Zephyr Energy (LSE:ZPHR) reported a significant increase in fourth-quarter 2025 production from its U.S. non-operated portfolio, with net output rising 55% compared with the second quarter. The growth followed a US$7.3m acquisition of mature producing assets. Approximately one third of the company’s expected non-operated oil volumes over the coming year have now been hedged, leaving the majority of production exposed to prevailing commodity prices while the company continues to manage market volatility.
The group has also realised value from the acquisition by selling non-core and non-producing acreage and interests for around US$4.7m in cash and assumed liabilities. This move improves the overall economics of the transaction and releases capital to support development at its flagship Paradox Basin project. Zephyr reported ongoing progress toward first commercial production at Paradox, with Enbridge undertaking pipeline integrity and bidirectional-flow work. At the same time, the company is reviewing farm-in and marketing proposals linked to the project. In addition, the expiry date for broker warrants has been extended by one year to April 2027.
Zephyr Energy’s outlook is largely shaped by its recent strategic developments, which provide a positive backdrop despite ongoing financial and technical challenges. The company’s ability to secure financing, optimise assets and advance key projects strengthens its position, helping offset risks linked to current financial performance and valuation.
More about Zephyr Energy
Zephyr Energy is a UK-listed oil and gas company with operations across several U.S. basins, including Utah, Colorado, Wyoming, Montana and North Dakota. The group combines income from non-operated, mature producing wells with development of its flagship Paradox Basin project in Utah, where it is targeting hydrocarbon resources and access to associated gas infrastructure in the western United States.
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