Zephyr Energy PLC (AIM:ZPHR, OTCQB:ZPHRF, FRA:VD5N) told investors that first-quarter production from its non-operated US asset portfolio beat management forecasts, giving the company extra cash flow to recycle into its flagship Paradox project in Utah.
The AIM-quoted oil and gas group said Q1 production averaged 918 barrels of oil equivalent per day net to Zephyr, compared with 983 boepd in the fourth quarter of 2025. Output was 71% oil and reflected the expected natural decline profile of the portfolio.
At the end of March, the portfolio comprised interests in more than 600 gross wells, equal to around 30 net wells, across Utah, Colorado, Wyoming, Montana and North Dakota.
Zephyr said cash flow was supported by higher-than-expected production, stronger commodity prices compared with Q4 and the recovery of a US$1 million bad debt from a working interest owner that had been written off in 2024. The company was also hedged for 8,000 barrels of oil during the quarter, around 14% of production, at a weighted average price of US$64.25 per barrel.
Chief executive Colin Harrington said the quarter’s production, recent undeveloped acreage disposals and stronger commodity prices had provided “considerable resources” that can be recycled into the Paradox project.
