Zephyr Energy signs rig contract for Paradox Basin redrilling

The AIM-traded firm said Rig 257, a Flex 3 1,500HP drilling rig, was chosen for its capabilities to handle the intricacies of the planned drilling operation, including managing anticipated high reservoir pressures.

Rig 257 was currently concluding a fruitful drilling campaign in the neighbouring Uinta Basin.

The rig was set to be mobilised to the State 36-2R well site shortly, with spudding expected to start in mid-April.

In the interim, Zephyr said it was looking to move a spudder rig to the site.

That rig would be instrumental in setting up the conductor casing, laying the groundwork for the upcoming larger drilling operation.

“We are pleased with the swift progress made by Zephyr's operational team in securing the rig contract with H&P following the recent final permit award, and believe that Rig 257 is particularly well suited for the State 36-2R drill,” said chief executive Colin Harrington.

“The focus is now on drilling the well safely and efficiently, with full drilling operations expected to start in mid-April.”

At 1225 GMT, shares in Zephyr Energy were down 0.74% at 2.63p.

Reporting by Josh White for Sharecast.com.