Member Info for Adon30

At present there is no producing infrastructure. Unlike the Permian. So massively reflected in the price. Add in a $50m plant and the price skyrockets.

Even so land in the south was still going over $40 an acre. Zephyr landed lucky on a few and got it cheap.

So #188 R&R Royalty Ltd either outbid Zephyr or bid them up on several of the leaseholds. Not sure what they are trying to achieve as Zephyr has access to the pipeline at the gas plant. So it looks like Zephyr has done the years of hard work developing drill techniques and R&R plan to drill wells in the area in a similar manner. Question is, how are they planning to sell any gas. Or have they managed to get acerage that Zphyr need to be able to get gas to their plant using existing infrastructure. All seems a very interesting game.

Page 11. You can see the ruby pipeline connects to northwest pipeline.

https://le.utah.gov/interim/2021/pdf/00004134.pdf

Even if Zphr weren’t to supply gas directly to this data centre. The effect of such a large energy consumer being dropped into the area it would divert resource away from everything else in the area and that vacuum of energy would need to be filled. As listed by Zphr there are a large number of large energy consumers coming on line over the next few years in the area.

Another piece of good news from Zephyr today as the company reports production from its non-operated portfolio, which despite a small drop, understandably attributed to natural decline, showed excellent revenues as the 71% of production mix being in oil benefited from strong realisations and exceeded expectations.

The company have been a market leader in this innovative financing of its wider portfolio funding requirements and in addition to the revenues it has received, has made very smart asset disposals which have contributed significantly to the Zephyr’s finances. The company has also recovered a $1m bad debt previously written off in the 2024 accounts, it never rains but it shines eh?

Indeed the acquisition made only last August has not only generated nearly $9m in revenues and disposal gains but additionally retains the vast majority of production from the transaction, ‘demonstrating the excellent economics of the deal’.

On Tuesday I wrote that the ILI news validated my 20p target price and that the shares were up a short 10% on the day, today the shares are up 3.5% and over 3p but this news can only add to the potential value for Zephyr. I remain convinced that as seen today that the non-operated portfolio is proving a fantastic asset for the company as it moves sharply towards developing the Paradox Basin, itself a blue chip asset.

925, 983 & 918 over the last 3 quarters and you can expect some declines anyway. I'm sure they had some new wells interests as part of the investment but they will probably still be paying out the investor so not included in the figures.

In the TP research note: “ It is noted that there were widely publicised weather disruptions in

the Williston Basin during the quarter, which makes Q1 production

figures appear all the more robust.”

They are exporting to a main pipeline. The north west pipeline intersects with Utah and goes across the US.

See pipeline details on link:

https://www.williams.com/pipeline/northwest-pipeline/

NTD, depends how they do it and what any farm in partner wants. As this is in the US I would expect small scale production equipment to be available to hire. They could easily start with that while building a scaleable plant. And have it available in a few months.

They could also buy new or purchase from decommissioned gas plants (refurbished) to meet their plans. This option would obviously take a lot longer. Some equipment can take 6-9 months. It really does depend which way they go and how far progressed they are already. Remembering from all the other gas plants I’ve seen some equipment such as condensers and compressors can cost $10m each. I remember a company I was in that was bought out by PE the MCAP of the company was less than the value of the gas plant.

Unfortunately until we get more news we are guessing. But yes it can be done quickly. Or can be done slowly. Both will achieve the same outcome.

Renn, I think the $100m was a consortium and was negotiated by someone else. SGR have only ever loaned or fronted less than $10m. Yes they are still in it with a share of the well (for now) but don’t think they have the capital. Would need a $50-100m investment to really kick things into action and use the capacity on the pipeline.

From $100m rns: “ Seaport Global Securities LLC served as advisor to Zephyr in connection with the Agreement”

The bit that has been developed was just a green field. Off Bobb Tr and 50m along the dirt track directly north on lhs. There is what looks like some sort of junk tip a tiny bit further along.

Can’t copy location properly on these devices. Need to use the PC to highlight it. Shame I can’t add pictures on here.

Don’t think it will be SGR as not sure they are big enough. But you never know as they have good o&g experience. Another company helped negotiate the $100m bank roll for the non ops though.

However going back over the presentation it is clear that a farm out is in progress. That seems quite certain. And looks like it will be a large scale operation so no half measures. Having a cheap route to market always perks interest as less overheads to take away profits. Would expect any farm in partner to also want to be involved in any gas marketing so they know what they are getting.

Donalb, try this link. 27th May was a good image of it.

If link don’t work co-ords are 10.1294613, -61.3997283

https://browser.dataspace.copernicus.eu/?zoom=17&lat=10.12946&lng=-61.39973&themeId=DEFAULT-THEME&visualizationUrl=U2FsdGVkX19wEnWU84F%2FAK8moQHeZ%2BmIAhyipLysrHKs4cZyvMEnlBU6GJpwfabbVafOtrkaEKT20J1i%2BKtcl%2BQR6BySUgQMu1HkdGJcI9%2BwrTznLwxaX2YRNBwTPYRH&datasetId=S2_L2A_CDAS&fromTime=2026-05-27T00%3A00%3A00.000Z&toTime=2026-05-27T23%3A59%3A59.999Z&layerId=1_TRUE_COLOR&demSource3D=%22MAPZEN%22&cloudCoverage=64&dateMode=SINGLE

Donalb, this does appear to be the pad location. The oracle on the telegram group has u turned and now declared that they found it yesterday. Which is most amusing.

This is a simple as without Enbridges pipeline operational Zephyr would have no way of exporting gas. This is not a short section. This is over 20 miles of pipeline that connects to a main export line that travels the country and has not been used for many years. (Not the pipeline to green river). The more detailed inspection of short 25m sections is quite common and will likely be continued throught the lifetime of the project to maintain integrity. If Zephyrs gas had been totally stranded you can forget any further progress.

It is a nuisance that it has taken so long to get to this point but it was a very necessary one. Hopefully now that barrier is passed all the other items can be progressed under Zephyrs control. Apart from the final regulations which will likely be irrelevant in the timescale of everything else being completed and will not stop that continuing. The pipeline confirmation was needed to secure any further funding (however that progresses be it JV, farm-in, $100m deal), without the funding they can not refurbish/ rebuild the gas processing plant or gathering lines which is the other obstacle in gas export. Unfortunately everything will take some time so no point complaining about it.

This information will likely be in the 2025 annual report, due end June 2026.

SGR hold a 3.05% stake in the company and have loaned money to the company before and been repaid. Directors have knowledge of O&G and energy and investing. However they do not appear big enough to be able to fund a full project development. But wouldn't be surprised to see some involvement if ZPHR continue alone to production.

I've questioned them before and they have claimed that its not allowed for them to partake in the raise. Or some BS like that. Every other companies directors are often buying during raises.

WD-4 is apparently one free well and one paid for well

O&S as I say I'm sure people will see it soon enough.

RNS 15th May stated "· Snowcap-3 site works onshore Trinidad have commenced.". So would expect to be seeing some progress

I am only get 25 pages and you said page 54, so not sure where I am looking and trying to find it on a tiny screen....