Zephyr Energy to Redrill Well in Utah's Paradox Basin

Zephyr Energy, a U.S.-focused energy company, has announced that it will undertake the redrilling of its State 36-2 well in the Paradox Basin in Utah. This decision comes as the clean-up efforts following a well incident in April have proven to be slower than initially anticipated.

The company plans to drill a new well from the same drilling pad, as the recoveries from the incident have not been enough to outweigh the costs associated with the existing well. Zephyr Energy is confident that the expenses incurred due to the well-control incident, as well as those related to the redrill, will be covered by its well-control insurance coverage.

Colin Harrington, the Chief Executive of Zephyr Energy, expressed his confidence in the chosen course of action, stating, "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."

Shares of Zephyr Energy were down 9.7% at 2.80 pence as of 0753 GMT.