Zephyr Energy starts well for crypto mine
Zephyr Energy PLC will recommence production from State 16-2LN-CC well in Paradox basin, Utah, following completion of a successful test in December 2021. Additionally, a three-well drilling campaign is expected to start in the second half of this year.
Liquids produced from the well will be trucked and sold to refineries in Utah and produced gas will be sold to fuel onsite generators which in turn will provide electricity for a co-located cryptocurrency mine.
Zephyr’s board has fast-tracked equipment procurement and expects that the crypto mine will be operational in as little as 8-12 weeks. Well work will occur over the same timeframe, at which point production from the well will recommence.
The company also expects to tie its gas production into nearby export infrastructure recently purchased by Dominion Energy Inc. Dominion has made public plans to refurbish and expand natural gas infrastructure across Zephyr's acreage and is expected to be available to accept gas from Zephyr's wells in 2023.
In parallel with State 16-2LN-CC well work, Zephyr is in advance planning stages for a three-well drilling program on the Paradox project, expected to begin second-half 2022. Well design has been completed, all permit applications have been submitted, and negotiations continue with rig vendors.
