UK-based oil and gas company Zephyr Energy has secured loan refinancing for the Paradox project in 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 semiannual redetermination of the company’s borrowing base.
The company’s current outstanding loans with FIBT amount to around $22.1 million (£16.85 million), up from $35.3 million in January 2024 and $27.4 million in October 2024.
In August 2025, Zephyr announced that it had completed the acquisition of working interests in proven developed productive assets in the central Rocky Mountain basins.
Next, FIBT initiated a valuation analysis of Zephyr Energy’s non-operated asset portfolio, considering the recently acquired productive assets.
Zephyr consolidated its two FIBT term loans into a single term loan at a lower average interest rate and invested $4 million of its revolving credit facility into this new loan.
Zephyr CEO Colin Harrington said: “We remain fully focused on achieving first production from our Paradox project, and the exciting findings from the recent CPR (competent person report), combined with strong well test results and excellent proximity to the buoyant US gas markets, have helped to significantly raise the project’s overall profile.
“We are working diligently with our partners to execute the operational and regulatory tasks necessary to link our three wells that are currently capable of producing, and we are vigorously continuing our ongoing project partnership discussions.
“I am pleased to report the outcome of our refinancing, which reaffirms the significant current value of our non-operated portfolio and reduces our overall cost of debt.”
Zephyr Energy has also secured $2 million in additional loan financing from an industry lender, with plans to use the additional financing for near-term expenses across its portfolio.
The company’s key operational focus includes linking three previously drilled wells on the Paradox project to nearby pipeline infrastructure to generate future hydrocarbon production.
The three wells are the state 36-2 LNW-CC-R, the state 16-2LN-CC and the federal 28-11.
Zephyr Energy said engineering work and commercial documentation with Enbridge, the operator of the adjacent 16-inch pipeline, is currently progressing.
The company also stated that the work flow to obtain the necessary regulatory approvals for its proposed natural gas transportation service is moving forward.