Zephyr Energy
ZPHR · AIM · Energy · mcap £63m · 3.1p 2 open situations →
Open · 2
Paradox project first gas
Paradox first gas depends on Enbridge's export route. The in-line inspection is complete and approval is under way. On 24 Aug 2026 the Board funded engineering and well work from existing cash for a 15 mmscf/d modular plant. On 14 Oct 2026 Zephyr added 5,692 federal acres north of the White Sands Unit, and promised Paradox updates in coming weeks. Approval timing is still uncertain.
- First gas
- Expected over the coming months; undated
- Processing design
- Modular gas processing system up to 15 mmscf/d, versus earlier base case of 5 mmscf/d 14 Oct 2026 ↗
- Initial wells
- State 36-2R and Federal 28-11; well work starts after engineering and final design 14 Oct 2026 ↗
- Funding
- Funded from Zephyr's existing cash resources 14 Oct 2026 ↗
- Pipeline inspection
- Enbridge excavating four short sections; no concerns or safety issues so far; Enbridge funds it 24 Aug 2026 ↗
- Follow-on drilling
- New well locations high-graded; locations and permitting to be announced when planning is finalised 24 Aug 2026 ↗
Next: Enbridge regulatory approval to export gas; Paradox updates in coming weeks
- 14 Oct 2026 Awaiting Enbridge approval; acreage added
- 28 Sep 2026 Awaiting Enbridge approval; engineering and well work funded
- 24 Aug 2026 Pre-first-gas work scaled up while approval pending
- 30 Jun 2026 ILI done; regulatory approval process begun
Paradox marketing / farm-in partner
Zephyr is seeking Paradox partners and signed a non-binding LOI on 27 Jul 2026 with Atlas for up to US$15m of prepaid financing. On 24 Aug 2026 it said both the farm-out and the commodity purchase agreement continue to progress. No terms or partner are named, and updates are promised in due course.
- New leases
- 2,294 acres, five-year primary term, 16.67% royalty; funded from existing cash 2 Jul 2026 ↗
- Partner process
- Farm-out and gas marketing newsflow previously flagged as expected in coming weeks 2 Jul 2026 ↗
- Amount
- Up to US$15 million prepaid commodity purchase agreement; LOI announced 27 July 2026 24 Aug 2026 ↗
- Structure
- No equity issued, no working interest sold; Atlas gets exclusive marketing rights over an agreed Paradox asset area for a specified term 27 Jul 2026 ↗
- Repayment
- Solely from future production sales proceeds; not contingent on timing of first gas 27 Jul 2026 ↗
- Conditions
- Binding definitive CPA, ancillary agreements and final confirmatory due diligence; non-binding LOI 27 Jul 2026 ↗
Next: Resolve farm-out; complete CPA with Atlas or other marketer
- 28 Sep 2026 Negotiations continuing; marketing partner selection in latter stages
- 24 Aug 2026 Farm-out and US$15m CPA progressing
- 27 Jul 2026 Atlas LOI signed; farm-out data room active
- 2 Jul 2026 Acreage enlarged to over 72,000 acres; talks continue
Closed · 1
Company filings. Not investment advice.