Highlights: Paradox Basin, Utah
- Zephyr operates a 25,353 acre leaseholding with a 75% working interest
- Excellent 3D seismic across the majority of our position.
- Potential for a natural fracture development, which may provide better economics than existing U.S. unconventional resource plays.
- Partnership with a U.S. Department of Energy funded research team to increase the geologic understanding and industry awareness of the Paradox Basin.
- Secured U.S. Department of Energy (“DOE”) grant funding to drill the State 16-2 vertical well, which was drilled in record time and provided Zephyr with extensive core and log data to be tied into existing geologic and regional analogue analysis.
ZPHR is the operator of over 25,000 leased acres in the Paradox Basin, Utah and has been active in the Paradox Basin since 2014.
- Development of the leasehold is envisioned to utilize natural fractures and would not require hydraulic stimulation (fracking), significantly reducing forecast completion costs.
- Paradox wells that successfully intersect natural fractures can be prolific, with high productions rates and substantial ultimate oil recoveries.
- 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.
- Our acreage position is well situated to existing gas export infrastructure, with pre-existing road and pad network.
Paradox Basin Production History & Characteristics
The Paradox is a proven, productive basin characterised by a longstanding exploration and production history – however, the basin was overlooked in recent years during the US onshore fracking boom.
- 10mmboe produced to date (mostly from the Cane Creek Field and reservoir)
- High-rate wells are a characteristic of the play (IP>500bopd) due to permeable natural fractures and high reservoir pressures – but with historic success rates of 50-60%
- Historical drilling results were mixed due to lack of geologic understanding, older technologies and misguided land strategies.
- Early Cane Creek 3D seismic acquired in 2001 and 2011 unable to resolve Cane Creek and layered salts
- Concerted field development efforts at Cane Creek – from 2012 onwards – integrated older 3D data and early horizontal drilling technologies
- Peak production was >5,000 bopd in 2014
Zephyr’s team believes that recent step changes in technology can improve the Paradox success rates. These advances include:
- The move from 2D to 3D seismic
- The introduction of sophisticated horizontal drilling capabilities
- The recent improvements in directional drilling capabilities
Zephyr owns the most recent Paradox high resolution 3D seismic data – with much improved data from which to predict natural fractures. In addition, the company has secured extensive continuous core, sidewall core and log data from the drilling of the State 16-2 ”dual use” in December 2020.
Zephyr plans to utilize these technological improvements when developing its leasehold, starting with the drilling of the State 16-2LN-CC in 2021, a lateral horizontal to be drilled from the existing State 16-2 horizontal wellbore.
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