Paradox project 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 an update on its operated project in the Paradox Basin, Utah, U.S. (the "Paradox project").

Zephyr continues to progress planning for the forthcoming redrill of the State 36-2 well (the "State 36-2R well"). The Company retains full well control insurance and expects to recover a substantial majority of the costs associated with the redrill.

At the well pad, all surface hole location preparations have been completed to enable rig mobilisation.

The Company plans to mobilise a spudder rig to the well pad over the next two weeks to drill and set conductor pipe and once these operations are complete, the location will be ready to accept a drilling rig in early April.

The Company is in the final stages of execution of a rig contract with the intent to begin full drilling operations in mid-April 2024.

In addition, Zephyr has now received vendor bids for substantially all remaining well services, and has sourced all casing and long lead items required for the well. As previously reported the Company has received all regulatory approvals required to proceed with the spud of the well.

Colin Harrington, Zephyr's CEO, commented:

"We are looking forward to commencing drilling operations on the 36-2R well. After a highly intensive period of planning, preparation, and vendor selection, we are confident the next few months offer significant potential for the Company and will keep the market updated as drilling commences and progresses."