Zephyr Energy (LSE:ZPHR) reported audited full-year 2025 results highlighting strong operational progress as it moves the Paradox Basin project in Utah closer to first commercial production while continuing to expand its income-generating non-operated portfolio across the Rocky Mountain region. The company also maintained its focus on operational safety, reporting zero lost-time injuries during the year and reaffirming its commitment to responsible resource development and regulatory compliance.
Paradox well performance supports reserves growth
A major achievement during the year was the performance of the State 36-2R well at the Paradox project, which reached peak production of 2,848 barrels of oil equivalent per day without hydraulic fracture stimulation. The well is considered one of the highest-performing gas wells in the Lower 48 states and contributed to an upgrade in the company’s independently assessed reserves.
Zephyr also strengthened its non-operated portfolio by completing a US$7.3 million acquisition of producing assets, increasing both reserves and earnings. In addition, the company generated approximately US$7.0 million through the sale of non-core acreage with only a limited impact on production. Management has also begun deploying its US$100 million strategic financing partnership to support further acquisitions, accelerate development and enhance long-term cash flow.
Outlook
Zephyr’s outlook is supported by continued strategic progress, including new financing arrangements and the expansion of its asset base, which help offset current financial and valuation challenges. The company’s ability to secure additional capital while advancing both operated and non-operated assets provides a stronger platform for future growth despite ongoing market risks.
More about Zephyr Energy
Zephyr Energy plc is a technology-focused oil and gas company specialising in responsible resource development across the Rocky Mountain region of the United States. Its principal operated asset is the approximately 70,000-acre Paradox project in Utah, where an independent 2025 reserves report confirmed significant 2P reserves and recoverable resources within the 20,000-acre White Sands Unit. The company also owns a portfolio of non-operated producing assets across the Williston Basin and other Rocky Mountain regions, supported by a US$100 million strategic financing partnership.
Zephyr follows a dual strategy of generating cash flow through its non-operated production portfolio while progressing the Paradox project towards commercial production. The company places a strong emphasis on health, safety and environmental performance, maintaining a zero-harm culture as operations continue to expand. Its shares are listed on both AIM and the OTCQB market.
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