Zephyr Energy plc to announced that initial drilling operations have commenced on the State 36-2R well at the Company's flagship project in the Paradox Basin, Utah, U.S. In line with the Company's announcement on 15 March 2024, a small and low-cost spudder drilling rig (the "spudder rig") was mobilised to the well location on 20 March 2024. The spudder rig subsequently drilled a 30-inch hole to a depth of 96-feet before successfully setting 20-inch conductor casing. All operations were conducted safely.

The remaining sections of the well will be drilled using the Helmerich & Payne Rig 257 (the "H&P" rig), as also announced on 15 March 2024. The H&P rig has now been mobilised to the well site and will begin rig-up activity in mid-April, prior to commencing the larger drilling operation.