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9 October 2025

Zephyr Energy plc

("Zephyr" or the "Company")

Initial investments approved under US$100m strategic partnership

Zephyr Energy plc (AIM: ZPHR) (OTCQB: ZPHRF) is pleased to announce the approval of the initial investments under its US$100m strategic partnership with a U.S.-based capital provider (the "Investor") to fund growth in the Company's non-operated asset portfolio.

The key details of the agreement under the strategic partnership  (the "Agreement") were announced by the Company on 13 May 2025, and under the terms of the Agreement, Zephyr will acquire assets and the Investor will make available up to US$100 million to fund 100% of the capital expenditure ("CAPEX") related to the drilling, completing and equipping of those assets.

As announced on 26 August 2025, the Company recently completed the US$7.3 million acquisition of working-interests in core U.S. Rocky Mountain basins (the "Acquisition"). In addition to the purchase of existing producing assets, the Acquisition also included undeveloped acreage on which Zephyr expects significant future drilling activity.

The initial, non-operated working interests contributed under the Agreement are made up of 13 newly drilled wells (the "initial wells") located in the U.S. Rocky Mountains. The Investor will fund 100% of the CAPEX in the initial wells.  Total CAPEX, net to the Investor, is expected to be approximately US$2.5 million, with no further financial commitment from Zephyr.

Once the Investor has achieved its threshold return on the initial wells, the Company expects that the interests will deliver future life of well undiscounted cashflows, net to Zephyr, of circa US$1.8 million. The Company has used its 100% owned acquisition vehicle, Zephyr Hawk LLC, to complete this transaction.

The strategic partnership with the Investor was formed to enable Zephyr to capitalise on a robust pipeline of non-operated investment opportunities across the Rocky Mountains, and the Company expects this to be the first of many such investments. The combination of Zephyr's deep regional expertise with the Investor's financial strength was designed to accelerate the Company's non‑operated growth, enhance consolidated cash flow, and drive attractive returns for all stakeholders.

Colin Harrington, Zephyr's Chief Executive, said:

"We are delighted to announce the approval of the initial investments under the Agreement, and we believe that these will be the first of many, with additional similar investments already in our existing asset base.

"Our goal is to drive additional, non-dilutive cash flow growth across our non-operated portfolio, and we look forward to securing further accretive opportunities in due course."

Notes to Editors

Zephyr Energy plc (AIM: ZPHR) (OTCQB: ZPHRF) is a technology-led oil and gas company focused on responsible resource development 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 46,000-acre leaseholding located in the Paradox Basin, Utah.

In addition to its operated assets, the Company owns working interests in a broad portfolio of non-operated producing wells in core Rocky mountain basins. 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.