Zephyr Energy has expanded its operated land position in the Paradox Basin, Utah, US, with the acquisition of approximately 27,000 acres of additional leases.
This brings the UK-based oil and gas company’s total operating acreage in the basin that makes up the Paradox project to around 70,000 gross acres, most of which are held with a 100% working interest.
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The majority of the newly acquired land, around 24,000 acres, was secured through a competitive lease sale conducted by the US Bureau of Land Management (BLM).
The remaining acreage was obtained via direct negotiations with the Utah Trust Lands Administration (TLA).
The federal leases have a primary term of ten years, while the state leases have a five-year term.
Zephyr Energy used existing cash resources to cover the acquisition costs.
Paradox Basin has a long-standing history of exploration and production.
According to Zephyr Energy, the new acreage is contiguous with its White Sands Unit (WSU) and is expected to feature similar reservoir conditions to its current holdings in the Paradox Formation oil and natural gas play.
The land is located to the south and west of the White Sands Unit, which will benefit future development drilling, and could be incorporated with existing infrastructure.
There are also indications of further exploration and development opportunities for helium below the Paradox Formation in the newly acquired area.
The company noted the possibility of unitising the new land, either by expanding the current federal unit or forming new ones, subject to regulatory approvals.
Zephyr Energy CEO Colin Harrington said: “I am delighted that we have bolstered the scale of our Paradox project with the acquisition of this contiguous acreage package, which we believe will significantly enhance the commercial value of the Paradox project.
“These acquisitions come at a critical stage in our ongoing development of the Paradox project, in particular as we progress the farm-out discussions for the project.”
In a separate development, Zephyr Energy confirmed it has completed the sale of undeveloped, non-core acreage in the Powder River Basin, Wyoming, US.
The company has received net proceeds of approximately $2.2m (£1.66m) from these transactions.
This acreage was part of a previous $7.3m acquisition that included both producing wells and undeveloped land, announced in August 2025.
In November last year, the company secured loan refinancing for the Paradox project. Zephyr Energy also has non-operated production stakes in the Williston and other Rocky Mountain basins in the US.
