Zephyr Energy PLC (AIM:ZPHR, OTCQB:ZPHRF, FRA:VD5N) told investors that its non-operated production jumped in the fourth quarter of 2025, as the benefits of last year’s US$7.3 million acquisition fed through, while fresh non-core asset sales added cash for its flagship Paradox project in Utah.
Net non-operated production rose to 983 barrels of oil equivalent per day in the quarter, up from 632 boepd in the second quarter and 925 boepd in the third. The company noted that the increase was primarily due to August's acquisition of working interests in mature producing assets, which lifted its portfolio to interests in more than 600 gross wells.
The company added that roughly 25% of forecast March oil production and 33% of expected next-12-month non-operated oil output is hedged, leaving the balance exposed to stronger commodity prices.
"I am pleased to report on the multiple benefits that the Acquisition has provided for the company," chief executive Colin Harrington said.
"Not only have we seen a healthy increase in our production levels, but also our opportunistic acreage disposals have provided considerable additional resources which can be recycled back into the Paradox project.
Zephyr noted it had continued to reshape the acquired package, with its two disposals bringing in US$1.3 million from undeveloped Colorado acreage and US$802,000 from royalty and wellbore interests in Wyoming.
It has seen around US$4.7 million of total divestment, and US$1.7 million in production cash flow through to December, and US$2.5 million in approved investment opportunities through the group’s US$100 million capital partnership.
Operationally, at Paradox, the firm noted thatt Enbridge is carrying out pipeline inspection and related work as Zephyr pushes toward first commercial production and reviews indicative non-binding proposals covering gas marketing and drilling funding.
"We are making continued progress on the Paradox project, and we look forward to providing further updates on the farm-out process and ongoing gas offtake discussions in due course."
"In the interim, we are monitoring global events closely and will be responsive with regard to further portfolio management and hedging activity as opportunities arise."