Fort Lauderdale, Florida--(Newsfile Corp. - August 19, 2025) - ZEFIRO METHANE CORP. (Cboe CA: ZEFI) (FSE: Y6B) (OTCQB: ZEFIF) (the "Company", "Zefiro", or "ZEFI"), a fully integrated environmental services company which originates institutional-grade carbon credits by remediating unplugged oil and gas wells in the United States, is pleased to announce both (i) The successful issuance of certified carbon credits from American Carbon Registry ("ACR") Project 959 ("ACR959") reflecting confirmed emissions reductions of 92,956 metric tonnes of CO2 equivalent, as well as (ii) Completed delivery of the first tranche of ACR959 carbon credits to Mercuria Energy America, LLC ("Mercuria").
This pair of events marks the debut of a third key revenue stream for Zefiro, supplementing its earnings from core operations which have already generated USD $24.4 million in revenue for the Company's first three fiscal quarters of 2025 (as announced in Zefiro's May 14, 2025 press release).
In addition to Zefiro's plugging and abandonment division in the Appalachia region (Pennsylvania, Ohio, New York, and West Virginia), Zefiro also recently announced its very first revenues from methane monitoring, with a USD $800,000 contract to provide services to the West Virginia Department of Environmental Protection.
Pictured above is the well that is central to the ACR959 project recently completed by Zefiro. This well is located on a horse and cattle pasture in Custer County, Oklahoma.
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Issuance of ACR959 Carbon Credits
In May of 2023, ACR published a first-of-its-kind methodology allowing carbon offsets to be created by plugging orphaned oil/gas wells (titled "Methodology for the Quantification, Monitoring, Reporting and Verification of Greenhouse Gas Emissions Reductions and Removals from Plugging Orphan Oil and Gas Wells in the U.S. and Canada" and referred to herein as the "Methodology").
Under the leadership of Tina Reine, Zefiro's Chief Commercial Officer who was one of the founding members of J.P. Morgan's carbon trading desk, Zefiro began to undertake all of the necessary steps to originate some of the first-ever offsets to be created under the Methodology. This included taking preliminary methane emission measurements, completing all well-level plugging/remediation work, and engaging a third-party Validation and Verification body ("VVB") to independently certify all findings as announced in a press release earlier this year.
The ACR959 project is based on a well located on privately owned land in Custer County, Oklahoma. On June 21, 2025, post-plugging monitoring confirmed that the well was plugged and in compliance with ACR methodology. On July 29, 2025, validation was officially completed by the VVB.
As a result of the completion of ACR959, Zefiro was issued carbon offsets reflecting emissions reductions of 92,956 metric tonnes of CO2 equivalent ("CO2e").
Project Documents for the ACR959 project can be found on ACR's website at the following link: https://acr2.apx.com/mymodule/reg/TabDocuments.asp?r=112&ad=Prpt&act=update&type=PRO&aProj=ipub&tablename=doc&id1=959.
Note to Readers: If no link is visible above, please access this press release through SEDAR+ or the Investors section of the Zefiro website for a version containing the link.
All Project Documents relating to the ACR959 project are publicly available in the index shown above on ACR's website, which can be accessed by clicking here.
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Delivery of ACR959 Carbon Credits to Mercuria
Mercuria is one of the world's largest independent energy and commodities groups. Among Mercuria's key business areas is its Net Zero Solutions, helping businesses to meet their net zero goals.
Following the publication of ACR's Methodology, Mercuria issued a press release announcing that it was the buyer in a pre-sale transaction with Zefiro for certified carbon credits to be generated from the remediation of unplugged oil/gas wells that are leaking greenhouse gases such as methane.
In the press release, Adam Raphaely (Managing Director, Mercuria Group America) commented, "For too long, investors have not had routine access to reduction activities that display proven pathways to reducing harmful oil and gas emissions. Our work with Zefiro represents not only Mercuria's commitment to fostering innovative projects and ideas that have the power to reshape the industry but also our alignment with the core principles of many of our customers."
The carbon offsets from ACR959 are to be transferred to Mercuria by Zefiro in equal 25% tranches, the first of which has already been delivered at the time of this press release.
Zefiro Management Commentary
Zefiro's Chief Executive Officer, Catherine Flax, said, "The successful issuance and delivery of Zefiro's very first carbon credits is a landmark development not just for us as a company, but also for the voluntary carbon markets as a category in which new standards are being set. With this Methodology that allows carbon offsets to be generated directly from the remediation of orphaned oil/gas wells, there is now a clear and straightforward blueprint in which the voluntary carbon markets can be leveraged as a funding source for leaking wells to be plugged without needing to rely on taxpayer resources. Our team has been very thorough in completing each and every step of this process, which ushers in a new era for Zefiro along with the many stakeholders and participants in the marketplace, which continues to play a key role in mitigating the long-term impacts caused by emissions of greenhouse gases such as methane."
