Zephyr Energy (LSE:ZPHR) has revealed a major uplift in recoverable reserves at its Paradox project, based on an updated Competent Person’s Report from Sproule-ERCE International Limited. The assessment shows a 93-fold rise in Proved Recoverable Reserves and a 25-fold increase in Proved & Probable Reserves, signaling strong progress toward commercial production. This development is expected to drive substantial free cash flow and enhance the project’s net present value, strengthening Zephyr’s market positioning. The company is actively seeking partners to accelerate drilling and move toward commercial production, leveraging existing infrastructure and growing demand for domestic gas in western markets.
Despite these positive developments, Zephyr faces ongoing financial challenges, including negative profitability and weak technical signals. While its balanced capital structure and positive operating cash flow offer some support, the lack of profitability and bearish market conditions remain key considerations.
About Zephyr Energy
Zephyr Energy plc is an oil and gas exploration and production company, focused on assets in the Paradox Basin, Utah, U.S. Its primary operations target the Cane Creek reservoir within the White Sands Unit, with an emphasis on maximizing recoverable resources and advancing the development of its energy assets.
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