Zephyr Energy PLC (AIM:ZPHR, OTCQB:ZPHRF, FRA:VD5N) said it is pushing its Paradox Basin project in Utah toward first commercial production after a year in which drilling results and an upgraded reserves report strengthened the investment case, even as revenue from its producing portfolio fell.
The AIM-listed oil and gas group reported 2025 revenue of US$13.9 million, down from US$24.3 million, with gross profit falling to US$2.5 million from US$7.2 million. Net loss narrowed to US$10.8 million from US$19.6 million, helped by the absence of the US$14.5 million impairment charge booked in 2024.
At Paradox, the State 36-2R well achieved a peak production test rate of 2,848 barrels of oil equivalent per day, with no material drop in bottom-hole pressure and without fracture stimulation. The result fed into an updated Sproule CPR, which confirmed 35.3 million boe of 2P reserves and total recoverable resources of 74.2 million boe across the White Sands Unit.
Chairman Rick Grant said it was “an exciting time on the Paradox project as we push to deliver first commercial production,” adding that Zephyr expects “considerable newsflow in the coming weeks” from farm-out and gas marketing negotiations.
Zephyr also completed a US$7.3 million acquisition of Rocky Mountain production assets during the year and said it has since generated around US$7.0 million of consideration from non-core acreage divestments. The annual report noted a material uncertainty over going concern, with the group needing debt refinancing, asset sales or new funding ahead of the December 2026 maturity of its FIBT revolving credit facility.
