Thursday, June 8, 2023
  • Submit news
  • Contact
  • DMCA
  • Cookie Privacy
  • Privacy Policy
  • Terms of Use
Oil Market News
  • Home
  • Marketdaily
  • Price
  • crudenow
  • Companies
  • politics
  • Gas
  • investing
  • Stock
  • OPEChot
  • brend
  • ships
Oil Market News
Home Market

Zephyr Energy acquires additional acreage in Utah’s Paradox Basin

9 months ago
in Market
U.S. oil output set for record 2023 despite slowing growth
Share on FacebookShare on Twitter


Zephyr Energy, the Rocky Mountain oil and gas company focused on responsible resource development from carbon-neutral operations, announced an increase in its operated land position through the acquisition of an additional 1,920 acres in the Paradox Basin, Utah, U.S.



Zephyr has increased its land position adjacent to its operated White Sands Unit (WSU) through the targeted acquisition of 1,920 leased acres deemed by the Company to have immediate development potential. 

Latest Oil News

Canadian refiner Irving Oil explores options including sale

Canadian refiner Irving Oil explores options including sale

June 8, 2023
UK watchdog bans Shell, Repsol and Petronas greenwashing ads

UK watchdog bans Shell, Repsol and Petronas greenwashing ads

June 7, 2023
Opec+ is not on board with Saudi’s ‘whatever it takes’ message

Opec+ is not on board with Saudi’s ‘whatever it takes’ message

June 6, 2023
Saudi Arabia seeks to boost oil price with output cut of 1mn barrels a day

Saudi Arabia seeks to boost oil price with output cut of 1mn barrels a day

June 5, 2023

Optimal Location. The new acreage is directly contiguous to the Zephyr-operated WSU, with the potential to be added to the Unit acreage subject to approval from the U.S. Bureau of Land Management (BLM).

    • The acquired acreage is largely covered by Zephyr’s existing 3D seismic, and directly borders the Zephyr lease on which the planned State 36-2 LNW-CC and 36-3 LN-C9 well pad is located.
    • The new acreage is close to pre-existing surface infrastructure in the form of a six-inch gas pipeline which traverses the leasehold.

Immediate drilling benefits.  By adding the new acreage, the lateral for the proposed State 36-2 LNW-CC can be fully completed across a 10,000-foot lateral length, subject to final regulatory approval. This is expected to further enhance the well’s forecast economics and estimated ultimate recovery. 

    • In conjunction with the acquisition, Zephyr recently amended its BLM application for a permit to drill (an “APD”) for the State 36-2 LNW-CC well to reflect the enhanced completion design.  BLM approval is expected shortly.

Increased overall resources and drilling locations. Based on modelling results of the recently drilled State 16-2LN-CC, modelling for the upcoming State 36-2 LNW-CC, and production data from the nearby vertical Federal 28-11 well, Zephyr’s technical team estimates that the acquisition adds over 4 million barrels of oil equivalent of additional 2C net Contingent Resources to Zephyr’s Paradox Basin position with the following additional benefits:

    • The acquisition substantively increases the Company’s Working Interest in an estimated 4 Cane Creek reservoir well locations, adding an estimated 2.4 net wells assuming 2-mile lateral well lengths.
    • It adds unrisked net present value at a ten per cent. discount rate (“NPV-10)”, net to Zephyr, of approximately US$40 million from the Cane Creek reservoir, based on estimated economics for 2-mile laterals. This estimate assumes success case outcomes from State 16-2 LN-CC flow testing and State 36-2 LNW-CC drilling and testing.
    • It delivers access to acreage that may host liquid yields similar to that observed at the nearby vertical Federal 28-11 well and higher than those at the recently tested State 16-2 LNW-CC well.
    • It provides additional potential in the overlying shallow clastic zones.

The acquisition is part of the Company’s ongoing portfolio management of its Paradox Basin position.  This active land management strategy has resulted in a defensible and growing portfolio of development opportunities which Zephyr’s Board believes is increasingly difficult to replicate in today’s regulatory and political environment.  

While the terms of the acquisition are not publicly disclosed, the immediate consideration for the new acreage has been satisfied by a payment from Zephyr’s existing cash resources. The majority of consideration to the seller is expected to come in the form of royalty payments which are only payable in the event of drilling success.  The Company has also agreed to use reasonable commercial efforts to drill at least one well across the new acreage prior to December 2023, a requirement which the Board believes will be satisfied by the upcoming drilling of the State 36-2 LNW-CC well.

Inclusive of the new acreage, the Company will operate a total of 39,473 gross acres in the Paradox Basin, the majority in which the Company holds a 75% working interest.





www.worldoil.com

Tags: acquiresacreageadditionalbasinEnergyOnshore productionParadoxUtahsZephyr
Previous Post

Caught in a pickle: OPEC+, Saudi Arabia, the oil price war

Next Post

The big call for investors is energy

Related Posts

Canadian refiner Irving Oil explores options including sale

Canadian refiner Irving Oil explores options including sale

by Oil Market News
June 8, 2023
0

Irving Oil, the owner of Canada’s largest petroleum refinery, has launched a strategic review of the private company that could...

UK watchdog bans Shell, Repsol and Petronas greenwashing ads

UK watchdog bans Shell, Repsol and Petronas greenwashing ads

by Oil Market News
June 7, 2023
0

The UK’s advertising watchdog has banned a group of big oil and gas company advertisements for being misleading as part...

Opec+ is not on board with Saudi’s ‘whatever it takes’ message

Opec+ is not on board with Saudi’s ‘whatever it takes’ message

by Oil Market News
June 6, 2023
0

Saudi Arabia’s energy minister Prince Abdulaziz bin Salman has claimed to be inspired by former Federal Reserve chair Alan Greenspan,...

