Member Info for THE_CHAIN

Receipt of the permit approval from the BLM SCE2/Evan. We've know about the permit for about a month, BLM approval takes approximately 60 days usually.

Biggest takeaway for me is this "Pipeline Construction Installation activities associated with the proposed pipeline corridor are anticipated to take approximately one month to complete"

One month to build the pipeline that will allow full production from 16-2, once our BLM application has been approved.

Activity proposed in the immediate area of the project is routine inspection and maintenance of the pipeline corridor infrastructure and the ongoing oil and gas activities of Rose and other operators with interests in the area. The anticipated life of the project corresponds to the life of the producing wells the corridor would service and is anticipated to be approximately 30 years. No existing facility upgrades, or removal is proposed. RECEIVED: Sep. 01, 2022

of the native plant community. All project activities in the area would follow published procedures specified by the BLM as well as other applicable Best Management Practices and guidelines. Completion of the pipeline installation would result in full reclamation of the corridor during the life of the associated pipeline. Incidental disturbance to the corridor for maintenance activities would be reclaimed as soon as practical during the life of the corridor. Corridor Location The proposed State 16-2LN-CC Connector Pipeline Corridor crosses the following federal lands under the management of the Bureau of Land Management – Vernal Field Office: T22S, R17E, SLB&M, Grand County, Utah NE/4 SE/4, S/2 SE/4, SE/4 SW/4, Section 10, NW/4 SW/4, Section 11, N/2 NW/4, SW/4 NW/4, Section 15, Additional Components of the Corridor The proposed corridor will contain up to three pipes (as previously described) as well as associated operations structures (i.e., valves, pigging facilities, metering equipment, future taps, etc.).

When issuing any surface use authorizations, BLM must include appropriate terms and conditions, including any actions that BLM determines appropriate “to minimize damage to scenic and esthetic values and fish and wildlife habitat and otherwise protect the environment.

Proposed Action The State 16-2LN-CC Connector Pipeline Corridor proposes approximately 8.08 acres of total surface disturbance. The proposed pipeline corridor will cross approximately 6,505 feet (7.47 acres) of federal surface managed by the Bureau of Land Management – Vernal Field Office (BLM) and 535 feet (0.61 acres) State of Utah surface managed by the School and Institutional Trust Lands Administration (SITLA). The proposed corridor consists of a 30-foot-wide permanent pipeline corridor (15 feet on each side of the centerline), plus an additional 20-feet (10-foot extension on each side of the permanent pipeline corridor) needed temporarily, only during construction. Both the 30-foot permanent corridor and 20-feet of extended temporary width, would be utilized, as needed, during construction, then reclaimed. The 20-feet temporary width for construction would expire leaving only the 30-foot permanent corridor width remaining the 30-year life of the project. The pipeline corridor may connect to existing or proposed pipelines along the corridor alignment. All proposed pipelines would be surface installed with no excavation anticipated. Alternate corridors were considered and deemed unsatisfactory given that the proposed route is the shortest distance between the State 16-2LN-CC well and existing gas gathering pipeline infrastructure. Details of the proposed action are summarized in Table 1 below.

Pipeline Construction Installation activities associated with the proposed pipeline corridor are anticipated to take approximately one month to complete and would include blading, grading, and movement of equipment and personnel involved in construction of the pipeline(s). Surface disturbance of the entire corridor area should not be necessary. Construction activities will disturb the minimum surface area essential for the safe installation of the pipelines within the approved corridor. Staging areas are proposed on existing well pads and roads in the immediate area with no new surface disturbance on federal surface proposed for staging area use. Members of the project workforce would commute from surrounding towns and cities with no camp areas proposed. Equipment needed to construct the corridor and pipeline(s) include transport trucks, backhoes, side booms, welding trucks, water trucks, and pick-up trucks. Vehicle traffic during the construction phase would include the transportation of materials and heavy equipment, the commuting of the workforce, and the daily operation of the construction equipment. Pipeline construction methods and practices would be planned and conducted by Rose with the objective of enhancing reclamation and fostering the re-establishment of

consistent with terms and condition of the lease. Approval of the proposed State 16-2LN-CC Connector Pipeline Corridor project is necessary to meet that obligation. The need for the action is established by the BLM’s responsibility under the Mineral Leasing Act of 1920, as amended by the Federal Land Policy and Management Act of 1976 (FLPMA), and the Federal Onshore Oil and Gas Leasing Act of 1987, which establishes the BLM’s authority and authorizes the Secretary of the Interior to enter into agreements with private parties for the recovery and disposition of oil and natural gas on federal lands. Under Title V of FLPMA, BLM has discretion to authorize surface use for a variety of uses, including roads and utilities, while taking into consideration impacts on natural and cultural resources (including historical resources).

