I’m away at the moment and will cover announcements in more detail later in the week. There are two pieces of news I thought were worth a brief comment though.
Zephyr has announced further encouraging news from the Paradox Basin which suggests that the analysis shows that up to 85% of the lateral has the potential to be completed for well testing and production.
Colin Harrington Zephyr CEO said:
Based on the preponderance of positive data received we elected to initiate a DFIT to provide additional insight into the potential for hydraulic stimulation on our acreage position.
As this well is the first horizontal well in this part of the Paradox Basin the ability to develop a strong understanding of the reservoir mechanical properties is crucially important as we assess the series of options for wider potential development.
its also important to note that if the HSRP completion route is selected we believe it could allow for a simpler surface footprint and more predictable surface patterns, including the grouping of multiple wells from a single pad thereby maximising resource efficiency and project economics while minimising environmental and surface disruption.
The current wellbore provides an excellent platform from which to assess these development options prior to production testing the well. We expect DFIT operations and monitoring to progress over the course of the next week, after which a final decision regarding selection of method for well completion will be made. Completion operations and production testing will begin as soon as possible thereafter and we look forward to keeping shareholders informed as more milestones are reached.
Despite the initial share price reaction this is further good news for Zephyr as management finalise operational technicalities ahead of production.
Jersey Oil & Gas
JOG has announced that following a comprehensive technical and economic evaluation of licences P2497 and P2499 and after meeting with the OGA that having completed commitments it will not progress to the next licence phase. This would have required committing to a firm well on each licence, accordingly the licences will cease.
Andrew Benitz CEO commented:
’JOG’s management has taken the pragmatic and cost effective decision not to proceed with firm well commitments for the non-core Glenn and Zermatt licences in. The context of efficient and targeted capital allocation. JOG fully respects the OGA’s Asset Stewardship Expectations which govern the delivery of exploration and appraisal work programmes and we continue to work closely with the OGA as we progress our plans for the company’s core GBA development project’.
This move is entirely sensible and expected as JOG move ahead with the GBA development. A constant focus on the key parts of the development is to be applauded.