Zephyr Energy secures loan refinancing for Paradox project in Utah, US

UK-based lipid and state institution Zephyr Energy has secured indebtedness refinancing for the Paradox task successful the Paradox Basin, Utah, US.

The institution has besides announced further indebtedness financing to money incremental near-term enlargement and improvement plans.

Zephyr’s elder lender, North-Dakota based First International Bank & Trust (FIBT), precocious completed its semi-annual redetermination of the company’s borrowing base.

The company’s existent outstanding borrowings with FIBT basal astatine astir $22.1m (£16.85m), down from $35.3m successful January 2024 and $27.4m successful October 2024.

In August 2025, Zephyr announced it had completed the acquisition of moving interests successful proved developed producing assets successful the halfway Rocky Mountain Basins.

Following this, FIBT initiated a valuation investigation of Zephyr Energy’s non-operated plus portfolio, considering the recently acquired producing assets.

Zephyr consolidated its 2 FIBT word loans into a azygous word indebtedness astatine a little mean involvement complaint and rolled $4m of its revolving recognition installation into this caller loan.

Zephyr main enforcement Colin Harrington said: “We proceed to beryllium afloat focused connected delivering archetypal accumulation from our Paradox project, and the breathtaking conclusions from the caller CPR [competent person's report], matched with beardown good trial results and fantabulous proximity to buoyant US state markets, person helped to rise the wide illustration of the task significantly.

“We are moving diligently with our partners to execute the operational and regulatory tasks needed to necktie successful our 3 wells that are presently susceptible of production, and we are vigorously pursuing our ongoing task concern discussions.

“I americium blessed to study the result of our refinancing, which reaffirms the important existent worth of our non-operated portfolio and reduces our wide outgo of debt.”

Zephyr Energy has besides secured $2m successful further indebtedness financing from an manufacture lender, with plans to usage the further backing for near-term expenditures crossed its portfolio.

The company’s cardinal operational absorption includes tying successful 3 antecedently drilled wells astatine the Paradox task to adjacent pipeline infrastructure to present aboriginal hydrocarbon production.

The 3 wells are State 36-2 LNW-CC-R, State 16-2LN-CC and Federal 28-11.

Zephyr Energy said that engineering enactment and commercialized documentation with Enbridge, the relation of the adjacent 16in earthy state pipeline, is presently progressing.

The institution besides stated that the workstream for securing indispensable regulatory approvals for its projected earthy state proscription work is progressing.