REG - Zephyr Energy PLC - Initial investments under US$100m partnership

Zephyr EnergyAnnouncement

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RNS Number : 6465C  Zephyr Energy PLC  09 October 2025

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.

 

9 October 2025

Zephyr Energy plc

("Zephyr" or the "Company")

 

Initial investments approved under US$100m strategic partnership

 

Zephyr Energy plc (AIM: ZPHR) (OTCQB: ZPHRF) is pleased to announce the
approval of the initial investments under its US$100m strategic partnership
with a U.S.-based capital provider (the "Investor") to fund growth in the
Company's non-operated asset portfolio.

 

The key details of the agreement under the strategic partnership  (the
"Agreement") were announced by the Company on 13 May 2025, and under the terms
of the Agreement, Zephyr will acquire assets and the Investor will make
available up to US$100 million to fund 100% of the capital expenditure
("CAPEX") related to the drilling, completing and equipping of those assets.

 

As announced on 26 August 2025, the Company recently completed the US$7.3
million acquisition of working-interests in core U.S. Rocky Mountain basins
(the "Acquisition"). In addition to the purchase of existing producing assets,
the Acquisition also included undeveloped acreage on which Zephyr expects
significant future drilling activity.

 

The initial, non-operated working interests contributed under the Agreement
are made up of 13 newly drilled wells (the "initial wells") located in the
U.S. Rocky Mountains. The Investor will fund 100% of the CAPEX in the initial
wells.  Total CAPEX, net to the Investor, is expected to be approximately
US$2.5 million, with no further financial commitment from Zephyr.

 

Once the Investor has achieved its threshold return on the initial wells, the
Company expects that the interests will deliver future life of well
undiscounted cashflows, net to Zephyr, of circa US$1.8 million. The Company
has used its 100% owned acquisition vehicle, Zephyr Hawk LLC, to complete this
transaction.

 

The strategic partnership with the Investor was formed to enable Zephyr to
capitalise on a robust pipeline of non-operated investment opportunities
across the Rocky Mountains, and the Company expects this to be the first of
many such investments. The combination of Zephyr's deep regional expertise
with the Investor's financial strength was designed to accelerate the
Company's non‑operated growth, enhance consolidated cash flow, and drive
attractive returns for all stakeholders.

 

Colin Harrington, Zephyr's Chief Executive, said:

 

"We are delighted to announce the approval of the initial investments under
the Agreement, and we believe that these will be the first of many, with
additional similar investments already in our existing asset base.

 

"Our goal is to drive additional, non-dilutive cash flow growth across our
non-operated portfolio, and we look forward to securing further accretive
opportunities in due course."

 

 

 

 Zephyr Energy plc                                              Tel: +44 (0)20 3475 4389

 Colin Harrington (CEO)

 Chris Eadie (Group Finance Director and Company Secretary)

 Allenby Capital Limited - AIM Nominated Adviser                Tel: +44 (0)20 3328 5656

 Jeremy Porter / Vivek Bhardwaj

 Turner Pope Investments - Joint Broker                         Tel: +44 (0)20 3657 0050

 James Pope / Andy Thacker

 Canaccord Genuity Limited - Joint Broker                      Tel: +44 (0)20 7523 8000

 Henry Fitzgerald-O'Connor / Charlie Hammond

 Celicourt Communications - PR

 Mark Antelme / Ali AlQahtani                                  Tel: +44 (0) 20 7770 6424

 

Notes to Editors

Zephyr Energy plc (AIM: ZPHR) (OTCQB: ZPHRF) is a technology-led oil and
gas company focused on responsible resource development 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.

 

In addition to its operated assets, the Company owns working interests in a
broad portfolio of non-operated producing wells in core Rocky mountain
basins. 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.

 

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