Zephyr Energy plc has approved funding for additional engineering and well work in preparation for a higher production rate during the initial phase of its Paradox gas project in Utah's Paradox basin.

Funding approval for the additional project work—which is progressing in parallel with Enbridge Inc.’s ongoing regulatory approval process for its fully owned and operated 16-in. pipeline that is anticipated to export gas from Zephyr’s proposed Powerline Road gas plant to the Williams Northwest Pipeline system for sales to the US gas market—comes amid the confidence by Zephyr’s board that Enbridge will receive necessary regulatory approvals needed for up-rating the operating pressures of the planned tie-in line, Zephyr said on Aug. 24.

The company said Enbridge’s operation to excavate and visually inspect four short sections of its existing 16-in. pipeline proposed for tie-in to the Paradox project is ongoing, with no concerns or safety issues noted to date.

“Our aim is to progress operational work in parallel with the Enbridge-led regulatory approval process, in order to expedite the timing for first gas and commercial production,” said Colin Harrington, Zephyr's chief executive officer.

“While the timeline for Enbridge’s approval process remains pending, Zephyr’s goal is to be prepared to deliver first gas and commercial production as soon as possible once approvals are secured,” Harrington added.

Zephyr is also progressing on both the potential farm-out and proposed $15-million commodity purchase agreement with Atlas Oil Co. announced in late July, with further details on both agreements to be provided in due course, the company said.

As part of the project update, Zephyr also confirmed engineering work is now underway on design of its planned 15-MMcfd Powerline Road gas plant that will initially be supplied by the State 36-2 LNW-CC-R well (State 36-2R) and Federal 28-11 well.

The State 36-2R well—which Zephyr drilled and production tested in 2025— achieved a peak flow rate of 2,848 boe/d, with no material drop in bottom hole pressure, and without the use of any fracture stimulation, suggesting the well ranks in the top 6% of US Lower-48 gas wells, according to the company.

Drilled in 2008 and subsequently shut-in due to pipeline and infrastructure constraints, the Federal 28-11 well before its shut-in produced more than 360 MMcfd of natural gas and circa 93,000 bbl of oil ahead of Zephyr’s acquisition of the resource in September 2022 and subsequent brief restart of its production for testing in 2023.

Zephyr additionally said it has high-graded new well locations for follow-on drilling in Paradox basin, with locations and permitting details on the new wells to be forthcoming once well-planning efforts are finalized.

Without specifying a timeline, Zephyr confirmed plans for the tie-in of its State 16-2 well also would be detailed after first gas is achieved.

Zephyr now operates a total of about 70,000 gross acres in Paradox basin, with the operator holding 100% working interest in most of that acreage.