LONDON (ShareCast) - (Sharecast News) - Analysts at Canaccord Genuity raised their target price on exploration and production firm Zephyr Energy from 14.0p to 16.0p on Friday following the publication of the group's hotly-anticipated 36-2R production test results.
Zephyr's eagerly awaited second production test of the State 36-2R well in its Utah-based Paradox acreage achieved a peak production rate of over 2,100 barrels of oil equivalent per day, consisting of roughly 1,590 boepd of gas, and approximately 510 boepd of condensate/light volatile oil at peak production, with these condensate yields increasing towards the end of the test.

"This a very strong result landing towards the top end of Zephyr's expectations and implies an attractive commercial profile using non-hydraulic stimulation methods, presenting a lower risk/cost method for future development in the Paradox acreage," said Canaccord Genuity.

Canaccord Genuity, which has a 'speculative buy' rating on the stock, noted that Zephyr has now initiated the process of finding a financial partner to accelerate the Paradox project's development roll-out.

"Management believes that the wealth of data from drilling the State 16-2, 36-2, and 36-2R wells, alongside 3D seismic, core samples, stimulation data and recent production test results provides a strong offering for potential partners to gain comfort in the potential of the Paradox acreage," said the Canadian bank.

Canaccord added that success at Paradox could also potentially be a catalyst for attracting a partner at Zephyr's neighbouring Salt Wash helium play.







Reporting by Iain Gilbert at Sharecast.com

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE