Zephyr Energy has announced the Group's audited results for the year ended 31 December 2025.
Rick Grant, Zephyr's Non-Executive Chairman, said:
On behalf of the Company's board of directors (the 'Board'), I am pleased to share the Company's results for the 2025 financial year, a period of significant progress as the Company prepares to unlock what we believe to be the next prolific onshore oil and gas play in the United States (the 'U.S.'). The results reflect the ongoing effort and commitment of the Zephyr team who have been building a Company of which all stakeholders can be proud.
During the period we continued to deliver on our dual strategy of building an income generating non-operated asset portfolio in the Rocky Mountain region of the U.S. (the "non-operated portfolio") in parallel with the pursuit of increased value through the successful development of our operated project in the Paradox Basin, Utah, U.S. (the 'Paradox project').
Operational progress in 2025 was demonstrated by the drilling and excellent production test results from the State 36-2 LNW-CC-R well (the "State 36-2R well"), which achieved a peak flow rate of 2,848 barrels of oil equivalent per day ("boepd") with no material drop in bottom hole pressure, and without the use of any fracture stimulation, suggesting that the well ranks in the top 6% of gas wells across the Lower 48 U.S. states.
The State 36-2R well performance formed a core basis for the updated Competent Person's Report ("CPR"), independently prepared by Sproule-ERCE International Limited ("Sproule"), which was published in October 2025, and which demonstrates the progress made at the Paradox project through our successful ongoing operations.
It is an exciting time on the Paradox project as we push to deliver first commercial production. We continue to advance the project's development, through our infrastructure build out and by expanding our acreage position. We also continue with our farm-out and gas marketing negotiations and expect considerable newsflow in the coming weeks.
On the non-operated portfolio, we completed the US$7.3 million acquisition during the year, which consisted of working interests in production assets across core Rocky Mountain basins ("Acquisition"). The Acquisition was accretive to both earnings and reserves, strengthened the Group's balance sheet, provided strategic entry into key areas of interest and enhanced our competitive position within core Rocky Mountain basins.
As part of our ongoing portfolio management, we also completed multiple cash-generative divestments of non-core, non-producing acreage obtained in conjunction with the Acquisition. Since completion of the Acquisition, we have generated circa US$7.0 million in total consideration from these divestments with no material impact to current production, and we continue to evaluate options for the remaining undeveloped acreage.
In addition, we announced a US$100 million strategic partnership with a major U.S.-based capital provider focused on the energy sector. The combination of Zephyr's regional expertise and the investor's financial strength is designed to accelerate the Group's non-operated growth, enhance consolidated cashflow and drive attractive project returns. The first transaction under the partnership was announced in October 2025, and we continue to evaluate additional assets for inclusion.
I would like to express my appreciation to our team for their dedication in helping us deliver on our vision. My thanks also go to my fellow Board members, the leadership team, our advisers and, above all, our shareholders for their continued trust and support.
The Board looks forward to the coming months with confidence, as we continue in our pursuit of opening-up the next prolific oil and gas basin in the U.S."
A copy of the Company's annual report and accounts, and the notice of AGM, will shortly be available on Zephyr's website, http://www.zephyrplc.com
Source: Zephyr Energy
