Turner Pope Research Note, 20 November 2025
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| Zephyr has released an update regarding steps toward the pivotal moment of first production from its project in the Paradox Basin, Utah (the ‘Paradox project’), while also confirming renewal of the Group’s existing borrowing facilities. A separate, additional US$2m term loan has also been secured essentially as a ‘war chest’ to ensure it is positioned to act rapidly now that the Group has nominated significant new contiguous acreage for federal auction in the near term. Following publication of highlights from an updated Competent Person’s Report (‘CPR’) on 6 October 2025, which detailed a significant upgrade in Group reserves and resources, operational focus has turned to tying-in the three previously drilled Paradox project wells to nearby pipeline infrastructure. The Board expects to provide an updated timeline on steps to first gas production in the coming weeks and is presently also in the latter stages of selecting a marketing partner for its natural gas and associated hydrocarbon volumes. Meanwhile, with multiple active counterparts reviewing updated information in the Group’s data room, the Board continues to vigorously pursue ongoing discussions with potential farm-in/joint-venture partners capable of supporting the Paradox project’s anticipated funding needs, including value delivery and accelerated drilling programmes with a view to maximising value for shareholders. Successful conclusion can be expected to significantly increase production, including multiplication of gas processing capacity, therein substantially advancing future cash flows and enhancing the Paradox Project’s NPV-10. 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. |