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>ADX Energy (ADX AU)C; target price of A$0.65 per share: Drilling rig on location of high impact well by the end of January – A rig is expected to be mobilised to the high impact Welchau-1 drilling location during the last week of January.</li>
<li>The total vertical depth of the well is only 1,800 m with a dry hole cost estimated at ~EUR5.1 mm.</li>
<li>BW Energy (BWE NO): BW Offshore sells interests in BW Energy to BW Group – BW Offshore will sell 58,111,461 (22.52%) shares in BW Energy to BW Group at a price of NOK32 per share, resulting in total proceeds ~US$176 mm.</li>
</ul>


ADX Energy (ADX AU)C; target price of A$0.65 per share: Drilling rig on location of high impact well by the end of January – A rig is expected to be mobilised to the high impact Welchau-1 drilling location during the last week of January.
The total vertical depth of the well is only 1,800 m with a dry hole cost estimated at ~EUR5.1 mm.
BW Energy (BWE NO): BW Offshore sells interests in BW Energy to BW Group – BW Offshore will sell 58,111,461 (22.52%) shares in BW Energy to BW Group at a price of NOK32 per share, resulting in total proceeds ~US$176 mm.


<ul>
<li>FY23 production was ~8.5 mbbl/d, implying ~9.5-9.7 mbbl/d in 4Q23. </li>
<li>The electrical issue at the ESPs on Dussafu has not been fully resolved and continues to negatively impact gross production.</li>
<li>Valuation We are now forecasting US$85.5/bbl for Brent in 2024 (US$90/bbl previously) and we have paired back our FY24 production forecast from ~13.4 mbbl/d to 12.7 mbbl/d.</li>
</ul>


FY23 production was ~8.5 mbbl/d, implying ~9.5-9.7 mbbl/d in 4Q23. 
The electrical issue at the ESPs on Dussafu has not been fully resolved and continues to negatively impact gross production.
Valuation We are now forecasting US$85.5/bbl for Brent in 2024 (US$90/bbl previously) and we have paired back our FY24 production forecast from ~13.4 mbbl/d to 12.7 mbbl/d.


Panoro Energy ASA (OSE: PEN): ~45% production growth in 2024

<ul><li>• 3Q23 production of ~10 mbbl/d was slightly ahead of our expectations given a strong performance in Tunisia (2.3 mbbl/d vs our expectations of 2.1 mbbl/d).</li><li>It has therefore been decided to pull out the completions at these two wells to address the ESPs issues. • 4Q23 gross production at Dussafu is expected to average 25-30 mbbl/d.</li></ul>

• 3Q23 production of ~10 mbbl/d was slightly ahead of our expectations given a strong performance in Tunisia (2.3 mbbl/d vs our expectations of 2.1 mbbl/d).It has therefore been decided to pull out the completions at these two wells to address the ESPs issues. • 4Q23 gross production at Dussafu is expected to average 25-30 mbbl/d.

Panoro Energy ASA (OSE: PEN): Production affected by short term ESPs issues. Adding reserves and exploration upside

<ul>
<li>3Q23 production of ~10 mbbl/d and net cash at the end of September had been previously reported.</li>
<li>Production plateau of 40 mbbl/d was reiterated and could be reached by the end of 1Q24 in our estimation.</li>
<li>Shareholder distributions Panoro has declared a cash distribution of NOK40 mm for 3Q23 for a total payout of NOK140 mm since the 2023 shareholder returns policy was announced.</li>
</ul>


3Q23 production of ~10 mbbl/d and net cash at the end of September had been previously reported.
Production plateau of 40 mbbl/d was reiterated and could be reached by the end of 1Q24 in our estimation.
Shareholder distributions Panoro has declared a cash distribution of NOK40 mm for 3Q23 for a total payout of NOK140 mm since the 2023 shareholder returns policy was announced.


Panoro Energy ASA (OSE: PEN): 2024 shareholder distributions could represent a total yield of 12.5%-15.5%

<ul><li>________________________________________ ADX Energy (ADX AU)C; target price of A$0.80 per share: Drilling commences at Anshof-2 – Drilling at Anshof-2 has started.</li><li>Arrow Exploration (AXL LN/CN)C; target price of £0.55 per share: High flow and a new discovery at RCE-6.</li><li>Re-iterating FY23 guidance - 3Q23 production of 19,961 bbl/d and net cash at the end of September of ~US$103 mm had already been announced.</li></ul>

________________________________________ ADX Energy (ADX AU)C; target price of A$0.80 per share: Drilling commences at Anshof-2 – Drilling at Anshof-2 has started.Arrow Exploration (AXL LN/CN)C; target price of £0.55 per share: High flow and a new discovery at RCE-6.Re-iterating FY23 guidance - 3Q23 production of 19,961 bbl/d and net cash at the end of September of ~US$103 mm had already been announced.

Norway

Panoro Energy ASA explores for oil and natural gas in Brazil, Gabon, and Nigeria . The Company operates offshore in the Camamu-Almada and Santos basins.

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Panoro Energy ASA (PEN NO)

Auctus on Friday - 26/01/2024

ADX Energy (ADX AU)C; target price of A$0.65 per share: Drilling rig on location of high impact well by the end of January

Auctus Advisors

Panoro Energy ASA (OSE: PEN): ~45% production growth in 2024

FY23 production was ~8.5 mbbl/d, implying ~9.5-9.7 mbbl/d in 4Q23. The electrical issue at the ESPs on Dussafu has not been fully resolved and...

Auctus Advisors

Panoro Energy ASA (OSE: PEN): Production affected by short term ESPs issues. Adding reserves and exploration upside

• 3Q23 production of ~10 mbbl/d was slightly ahead of our expectations given a strong performance in Tunisia (2.3 mbbl/d vs our expectations of...

Auctus Advisors

Panoro Energy ASA (OSE: PEN): 2024 shareholder distributions could represent a total yield of 12.5%-15.5%

3Q23 production of ~10 mbbl/d and net cash at the end of September had been previously reported. Production plateau of 40 mbbl/d was reiterated and...

Auctus Advisors

Auctus on Friday - 03/02/2023

________________________________________ ADX Energy (ADX AU)C; target price of A$0.80 per share: Drilling commences at Anshof-2 – Drilling at...

Auctus Advisors

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