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8 November 2022

Zephyr Energy plc

("Zephyr" or the "Company")

Award of rig contract to CWC Ironhand Drilling

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 the signing of a rig contract with CWC Ironhand Drilling ("CWC") for its Ironhand Rig 118 ("Rig 118") to be used to drill the Company's State 36-2 LNW-CC well, the first of three wells designed to further delineate Zephyr's acreage position on its project in the Paradox Basin, Utah, U.S.

Rig 118 will mobilise to site over the coming days, with the well expected to spud in the second half of this month.  In the interim, the Company expects to set the conductor casing ahead of rig arrival prior to the commencement of the greater drilling operation.

Colin Harrington, Zephyr's Chief Executive, said:

"Following the recent final permit award, Zephyr's operational team moved quickly to secure the rig contract with CWC.  We are pleased with the operational momentum and look forward to getting the drilling campaign underway this month. 

"We look forward to keeping investors informed as operations progress at the well site."

Contacts

Notes to Editors

Zephyr Energy plc (AIM: ZPHR) (OTCQB: ZPHRF) is a technology-led oil and gas company focused on responsible resource development from carbon-neutral operations in the Rocky Mountain region of the United States.  The Company's mission is rooted in two core values: to be responsible stewards of its investors' capital, and to be responsible stewards of the environment in which it works.

Zephyr's flagship asset is an operated 45,000-acre leaseholding located in the Paradox Basin, Utah, 25,000 acres of which has been assessed by third party consultants Sproule International to hold, net to Zephyr, 2P reserves of 2.1 million barrels of oil equivalent ("mmboe"), 2C resources of 27 mmboe and 2U resources 203 mmboe. Following the successful initial production testing of the recently drilled and completed State 16-2LN-CC well, Zephyr has planned a three well drilling program commencing in 2022 to further delineate the scale and value of the project.

In addition to its operated assets, the Company owns working interests in a broad portfolio of non-operated producing wells across the Williston Basin in North Dakota and Montana. 

The Williston portfolio currently consists of working-interests in over 200 modern horizontal wells which are expected to provide US$35-40 million of revenue, net to Zephyr, in 2022.  Cash flow from the Williston production will be used to fund the planned Paradox Basin development. In addition, the Board will consider further opportunistic value-accretive acquisitions.