Operations Update

Zephyr Energy plc (AIM: ZPHR) (OTCQB: ZPHRF), the Rocky Mountain oil and gas company focused on responsible resource development and carbon-neutral operations, is pleased to announce the commencement of the well production test on the State 36-2R LNW-CC well (the "well") at the Company's flagship project in the Paradox Basin, Utah (the "Paradox project").

The well is currently flowing both natural gas and condensate, and the Company is encouraged by initial results.

Over the next two weeks, the well will be flowed and production tested to more rigorously determine the reservoir pressure, fluid composition, well flow rate and bulk reservoir permeability, and to deliver an early estimate of the overall potential recoverable resources.

Zephyr intends to announce initial results and analysis as soon as possible at the end of this two-week period, assuming no unexpected delays to the production test programme.

Colin Harrington, Zephyr's Chief Executive, said:

"Zephyr's operations team has worked extremely hard to deliver this well, and I am delighted that we are already flowing both natural gas and condensate. While the preparation for flow testing was extended due to the impact of the heavy weight drilling fluids in the wellbore, coupled with the need for careful operating procedures in a high-pressure environment, I believe the efforts have resulted in a well that has now fully cleaned up and appears to be in a very good state for flow testing.

"We look forward to observing the hydrocarbon volumes produced, the gas/oil ratios and the reservoir pressures during this test, after which we will announce our findings. We've appreciated the support of our shareholders during the run-up to this exciting event for the Company."