Zephyr Energy Regulatory News (ZPHR)

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.

25 October 2021

Zephyr Energy plc

("Zephyr" or the "Company")

State 16-2LN-CC operations update

Zephyr Energy plc (AIM: ZPHR) (OTCQB: ZPHRF), the Rocky Mountain oil and gas company focused on responsible resource development from carbon-neutral operations, provides an update on activity at its flagship project in the Paradox Basin, Utah (the "Paradox project") where it recently drilled the State 16-2LN-CC well.

Further to its announcement on 15 October 2021, Zephyr is pleased to announce that the State 16-2LN-CC well has now been successfully and safely completed via hydraulic stimulation in the Cane Creek reservoir. The well was stimulated in fourteen separate stages across 4,020 feet of horizontal lateral wellbore. The stimulation utilised a total of 40,000 barrels of water, 2.4 million pounds of sand and a cross linked gel fluid, all in line with pre-completion forecasts.

Production testing operations will commence later today. As an initial step, cement plugs placed between stages will be drilled out, allowing for well clean up and the flow back of stimulation fluids. The Company will provide information on initial production test results after the well cleans up and when an adequate amount of data has been obtained, details of which the Company expects over the next few weeks.

Colin Harrington, Zephyr's Chief Executive said: "I'm delighted by how smoothly the well completion operation progressed, and I'd like to congratulate our technical team and contractors on their excellent work in effectively managing both the operational challenge and the significant logistics involved. As this was the first modern horizontal stimulation carried out in this part of the Paradox Basin, a huge amount of preparation went into planning this completion, so I'm equally happy to report that the operations unfolded directly in line with our expectations."

"We are now able to commence the production test. I very much look forward to keeping the market updated as soon as the well cleans up and production volumes become apparent - information which we expect to obtain over the next few weeks."

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