Zephyr Energy PLC (AIM:ZPHR) Award of Federal Drilling Permits

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 announce that, further to the Company’s announcement on 24 October 2022.

It has received approval of its Application for Permit to Drill (“APD”) from the U.S. Bureau of Land Management (the “BLM”), the final regulatory approval required to spud the State 36-2 LNW-CC well on its project in the Paradox Basin, Utah, U.S. (the “Paradox project”). Zephyr simultaneously received approval of its APD for theState 36-3 LN-C9 exploration well, which has been permitted to target the shallower C9 reservoir and which is planned to be drilled from the same well pad.

The State 36-2 LNW-CC well is fully-funded and will target the Cane Creek reservoir. Drilling is planned to a total depth at 20,456 feet measured depth (9,598 feet true vertical depth) incorporating a 10,346 feet horizontal reservoir section. The well’s objective is to further delineate the Cane Creek reservoir beyond the productive State 16-2 LN-CC well and the nearby Federal 28-11 well (which was recently acquired by Zephyr and is currently shut-in due to infrastructure constraints – details of which were announced by the Company on 14 September 2022).

In parallel with the permitting process, Zephyr has completed all road and site preparation work at the well-site in order to spud the well as soon as possible following the execution of a rig contract. The Company is in the process of finalising a rig contract, and will update the market on the expected timeline for the spud of the well upon award of the contract. The timeline for drilling two additional wells (the State 36-3 LN-C9 exploration well and the non-operated Kirkwood Oil & Gas well targeting the oil-prone Cane Creek reservoir near the Cane Creek Field) will be determined after the State 36-2 LNW-CC has been drilled, factoring in infrastructure capacity and rig availability.

Colin Harrington, Zephyr’s Chief Executive, said:

“We are delighted to have cleared the final regulatory hurdle for the spud of the 36-2 LNW-CC well and are close to finalising the rig contract. Once the rig contract is awarded, Zephyr will recommence its Paradox drilling activity which we believe will be a major step forward in our efforts to unlock what may be substantial potential across our 45,000 acres of Paradox Basin holdings.

“We look forward to sharing further updates on the drilling programme, including expected completion and testing schedules, once the rig contract has been awarded.

” As we embark on this potentially transformational drilling programme, I would like to reiterate that our mission, as always, is to be responsible stewards of investors’ capital while also being responsible stewards of the environment.”


Zephyr Energy plc

Colin Harrington (CEO)

Chris Eadie (CFO)

Tel: +44 (0)20 7225 4590

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