State 16-2LN-CC rig mobilisation

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.

5 July 2021

Zephyr Energy plc

(the "Company" or "Zephyr")

State 16-2LN-CC rig mobilisation

Zephyr Energy plc (AIM: ZPHR), the Rocky Mountain oil and gas company focused on responsible resource development and carbon-neutral operations, provides an update on its flagship project in the Paradox Basin, Utah, U.S.A. (the "Paradox project" or the "project").

On 28 June 2021, Zephyr announced the signing of a drilling contract with Cyclone Drilling Inc. ("Cyclone") in order to secure Cyclone Rig #34 for the purpose of drilling the State 16-2LN-CC appraisal well.  Last winter, the same rig successfully and safely drilled Zephyr's State 16-2 vertical well to a total depth of 9,745 feet in less than 19 days, a record performance versus historical drilling in the northern part of the Paradox Basin.  Rig #34 is fully capable of drilling to the planned depths and pressures that are expected at the State 16-2LN-CC well.

Zephyr is pleased to announce that Cyclone plans to commence mobilisation of Rig #34 to the State 16-2LN-CC well site today.

Once on site in the coming days, the equipment will be rigged up over a period of a week in preparation for drilling, and Zephyr remains on track to spud the well before the end of July.  Drilling is expected to take approximately 20 days following spud.  Further updates will be provided in due course.

Colin Harrington, Zephyr's Chief Executive, said "I am delighted that the pieces are coming together for our forthcoming drilling programme, enabling us to commence drilling in line with our forecast timetable.  With permitting and site preparation completed and rig mobilisation now commencing, we are in full countdown mode ahead of this highly anticipated drilling effort.

"Our key objectives are to drill a safe, responsible and successful well, and I'd like to thank our technical team and contractors for their meticulous preparation in helping us deliver on these objectives."

For further information please visit https://www.zephyrplc.com/ or contact: