Paradox Basin
Our flagship asset is an operated 46,000-acre leaseholding located in the Paradox Basin, Utah which has been assessed by third party consultants Sproule International to hold, net to Zephyr, 2P reserves of 2.6 mmboe, 2C resources of 34 mmboe and 2U resources 270 mmboe.
The Paradox is a proven, productive basin characterised by a longstanding exploration and production history.
Our acreage position is well situated to existing gas export infrastructure, with pre-existing road and pad networks to aid development and future production.
Asset overview
Within our 46,000-acre leaseholding we hold:
- White Sands Unit: ~25,000 acres covered by recent seismic – in a historically productive area which never utilised modern 3D or modern completion techniques
- State 16-2LN-CC: State 16-2 was the first test of a horizontal well with modern hydraulically stimulated well in the Paradox Project. The well was initially tested for 23 days in late 2021
- 4,000-foot lateral successfully stimulated which demonstrated favorable rock mechanics
- Very limited pressure drop witnessed on test – consistent with high permeability
- Encouraging signs of a larger connected volume
- High production rates achieved under initial test – rate restricted
- State 36-2R LNW-CC & the Federal 28-11: targeting Cane Creek reservoir beyond the productive State 16-2 LN-CC well.
- State 16-2LN-CC: State 16-2 was the first test of a horizontal well with modern hydraulically stimulated well in the Paradox Project. The well was initially tested for 23 days in late 2021
- Cane Creek Field Area: ~5,700 acres
- Ten Mile Area Leases: ~6,500 acres
- Surface infrastructure assets: Reduces capital to build out gas infrastructure for production
Initial test results from the 36-2R in May 2025 confirm robust well deliverability, reinforcing the commercial case and significantly reducing geological and operational risk across the broader acreage position.
Production Test Highlights:
- 36-2R: 5,000 ft horizontal (development wells will be 10,000 ft)
- Peak flow rate of 2,848 BOEPD
- 11.9 MMCFD natural gas and 856 BOPD on 18/64 – inch choke setting
- Achieved with no material drop in bottom hole pressure
- Fiber optic data indicates hydrocarbon inflow across entire 5,000 ft lateral
- Elevated liquid yields observed expected to be a driver of enhanced project economics
- Water cut < 0.5% throughout test duration
- Suggests minimal water handling costs
- No fracture stimulation used
- Completion strategy (hydra-jet abrasive perforation and matrix acidization) deemed highly successful
- Frac stimulation could offer additional upside potential Comparison of Cane Creek EUR/lateral length forecast with other lower 48 tight gas plays suggest well performance in the top 5% of comparable gas wells
The Basin’s primary historical productive zone is the Cane Creek reservoir, although there are multiple other potential reservoir targets above the Cane Creek which Zephyr is currently evaluating.
Development of the leasehold is envisioned to utilise natural fractures and/or hydraulic stimulation –we have undertaken significant analysis with respect to maximising resource efficiency and economic returns via optimised completion techniques.
| Paradox Basin: Developed Developed & Undeveloped Reserves (MMBOE) | NET ATTRIBUTABLE TO ZEPHYR | ||
| 1P | 2P | 3P | |
| 2018 CPR | – | – | – |
| 2022 CPR | 0.54 | 2.12 | 6.81 |
| 2022 – POST ACQUISITION | 0.59 | 2.57 | 8.33 |
| Paradox Basin: Contingent Resources (MMBOE) | NET ATTRIBUTABLE TO ZEPHYR | ||
| 1P | 2P | 3P | |
| 2018 CPR | 0.36 | 12.33 | 29.54 |
| 2022 CPR | – | 26.87 | 81.13 |
| 2022 – POST ACQUISITION | – | 34.03 | 102.92 |
| Paradox Basin: Unrisked Prospective Resources (MMBOE) | NET ATTRIBUTABLE TO ZEPHYR | ||
| 1P | 2P | 3P | |
| 2018 CPR | – | – | – |
| 2022 CPR | 57.5 | 203.0 | 419.0 |
| 2022 – POST ACQUISITION | 76.7 | 270.4 | 558.7 |