah using the Cyclone rig.

The primary goals of the well are to drill a mildly deviated well to an approximate true vertical depth (TVD) of 9,815 feet. This is to enable Zephyr Energy to acquire up to 100 feet of continuous core from the Cane Creek reservoir.

The UK-based oil and gas company will also look to run a comprehensive well log suite across the full Paradox Formation, which includes the primary Cane Creek reservoir target and a minimum of five other potential reservoir zones for getting further insight into the potential of the secondary targets.

According to Zephyr Energy, drilling operations are likely to take 30-40 days from now, and the results from the core and log analysis are anticipated within three months after completing the drilling.

The oil and gas company said that after the drilling of the State 16-2 well is wrapped up and the cores and logs acquired, the well will be plugged back temporarily at 6,450 feet TVD.

Zephyr Energy or a farm-in partner will then have the scope to re-utilise the vertical wellbore as a sidetrack host for enabling the drilling of a horizontal appraisal well.

The company said that by reusing the vertical portion of the well, the total drilling costs of a future horizontal appraisal well will be brought down from $6 million to $3 million.

Colin Harrington – Zephyr Energy Chief Executive said: “The commencement of drilling the State 16-2 well is a watershed moment for the Company as we begin to unlock the considerable value from our Paradox project.

“There has been significant time, money and effort expended by many people over many years to get to this point – from the original leasing program to the considerable investment in modern 3D seismic to the detailed technical work we’ve undertaken in conjunction with our world-class project partners.

“All of this work has been funded by the Company’s Shareholders, and – from my vantage point on site at the State 16-2 well – I am delighted to be able to personally witness the tangible results of this historical effort and investment.”