Ms. Catherine Flax reports

ZEFIRO EXPANDS OPERATIONS INTO INDIANA AND MICHIGAN WITH FIRST-EVER CARBON SEQUESTRATION WELL

Zefiro Methane Corp. has commenced its first-ever operations in Indiana and Michigan, including the company's first in carbon sequestration.

Indiana expansion

In eastern Indiana, Zefiro is executing an eight-week carbon sequestration project representing approximately $750,000 (U.S.) in revenue, for which work is already under way. The project marks two firsts for the company -- its first operations in the state of Indiana, and its first project in carbon sequestration, a multibillion dollar category that broadens the scope of Zefiro's service offerings beyond the remediation work that has historically formed the core of its business.

The sequestration wells are drilled into a target geologic strata that has been evaluated as a suitable storage reservoir. The scope draws on the same crews, rigs and downhole expertise the company applies to well plugging, directed toward placing carbon underground rather than sealing a well at the end of its life. Management views this as a natural extension of an existing capability into a second source of demand.

Michigan expansion

In Michigan, Zefiro is on site and under way with an emergency response project representing approximately $500,000 (U.S.) in revenue from a single well -- a figure well above the company's typical per-well economics. It is Zefiro's first project in the state of Michigan.

The project is classified as an emergency response because hydrogen sulphide is flowing to the surface at the site. Hydrogen sulphide can be fatal even at low levels of exposure, and the work consequently requires extensive protective measures, including supplied air and full ventilator systems for crews on location. Relatively few operators are equipped and trained to take on work of this nature, which is reflected in the economics of the project.

Management commentary

Zefiro chief executive officer Catherine Flax commented: "Entering two new states, with crews and work already under way in both, reflects the operating capacity this company has built over the past year. These awards would not have been available to us before the Viking acquisition, and that is precisely the return we underwrite when we invest in new capabilities and equipment.

"The Indiana project is particularly interesting as it is our first carbon sequestration well. Carbon sequestration is a rapidly growing category, and the work of installing tubulars and downhole tools to bring a storage well on-line sits squarely within what our crews do every day. We are not learning a new trade here -- we are aligning an existing one at a second and growing source of demand," concluded Ms. Flax.

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 15 U.S. states.

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