Zephyr Energy (LSE:ZPHR) reported average non-operated production of 918 barrels of oil equivalent per day during the first quarter of 2026, slightly below the previous quarter but ahead of internal expectations. Approximately 71% of production was weighted towards oil, with the company’s non-operated portfolio now encompassing interests in more than 600 gross wells across Utah, Colorado, Wyoming, Montana and North Dakota.
Management said stronger-than-expected production volumes, improved commodity prices and the recovery of a previously impaired US$1 million receivable combined to generate robust cash flow during the period. The company intends to reinvest this cash generation into the continued development of its flagship Paradox project in Utah.
Alongside its operational update, Zephyr announced an extension to the expiry dates of broker and contractor warrants covering approximately 13 million shares. The warrants, which had been due to expire in June 2026, will now remain valid until June 2027, with all other terms unchanged. The move preserves potential equity participation for service providers and capital markets partners while maintaining alignment with the company’s long-term growth objectives.
Zephyr noted that it continues to actively manage its asset portfolio and hedging strategy in response to evolving market conditions, seeking to balance cash flow generation with future development opportunities.
The company’s outlook is supported by a series of strategic corporate initiatives, including portfolio expansion and financing arrangements that strengthen its operational platform. While financial and technical challenges remain, management believes the company’s ability to secure funding and grow its asset base provides a solid foundation for future value creation.
More about Zephyr Energy
Zephyr Energy is a technology-focused oil and gas company dedicated to responsible resource development across the Rocky Mountain region of the United States. Its flagship operated asset is the 46,000-acre Paradox project in Utah, which is supported by independently assessed 2P reserves of 35.3 million barrels of oil equivalent and total recoverable resources of 74.2 million barrels of oil equivalent. The company also owns a diversified portfolio of non-operated producing assets across the Williston Basin and other Rocky Mountain regions, supported by a US$100 million strategic partnership aimed at accelerating growth and cash flow generation.
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