Zefiro sells first ACR orphan well carbon offsets

Executive Summary

• Zefiro Methane Corp. successfully issued and delivered the first tranche of carbon offsets under the American Carbon Registry’s (ACR) orphan well methodology, marking a new revenue stream for the company.
• The ACR959 project, located in Custer County, Oklahoma, resulted in the issuance of 92,956 metric tonnes of CO2 equivalent (CO2e) carbon credits.
• The first tranche of these credits was delivered to Mercuria Energy America LLC, a major energy and commodities group, under a presale transaction structure.

Key Details

• Carbon Credit Issuance: Zefiro issued certified carbon credits from ACR project 959 (ACR959), reflecting confirmed emissions reductions of 92,956 metric tonnes of CO2 equivalent.
• Transaction Counterparty: The credits were delivered to Mercuria Energy America LLC, one of the world's largest independent energy and commodities groups.
• Delivery Structure: The ACR959 carbon offsets are transferred to Mercuria in equal 25-per-cent tranches; the first tranche has been delivered as of the release date.
• Project Timeline & Validation:
  • May 2023: ACR published the methodology for quantifying emissions reductions from plugging orphan oil/gas wells.
  • June 21, 2025: Post-plugging monitoring confirmed the well in Custer County, Oklahoma, was plugged and compliant with ACR methodology.
  • July 29, 2025: Validation was officially completed by a third-party Validation and Verification Body (VVB).
• Financial Context: This event supplements Zefiro's core operations, which generated $24.4 million (U.S.) in revenue for the first three fiscal quarters of 2025.
• Additional Revenue: Zefiro recently announced its first revenues from methane monitoring, securing an $800,000 (U.S.) contract with the West Virginia Department of Environmental Protection.
• Market Significance: CEO Catherine Flax described the event as a "landmark development" setting new standards for voluntary carbon markets, providing a blueprint for funding well remediation without taxpayer resources.
• Strategic Note: CCO Tina Reine highlighted that Mercuria agreed to purchase the credits via presale before the methodology was even finalized, a rare occurrence in the voluntary carbon markets.

Notable Quotes

• Catherine Flax, CEO: "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... Our team has been very thorough in completing each and every step of this process, which ushers in a new era for Zefiro..."
• Tina Reine, CCO: "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."
• Adam Raphaely, Managing Director, Mercuria Group America: "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."