Ms. Catherine Flax reports

ZEFIRO PROVIDES SUPPORT FOR UPCOMING LAUNCH OF NEW NORTH AMERICAN ORPHANED WELL PLUGGING CARBON CREDIT METHODOLOGY

Zefiro Methane Corp. has provided support for the coming launch of a new carbon credit methodology for plugging orphaned oil and gas wells in the United States and Canada. The Orphaned Well Plugging (OWP) Protocol, developed by carbon registry Isometric, is nearing completion and, once finalized, is expected to once again give Zefiro the ability to originate carbon credits from the same type of well-plugging work it performs today.

Isometric counts some of the world's best-known companies among its customers, including Microsoft, Boeing, JPMorgan Chase and Anglo American. The London-based certification company began in carbon removal and has since expanded into industrial emissions, energy, fuels and materials. Isometric says it serves more than 200 projects around the world and has been contracted to certify more than 16 million tonnes. In September, 2026, Intercontinental Exchange Inc. (ICE), the parent company of the New York Stock Exchange, joined Isometric's Series A financing. The two companies plan to combine Isometric's certification technology with ICE's market infrastructure and data capabilities.

Isometric released the draft OWP Protocol on Oct. 15, 2026, opening a 30-day public consultation period that ends Nov. 14, 2026. The protocol sets out requirements for projects that permanently plug leaking orphaned wells to stop methane from escaping into the atmosphere. Credits are based on a direct, on-site measurement of each well's methane leak before plugging, projected over a 20-year crediting period using a conservative decline rate, with a permanence check 12 to 18 months after plugging and a portion of credits withheld until the well is confirmed sealed. To be eligible, a project must show that a well is orphaned, is not scheduled for plugging by a public program and would not have been plugged without carbon finance. Further details are available in Isometric's announcement.

Zefiro's supporting role

The OWP Protocol was developed by Isometric's science team and reviewed by members of Isometric's science network of more than 500 academic experts. Zefiro's role was that of an external contributor as it was one of three orphaned well project developers that partly financed the protocol's development, and it provided expert input drawn from its field operations and carbon market experience. As Isometric noted in its announcement, financing does not influence a protocol's requirements, and credits are issued only where an independent, accredited auditor has confirmed that a project is compliant.

Zefiro's input was provided by Sam Jennings, the company's director of carbon operations, and Tina Reine, its chief commercial officer. Mr. Jennings is a second-generation petroleum landman with two decades of experience at Shell, ConocoPhillips, Marathon and Devon. Ms. Reine, who leads Zefiro's activities in the voluntary carbon markets, has worked in environmental markets since 2007. She helped build out environmental markets divisions at JPMorgan and NextEra Energy, previously served as director of commercialization for the carbon offset market at World Kinect Energy Services, and holds an MBA from Columbia Business School.

In Isometric's announcement, Mr. Jennings commented: "We appreciate Isometric's work to advance carbon finance for orphaned well plugging and welcome this public consultation. Credible methane credits depend on measurable, verifiable reductions grounded in field measurements of actual leakage and defensible projections of future emissions. A framework that combines scientific rigour with the practical requirements of financing and delivering well-plugging projects can help attract the investment needed to plug more leaking orphaned wells."

Carbon credit record and market opportunity

Zefiro brings a proven record to this market. The company completed the first-ever sale of carbon offsets originated under the American Carbon Registry's orphaned well methodology, delivering credits to institutional buyers including Mercuria Energy America LLC and EDF Trading, transactions that resulted from commercialization efforts led by Ms. Reine. Once the OWP Protocol is finalized, Zefiro expects to resume originating carbon credits, drawing on the same crews, rigs and in-house methane measurement capabilities it deploys every day for its government and private-sector customers.

The protocol arrives as institutional buyers are committing record levels of capital to carbon credits. According to MSCI, capital committed and deployed into the global carbon credit market reached a record $22-billion (U.S.) in 2025, including $14.2-billion (U.S.) from corporate buyers, more than triple the prior year, while the value of offtake agreements nearly tripled to $12.3-billion (U.S.). Buyers are also paying a growing premium for quality. Looking ahead, MSCI estimates the carbon credit market could be worth $5-billion (U.S.) to $20-billion (U.S.) by 2030 and $60-billion (U.S.) to $270-billion (U.S.) by 2050.

Any revenue Zefiro generates from carbon credits would be in addition to its existing revenue base, which reached a record $42.5-million (U.S.) in fiscal 2026, ended June 30, 2026, an increase of 31.1 per cent from fiscal 2025. Because the OWP Protocol applies only to orphaned wells that are not scheduled for plugging by a public program and would not be plugged without carbon finance, carbon-financed projects would add to, rather than displace, the government-funded and private-sector work that drives Zefiro's business today.

Management commentary

Zefiro chief executive officer Catherine Flax commented: "Zefiro helped demonstrate that institutional buyers will pay for methane reductions from plugged orphaned wells, and we are pleased to support Isometric's work on a protocol grounded in direct field measurement. For our shareholders, the opportunity is additive. Carbon finance gives us a way to plug orphaned wells that no public program is scheduled to address, using the same crews and equipment that already serve our government and private-sector customers."

Zefiro chief commercial officer Tina Reine added: "I've worked in environmental markets for nearly two decades, and today's buyers are clear about what they want, credits they can measure, verify and defend. Credits from plugged orphaned wells, grounded in direct field measurement of methane that would otherwise keep leaking, meet that standard. When blue-chip companies rely on Isometric's certification and the parent company of the New York Stock Exchange invests in its growth, that is a strong signal of where institutional demand is heading. Our team has already originated and delivered orphaned well credits to institutional buyers, and the OWP Protocol is the opening we have been preparing for."

Marketing services agreement

The company has re-engaged Apaton Finance GmbH of Hanover, Germany, creator of the company's successful Hazard Below Documentary, to provide marketing services, including on-line articles, digital and e-mail marketing, a video interview, and an investor conference presentation, directed primarily at the European market. The agreement is effective Oct. 29, 2026, has an expected term of approximately 12 months and provides for a cash fee of 24,167 euros per month plus applicable taxes. No securities will be issued as compensation. To the company's knowledge, Apaton is arm's length to the company and does not hold any securities of the company.

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 of measurement and monitoring, plugging and abandonment, site restoration and carbon credit origination, serving government and private-sector customers across 15 U.S. states.

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