Zephyr Energy plc (AIM: ZPHR) (OTCQB: ZPHRF) reports its unaudited interim results for the six months ended 30 June 2025 ("H1 2025").
Colin Harrington, Chief Executive of Zephyr, said:
"During H1 2025, and in the period since, we have continued to invest significant resources into the development of our flagship operated project in the Paradox Basin, Utah, U.S. (the "Paradox project") primarily through drilling operations on the State 36-2 LNW-CC-R well (the "State 36-2R well") which were successfully delivered and without any health, safety or environmental issues. The production test demonstrated the considerable scale and potential of the Paradox project and reaffirmed that the Cane Creek reservoir can be developed in a highly productive manner, on par with some of the leading oil and gas plays in the U.S.
"Since the completion of drilling operations, as we move closer towards first commercial production from the Paradox project, our focus has shifted to advancing the design, engineering and contractual agreements required to enable access to gas export markets through the nearby third-party pipeline. In parallel, we are advancing structured discussions with potential industry and financial partners to accelerate further drilling activity at the Paradox project. We expect substantial progress in these two key areas in the coming months, allowing the Company to unlock the considerable potential value of the Paradox project.
"Our investment in the Paradox project is supported by our strategy of generating cashflow from our non-operated portfolio in the Williston Basin, North Dakota and Montana, U.S. (the "Williston project"), which is intended to fully fund all general and administrative ("G&A") costs, and which allows for continued investment in our asset portfolio.
"We also remain focused on opportunistically growing our non-operated portfolio, and I was delighted that we recently completed the acquisition of working interests in accretive, mature proved developed producing ("PDP") assets in core Rocky Mountain basins, U.S. (the "Acquisition"). In addition to the PDP assets, the Acquisition included attractive near-term proven undeveloped ("PUD") upside and additional acreage with longer-term potential for future development, providing us with the opportunity to execute the first transactions through Zephyr Hawk LLC, our US$100 million strategic partnership with a U.S based capital provider.
"Our progress would not be possible without the support of our stakeholders. I would like to thank our shareholders for their continued trust in the Company and their support in the equity raise that was announced in June 2025. I would also like to extend my sincere thanks to our debt provider, First International Bank and Trust ("FIBT"), with which we continue to have an excellent working relationship, and which has just completed its valuation of the Company's non-operated portfolio reaffirming our current borrowing base.
"We look forward to the coming months with confidence as we continue to open-up the next prolific oil and gas basin in the U.S., and we look forward to providing regular updates as we advance through the next phase of our development including the imminent publication of an updated third-party Competent Persons Report ("CPR") on the Paradox project."