Turner Pope Research Note, 03 May 2024

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As well as providing a further positive 36-2R well update, Zephyr has today detailed its retirement of US$3.88m (£3.11m) of existing debt through issuance of 64.05m new ordinary shares (c.3.7% of the enlarged capital) to SGR Investments, LLC ('SGRI') at a price of 4.85p per 'Repayment' share. Having originally provided a US$8m asset-backed bridge loan facility to Zephyr back on 21 December 2022 in support of the Williston Acquisition, SGRI is now reflecting a high level of confidence in the Group' broader opportunity by becoming a new cornerstone equity investor. This debt-for-equity exchange, that was completed with no ancillary fees and at no
discount to the market price, will further strengthen Zephyr's balance sheet while increasing future cash flows for reinvestment into its growing asset portfolio. The Repayment shares are being issued using existing share authorities granted to the Board at the Group's annual general meeting held on 26 July 2023 with their Admission being expected on or around 8 May 2024.

We would draw your attention to the various disclaimers in the document both at the beginning and at the end of the note. Retail clients (as defined by the rules of the FCA) must not rely on the research document. In particular you should note that the research document is a non-independent marketing communication. The analyst who has prepared the research is aware that TPI provides research to Zephyr Energy plc. Accordingly the research has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibitions on dealing ahead of its dissemination. The information in the document is published solely for information purposes and is not to be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. The material contained in the document is general information intended for recipients who understand the risks associated with equity investment in smaller companies. It does not constitute a personal recommendation as defined by the FCA or take into account the particular investment objectives, financial situation or needs of individual investors nor provide any indication as to whether an investment, a course of action or the associated risks are suitable for the recipient.
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Zephyr Energy plc published this content on 03 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 03 May 2024 13:26:03 UTC.