UK-based oil and gas company Zephyr Energy has secured loan refinancing for the Paradox project in the Paradox Basin, Utah, US.
The company has also announced additional loan financing to fund incremental near-term expansion and development plans.
Zephyr’s senior lender, North-Dakota based First International Bank & Trust (FIBT), recently completed its semi-annual redetermination of the company’s borrowing base.
The company’s current outstanding borrowings with FIBT stand at around $22.1m (£16.85m), down from $35.3m in January 2024 and $27.4m in October 2024.
In August 2025, Zephyr announced it had completed the acquisition of working interests in proved developed producing assets in the core Rocky Mountain Basins.
Following this, FIBT initiated a valuation analysis of Zephyr Energy’s non-operated asset portfolio, considering the newly acquired producing assets.
Zephyr consolidated its two FIBT term loans into a single term loan at a lower average interest rate and rolled $4m of its revolving credit facility into this new loan.
Zephyr chief executive Colin Harrington said: “We continue to be fully focused on delivering first production from our Paradox project, and the exciting conclusions from the recent CPR [competent person's report], matched with strong well test results and excellent proximity to buoyant US gas markets, have helped to raise the overall profile of the project significantly.
“We are working diligently with our partners to execute the operational and regulatory tasks needed to tie in our three wells that are currently capable of production, and we are vigorously pursuing our ongoing project partnership discussions.
“I am happy to report the outcome of our refinancing, which reaffirms the substantial current value of our non-operated portfolio and reduces our overall cost of debt.”
Zephyr Energy has also secured $2m in additional loan financing from an industry lender, with plans to use the additional funding for near-term expenditures across its portfolio.
The company’s key operational focus includes tying in three previously drilled wells at the Paradox project to nearby pipeline infrastructure to deliver future hydrocarbon production.
The three wells are State 36-2 LNW-CC-R, State 16-2LN-CC and Federal 28-11.
Zephyr Energy said that engineering work and commercial documentation with Enbridge, the operator of the adjacent 16in natural gas pipeline, is currently progressing.
The company also stated that the workstream for securing necessary regulatory approvals for its proposed natural gas transportation service is progressing.
Last month, Zephyr Energy announced a substantial upgrade in reserves and resource estimates for its Paradox basin assets in Utah, US, significantly boosting the project’s potential.
The updated CPR by Sproule-ERCE International reveals a 93-fold increase in proved recoverable (1P) reserves.
The report details that 1P reserves have surged to 14.8 million net barrels of oil equivalent, a significant rise from the 160,000 reported in April 2022.
