Ms. Catherine Flax reports

ZEFIRO BUILDS REVENUE THROUGH WELL-PLUGGING WORK FOR POWER INFRASTRUCTURE WITH A GROWING FOCUS ON DATA CENTER ENERGY PROJECTS

Zefiro Methane Corp. is setting its strategic focus on energy infrastructure projects, which have driven additional revenue and overall business growth in the private sector. This is taking place alongside Zefiro's core operations performing plug-and-abandonment work for exploration/production (E&P) corporate clients, in addition to government agencies in multiple U.S. states.

With U.S. utility companies set to invest an estimated $1.4-trillion (U.S.) over the next five years1 to strengthen the nation's power grid, Zefiro is capitalizing on the need for oil/gas wells to be plugged on sites where energy infrastructure facilities are being built.

This demand for additional power capacity is largely driven by AI data centres, which by the year 2030 could be responsible for up to 9 per cent of all U.S. energy usage1.

As a result of recent additions to Zefiro's equipment fleet and crew size, the company is strategically positioned to align with these unique plug-and-abandonment opportunities as continued investments are being made into America's energy infrastructure.

The continuing proliferation of data centers throughout the Americas has prompted several new energy infrastructure projects that are purpose-built for supplying electricity to these facilities. Given the hazard posed by unplugged oil/gas wells that can be discovered during any phase of planning or construction, Zefiro's ability to plug such wells on a rapid timeline has been invaluable for the advancement of multiple energy infrastructure projects.

During the past year, Zefiro has completed two well-plugging contracts for energy infrastructure projects in the states of Pennsylvania and Louisiana. The Pennsylvania facility is being built to house multiple hyperscale data centres powered by natural gas.

Overview of Zefiro's recent projects for energy infrastructure sites

Indiana county, Pennsylvania (late 2025): Approximately 50 miles east of Pittsburgh, this three-month project played a key role in the conversion of a coal power plant into a cleaner, natural gas-fired power plant. After nine conventional gas wells were discovered on the power plant site, the redevelopment project was stalled until Zefiro could plug all of the wells that were discovered. The project successfully resumed, with its first deliveries of power currently set to take place in 2028.

For more details about this project, please refer to Zefiro's Dec. 18, 2025, press release.

Lake Charles, La. (early 2026): This $5-million (U.S.) project was completed three weeks ahead of schedule, consisting of nine wells that had previously been plugged but needed remediation work to allow for development of a private energy infrastructure facility that is set to begin operating in 2029. In addition to being Zefiro's first-ever project in Louisiana, it also marked one of the company's first offseason projects during the winter months as part of Zefiro's broader strategy to maximize year-round utilization of its fleet and crews.

For more details about this project, please refer to Zefiro's Jan. 14, 2026, press release.

Recent changes to the U.S. energy regulatory landscape for data centres

Earlier this month, the Federal Energy Regulatory Commission (FERC) ordered all six major regional grid operators in the United States to either justify or revise their large-load tariffs within 60 days of June 18, 2026. This order was issued to ensure that large energy users such as data centres can integrate onto the electric grid while keeping the interests of ratepayers protected, and safeguarding grid stability as demand from large loads accelerates nationwide.

Management commentary

Zefiro chief executive officer Catherine Flax commented: "As the development of AI data centres continues to ramp up, so does the growth of America's energy infrastructure to keep pace with demand for power. Zefiro is proud to be directly supporting these efforts by plugging wells and cleaning up environmental hazards that are encumbering sites where infrastructure facilities are to be built as part of this wide-scale transformation. As a service provider to the companies carrying out these multibillion-dollar projects, we at Zefiro are keen to continue leveraging this market position while fully utilizing our newly expanded equipment roster to make a positive impact and deliver results for our shareholders."

Zefiro senior vice-president of corporate development Luke Plants added: "While the role of companies such as Zefiro might not be obvious in the context of building a global network of data centres, this portfolio of recent infrastructure projects demonstrates that Zefiro is a strategic key player in bringing these developments to fruition. Among Zefiro's management team, we have observed an increased level of interest in all stakeholders involved in the formation and operation of data centres. Whether it's the microchip engineering firms, the software developers, the semiconductor manufacturers or the energy utilities delivering power to keep these places running, there are many opportunities as the era of advanced artificial intelligence continues to emerge. Management expects these projects to be an important part of Zefiro's long-term growth strategy, and I am delighted to be guiding the company's efforts in navigating this exciting landscape."

About Zefiro Methane Corp.

Zefiro is a North American environmental services company focused on strategically addressing asset retirement obligations and reducing methane emissions. With fully integrated operations, Zefiro quantifies emissions from oil/gas operations, provides turnkey decommissioning services and generates carbon offsets. Zefiro's suite of solutions takes a holistic approach to generating cost-effective and stable energy, while eliminating negative environmental impacts.

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