Commencement of Initial Drilling Operations

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 announce that initial drilling operations have commenced on the State 36-2R well (the "well") at the Company's flagship project in the Paradox Basin, Utah, U.S.

In line with the Company's announcement on 15 March 2024, a small and low-cost spudder drilling rig (the "spudder rig") was mobilised to the well location on 20 March 2024. The spudder rig subsequently drilled a 30-inch hole to a depth of 96-feet before successfully setting 20-inch conductor casing. All operations were conducted safely.

The remaining sections of the well will be drilled using the Helmerich & Payne Rig 257 (the "H&P" rig), as also announced on 15 March 2024. The H&P rig has now been mobilised to the well site and will begin rig-up activity in mid-April, prior to commencing the larger drilling operation.

Colin Harrington, Zephyr's Chief Executive, said: "We continue to make good progress at the well-site and are well prepared for the next phase of drilling which is expected to commence in mid-April."