Rose operates the State 16-2LN-CC well located in Section 16, T22S, R17E, SLB&M of Grand County, Utah. The well is drilled and completed, not yet producing. Based on existing pipeline infrastructure in the vicinity, producing the well would require Rose to truck produced oil and water, and to flare all of the natural gas produced (estimated at 5 mmcfd.) To effectively reduce the volume of natural gas being flared, Rose intends to install a new pipeline to transport produced natural gas from the well pad to the nearest existing gas gathering pipeline. To fulfill this intent, Rose proposes to construct, install, operate and maintain the State 16-2LN-CC Connector Pipeline Corridor beginning at the existing Rose operated State 16-2LN-CC production wellsite and continuing northeast approximately 1.3 miles to the existing gas gathering pipeline operated by Pacific Energy & Mining Company, located in Grand County, Utah. (See attached map).

Rose plans on using the proposed corridor to install up to three pipes: one gas pipeline (up to 8-inches in diameter), one gas pipeline (up to 4-inches in diameter), and one water pipeline (up to 12-inches in diameter). The pipelines would be surface installed and constructed of steel, flexsteel or composite polyethylene. The gas pipelines would serve to transport existing and potential future natural gas production from federal and state leases to market, and for possible use in well operations. Produced natural gas connected to the existing Pacific Energy and Mining Company gas gathering pipeline would be carried to existing gas treatment facilities, before being transported to regional markets by existing Dominion operated transmission pipelines. The water pipeline would transport fresh water/completion water during well completion activities at the State 16-2LN-CC and other potential future wells in the area. Purpose and Need for the Facility The purpose of the proposed gas pipelines is to minimize flaring of natural gas and to maximize transport of existing, shut-in, federal and state natural gas production to sales, to increase Rose operated regional gathering capacity, and to increase potential future production capacity from existing and proposed federal and state leases operated by Rose. Once operational the proposed natural gas pipelines could transport up to 10MMscfd of natural gas production. Without the installation of the proposed gas pipelines all the natural gas produced from the well(s) will be flared. The purpose of the proposed water pipeline is to lower risk and air emissions associated with extensive truck traffic associated with transport of fresh water/completion water during well completion activities at the State 16-2LN-CC and possible future wells in the area. The BLM’s purpose with respect to the proposed corridor is to provide Rose with the opportunity to explore, develop, and produce commercial quantities of oil and natural gas in accordance with their valid existing right

Think you mean 36-2 dsrt. I think we will get news on both this week.

Can confirm it works Adon

If we are going by the 30 days mentioned 36-2 should be at TD tomorrow if all has gone to plan. I'm hoping for a bumper rns, detailing if we are going to be doing a DFIT test, if not we could be getting a completion crew in ASAP ready for productuin testing early next year. I'd also like to hear a lot about 16-2 production test, it's been running for a few weeks now so they should have some good data to share with us. 2023 is going to be an excellent year for Zephyr holders.

Should hopefully get an overall update from the Paradox once we have hit TD at 36-2.

After reading that again last night I had a dream or a 1bn takeover offer of Zephyr in the future. Hopefully it's a premonition Hahaha.

Not a worry for the big buy after the bell.

Same here Ezhik. I really thought 8-10p by year end.

But it's not just here, my other shares are all down too. Fact is most people are skint and need the money for Xmas.

I suspect we will get a "paradox project update" next week Ezhik, detailed progress with both 16-2 and 36-2. Hopefully it's crammed full of detail on both.

It should be next week Bubbles. Very annoying to see us loose so much momentum over the last two weeks. But it's just due to market conditions and those who are overextended needing the cash for the festive season. Gut wrenching but in the grand scheme of things not at all surprising in this current market environment. Nothing on my watch list is blue at the moment. Keep sitting on hands. Wait for drill updates and news on production.

Completely agree Doddy, we need a timeline. I can't see us getting one until we are production testing 36-2 in January. Hopefully we will also get the permit signed off for thr 16-2 pipeline around then too. I don't think CH is going to start his PR campaign until all the pieces are in place. Painful for us. But in the long run it's probably best to be able to tell the whole story with absolute confidence, rather than half the story with some ifs buts and maybes.

Question I've asked myself is, if we were in a healthy market, the world economy was not up the swanny, and there was a healthy inflow of investor money into the market, would we be so undervalued as we are now? A resounding no in my books, speculative PIs are lacking. Cash is king. Anyone over extended has likely sold, and anyone with any spare cash is having to spend it on yuletide cheer rather than have it sat in an investment. Next question, do I think this continued suppression can continue, no, its just a matter of time. It just needs market conditions to improve and the right news to appear via RNS. Namely, we've found lots more oil and it won't take to long to get to market. Q1 2023 onward. Sit on hands and be patient until then.

Personally I think Zephyr will get bought out late summer 2023. If we have 4 wells producing in the paradox, and an updated CPR I'd hope for 30p plus. In my opinion that is Conservative. We will see!

Yep we did. And have averaged down and built bigger positions since. I am fully aware that the drilling programme was stated to start June 2022 onwards. And I fully accept the good reasons that have led to it taking longer.