LONDON, July 2, 2026, 11:05 BST
- Zephyr Energy PLC (LON:ZPHR) was up 7.0% at 3.66p by 1100 BST. The FTSE AIM All-Share dropped 0.3%.
- Zephyr said today it bought a 2,294-acre lease, lifting its operated Paradox Basin holdings to 72,294 acres.
- The stock isn’t just reacting to the extra 2,294 acres now. The focus has shifted to how much land falls outside the 20,000-acre White Sands Unit reserve report.
Zephyr Energy PLC (LON:ZPHR) shares gained Thursday after the AIM-listed oil and gas group picked up more leases in Utah’s Paradox Basin. The deal extends a rapid land grab by the U.S. Rocky Mountain explorer that has shifted the scale of its main asset in under a week.
Shares rose 7.0% to 3.66p by 1100 BST, trading on 2.75 million shares. The FTSE AIM All-Share index slipped 0.3% to 773.53 at 1101 BST.
Investors are watching the gap between Zephyr’s booked acreage and its total acreage. The company said its new 2,294-acre lease from Utah Trust Lands Administration brings its Paradox Basin position up to 72,294 acres. The 2025 Competent Persons Report from Sproule International only covers the White Sands Unit, which is 20,000 acres, reporting 35.3 million boe in 2P reserves and 74.2 million boe total recoverable.
Zephyr had an implied equity value of roughly 77 million pounds at 1100 BST, based on its 3.66p share price and 2.10 billion shares in issue. That works out to about 2.18 pounds per 2P boe and 1.04 pounds per total recoverable resource boe, using the White Sands Unit data. The number isn’t debt-adjusted and doesn’t allocate booked barrels to the newer leases.
| Measure | Figure | Investor read |
|---|---|---|
| Share price, 1100 BST | 3.66p, +7.0% | Stock beat the broader AIM market |
| Implied equity value at 3.66p | About 77 mln stg | Price based on 2.10 bln shares out |
| Paradox acreage now | 72,294 acres | About 3.6x the size of White Sands Unit |
| White Sands Unit in CPR | 20,000 acres | Covers the land counted in reserves/resources |
| 2P reserves in CPR | 35.3 mln boe | Implied equity value works out at 2.18 stg/boe |
| Total recoverable resources | 74.2 mln boe | Implied equity value here is 1.04 stg/boe |
Zephyr picked up new leases just north of White Sands. The company said it put the land up for auction, got it through a sealed-bid process, and the leases run five years with a 16.67% royalty. Zephyr used cash on hand and didn’t say what it paid. CEO Colin Harrington said the auction win would “further enhance the scale of our Paradox project.” TradingView
Zephyr’s latest deal comes after it bought nearly 27,000 acres near White Sands on June 26. Most of that, about 24,000 acres, was picked up through a U.S. Bureau of Land Management lease auction. The balance came in deals with Utah state officials. In the same release, Zephyr said it closed two non-core Powder River Basin asset sales, pulling in around $2.2 million net. Harrington said Zephyr made the earlier land buy as it advanced farm-out talks for Paradox.
| Date | Deal | Acreage effect | Cash point |
|---|---|---|---|
| June 26 | Utah federal and state leases | Up 27,000 acres | Covered by cash on hand |
| June 26 | Powder River Basin non-core sales | No impact to Paradox acreage | Net proceeds of about $2.2 mln |
| July 2 | TLA leases just north of White Sands | Up 2,294 acres | Paid from existing cash |
| Current | Operated Paradox total | 72,294 acres | Mostly 100% working interest |
Farm-out is the key step. In final results out June 30, Zephyr put finishing the farm-out process, gas marketing deals, gas plant work and pipeline transport as the next moves for Paradox. The company said pipeline integrity checks found no repairs were needed at current pressure, but four short sections totaling 25 feet still need a visual check before any higher-pressure export.
Zephyr shares moved on fresh well data after the company reported its State 36-2R well posted a peak test rate of 2,848 boepd. Zephyr said there was no big drop in bottom-hole pressure and no fracture stimulation. It called the well a top 6% horizontal resource-play gas well among all drilled in the Lower 48 since 2000.
Zephyr’s balance sheet is still in focus. The company posted 2025 revenue of $13.9 million, down from $24.3 million last year. Net loss narrowed to $10.8 million, from $19.6 million. Sales volumes slipped to 302,585 boe, down from 420,724 boe.
Zephyr closed 2025 with $3.0 million in cash and $23.6 million in borrowings. The accounts note its revolving credit facility comes up for renewal in December 2026. If Zephyr can’t renew, it will need to refinance, sell assets or secure new funds to pay down the debt.
Management said it sees 2026 revenue and profit climbing, pointing to stronger commodity prices, a full year of output from recent deals and Slawson wells coming back online. The AGM is set for July 29. Zephyr also said more leases north of White Sands will likely go to auction in September 2026.