Zefiro's Chief Commercial Officer, Tina Reine, stated, "These days, institutional end-users in the carbon markets are looking for credits that are generated through projects that make a quantifiable and common-sense impact, with transparent and verifiable emissions reductions to directly offset their own output of emissions. Zefiro's carbon offsets are originated by plugging wells in the U.S. that are leaking methane, aligning optimally with the criteria of these end users and their respective environmental commitments. One of the most remarkable things about this pair of developments for Zefiro is that Mercuria agreed to purchase the ACR959 carbon credits before the Methodology was even finalized, which virtually never happens in the voluntary carbon markets."
Ms. Reine continued, "Now that Zefiro has successfully delivered its very first carbon credits to a purchaser, we are now positioned to more rapidly generate carbon credits from current and future environmental remediation projects in the United States. There has long been a deficit of supply in terms of American-originated carbon offsets that meet the requirements of institutional purchasers such as Mercuria and their end-user clients, and we are pleased to have the opportunity to bring new supply into the pipeline to help organizations around the world work towards their net-zero pledges as responsible corporate citizens."
About Zefiro Methane Corp.
Zefiro is an environmental services company, specializing in methane abatement. Zefiro strives to be a key commercial force towards Active Sustainability. Leveraging decades of operational expertise, Zefiro is building a new toolkit to clean up air, land, and water sources directly impacted by methane leaks. The Company has built a fully integrated ground operation driven by an innovative monetization solution for the emerging methane abatement marketplace. As an originator of high-quality U.S.-based methane offsets, Zefiro aims to generate long-term economic, environmental, and social returns.
On behalf of the Board of Directors of the Company,
ZEFIRO METHANE CORP.
Catherine Flax
Chief Executive Officer
For further information, please contact:
Zefiro Investor Relations
1 (800) 274-ZEFI (274-9334)
investor@zefiromethane.com
Forward-Looking Statements
This news release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information is often, but not always, identified by the use of words such as "seeks", "believes", "plans", "expects", "intends", "estimates", "anticipates" and statements that an event or result "may", "will", "should", "could" or "might" occur or be achieved and other similar expressions. In particular, this news release contains forward-looking information including statements regarding: the Company's intention to reduce emissions from end-of-life oil and gas wells and eliminate methane gas; the Company's partnerships with industry operators, state agencies, and federal governments; the Company's expectations for continued increases in revenues and EBITDA growth as a result of these partnerships; the Company's intentions to build out its presence in the United States; the anticipated federal funding for orphaned well site plugging, remediation and restoring activities; the Company's expectations to become a growing environmental services company; the Company's ability to provide institutional and retail investors alike with the opportunity to join the Active Sustainability movement; the Company's ability to generate long-term economic, environmental, and social returns; and other statements regarding the Company's business and the industry in which the Company operates. The forward-looking information reflects management's current expectations based on information currently available and are subject to a number of risks and uncertainties that may cause outcomes to differ materially from those discussed in the forward-looking information. Although the Company believes that the assumptions and factors used in preparing the forward-looking information are reasonable, undue reliance should not be placed on such information and no assurance can be given that such events will occur in the disclosed timeframes or at all. Factors that could cause actual results or events to differ materially from current expectations include, but are not limited to: (i) adverse general market and economic conditions; (ii) changes to and price and volume volatility in the carbon market; (iii) changes to the regulatory landscape and global policies applicable to the Company's business; (iv) failure to obtain all necessary regulatory approvals; and (v) other risk factors set forth in its Prospectus dated April 8, 2024 under the heading "Risk Factors". The Company operates in a rapidly evolving environment where technologies are in the early stage of adoption. New risk factors emerge from time to time, and it is impossible for the Company's management to predict all risk factors, nor can the Company assess the impact of all factors on Company's business or the extent to which any factor, or combination of factors, may cause actual results to differ from those contained in any forward-looking information. Forward-looking information in this news release is based on the opinions and assumptions of management considered reasonable as of the date hereof, including, but not limited to, the assumption that general business and economic conditions will not change in a materially adverse manner. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information. The forward-looking information included in this news release is made as of the date of this news release and the Company expressly disclaims any intention or obligation to update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required by applicable law.
Statement Regarding Third-Party Investor Relations Firms
Disclosures relating to investor relations firms retained by Zefiro Methane Corp. can be found under the Company's profile on SEDAR+ at www.sedarplus.ca/.
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SOURCE: Zefiro Methane Corp.