Q2 non-operated production

Prior to publication, the information contained within this announcement was deemed by the Company to constitute inside information as stipulated under the UK Market Abuse Regulation. With the publication of this announcement, this information is now considered to be in the public domain.

 23 September 2026

Zephyr Energy plc

("Zephyr" or the "Company")

Non-operated portfolio update:

Q2 non-operated production; and

Borrowing base reaffirmed

Zephyr Energy plc (AIM: ZPHR) is pleased to provide initial hydrocarbon production results for the second quarter of 2026 (“Q2”) from the Company’s non-operated asset portfolio (the “portfolio”).

• Q2 production averaged 914 barrels of oil equivalent per day ("boepd"), net to Zephyr, versus first quarter 2026 average production of 918 boepd and second quarter 2025 average production of 632 boepd.
  • Q2 production totals exceeded management’s forecast.
  • Q2 production averaged 69% oil (by volume).

• At 30 June 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 Q2, the Company hedged a total of 27,000 barrels of oil (circa 32% of the quarter’s oil production) at a weighted average price of US$65.91 per barrel of oil. 

• The portfolio delivered strong cash flow to the Company in Q2 due to greater-than-expected production levels and higher than anticipated commodity prices during the period.

• The Company will report revenues from the non-operated portfolio as part of its unaudited interim financial statements for the six months ended 30 June 2026, which are expected to be published by 30 September 2026.

Semi-annual redetermination of Zephyr’s borrowing base completed

In September 2026, the Group's senior lender (First International Bank & Trust or "FIBT") completed its semi-annual valuation of the Company's non-operated portfolio, which estimated the current value of the Group's non-operated production base at US$43 million and re-affirmed the level of Zephyr's existing borrowing facilities with the bank.

Zephyr's current borrowings with FIBT are approximately US$19.9 million, compared with US$35.3 million in January 2024 and US$22.1 million in November 2025 (the dates of the previous bank redetermination).

FIBT's policy is to lend up to 50% of its independent PV-10 valuation of Zephyr's proved developing producing ("PDP") assets, all of which currently reside in the Company's non-operated asset portfolio. 

In addition to the non-operated PDP assets, the Company holds significant non-operated proved undeveloped ("PUD") reserves in the Powder River (WY) and Williston (ND and MT) Basins.  In Q2, these undeveloped interests generated additional drilling opportunities, including interests in four new Powder River wells drilled by Chord Energy in which Zephyr participated using existing cash resources.

The new wells are located on acreage acquired in 2025 as part of the Company’s US$7.3 million acquisition of working interests in production and development assets situated in core U.S. Rocky Mountain basins.

Colin Harrington, Zephyr's Chief Executive, said:

"I am pleased to report on the ongoing growth in our non-operated production portfolio which continues to deliver strong cashflow for Zephyr.

“I would also like to thank FIBT for their continued support of Zephyr. FIBT has been an excellent partner for the Company as we further develop our non-operated portfolio. 

“Our non-operated cash flows provide an excellent foundation for growth, generating excess capital capable of supporting our operated project in the Paradox Basin, Utah, U.S.  This two-tiered strategy (non-operated investment returns designed to sustain corporate costs and deliver outsized growth potential in the Paradox Basin) continues to be key to our corporate strategy.”

Extension of warrant exercise period

On 26 January 2022, the Company announced that, in connection with a £12 million equity fundraise, it would issue warrants to subscribe for new ordinary shares of 0.1 pence each in the Company ("Ordinary Shares") (together the "Warrants"). In February 2022, the Company issued 89,566,666 Warrants. The Warrants are exercisable at a price of 7.5p ("Exercise Price") per new Ordinary Share and were initially issued for a period of three years from the date of issue and were due to expire on 11 February 2025.

On 3 December 2024 the Company announced that, following agreement with the holders of the Warrants, the Company’s board of directors (the “Board”) had extended the expiry date of the Warrants from 11 February 2025 to 30 September 2026.

The Warrants remain unexercised, and the Board has now agreed to further extend the expiry date of the Warrants by a further twelve months to 30 September 2027.

All other terms of the Warrants, including the Exercise Price, remain unchanged. The Exercise Price represents a 150% premium to Zephyr's mid-market closing price on the last trading day before this announcement.

No Board members hold the Warrants.

In the event that all Warrants are exercised, cash proceeds of £6.7 million will be generated for the Company.

 Contacts

Qualified Person

Dr Gregor Maxwell, BSc Hons. Geology and Petroleum Geology, PhD, Technical Adviser to the Board of Zephyr Energy plc, who meets the criteria of a qualified person under the AIM Note for Mining and Oil & Gas Companies - June 2009, has reviewed and approved the technical information contained within this announcement.

Notes to Editors

Zephyr Energy plc (AIM: ZPHR)) is a technology-led oil and gas company focused on responsible resource development in the Rocky Mountain region of the United States.

Its flagship operated asset is the circa 70,000-acre Paradox project in Utah. An independent 2025 Competent Persons Report by Sproule International of the Company’s White Sands Unit (20,000 acres) confirmed 2P reserves of 35.3 million barrels of oil equivalent (“boe”) and total recoverable resources of 74.2 million boe within the White Sands Unit.

Zephyr also holds a portfolio of non-operated production interests across the Williston and other Rocky Mountain basins, supported by a US$100 million strategic partnership designed to accelerate growth and enhance cash flow.