Ms. Catherine Flax reports

ZEFIRO AWARDED THREE FEDERALLY FUNDED WELL PLUGGING PROJECTS IN OHIO AND PENNSYLVANIA

Zefiro Methane Corp. has been awarded three additional federally financed well-plugging projects in Ohio and Pennsylvania with a combined value of approximately $1.9-million (U.S.), covering a total of 12 orphaned wells.

In Ohio, Zefiro has been awarded the Trumbull 3F and Lake 18F projects, each consisting of four wells, representing approximately $1.47-million (U.S.) in combined revenue. Zefiro was the only bidder on the Lake 18F project. Together, the two awards equate to an average of approximately $184,000 (U.S.) per well, a premium of more than 40 per cent to the $129,997.93 (U.S.) average per-well cost published under Ohio's Orphan Well Program, reflecting Zefiro's ability to command above-market rates for top-tier work.

The third project is located in Pennsylvania and covers four wells, which have lower construction costs and overhead expenses compared with the wells in Ohio. Based on this, management expects Zefiro to realize at least $435,000 (U.S.) in revenue from this "time and materials" contract, which has provisions for further compensation in the event the project goes beyond its initial scope. Zefiro was also the only bidder on this project. The wells sit within a five-minute drive of the company's Bradford, Penn., headquarters, which management expects to translate into minimal mobilization and operating overhead costs relative to comparable work.

Management expects work across the three projects to begin in December, 2026, or January, 2027. Under the terms of these government contracts, Zefiro retains discretion to perform the work at any point over the following 12 months. That flexibility allows the company to prioritize time-sensitive private-sector work on a fast-response basis while slotting these federally financed projects into slower periods, supporting year-round utilization of crews and equipment in an industry where seasonal downtime is otherwise common.

Management commentary

Zefiro chief executive officer Catherine Flax commented: "Being the sole bidder on two of these three projects, and securing Ohio pricing well above the state's published average cost per well, speaks directly to the market position our crews have built over decades of work in these basins. We continue to compete on reputation and execution rather than on price, and these awards demonstrate that customers are willing to pay for reliability.

"Equally important is the scheduling flexibility these contracts provide. With a 12-month window to perform the work, we can keep rigs and crews productive through the slower months while preserving our ability to respond quickly when a private-sector client needs us on site. We look forward to executing this work as part of Zefiro's continued efforts to plug orphaned oil and gas wells across America."

About Zefiro Methane Corp.

Zefiro Methane is a North American environmental services company specializing in methane abatement and the plugging of orphaned and end-of-life oil and gas wells. Through operating subsidiary Plants & Goodwin Inc., a third-generation well services company with a 50-plus-year operating history, Zefiro is vertically integrated across the well life cycle -- measurement and monitoring, plugging and abandonment, site restoration, and carbon credit origination -- serving government and private-sector customers across 13 U.S. states.

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