Rig on the way to Zephyr's new Utah well site

Rocky Mountains-focussed oil and gas company Zephyr Energy updated the market on its flagship project in the Paradox Basin of Utah on Monday, confirming that Rig #34 was now being mobilised to the State 16-2LN-CC well site.

The AIM-traded firm had announced the signing of a drilling contract with Cyclone Drilling on 28 June, in order to secure Cyclone Rig #34 for drilling the State 16-2LN-CC appraisal well.

Last winter, the same rig successfully drilled Zephyr's State 16-2 vertical well to a total depth of 9,745 feet in less than 19 days, which was a record performance when compared to historical drilling in the northern part of the Paradox Basin.

Rig #34 was said to be “fully capable” of drilling to the planned depths and pressures that were expected at the State 16-2LN-CC well.

Once on site in the coming days, the equipment would be rigged up over a week in preparation for drilling, with Zephyr remaining on track to spud the well before the end of July.

Drilling was expected to take about 20 days following spud.

“I am delighted that the pieces are coming together for our forthcoming drilling programme, enabling us to commence drilling in line with our forecast timetable,” said chief executive officer Colin Harrington.

“With permitting and site preparation completed and rig mobilisation now commencing, we are in full countdown mode ahead of this highly anticipated drilling effort.”

At 0947 BST, shares in Zephyr Energy were down 4.2% at 5.7p.