Zephyr Energy targets 2M barrels with new lateral drill while lowering debt rate [Video]

Zephyr Energy PLC (AIM:ZPHR, OTCQB:ZPHRF) CEO Colin Harrington joined Steve Darling from Proactive to provide an important update on the company’s State 36-2R LNW-CC well at its flagship Paradox Basin project in Utah during an interview with Proactive. The company has approved an extended lateral drilling operation that could significantly increase production, with estimated recoveries of up to two million barrels of oil equivalent—substantially higher than current production levels.

In a significant development, Zephyr Energy has secured full funding for the extended lateral drilling through a non-binding letter of intent with a U.S.-based industry investor. This arrangement covers 100% of the project costs, without requiring any equity issuance or increasing Zephyr’s exposure to its Paradox project. Drilling operations are expected to commence by the end of 2024 or early 2025, depending on rig availability and weather conditions.

Additionally, Harrington shared updates on Zephyr’s financial arrangements with its lender, North Dakota-based First International Bank & Trust. …