Turner Pope Research Note, 24 March 2026
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| Zephyr has released a positive operational update detailing further progress in the Paradox Basin as it progresses towards delivering first commercial production, a sizeable increase in Q4 2025 production from the Group’s non-operated portfolio and further divestment of non-core acreage. Given the recent strength of the western US gas markets, Zephyr has been encouraged by interest received to date from potential partners, being already in receipt of indicative non-binding proposals which could potentially provide hydrocarbon marketing solutions and funding for additional drilling. Chief Executive Officer, Colin Harrington, notes that further updates on the farm-out process and ongoing gas offtake discussions, potentially identifying joint-venture partner(s) capable of supporting projected funding needs, creating opportunity through accelerated drilling programmes and maximising value for shareholders, will be provided in due course. Being an obvious beneficiary of higher oil prices and with just 33% of the next twelve months non-operated oil production presently hedged, the Board is also monitoring global events closely in order to be responsive to further portfolio management/hedging activity as opportunities arise. Based on this, 2026 looks set to deliver Zephyr’s next significant phase of growth. We would draw your attention to the various disclaimers in the document both at the beginning and at the end of the note. Retail clients (as defined by the rules of the FCA) must not rely on the research document. In particular you should note that the research document is a non-independent marketing communication. The analyst who has prepared the research is aware that TPI provides research to Zephyr Energy plc. Accordingly the research has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibitions on dealing ahead of its dissemination. The information in the document is published solely for information purposes and is not to be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. The material contained in the document is general information intended for recipients who understand the risks associated with equity investment in smaller companies. It does not constitute a personal recommendation as defined by the FCA or take into account the particular investment objectives, financial situation or needs of individual investors nor provide any indication as to whether an investment, a course of action or the associated risks are suitable for the recipient. |