Zephyr Energy has provided an update on activity in the Paradox Basin, Utah, U.S. (the 'Paradox project'), including the successful completion of the gas pipeline in-line inspection process (the 'ILI'). This allows for the formal commencement of the regulatory approval process required to ship gas on the publicly regulated pipeline connected to Zephyr's leaseholding in the Paradox project.
Further to the Company's announcement on 24 March 2026, a team under the supervision of Enbridge Inc. (the owner and operator of the pipeline that will export gas from the Paradox project) completed a detailed technical evaluation of the results from the ILI on the 20.9 miles of pipeline running from Zephyr's Powerline Road Gas Plant to the Northwest Pipeline operated by Williams Companies, Inc.
Analysis of the ILI results confirmed that the pipeline is structurally sound at the current system operating pressure, with no repairs required and no immediate integrity concerns. To ensure integrity at the uprated operating pressure required to export Zephyr's gas to the Northwest Pipeline, four short sections of pipeline (totalling 25 feet in length) have been identified for visual inspection. Enbridge views such inspections as routine and are not considered a risk to achieving first gas export, even if any section should require a repair.
The completion of the ILI is a vital step in the process of delivering first gas from the Paradox project and has enabled the commencement of the regulatory approval process required to increase pipeline operating pressure and transport gas to the Northwest Pipeline. Zephyr intends to provide an update on the timing to first gas when it receives further guidance from Enbridge on the regulatory approval schedule.
In addition to the initiation of the regulatory approval process, Enbridge has continued other operational activities, including the piping and mechanical upgrades required to transport Zephyr's gas to market. Over the coming weeks, Zephyr and its third-party infrastructure consultants will finalise the design and initial capacity of its gas processing solution. As part of this process, planning for the drilling of additional Paradox project wells is also underway, in conjunction with detailed formal discussions related to asset-level funding opportunities.
Zephyr believes that the successful ILI results will have a further positive impact on the Company's farm-out and hydrocarbon marketing efforts, both of which have advanced significantly over the last few months.
Colin Harrington, Chief Executive of Zephyr, said:
'I am pleased to report the successful completion of the ILI process, a major step to ensure significant new natural gas volumes can be safely transported from our field, and I am looking forward to the follow-on activity including the regulatory approval process required for gas export.
'With the pipeline integrity largely confirmed, we can now finalise our offtake agreements and advance the farm-out process, and will provide updates on these two critical milestones in due course.'
Source: Zephyr Energy
