Equity Capital Markets and Advisory Business, Auctus Advisors

Auctus Advisors

Equity Capital Markets and Advisory Business

Auctus Advisors is a specialist Equity Capital Markets and Advisory business with a focus in the Energy Sector. The partners have complementary skill sets, with decades of experience across Equity Capital Markets, Investment Banking and the Energy industry. We have worked at Société Générale, Canaccord Capital, BMO Capital Markets and Schlumberger. Most recently we have worked together for many years at GMP FirstEnergy. Auctus has been set up at the beginning of a new decade in which we see significant opportunities in the Energy space. Globally, demand for energy is at record levels and continues to grow. Conversely, investment in traditional energy sources has been severely constrained. We believe this imbalance creates opportunities for both companies and investors. Auctus provides Corporate Broking, Equity Research and Investment Banking services.

Equity Bottom-Up

<ul>
<li>With the acquisition of interests in Sygna and Statfjord Øst expected to complete in January, the process to establish a stable well-funded producing business in Norway is almost complete.</li>
<li>FY23 production at Sygna and Statfjord Øst net to Longboat Norge is ~250 boe/d.</li>
<li>With the entry in Malaysia and the acquisition of Topaz, 2024 is expected to be an important year with a significant increase in production at Sygna and Statfjord Øst early in the year when all wells will be brought on stream (we assume 600 boe/d net to Longboat Norge), high impact drilling at Lotus (Norway), progress in farming out the giant Kertang prospect in Malaysia and potentially the acquisition of producing/development assets in Norway and/or South East Asia.</li>
</ul>


With the acquisition of interests in Sygna and Statfjord Øst expected to complete in January, the process to establish a stable well-funded producing business in Norway is almost complete.
FY23 production at Sygna and Statfjord Øst net to Longboat Norge is ~250 boe/d.
With the entry in Malaysia and the acquisition of Topaz, 2024 is expected to be an important year with a significant increase in production at Sygna and Statfjord Øst early in the year when all wells will be brought on stream (we assume 600 boe/d net to Longboat Norge), high impact drilling at Lotus (Norway), progress in farming out the giant Kertang prospect in Malaysia and potentially the acquisition of producing/development assets in Norway and/or South East Asia.


Longboat Energy plc (AIM: LBE): All eyes on 2024

Thematic (Sector/Industry)

<ul>
<li>Criterium Energy (CEQ CN)C ; target price of C$0.45 per share: Transactions repriced on more attractive terms – Criterium has renegotiated the terms of the Mont d’Or (MOPL) acquisition.</li>
<li>Criterium will now assume only ~US$25.5 mm of debt rather than ~US$37 mm previously.</li>
<li>A US$4.8 mm payment to the lenders and the conversion of US$4.9 mm of debt into equity (US$2.5 mm on completion of the acquisition plus US$2.4 mm in 2025) reduce further the existing debt to ~US$15.8 mm at closing. </li>
</ul>


Criterium Energy (CEQ CN)C ; target price of C$0.45 per share: Transactions repriced on more attractive terms – Criterium has renegotiated the terms of the Mont d’Or (MOPL) acquisition.
Criterium will now assume only ~US$25.5 mm of debt rather than ~US$37 mm previously.
A US$4.8 mm payment to the lenders and the conversion of US$4.9 mm of debt into equity (US$2.5 mm on completion of the acquisition plus US$2.4 mm in 2025) reduce further the existing debt to ~US$15.8 mm at closing. 


<ul>
<li>Taking into account the investment by JAPEX to secure 49.9% of Longboat Norge, Longboat plc holds £10.9 mm in cash.</li>
<li>This includes £5.3 mm representing Longboat’s share of the cash in Longboat Norge (50.1% of £10.6 mm).</li>
<li>Overall, we forecast that Longboat plc will hold ~£4 mm in cash at YE23.</li>
</ul>


Taking into account the investment by JAPEX to secure 49.9% of Longboat Norge, Longboat plc holds £10.9 mm in cash.
This includes £5.3 mm representing Longboat’s share of the cash in Longboat Norge (50.1% of £10.6 mm).
Overall, we forecast that Longboat plc will hold ~£4 mm in cash at YE23.


