- Zephyr Energy to redrill its State 36-2 well in Utah due to slower-than-expected clean-up efforts
- Recoveries following the well incident have been insufficient to justify the working costs
- The company expects to recover all costs through its well-control insurance coverage
- Shares are down 9.7% at 2.80 pence
Zephyr Energy has announced plans to redrill its State 36-2 well in the Paradox Basin in Utah, U.S. This decision comes after clean-up efforts following a well incident in April have been slower than expected. The company will drill a new hole from the same drilling pad, as the recoveries from the incident have not been enough to cover the working costs of the well. Zephyr Energy is confident that this course of action is in the best interest of the company’s long-term value. The company also stated that it expects to recover all costs, including those associated with the redrill, through its well-control insurance coverage. As a result of this news, shares of Zephyr Energy have dropped by 9.7% to 2.80 pence.
