Zephyr Energy awards Utah rig contract to Helmerich & Payne

Zephyr Energy plc, the Rocky Mountain oil and gas company focused on responsible resource development from carbon-neutral operations, has signed a rig contract with Helmerich & Payne (H&P) for its Rig 257 in the Paradox Basin in Utah.

Zephyr Energy said that the signing of the contract follows a detailed selection process, and the rig services of H&P will be used to redrill the State 36-2 well on the company’s project in Utah.

Rig 257 is a Flex 3 1,500HP drilling rig fully capable of drilling the planned well and managing the high reservoir pressures expected to be encountered, Zephyr Energy said in a statement.

The rig is wrapping up a sustained and successful drilling campaign in the nearby Uinta Basin and will mobilise to the State 36-2R well site in the nearterm, with an expected spud in mid-April, the company said. In the meantime, Zephyr Energy plans to mobilise a spudder rig to site in order to set the conductor casing ahead of the larger drilling operation, it said.

“We are pleased with the swift progress made by Zephyr’s operational team in securing the rig contract with H&P following the recent final permit award, and believe that Rig 257 is particularly well suited for the State 36-2R drill,” Colin Harrington, Zephyr's Chief Executive, said in a statement.

“The focus is now on drilling the well safely and efficiently, with full drilling operations expected to start in mid-April. We look forward to keeping our investors well-informed as operations develop at the well site,” he added.

According to data released by Baker Hughes last week, shale operators in the US have boosted oil drilling activity to the highest level in six months amid rising crude prices. The number of US rigs drilling for oil climbed to 510, the biggest mark since September 15, according to Baker Hughes data.