Longboat Energy plc (AIM: LBE): Repositioning the business

<ul>
<li>ADX Energy (ADX AU)C ; target price of A$0.08 per share : Completing farm-out transaction in Austria – The farm-out transaction of Anshof to MND has now completed with an initial payment of EUR1.93 mm.</li>
<li>MND has further Anshof development funding obligations of EUR4.683 mm for the drilling, completion and tie-in of the Anshof-2 and Anshof-1 wells as well as payment of further contingent amounts of EUR1.335 mm and EUR3.57 mm (A$ 5.95 million) if the Anshof-2 well meets agreed production performance criteria.</li>
<li>Arrow Exploration (AXL LN/CN)C ; target price of £0.55 per share: Good flow rate in the C7 at CN-3 – A 23 ft pay zone (25% porosity) in the Carbonera C7 formation in the CN-3 well has been perforated and put initially on production at a rate of 1,149 bbl/d on pump with a water cut of &lt;0.5%. </li>
</ul>


ADX Energy (ADX AU)C ; target price of A$0.08 per share : Completing farm-out transaction in Austria – The farm-out transaction of Anshof to MND has now completed with an initial payment of EUR1.93 mm.
MND has further Anshof development funding obligations of EUR4.683 mm for the drilling, completion and tie-in of the Anshof-2 and Anshof-1 wells as well as payment of further contingent amounts of EUR1.335 mm and EUR3.57 mm (A$ 5.95 million) if the Anshof-2 well meets agreed production performance criteria.
Arrow Exploration (AXL LN/CN)C ; target price of £0.55 per share: Good flow rate in the C7 at CN-3 – A 23 ft pay zone (25% porosity) in the Carbonera C7 formation in the CN-3 well has been perforated and put initially on production at a rate of 1,149 bbl/d on pump with a water cut of &lt;0.5%. 


<ul>
<li>The 6607/7-1 S well (Longboat plc net interest: 10%) encountered better than expected reservoir quality at Velocette but the gas column is only 9 meters.</li>
<li>The trapping mechanism could have been breached.</li>
<li>The estimated gas volumes are at the lower end of expectations and the discovery is not considered commercial.</li>
</ul>


The 6607/7-1 S well (Longboat plc net interest: 10%) encountered better than expected reservoir quality at Velocette but the gas column is only 9 meters.
The trapping mechanism could have been breached.
The estimated gas volumes are at the lower end of expectations and the discovery is not considered commercial.


Longboat Energy plc (AIM: LBE): Velocette minor gas discovery

United Kingdom

Longboat Energy Limited operates as an exploration company. The Company provides drilling services for petroleum industry. Longboat Energy serves customers in the United Kingdom.

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Longboat Energy (LBE LN)

Longboat Energy plc (AIM: LBE): All eyes on 2024

With the acquisition of interests in Sygna and Statfjord Øst expected to complete in January, the process to establish a stable well-funded...

Auctus Advisors

Auctus on Friday - 29/09/2023

Criterium Energy (CEQ CN)C ; target price of C$0.45 per share: Transactions repriced on more attractive terms – Criterium has renegotiated the...

Auctus Advisors

Longboat Energy plc (AIM: LBE): Repositioning the business

Taking into account the investment by JAPEX to secure 49.9% of Longboat Norge, Longboat plc holds £10.9 mm in cash.

Auctus Advisors

Auctus on Friday - 22/09/2023

ADX Energy (ADX AU)C ; target price of A$0.08 per share : Completing farm-out transaction in Austria – The farm-out transaction of Anshof to MND...

Auctus Advisors

Longboat Energy plc (AIM: LBE): Velocette minor gas discovery

The 6607/7-1 S well (Longboat plc net interest: 10%) encountered better than expected reservoir quality at Velocette but the gas column is only 9 mete

Auctus Advisors

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