Zephyr Energy plc announced the spud and start of the main drilling operation on the State 36-2 LNW-CC-R well (the "well") at Zephyr's project in the Paradox Basin, Utah, U.S. The well, for which the Company expects to recover substantially all the drilling costs incurred through the well control insurance policy that it had in place for the State 36-2 LNW-CC well (the "original well") will target the Cane Creek reservoir and the highly productive natural fracture system encountered by the original well. Drilling is planned to a total depth ("TD") of 10,362 feet measured depth (9,600 feet true vertical depth) and will incorporate a short, 270-foot horizontal reservoir section. The well has been designed and permitted such that the horizontal section can be extended to a further 10,000 feet in the Cane Creek reservoir, should that be required in the future.

Drilling operations are expected to take approximately 30 days. After reaching TD and setting a production liner, the Rig will be demobilised and the well will be prepared for production testing.