Zephyr Energy has provided initial hydrocarbon production results for the first quarter of 2026 from the Company's non-operated asset 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).
- Q1 production totals exceeded management's forecast and reflects the expected natural decline rates of the portfolio.
- 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.'
Source: Zephyr Energy
