Prior to publication, the information contained within this announcement was deemed by the Company to constitute inside information as stipulated under the UK Market Abuse Regulation. With the publication of this announcement, this information is now considered to be in the public domain.

11 March 2024

Zephyr Energy plc

("Zephyr" or the "Company")

Paradox project update;

Drilling expected to commence in mid-April

Zephyr Energy plc (AIM: ZPHR) (OTCQB: ZPHRF), the Rocky Mountain oil and gas company focused on responsible resource development from carbon-neutral operations, is pleased to provide an update on its operated project in the Paradox Basin, Utah, U.S. (the "Paradox project").

Zephyr continues to progress planning for the forthcoming redrill of the State 36-2 well (the "State 36-2R well"). The Company retains full well control insurance and expects to recover a substantial majority of the costs associated with the redrill.

At the well pad, all surface hole location preparations have been completed to enable rig mobilisation.

The Company plans to mobilise a spudder rig to the well pad over the next two weeks to drill and set conductor pipe and once these operations are complete, the location will be ready to accept a drilling rig in early April. 

The Company is in the final stages of execution of a rig contract with the intent to begin full drilling operations in mid-April 2024.

In addition, Zephyr has now received vendor bids for substantially all remaining well services, and has sourced all casing and long lead items required for the well.  As previously reported the Company has received all regulatory approvals required to proceed with the spud of the well.

Colin Harrington, Zephyr's CEO, commented: 

"We are looking forward to commencing drilling operations on the 36-2R well.  After a highly intensive period of planning, preparation, and vendor selection, we are confident the next few months offer significant potential for the Company and will keep the market updated as drilling commences and progresses."

Contacts :

Notes to Editors

Zephyr Energy plc (AIM: ZPHR) (OTCQB: ZPHRF) is a technology-led oil and gas company focused on responsible resource development from carbon-neutral operations in the Rocky Mountain region of the United States. The Company's mission is rooted in two core values: to be responsible stewards of its investors' capital, and to be responsible stewards of the environment in which it works.

Zephyr's flagship asset is an operated lease holding of over 46,000 gross acres located in the Paradox Basin, Utah, 25,000 acres of which has been assessed to hold, net to Zephyr, 2P reserves of 2.6 million barrels of oil equivalent ("mmboe"), 2C resources of 34 mmboe and 2U resources 270 mmboe.

In addition to its operated assets, the Company owns working interests in a broad portfolio of non-operated producing wells across the Williston Basin in North Dakota and Montana. Cash flow from the Williston production will be used to fund the planned Paradox Basin development. In addition, the Board will consider further opportunistic value-accretive acquisitions.