“I’m very encouraged by the momentum that we are building,” said chief executive Colin Harrington
The company is working with a project team led by University of Utah’s Energy & Geoscience Institute (EGI), as previously announced, and, the project is sponsored by the US Department of Energy (DOE) and its National Energy Technology Laboratory.
It means that the first US$2mln of well spending is funded via a DOE grant, and up to US$1mln of incremental funding will be covered by Zephyr – using funds raised in its recent oversubscribed placing.
Updating on progress, Zephyr noted that the first US$600,000 tranche of DOE funding has now been received. This cash is being used to cover bonding, permitting and preliminary groundworks at the site of the 16-2 well.
Zephyr has added to its operations team hiring Bruce Houtchens to assist the project. He is a highly experienced drilling manager and was previously Manager of Drilling & Completions for Fidelity Exploration & Production, the most active and successful driller in the Paradox Basin. A detailed well design is now largely complete, allowing the company to tender for project contracts.
“I am delighted with the progress made to ensure a successful and timely spud of the State 16-2 well,” said Colin Harrington, Zephyr chief executive in a statement.
“In particular, I’m very pleased to welcome Bruce to our project team – I’m not aware of anyone who’s drilled more successful horizontal Paradox Basin wells over the last decade.”
He added: “I’d also like to continue to thank the EGI and our other Utah-based partners, all of whom are working very hard to assist Zephyr with the launch of this exciting project.
“I’m very encouraged by the momentum that we are building.”
Read More: Zephyr Energy PLC bolstered as it counts down to State 16-2 well