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Oil & Gas

Zephyr confirms production growth at end of "extremely active" year

Zephyr Energy PLC (AIM:ZPHR, OTCQB:ZPHRF) released a year-end update highlighting higher hydrocarbon production from its non-operated portfolio during the third quarter of 2025.

Average net output rose to 925 barrels of oil equivalent per day, compared with 632 boepd in the second quarter.

The junior oil and gas company said the increase followed its $7.3 million acquisition of producing assets completed in August, partly offset by natural decline.

Production included some volumes from six previously shut-in wells that resumed output in October and are expected to add around 130 boepd net for the fourth quarter.

“2025 was an extremely active year, during which we successfully drilled, completed and tested a highly encouraging well on our Paradox acreage, and subsequently received a significant upgrade to our reserves and resource estimates," said chief executive Coliin Harriington.

"We also continued to grow our non-operated portfolio via acquisition and third-party investment, and I am pleased to see both increased production and the delivery of additional value through the divestment of non-core acreage and operations."

Harrington, meanwhile, added: "I believe 2026 will bring the next significant phase of growth for Zephyr as we utilise our strong foundation to create value for shareholders.

"Interest in the Western U.S. gas and oil markets markedly increased during 2025, and the company is encouraged by its ongoing discussions regarding the acceleration of Paradox development activity."

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