Q1 non-operated production

Zephyr Energy plc (AIM: ZPHR) (OTCQB: ZPHRF) is pleased to provide initial hydrocarbon production results for the first quarter of 2026 ("Q1") from the Company's non-operated asset portfolio (the "portfolio").

• Q1 production averaged 918 barrels of oil equivalent per day ("boepd"), net to Zephyr (versus average production in the fourth quarter of 2025 ("Q4") of 983 boepd).

o Q1 production totals exceeded management's forecast and reflects the expected natural decline rates of the portfolio.

o Q1 production was 71% oil.

• At 31 March 2026, the portfolio consisted of interests in over 600 gross wells (or approximately 30 net wells) available for production.
• The portfolio now consists of well and acreage interests in Utah, Colorado, Wyoming, Montana and North Dakota, providing strong production diversity and lowered risk across multiple operators and basins.
• During Q1, the Company was hedged for a total of 8,000 barrels of oil (circa 14% of the quarter's production) at a weighted average price of US$64.25 per barrel of oil.
• The portfolio delivered strong cash flow to the Company in Q1 due to higher-than-expected production levels and higher commodity prices in Q1 compared to Q4. In addition, the Company recovered a US$1 million bad debt from a working interest owner. The amount was written off in 2024 (and was disclosed in the Company's 2024 Annual Report).

Colin Harrington, Zephyr's Chief Executive, said:

"I am pleased to report on the ongoing strength of our non-operated production portfolio.

"The quarter's robust production levels combined with our recent opportunistic undeveloped acreage disposals and strong commodity prices provided considerable resources to the Company which can be recycled back into the Paradox project.

"We continue to monitor global events closely and will be responsive with regard to further portfolio management and hedging activity as opportunities arise."

Extension of warrants

Zephyr announces the following changes to warrants previously issued by the Company:

• On 6 June 2023, the Company announced that it had issued its broker, Turner Pope Investments ("TPI"), warrants to subscribe for up to 10,388,571 new ordinary shares of 0.1 pence each in the share capital of the Company (the "broker warrants").

The broker warrants were issued as part of TPI's fees for work undertaken in relation to the Company's placing of ordinary shares announced at the time. The broker warrants are exercisable at a price of 4.375p per new ordinary share and are valid until 12 June 2026. Zephyr's board of directors has now agreed to extend the expiry date of these warrants to 12 June 2027. All other terms of the broker warrants remain unchanged.

• On 10 April 2024 the Company announced that it had issued warrants to a third-party contractor (in lieu of services provided) enabling the contractor to acquire up to 2,597,143 new ordinary shares of 0.1 pence each in the Company at a price of 4.375p per new Ordinary Share. The warrants are valid until 12 June 2026. Zephyr's board of directors has now agreed to extend the expiry date of these warrants to 12 June 2027. All other terms of the warrants remain unchanged.