Zephyr has reported quite exceptional initial results from its flagship State 36-2 LNW-CC-R well (the ‘Well’) in the under-explored Paradox Basin, Utah. The single well produced a peak rate of 2,848 barrels of oil equivalent per day (‘boepd’), in the form of 11.9 million standard cubic feet per day (‘mmscfd’) and 856 barrels of oil per day (‘bopd). Achieved on a 18/64-inch choke setting with no material drop in bottom hole pressure, this suggests Zephyr has potentially delivered one of the more productive one-mile lateral wells that the onshore US has seen in recent years. Moreover, well test data gathered from the 5,000-foot lateral suggests occurrence of hydrocarbon inflows across its length, indicating potential for a much larger reservoir volume to be drained compared with the initial completed interval of 130 feet in the previous production test which peaked at 2,100 boepd (as announced back on 6 September 2024). Significantly, no fracture stimulation was performed to achieve this excellent well deliverability result, although future stimulation could offer additional upside potential for both this well and for the broader Paradox project development. The early data suggests significant commercial opportunity for Zephyr, which is expected to be confirmed in due course through further interpretation and analysis, including the generation of updated estimated ultimate recovery forecasts. Given such highly positive observations, the Group’s ongoing discussions with US-based industry and asset-level financial partners with respect of the larger, long-term development of the wider Paradox project is also expected to accelerate.