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>Southern has refinanced its US$14 mm of existing debt through a new US$17 mm convertible debenture, and strengthened its balance sheet with (1) a US$1.5 mm equity raise at C$0.07/sh (no discount to Friday’s close) and (2) the sale of a 6% gross overriding royalty for US$5 mm.</li>
<li>The capital was provided by three related parties, including an existing minority shareholder.</li>
<li>The new convertible debenture carries a 7% annual coupon—well below the 15% rate on the previous facility—and matures in December 2028.</li>
</ul>


Southern has refinanced its US$14 mm of existing debt through a new US$17 mm convertible debenture, and strengthened its balance sheet with (1) a US$1.5 mm equity raise at C$0.07/sh (no discount to Friday’s close) and (2) the sale of a 6% gross overriding royalty for US$5 mm.
The capital was provided by three related parties, including an existing minority shareholder.
The new convertible debenture carries a 7% annual coupon—well below the 15% rate on the previous facility—and matures in December 2028.


Southern Energy Corp. (SOUC LN/SOU CN): Debt reset and new funding to unlock growth through new oil development

Thematic (Sector/Industry)

<ul><li>AUCTUS PUBLICATIONS ________________________________________ ADX Energy (ADX AU)C; Target price of A$0.16 per share: Well test update in Austria – The pressure build up analysis of first Hall zone at HOCH-1 indicates good reservoir productivity (3.5 mmcf/d potential) with a sand extent of at least 600 metres from the HOCH-1 wellbore.</li><li>Recently reprocessed pre stacked depth migrated 3D seismic mapping of the Hall Channel Sands intersected in the deeper section of the HOCH-1 well have been correlated to nearby wells (2.5-3.0 km away) indicating the potential for a large lateral extension of several sand bodies planned to be tested during the remaining program.</li><li>A Hall sand and a Hall Channel sand will be tested during the remaining phase 1 test program later this month.</li></ul>

AUCTUS PUBLICATIONS ________________________________________ ADX Energy (ADX AU)C; Target price of A$0.16 per share: Well test update in Austria – The pressure build up analysis of first Hall zone at HOCH-1 indicates good reservoir productivity (3.5 mmcf/d potential) with a sand extent of at least 600 metres from the HOCH-1 wellbore.Recently reprocessed pre stacked depth migrated 3D seismic mapping of the Hall Channel Sands intersected in the deeper section of the HOCH-1 well have been correlated to nearby wells (2.5-3.0 km away) indicating the potential for a large lateral extension of several sand bodies planned to be tested during the remaining program.A Hall sand and a Hall Channel sand will be tested during the remaining phase 1 test program later this month.

<ul>
<li>3Q25 production averaged 2,076 boe/d, in line with our expectations.</li>
<li>The GH LSC 13-13 #2 well in the Lower Selma Chalk continues to exhibit a notably shallower decline profile than prior Upper Selma Chalk wells.</li>
<li>Current output is ~1.7 mmcf/d, with an IP120 outperforming typical Upper Selma Chalk results.</li>
</ul>


3Q25 production averaged 2,076 boe/d, in line with our expectations.
The GH LSC 13-13 #2 well in the Lower Selma Chalk continues to exhibit a notably shallower decline profile than prior Upper Selma Chalk wells.
Current output is ~1.7 mmcf/d, with an IP120 outperforming typical Upper Selma Chalk results.


Southern Energy Corp. (SOUC LN/SOU CN): Gas Prices Up.

<ul><li>• The government of Minesota has signed into law new legislation updating the state processes for the permitting of gas extraction projects.</li><li>In particular, this will advance a helium-specific framework for gas resource development in Northeastern Minnesota.</li><li>Detailed implementing regulations are expected to be completed by early 4Q26.</li></ul>

• The government of Minesota has signed into law new legislation updating the state processes for the permitting of gas extraction projects.In particular, this will advance a helium-specific framework for gas resource development in Northeastern Minnesota.Detailed implementing regulations are expected to be completed by early 4Q26.

<ul><li>AUCTUS PUBLICATIONS ________________________________________ ADX Energy (ADX AU)C; Target price of A$0.19 per share: Resources upgrade expected in early 2Q26.</li><li>Shallow drilling result due next week – 1Q26 net production was ~200 boe/d.</li><li>ADX held A$4.9 mm in cash at the end of March.</li></ul>

AUCTUS PUBLICATIONS ________________________________________ ADX Energy (ADX AU)C; Target price of A$0.19 per share: Resources upgrade expected in early 2Q26.Shallow drilling result due next week – 1Q26 net production was ~200 boe/d.ADX held A$4.9 mm in cash at the end of March.

Canada

Southern Energy is an oil and natural gas exploration and production company focused on acquiring and developing conventional natural gas and light oil resources. The company's primary assets are located in the Southeast Gulf States of Mississippi, Louisiana, and East Texas. Southern Energy was founded in 2008 and is headquartered in Calgary, Alberta, Canada.

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Southern Energy (SOUC LN)

Southern Energy Corp. (SOUC LN/SOU CN): Debt reset and new funding to unlock growth through new oil development

Southern has refinanced its US$14 mm of existing debt through a new US$17 mm convertible debenture, and strengthened its balance sheet with (1)...

Auctus Advisors

AUCTUS ON FRIDAY - 14.08.2026

AUCTUS PUBLICATIONS ________________________________________ ADX Energy (ADX AU)C; Target price of A$0.16 per share: Well test update in Austria –...

Auctus Advisors

Southern Energy Corp. (SOUC LN/SOU CN): Gas Prices Up.

The GH LSC 13-13 #2 well in the Lower Selma Chalk continues to exhibit a notably shallower decline profile than prior Upper Selma Chalk wells.

Auctus Advisors

AUCTUS ON FRIDAY - 29.05.2026

• The government of Minesota has signed into law new legislation updating the state processes for the permitting of gas extraction projects. In...

Auctus Advisors

AUCTUS ON FRIDAY - 01.05.2026

AUCTUS PUBLICATIONS ________________________________________ ADX Energy (ADX AU)C; Target price of A$0.19 per share: Resources upgrade expected in...

Auctus Advisors

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