Saudi Arabia seeks to boost oil price with output cut of 1mn barrels a day

Saudi Arabia seeks to boost oil price with output cut of 1mn barrels a day

by Oil Market News
June 5, 2023
0

Saudi Arabia will cut oil production by 1mn barrels a day in a bid to prop up oil prices, it...

Opec bans prominent media groups from Vienna meeting

Opec bans prominent media groups from Vienna meeting

by Oil Market News
June 4, 2023
0

Opec has barred several media groups from attending its crucial production meeting in Vienna this weekend, in a move officials...

Saudi Arabia’s ‘prickly prince’ of oil bristles as crude price slides

Saudi Arabia’s ‘prickly prince’ of oil bristles as crude price slides

by Oil Market News
June 3, 2023
0

Prince Abdulaziz bin Salman spent almost two decades as a relatively low-profile member of Saudi Arabia’s Opec delegation. But since...

Next Post
The big call for investors is energy

The big call for investors is energy

Subscribe
Notify of
guest
guest
0 Comments
Inline Feedbacks
View all comments

Trend Oil News

Viking Line : Climate-smart Viking Glory is also a flagship for sustainability

U.S. oil producer HighPeak Energy says it will explore sale

5 months ago
Crude oil sinks toward $60 before OPEC+ meets to decide on supplies

Crude oil sinks toward $60 before OPEC+ meets to decide on supplies

1 year ago
Schlumberger raises outlook as war in Ukraine pushes oil prices higher

Schlumberger raises outlook as war in Ukraine pushes oil prices higher

11 months ago
Live news updates: US consumer confidence falls as inflation concerns pick up

Live news updates: US consumer confidence falls as inflation concerns pick up

8 months ago
Russian oil flow halted through Druzhba pipeline to central Europe

Russian oil flow halted through Druzhba pipeline to central Europe

10 months ago
ADVERTISEMENT
Canadian refiner Irving Oil explores options including sale

Canadian refiner Irving Oil explores options including sale

June 8, 2023

UK watchdog bans Shell, Repsol and Petronas greenwashing ads

June 7, 2023

Opec+ is not on board with Saudi’s ‘whatever it takes’ message

June 6, 2023

Saudi Arabia seeks to boost oil price with output cut of 1mn barrels a day

June 5, 2023

Opec bans prominent media groups from Vienna meeting

June 4, 2023

Saudi Arabia’s ‘prickly prince’ of oil bristles as crude price slides

June 3, 2023

Crude Oil

4 Days from Deadline, EU Fails To Agree On Russian Oil Products Price Cap

4 Days from Deadline, EU Fails To Agree On Russian Oil Products Price Cap

February 1, 2023
Oil rises after U.S. fuel stocks draw down; economic concerns loom

Oil prices settle steady on higher U.S. demand, weaker dollar

January 31, 2023
S&P 500 Down 1%; Crude Oil Drops Over 2%

S&P 500 Down 1%; Crude Oil Drops Over 2%

January 30, 2023
Russia Can’t Replace the Energy Market Putin Broke

Russia Can’t Replace the Energy Market Putin Broke

January 29, 2023

Investing

Orbital Sidekick Raises $10M Investment to Monitor Oil and Gas Industry from Space 

Orbital Sidekick Raises $10M Investment to Monitor Oil and Gas Industry from Space 

February 1, 2023
Crude Oil Shielded From Bond and Stock Market Rout

Clean-energy investing poised to top money backing oil and gas after hitting a record

January 31, 2023
Crude Oil Shielded From Bond and Stock Market Rout

The Cushing® MLP & Infrastructure Total Return Fund Announces Fund Name Change

January 30, 2023
Boeing’s 747, the original jumbo jet, prepares for final send-off By Reuters

Boeing’s 747, the original jumbo jet, prepares for final send-off By Reuters

January 29, 2023

Market

Canadian refiner Irving Oil explores options including sale

Canadian refiner Irving Oil explores options including sale

June 8, 2023
UK watchdog bans Shell, Repsol and Petronas greenwashing ads

UK watchdog bans Shell, Repsol and Petronas greenwashing ads

June 7, 2023
Opec+ is not on board with Saudi’s ‘whatever it takes’ message

Opec+ is not on board with Saudi’s ‘whatever it takes’ message

June 6, 2023
Saudi Arabia seeks to boost oil price with output cut of 1mn barrels a day

Saudi Arabia seeks to boost oil price with output cut of 1mn barrels a day

June 5, 2023

OPEC

US Close- Fed signals more hikes coming, Powell says disinflation process begun, ADP

US Close- Fed signals more hikes coming, Powell says disinflation process begun, ADP

February 1, 2023
‘OPEC does not control the price’: OPEC President | OPEC News

‘OPEC does not control the price’: OPEC President | OPEC News

January 31, 2023
OPEC+ Closely Watches Chinese Factory Data

OPEC+ Closely Watches Chinese Factory Data

January 30, 2023
Week Ahead: FOMC, BOE, ECB, OPEC, NFP and Big Tech Earnings

Week Ahead: FOMC, BOE, ECB, OPEC, NFP and Big Tech Earnings

January 29, 2023
  • Submit news
  • Contact
  • DMCA
  • Cookie Privacy
  • Privacy Policy
  • Terms of Use

© 2022 OilMarket.News

No Result
View All Result
  • Home
  • Market
  • Price
  • crude
  • Companies
  • politics
  • Gas
  • investing
  • Stock
  • OPEC
  • brend
  • ships

© 2022 OilMarket.News

wpDiscuz
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.