Zephyr Energy plc provided an update on the Company's proposed farm-in to a minimum 75% working interest in a 1,047-acre leasehold position in the Salt Wash Field, a previously producing asset with proven oil, gas and helium reserves located three miles to the south of Zephyr's Paradox project in Utah, U.S. As announced on 18 October 2023, the Salt Wash Field has a thin (15 feet) oil rim, above which is an inert gas cap (approximately 500 feet of gas column) which consists of approximately 72% nitrogen 22% hydrocarbon gases, and 1.4% to 1.7% helium content. The field historically produced 1.65 million barrels of oil and 11.7 billion cubic feet ("BCF") of gas prior to its abandonment in 2014, at which time the oil rim was largely produced and the market for natural gas and helium was not supportive of continued development. The decision to farm-in to the Salt Wash Field was undertaken to increase the Company's oil and gas resource potential, and to achieve exposure to the U.S. industrial helium market (which has seen recent helium prices rising up to USD 1,000 per million square cubic feet ("mscf")).

 The field has an already discovered, proven helium resource in the Leadville Formation, with further opportunity for upside through three deeper helium exploration targets which have been successfully proven in other nearby fields in the Paradox Basin. The Company's board of directors (the "Board") notes recent market interest in helium-related companies and believes that the economics for the Salt Wash project are attractive for the helium content alone, notwithstanding further upside from oil and gas development. The Company's management forecasts the Salt Wash project to include: Net helium discovered resource potential of 0.07 to 0.19 BCF (Leadville Formation only), Net helium un-risked, prospective resource of a further 0.04 to 0.66 BCF (including exploration targets), An estimated net present value at a 10% discount rate ("NPV-10") of circa USD 58 million with the risked upside case having an NPV-10 of circa USD 120 million (using USD 650/mscf and USD 750/mscf pricing, respectively).

As per the terms of the farm-in agreement (the "Agreement"), the Company confirms that the two initial payments of USD 300,000 each (totaling USD 600,0000) were made to the incumbent leaseholder (the "seller") and that it is the Company's intention that the dual-purpose Leadville Formation delineation well (the "Commitment Well") will be drilled.  The Commitment Well would also test the three additional helium exploration targets and other potential hydrocarbon bearing reservoirs. The Agreement includes a provision that the Commitment Well is to be spudded before 30 June 2024. The Board believes the Company can begin initial drilling operations to fulfil this timing obligation, and alternatives to extend the deadline may also exist.

To date, the Company has received multiple informal proposals regarding potential funding for 100% of the drill at the asset level, and the Board is currently considering the best alternatives to maximise the value from this exciting opportunity for Zephyr's Shareholders.