REG - Zephyr Energy PLC - Further divestment of undeveloped acreage

Zephyr EnergyAnnouncement

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RNS Number : 1724F  Zephyr Energy PLC  21 May 2026

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.

 

 21 May 2026

Zephyr Energy plc

("Zephyr" or the "Company")

 

Further divestment of undeveloped acreage

 

Zephyr Energy plc (AIM: ZPHR) (OTCQB: ZPHRF) is pleased to announce a further
divestment of undeveloped non-core acreage in two separate transactions
generating aggregate gross proceeds of US$2.275 million (subject to closing
adjustments) (collectively, the "Divestment").

 

The 1,837 acres being divested are located in the Powder River Basin in
Wyoming, U.S.  They were acquired by the Company as part of its US$7.3
million acquisition of a portfolio of both proved developed producing wells
and largely undeveloped acreage, the completion of which was announced on 26
August 2025 (the "Acquisition"). The Divestment has an effective date of 1
June 2026, and both transactions are scheduled for completion (including the
payment of consideration to Zephyr) in the week commencing 15 June 2026.

 

The Divestment follows previous disposals of non-core acreage that was also
acquired as part of the Acquisition (as announced by the Company on 30
December 2025 and 24 March 2026).

 

By way of context, the US$7.3 million purchase price of the Acquisition was
determined by the Company primarily based on the producing assets acquired.
However, the transaction also included approximately 6,350 acres of largely
undeveloped, potential development acreage in the Williston, Powder River,
Denver-Julesburg and other Rocky Mountain basins.

 

Since the completion of the Acquisition, and following the completion of the
Divestment, the Acquisition will have:

 

·    Generated total asset sales of circa US$7.0 million (comprised of
US$5.8 million in cash proceeds and the divestment of circa US$1.2 million in
near-term plugging, abandonment and capital liabilities);

 

·    Generated US$1.7 million in revenue from acquired production (through
to 31 December 2025);

 

The Company is currently evaluating options for the remaining undeveloped
acreage acquired and will provide further updates in due course.

 

Colin Harrington, Chief Executive of Zephyr, said:

 

"I am delighted to report on the further generation of value from the
undeveloped acreage acquired as part of the Acquisition. Since the completion
of the US$7.3 million Acquisition in August last year, we have generated over
US$8.7 million in revenues, cash from acreage disposals and from other cost
savings. In doing so we have also retained the vast majority of production
from the transaction, demonstrating the excellent economics of the deal."

 

Contacts

 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

 Guy McDougall / Andy Thacker

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

 Henry Fitzgerald-O'Connor / Charlie Hammond

 Celicourt Communications - PR

 Mark Antelme / Kristina Qevani                                Tel: +44 (0) 20 7770 6424

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 in the Rocky Mountain
region of the United States.

Its flagship operated asset is the 46,000-acre Paradox project in Utah, where
an independent 2025 Competent Persons Report by Sproule International
confirmed 2P reserves of 35.3 million barrels of oil equivalent ("boe") and
total recoverable resources of 74.2 million boe.

Zephyr also holds a portfolio of non-operated production interests across the
Williston and other Rocky Mountain basins, supported by a US$100 million
strategic partnership designed to accelerate growth and enhance cash flow.

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