Zephyr Energy plc (LSE:ZPHR) has announced progress on its farm-in to the Salt Wash helium project, a previously producing asset located near its Paradox project in Utah. Key details of the update include:
- Farm-In Agreement: As part of the farm-in agreement, Zephyr is required to start drilling operations on the Salt Wash project by September 1, 2024. Initial site preparations have begun, including setting up the drilling pad and fencing the area.
- Drilling Operations: A spudder drilling rig will soon be mobilised to begin drilling a 30-inch hole to a depth of approximately 100 feet, followed by the installation of a 20-inch conductor casing. Full-scale drilling operations are expected to commence in the first half of 2025, aligning with operational commitments.
- Funding Discussions: Zephyr is actively engaging with industry and financial partners to potentially fund up to 100% of the well's costs. The company's board is evaluating options to maximize shareholder value.
State 36-2R Well Production Test
Zephyr has also provided an update on the State 36-2R well:
- Production Testing: Following the successful acidisation operation reported on July 23, 2024, a second phase of production testing has commenced. The well has been tested at various rates and choke settings over multiple periods.
- Safety and Progress: All operations have been conducted safely and as planned. The company aims to complete its technical analysis and expects to release the results of the production test within the next ten days.