Zephyr Energy plc announced the results of an updated Competent Person's Report (CPR) on its Utah Paradox basin assets, reporting a major reserves and resource estimate upgrade for the company's flagship Paradox project. The Sproule-ERCE International Ltd. prepared report shows excellent progress as the development advances towards commercial production.
Under the CPR, proved recoverable reserves (1P) grew 93 times to 14.8 million net barrels of oil equivalent (boe), from 0.16 million net boe in 2022. The 1P reserves are predicted to yield over $115 million of undiscounted free cash flow, with a net present value (NPV-10) of around $36 million. Seven well locations have now been categorized as proved recoverable reserves.
Proved and probable reserves (2P) were 25 times higher at 35.3 million net boe, with undiscouned free cash flow estimates of about $400 million and NPV-10 value of $101 million. The reserves were also broken down into proved and probable recoverable reserves and twelve well locations.
The 3.5 times increase in the total recoverable resources estimate to 74.2 million net boe gave the full-field development potential of the Cane Creek reservoir. The new report also established Zephyr's net prospective (2U) resources at 270 million boe, reflecting the company's increased ownership position in the Paradox project.
Colin Harrington, Zephyr CEO, said the CPR denotes the company's transition from appraisal towards commercial production. "The CPR's delivery is an exciting milestone for Zephyr as we advance the Paradox project to commercial production and seek a strategic partner," he said.
Sproule's updated estimate underscores the Paradox basin's increasing potential as one of the U.S. Intermountain West's most prospective onshore oil and gas plays.