TPI is pleased to provide its latest research note on Zephyr Energy plc (ZPHR.L).
While providing an update on the Group’s Salt Wash helium project (the ‘Farm-in’), Zephyr has also confirmed that the State 36-2R well’s second phase production test and evaluation is now nearing completion. Steady progress continues to be made on the Farm-in, particularly with respect to advancing funding options and positioning to get full drilling operations underway next year. Meanwhile, technical analysis of the extensive data presently being collected from State 36-2R is expected to conclude shortly with results from the test expected to be formally announced within the next ten days. A successful outcome here could then be translated quite rapidly into 2P reserves with potential to spike overall Group production during H1 2025. Beyond this, with a view to delivering the best and most timely outcome for shareholders, it is likely that the Board will start pushing for broader/deeper discussions with larger industry players/strategic partners on how best to accelerate development of its broader Paradox opportunity.