Zephyr Energy plc announced State 36-2R well drilling operations update. Drilling operations continue to proceed safely and in line with management's expectations. The 8 ½ inch section is currently drilled to a depth of 9,940 feet, with the planned section total depth of 10,075 feet to be reached imminently.  After reaching the section total depth, a casing string will be set and cemented in place, just above the final Cane Creek reservoir target.

After casing and cementing, drilling will re-commence on the final reservoir section of the State 36-2Rwell.  The objective for this short section is to safely and successfully land the well within the Cane Creek reservoir and drill approximately 270 feet horizontally to intersect the productive natural fracture system encountered in the original well. After reaching planned final total depth and setting a production liner, the drilling rig will be demobilised, and the well will be prepared for production testing.   Across current operations on the 8 ½ inch section of theState 36-2Rwell, Zephyr's team has utilised sophisticated MagTraC ranging equipment to ensure that the State 36-2R well intersects the Cane Creek reservoir as close as possible to the State 36-2 LNW-CC well (the "original well").

At the most recent range measurement taken at 9,800 feet measured depth, the State 36-2R well was only seventeen feet from the original wellbore, with ultimate intersection on track for less than ten feet of range between the wells. While this ranging and steering process resulted in slower drilling over the last ten days, Zephyr's operations team is pleased with the precision of the targeting of the upcoming intersection with the reservoir.