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.

31 May 2024

Zephyr Energy plc

("Zephyr" or the "Company")

First Quarter 2024 production results from the Williston Basin portfolio

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 initial first quarter 2024 ("Q1") results related to hydrocarbon production from its non-operated asset portfolio in the Williston Basin, North Dakota, U.S (the "Williston project").

·    Q1 production averaged 1,151 barrels of oil equivalent per day ("boepd") compared to production in the fourth quarter of 2023 ("Q4") of 1,053 boepd, representing an increase of nine per cent quarter on quarter.

o  While production from the six wells operated by Slawson Exploration Company (the "Slawson wells") was temporarily shut-in over the winter months due to adverse weather conditions and infrastructure constraints, production from the wells resumed in late January 2024.

o  The average daily production rate from the portfolio in March 2024 was 1,212 boepd reflecting the impact from the Slawson wells being online, albeit not at full capacity as the wells were partially curtailed due to lingering infrastructure constraints.

o  Q1 production rates from the remainder of the portfolio were in line with management expectations.

·    At 31 March 2024, 230 wells in Zephyr's portfolio were available for production (versus 225 wells at the end of Q4).

·    Net working interests across the Zephyr portfolio now average 7.1 per cent per well (equivalent to 16.3 net wells).

·    During February 2024, ten wells in which Zephyr holds working interests and which are operated by Continental Resources (Harms Federal and Quale Federal) were placed in production. Early production data shows these wells performing ahead of management expectations, adding initial production rates, net to Zephyr, of circa 75 boepd.

·    The Company hedged 27,000 barrels of oil over Q1 at a weighted-average price of US$82.20 per barrel.  The Company will continue to evaluate its commodity price risk management strategy on a regular basis.

·    The Company has also hedged a total of 76,000 barrels of oil for the remainder of the year. 40,500 barrels are hedged at a price of US$80.91 and the remainder have been hedged by way of financial collars which enable the Company to lock-in a minimum price for these barrels. Of the 35,500 financial collars, 26,600 will give the Company a minimum price of US$74 per barrel of oil with the remaining 9,000 guaranteeing a floor price in US$69 per barrel of oil.

·    The Company will report sales and revenue results on a semi-annual basis to coincide with its financial reporting requirements.

Contacts

Qualified Person

 Dr Gregor Maxwell, BSc Hons. Geology and Petroleum Geology, PhD, Technical Adviser to the Board of Zephyr Energy plc, who meets the criteria of a qualified person under the AIM Note for Mining and Oil & Gas Companies - June 2009, has reviewed and approved the technical information contained within this announcement.

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 46,000-acre leaseholding 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.