Turner Pope Research Note, 6 October 2025
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| Zephyr has released much-anticipated highlights from an updated Competent Person’s Report (‘CPR’) covering its assets in the Paradox Basin, Utah (the ‘Paradox Project’). Compiled by Sproule-ERCE International Limited (‘Sproule’), a leading independent global energy consultancy, it details transformative and substantial increases in Zephyr’s recoverable reserves and resource evaluation; these include no less than a 93-fold increase in Proved Recoverable Reserves from its previous 2022 CPR* , demonstrating the scale and immediate production potential of the Cane Creek reservoir. A 25-fold increase in Proved & Probable Reserves to 35.3m net barrels of oil equivalent (‘boe’), highlights maturation from appraisal towards production and wider Cane Creek reservoir field development, which alone produces an NPV-10 in excess of the Group’s current enterprise value. Net Prospective Resources (unrisked) now amount to 270m boe, (2022: 203m net boe), encompassing major opportunity within as-yet-untested overlying reservoirs. Significantly, today’s CPR assesses only the 20,000 acres (of a total 46,000 acre operated leaseholding) held within the Group’s White Sands Unit (the ‘WSU’) that have been covered by 3D seismic. Having already launched a process to secure partners capable of supporting anticipated funding needs, development and accelerate drilling with a view to maximising value for shareholders, today’s data further validates the considerable scale of the Paradox project. With multiple active counterparts already reviewing information contained in the Group’s data room, completion of the CPR should now enable more formal discussions to get underway. Successful conclusion will result in a significant acceleration of operational development including multiplication of gas processing capacity, therein advancing future cash flows and substantially enhancing the Paradox Project’s NPV-10. * Completed by Sproule- ERCE International Limited 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. |