Business
Q1 non-operated production
Zephyr Energy plc reported first quarter 2026 non-operated production averaged 918 barrels of oil equivalent per day, exceeding forecasts despite natural decline, with 71% being oil. The company's portfolio, diversified across multiple states and operators, generated strong cash flow in Q1, boosted by higher commodity prices and a US$1 million bad debt recovery. Additionally, Zephyr has extended the expiry date of broker warrants and contractor warrants from June 12, 2026, to June 12, 2027, with all other terms remaining unchanged. Disclaimer*
About this update from Zephyr Energy Plc
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. 11 June 2026 Zephyr Energy plc ("Zephyr" or the "Company") Q1 non-operated production Zephyr Energy plc (AIM: ZPHR) (OTCQB: ZPHRF) is pleased to provide initial hydrocarbon production results for the first quarter of 2026 ("Q1") from the Company's non-operated asset portfolio (the "portfolio"). · Q1 production averaged 918 barrels of oil equivalent per day ("boepd"), net to Zephyr (versus average production in the fourth quarter of 2025 ("Q4") of 983 boepd). o Q1 production totals exceeded management's forecast and reflects the expected natural decline rates of the portfolio. o Q1 production was 71% oil. · At 31 March 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 Q1, the Company was hedged for a total of 8,000 barrels of oil (circa 14% of the quarter's production) at a weighted average price of US$64.25 per barrel of oil. · The portfolio delivered strong cash flow to the Company in Q1 due to higher-than-expected production levels and higher commodity prices in Q1 compared to Q4. In addition, the Company recovered a US$1 million bad debt from a working interest owner. The amount was written off in 2024 (and was disclosed in the Company's 2024 Annual Report). Colin Harrington, Zephyr's Chief Executive, said: "I am pleased to report on the ongoing strength of our non-operated production portfolio. "The quarter's robust production levels combined with our recent opportunistic undeveloped acreage disposals and strong commodity prices provided considerable resources to the Company which can be recycled back into the Paradox project. "We continue to monitor global events closely and will be respons...