REG - Zephyr Energy PLC - Q1 non-operated production

Zephyr EnergyAnnouncement

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RNS Number : 8470H  Zephyr Energy PLC  11 June 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.

 

 11 June 2026

Zephyr Energy plc

("Zephyr" or the "Company")

 

Q1 non-operated production

 

Zephyr Energy plc (AIM: ZPHR) (OTCQB: ZPHRF) is pleased to provide initial
hydrocarbon production results for the first quarter of 2026 ("Q1") from the
Company's non-operated asset portfolio (the "portfolio").

·    Q1 production averaged 918 barrels of oil equivalent per day
("boepd"), net to Zephyr (versus average production in the fourth quarter of
2025 ("Q4") of 983 boepd).

o  Q1 production totals exceeded management's forecast and reflects the
expected natural decline rates of the portfolio.

o  Q1 production was 71% oil.

 

·    At 31 March 2026, the portfolio consisted of interests in over 600
gross wells (or approximately 30 net wells) available for production.

 

·    The portfolio now consists of well and acreage interests in Utah,
Colorado, Wyoming, Montana and North Dakota, providing strong production
diversity and lowered risk across multiple operators and basins.

 

·    During Q1, the Company was hedged for a total of 8,000 barrels of oil
(circa 14% of the quarter's production) at a weighted average price
of US$64.25 per barrel of oil.

 

·    The portfolio delivered strong cash flow to the Company in Q1 due to
higher-than-expected production levels and higher commodity prices in Q1
compared to Q4. In addition, the Company recovered a US$1 million bad debt
from a working interest owner. The amount was written off in 2024 (and was
disclosed in the Company's 2024 Annual Report).

 

Colin Harrington, Zephyr's Chief Executive, said:

 

"I am pleased to report on the ongoing strength of our non-operated production
portfolio.

 

"The quarter's robust production levels combined with our recent opportunistic
undeveloped acreage disposals and strong commodity prices provided
considerable resources to the Company which can be recycled back into the
Paradox project.

 

"We continue to monitor global events closely and will be responsive with
regard to further portfolio management and hedging activity as opportunities
arise."

 

 

Extension of warrants

 

Zephyr announces the following changes to warrants previously issued by the
Company:

 

·    On 6 June 2023, the Company announced that it had issued its broker,
Turner Pope Investments ("TPI"), warrants to subscribe for up to 10,388,571
new ordinary shares of 0.1 pence each in the share capital of the Company
(the "broker warrants").

 

The broker warrants were issued as part of TPI's fees for work undertaken in
relation to the Company's placing of ordinary shares announced at the time.
The broker warrants are exercisable at a price of 4.375p per new ordinary
share and are valid until 12 June 2026. Zephyr's board of directors has now
agreed to extend the expiry date of these warrants to 12 June 2027. All other
terms of the broker warrants remain unchanged.

 

·    On 10 April 2024 the Company announced that it had issued warrants to
a third-party contractor (in lieu of services provided) enabling the
contractor to acquire up to 2,597,143 new ordinary shares of 0.1 pence each in
the Company at a price of 4.375p per new Ordinary Share. The warrants are
valid until 12 June 2026. Zephyr's board of directors has now agreed to
extend the expiry date of these warrants to 12 June 2027. All other terms of
the warrants remain unchanged.

 

 

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

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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