Williston Basin Update

Zephyr Energy plc (AIM: ZPHR) (OTCQB: ZPHRF), the Rocky Mountain oil and gas company focused on responsible resource development from carbon-neutral operations, is pleased to provide updates on its non-operated asset portfolio in the Williston Basin, North Dakota, U.S. and on its associated borrowings.

Slawson wells commence production

In December 2022, the Company announced that it had acquired a working-interest in six recently spudded wells (the "Wells") operated by Slawson Exploration Company ("Slawson"). The working interests acquired range from 11% to 32% and Zephyr's management estimated the Wells to contain 2P reserves, net to Zephyr, of circa 550,000 barrels of oil equivalent.

Following the recent completion of the associated production facilities, the Company is pleased to announce that is has been notified by Slawson that the Wells are scheduled to be brought online today, 1 November 2023.

The Wells will provide a significant near-term production boost and are expected to generate substantial cashflows for the Company which can be reinvested into the development of its project in the Paradox Basin, Utah, U.S. (the "Paradox project") or into additional non-operated investment opportunities.

Updates on the Wells will be provided in the Company's third quarter 2023 Williston Basin update, which is expected to be announced in mid-November 2023, by which time the Company is expected to have around two weeks of production data.

Semi-annual debt redetermination

Zephyr is pleased to announce a successful outcome to the semi-annual redetermination of the Company's revolving credit facility ("RCF"), carried out by the Company's senior lender, North-Dakota based First International Bank and Trust ("FIBT").

The redetermination process confirmed the existing amounts available under the RCF, with the borrowing base remaining at US$13 million, the level at which it is currently drawn. In addition to the RCF, at 31 October 2023, Zephyr had an additional US$11.7 million of outstanding borrowings on its amortising senior bank term loan with FIBT (versus US$15.8 million at 31 October 2022).

No value was ascribed to the new Slawson production during the redetermination process (due to production not commencing during the FIBT evaluation period), but Zephyr does expect that the newly commenced Slawson production will allow for a significantly enhanced borrowing base once production is established.

Investor Webinar

The Company will be presenting an investor webinar today at 5.30pm (U.K. local time) to provide an update on Zephyr's activities. You can register for the event by using the following link:

Glossary of Terms

Reserves: Reserves are defined as those quantities of petroleum which are anticipated to be commercially recovered from known accumulations from a given date forward.

1P: proven reserves (both proved developed reserves + proved undeveloped reserves)

2P: 1P (proven reserves) + probable reserves, hence "proved and probable"

3P: the sum of 2P (proven reserves + probable reserves) + possible reserves, all 3Ps "proven and probable and possible"

Contingent Resources may include, for example, projects for which there are currently no viable markets, or where commercial recovery is dependent on technology under development, or where evaluation of the accumulation is insufficient to clearly assess commerciality. Contingent Resources are further categorised in accordance with the level of certainty associated with the estimates and may be sub-classified based on project maturity and/or characterised by their economic status.

1C: Low estimate of Contingent Resources

2C: Best estimate of Contingent Resources

3C: High estimate of Contingent Resources

1U: Low estimate of Prospective Resources