Zephyr Energy has expanded its operated land position in the Paradox Basin, Utah, US, with the acquisition of approximately 27,000 acres of additional leases.
This brings the UK-based oil and gas company’s total operating acreage in the basin that makes up the Paradox project to around 70,000 gross acres, most of which are held with a 100% working interest
The majority of the newly acquired land, around 24,000 acres, was secured through a competitive lease sale conducted by the US Bureau of Land Management (BLM). The remaining acreage was obtained via direct negotiations with the Utah Trust Lands Administration (TLA). The federal leases have a primary term of ten years, while the state leases have a five-year term.
Zephyr Energy used existing cash resources to cover the acquisition costs. Paradox Basin has a long-standing history of exploration and production. According to Zephyr Energy, the new acreage is contiguous with its White Sands Unit (WSU) and is expected to feature similar reservoir conditions to its current holdings in the Paradox Formation oil and natural gas play.