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 36-2 LNW-CC well: 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
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 |
