Zephyr Energy plc announced the receipt of additional grant funding from the U.S. Department of Energy for upcoming operations on the State 36-2R LNW-CC well at its project in the Paradox Basin, Utah. The Company also provides a further update on current drilling operations on the State 36-2R well. Grant Funding from U.S. Department of Energy: Following similar U.S. government grants awarded to the Company in the past, Zephyr has obtained an incremental USD 250,000 non-dilutive research grant from the DOE to support well testing activity on the State 36-2R well.

This brings the total DOE grant funding made available to the Company to USD 3.65 million in recent years. The grant is administered by the University of Utah's Energy & Geoscience Institute ("EGI"). Zephyr's technical team continues to work closely with the EGI, the Utah Geological Survey (the "UGS") and other Utah-based partners in utilising DOE research funds to fully evaluate the potential overall productivity of the Paradox Basin.

The objective of the incremental grant is to fund a detailed evaluation of theState 36-2Rproduction data from the forthcoming State 36-2R well production test.