Zephyr Energy has announced a substantial upgrade in reserves and resource estimates for its Paradox basin assets in Utah, US, significantly boosting the project's potential.

The updated competent person's report (CPR) by Sproule-ERCE International reveals a 93-fold increase in proved recoverable (1P) reserves.

The report details that 1P reserves have surged to 14.8 million net barrels of oil equivalent, a significant rise from the 160,000 reported in April 2022.

These reserves are expected to generate more than $115m in undiscounted free cash flow, with a net present value (NPV-10) of around $36m. Notably, seven well locations have been identified as 1P reserves.

The proved and probable reserves (2P) have also seen a significant increase, growing 25-fold to 35.3 million net barrels of oil equivalent.

This level of reserves could yield an estimated undiscounted free cash flow of approximately $400m and an NPV-10 of $101m. A total of 12 well locations are now classified under 2P recoverable reserves.

Furthermore, the total recoverable resources estimate has expanded 3.5-times from 21.4 million net barrels of oil equivalent in 2022 to 74.2 million, showcasing the full-field development potential of the Cane Creek reservoir.

Additionally, Zephyr’s net prospective (2U) resources have risen to 270 million barrels of oil equivalent, a reflection of the company's increased stake in the Paradox project.

Zephyr CEO Colin Harrington said: "To date, we have drilled two successful, one-mile horizontal wells utilising different completion technologies and both demonstrated strong deliverability and expanded our completion design options for the greater field development. We have also gathered a substantial amount of data that will help inform future development plans.

"The completion of the CPR is an exciting moment for the company as we seek to advance the Paradox project into full commercial production and secure a project partner."

The updated evaluation by Sproule underscores the Paradox basin's potential as a key onshore oil and gas development in the US Intermountain West, marking a pivotal moment for Zephyr Energy and its stakeholders.

Zephyr secured full funding for the extended lateral well at its Paradox project in December 2024.