LONDON, July 3, 2026, 00:04 BST
- Zephyr Energy finished up 6.73% at 3.65p on Thursday after nearly 14.71 million shares traded hands, almost triple its usual volume.
- Zephyr Energy picked up 2,294 more Paradox Basin acres on July 2, following the 27,000-acre buy it announced June 26.
- Zephyr controls over 72,000 gross Paradox acres now, but its 2025 reserve report only covered 20,000 acres at the time.
Zephyr Energy PLC (LON:ZPHR) shares outperformed the broader AIM market Thursday as the Utah oil and gas firm picked up extra land north of its White Sands Unit, expanding the piece of its Paradox Basin position that falls outside its most recent reserve report.
Shares finished at 3.65p, up 0.23p or 6.73%, on volume of 14.71 million. The FTSE AIM All-Share ended 0.18% higher at 777.45. Zephyr is now 15.9% off its 52-week peak in February at 4.34p, but up 65.9% from its low of 2.20p in December.
| July 2 market wrap | Zephyr Energy | FTSE AIM All-Share |
|---|---|---|
| Close | 3.65p | 777.45 |
| Day move | up 6.73% | up 0.18% |
| Volume | 14.71 million | 5.50 billion |
| 52-week range | 15.9% off top | 7.2% off high |
Scale is the thing here. Zephyr picked up about 29,300 acres in a week, boosting its operated Paradox base by around 41%. The leases from July 2 came from a Utah Trust Lands Administration sealed-bid auction. They have a five-year term, a 16.67% royalty, and Zephyr used existing cash to pay.
| Paradox Basin measure | Figure |
|---|---|
| Acres picked up July 2 | 2,294 |
| Acres picked up June 26 | about 27,000 |
| Total gross operated acres | more than 72,000 |
| Acres assessed by CPR at report date | 20,000 |
| 2P reserves as of Dec. 31, 2025 | 35.3 mmboe |
| 2C resources as of Dec. 31, 2025 | about 74.2 mmboe |
The point matters since the stock is pricing in more acreage than just the formal reserve base. With AJ Bell showing a market cap of £76.68 million, Zephyr is trading near £1,065 per operated Paradox acre, or £2.17 per boe on its 35.3 million boe of Paradox 2P reserves. This is just an equity valuation yardstick – Zephyr still has debt and non-operated assets to factor in.
Chief Executive Colin Harrington said the new auction result “further enhances the scale” of Paradox and said Zephyr will keep an “opportunistic” approach to adding land. The company has nominated more leases north of the White Sands Unit for a September 2026 auction. Investegate
Zephyr ended 2025 with $3.0 million in cash, down from $10.3 million. Borrowings reached $23.6 million at year-end. Revenue dropped 43% to $13.9 million. The company’s loss after tax shrank to $10.8 million from $19.6 million.
| Financial line | 2025 | 2024 | Change |
|---|---|---|---|
| Revenue | $13.9 mln | $24.3 mln | -43% |
| Gross profit | $2.5 mln | $7.2 mln | -65% |
| Loss after tax | $10.8 mln | $19.6 mln | down 45% |
| Cash | $3.0 mln | $10.3 mln | -71% |
| Total borrowings | $23.6 mln | $26.3 mln | -10% |
Zephyr’s non-op assets are bringing in some cash as the Paradox project gets closer to first gas. Non-operated production for Q1 came in at 918 boepd net, with 71% oil, spread across stakes in 600-plus gross wells. Zephyr said Q1 volumes topped its estimates, helped by stronger commodity prices and a $1 million bad-debt recovery.
Infrastructure is the next key test for the project. Zephyr said on June 9 that an inspection found no immediate integrity problems with the 20.9-mile pipeline running from its Powerline Road Gas Plant to the Northwest Pipeline, which Williams Companies Inc (NYSE:WMB) operates. Pipeline owner and operator Enbridge Inc (NYSE:ENB) flagged four short spots, adding up to 25 feet, that need a visual check before raising pressure for gas export.
Harrington said after the inspection that Zephyr can now move to close offtake deals and push the farm-out forward. The company said it will give a new timeline for first gas once Enbridge gives more detail on the approval process.
