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>The first compressor at Triton has been repaired and the platform is expected to be back online this week.</li>
<li>This represents a few weeks’ delay but the restart will boost production materially.</li>
<li>With the recent addition of the B6 well (&gt;5 mboe/d net), total production was already over 50 mboe/d on 2 October.</li>
</ul>


The first compressor at Triton has been repaired and the platform is expected to be back online this week.
This represents a few weeks’ delay but the restart will boost production materially.
With the recent addition of the B6 well (&gt;5 mboe/d net), total production was already over 50 mboe/d on 2 October.


Serica Energy Plc (AIM: SQZ): Compressor at Triton Back on Line

<ul>
<li>While the new fiscal regime for UK upstream oil and gas in yesterday’s UK budget incorporates a 3% increase in EPL (to 38%) and the elimination of the 29% investment uplift allowance for EPL purposes, this is a better outcome than feared.</li>
<li>While these changes were expected, the industry and investors had been concerned by the possibility that capex investment might not be fully deductible for EPL purposes.</li>
<li>That risk has now been removed.</li>
</ul>


While the new fiscal regime for UK upstream oil and gas in yesterday’s UK budget incorporates a 3% increase in EPL (to 38%) and the elimination of the 29% investment uplift allowance for EPL purposes, this is a better outcome than feared.
While these changes were expected, the industry and investors had been concerned by the possibility that capex investment might not be fully deductible for EPL purposes.
That risk has now been removed.


Serica Energy Plc (AIM: SQZ): UK Budget Better than Feared

<ul>
<li>Production at the Triton FPSO has been interrupted due to potential dry gas seal failure at the A gas compressor.</li>
<li>The vulnerability of Triton to an issue with the single compressor was flagged previously, and improving the robustness of production was highlighted by Serica’s new CEO as a priority.</li>
<li>The second compressor would have reduced the operational vulnerability of the FPSO but it has not yet been repaired.</li>
</ul>


Production at the Triton FPSO has been interrupted due to potential dry gas seal failure at the A gas compressor.
The vulnerability of Triton to an issue with the single compressor was flagged previously, and improving the robustness of production was highlighted by Serica’s new CEO as a priority.
The second compressor would have reduced the operational vulnerability of the FPSO but it has not yet been repaired.


Serica Energy Plc (AIM: SQZ): Operational Glitch Creates an Opportunity

<ul>
<li>The B6 well on the Bittern field is now in production at a stable gross rate of ~8 mboe/d.</li>
<li>Net to Serica, this represents ~5.2 mboe/d.</li>
<li>This is well above our expectations of ~3 mboe/d (net).</li>
</ul>


The B6 well on the Bittern field is now in production at a stable gross rate of ~8 mboe/d.
Net to Serica, this represents ~5.2 mboe/d.
This is well above our expectations of ~3 mboe/d (net).


Serica Energy Plc (AIM: SQZ): Very High Flow Rate at New Bittern Well

<ul>
<li>1H24 production was 43.7 mboe/d, which is in line with our expectations.</li>
<li>Net cash of ~US$143 mm at the end of June was also near our forecasts.</li>
<li>The FY24 production is expected to be towards the bottom end of the guidance of 41-46 mboe/d, mostly due to more downtime than expected at the Triton hub.</li>
</ul>


1H24 production was 43.7 mboe/d, which is in line with our expectations.
Net cash of ~US$143 mm at the end of June was also near our forecasts.
The FY24 production is expected to be towards the bottom end of the guidance of 41-46 mboe/d, mostly due to more downtime than expected at the Triton hub.


Serica Energy Plc (AIM: SQZ): Cumulative Free Cash Flow

United Kingdom

Serica Energy is a UK-based independent upstream oil and gas company with operations focused on the UK North Sea. It specializes in identifying, acquiring, exploiting, and producing oil and gas reserves, managing a portfolio of energy fields to extract hydrocarbons. The company operates assets such as the Bruce, Keith, and Rhum fields in the UK Northern North Sea, as well as the Columbus Field, Triton FPSO, and Mansell field in the Central North Sea. Headquartered in London, United Kingdom, the company was founded in 2004.

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Serica Energy (SQZ LN)

Serica Energy Plc (AIM: SQZ): Compressor at Triton Back on Line

The first compressor at Triton has been repaired and the platform is expected to be back online this week.This represents a few weeks’ delay but...

Auctus Advisors

Serica Energy Plc (AIM: SQZ): UK Budget Better than Feared

While these changes were expected, the industry and investors had been concerned by the possibility that capex investment might not be fully...

Auctus Advisors

Serica Energy Plc (AIM: SQZ): Operational Glitch Creates an Opportunity

The vulnerability of Triton to an issue with the single compressor was flagged previously, and improving the robustness of production was...

Auctus Advisors

Serica Energy Plc (AIM: SQZ): Very High Flow Rate at New Bittern Well

The B6 well on the Bittern field is now in production at a stable gross rate of ~8 mboe/d. Net to Serica, this represents ~5.2 mboe/d.

Auctus Advisors

Serica Energy Plc (AIM: SQZ): Cumulative Free Cash Flow

The FY24 production is expected to be towards the bottom end of the guidance of 41-46 mboe/d, mostly due to more downtime than expected at the...

Auctus Advisors

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52-week Range

Market Cap (USDm)

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