By Christian Moess Laursen
Zephyr Energy said it would redrill its State 36-2 well in the Paradox Basin in Utah, U.S., as clean-up efforts following a well incident in April have been slower than expected.
The U.S.-focused energy company said Wednesday that it would redrill a new hole from the same drilling pad, as the recoveries following the incident have been insufficient to justify the working costs of the well versus the estimated cost to redrill the well.
It expects to recover all costs of the well-control incident, including those associated with the redrill, through its well-control insurance coverage, the London-listed company said.
“Overall, I am confident that we are taking the optimal course of action for the long-term value of the company, and the next few months will be full of activity,” Chief Executive Colin Harrington said.
At 0753 GMT, shares are down 0.30 pence, or 9.7%, at 2.80 pence.
Write to Christian Moess Laursen at [email protected]
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