Zephyr Energy (ZPHR ), a Rocky Mountains-focused oil and gas company, said it has signed an amended cooperation agreement detailing an additional US$1m in reserach grant funding from the US Department of Energy.
Zephyr said it would use the funds for data gathering purposes during the ongoing drilling of its State 36-2 LNW-CC well in the Paradox Basin, Utah (the Paradox Project).
Specifically, Zephyr said it would use the additional grant money to fund a distributed acoustic sensor fibre in the lateral portion of the well in order to understand frac geometry and measure inflow rates. Additionally, Zephyr will deploy QuadCombo and lithoscanning logging tools, to further evaluate the shallow Paradox Formation, and the C9 clastic zone in particular.
Zephyr will acquire the data during ongoing drilling operations and have full access to the results, which are expected to provide significant insight into both the Cane Creek and overlying reservoirs.
The Paradox Project continues to be funded by the US Department of Energy, and its National Energy Technology Laboratory.
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Today's announced US$1m of additional grant funding testifies to Zephyr's effective exploration of the Paradox Basin and close collaboration with the US Department of Energy and partners on the project.
Zephyr had initially received US$2.1m for the Paradox Project's State 16-2 well in 2020 and 2021. Since then, the company's technical team has worked closely with a research project team led by the University of Utah's Energy & Geoscience Institute in collaboration with the Utah Geological Survey and other Utah-based partners, under the auspices of the US DOE.
The additional research funding and associated initiatives should materially enhance Zephyr's technical understanding of the Cane Creek and overlying reservoirs. This should in turn improve future well planning, especially in relation to exploration drilling in the overlying Paradox Formation exploration zones and the C9 reservoir zone, increasing the chances of success at Paradox.
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