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>• 2Q26 production averaged 1,743 boe/d, broadly in line with expectations.</li><li>• The transportation dispute that has shut in ~400 boe/d from the Mechanicsburg and Greens Creek fields continues.</li><li>We continue to assume a resolution by end‑3Q26, with production resuming in 4Q26.</li></ul>

• 2Q26 production averaged 1,743 boe/d, broadly in line with expectations.• The transportation dispute that has shut in ~400 boe/d from the Mechanicsburg and Greens Creek fields continues.We continue to assume a resolution by end‑3Q26, with production resuming in 4Q26.

Southern Energy Corp. (SOUC LN/SOU CN): 2Q26 in line. Williamsburg well result still expected in September

<ul>
<li>Drilling has begun on the Terrible Creek 21‑2 #2 Cotton Valley test well at Williamsburg, the first of a two‑well programme.</li>
<li>Southern holds a c.</li>
<li>50% WI in both wells, with a net drilling and completion cost of US$3.9 mm, slightly below prior guidance of US$4 mm.</li>
</ul>


Drilling has begun on the Terrible Creek 21‑2 #2 Cotton Valley test well at Williamsburg, the first of a two‑well programme.
Southern holds a c.
50% WI in both wells, with a net drilling and completion cost of US$3.9 mm, slightly below prior guidance of US$4 mm.


Southern Energy Corp. (SOUC LN/SOU CN): Results of high impact drilling at Williamsburg expected in September

<ul><li>• 1Q26 production averaged 1,695 boe/d, reflecting compressor downtime and several wells being temporarily offline.</li><li>We forecast ~1,750 boe/d for 2Q26.</li><li>• We expect greater visibility on the transportation dispute by mid‑July, which should allow the restart of ~400 boe/d from Mechanicsburg and Greens Creek.</li></ul>

• 1Q26 production averaged 1,695 boe/d, reflecting compressor downtime and several wells being temporarily offline.We forecast ~1,750 boe/d for 2Q26.• We expect greater visibility on the transportation dispute by mid‑July, which should allow the restart of ~400 boe/d from Mechanicsburg and Greens Creek.

Southern Energy Corp. (SOUC LN/SOU CN): Strategic partner for 2x liquid-rich wells at Williamsburg adds credibility to the play

<ul>
<li>4Q25 production of 1,933 boe/d was in line with our forecasts and there were no surprises in the 4Q25 financials.</li>
<li>Near‑term attention now shifts to the first liquids‑rich well at Williamsburg, scheduled to spud in late June.</li>
<li>The potential prize is significant, offering exposure to WTI pricing rather than Henry Hub.</li>
</ul>


4Q25 production of 1,933 boe/d was in line with our forecasts and there were no surprises in the 4Q25 financials.
Near‑term attention now shifts to the first liquids‑rich well at Williamsburg, scheduled to spud in late June.
The potential prize is significant, offering exposure to WTI pricing rather than Henry Hub.


Southern Energy Corp. (SOUC LN/SOU CN): First liquid-rich well at Williamsburg to spud in June

<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

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): 2Q26 in line. Williamsburg well result still expected in September

• 2Q26 production averaged 1,743 boe/d, broadly in line with expectations. • The transportation dispute that has shut in ~400 boe/d from the...

Auctus Advisors

Southern Energy Corp. (SOUC LN/SOU CN): Results of high impact drilling at Williamsburg expected in September

Drilling has begun on the Terrible Creek 21‑2 #2 Cotton Valley test well at Williamsburg, the first of a two‑well programme. Southern holds a...

Auctus Advisors

Southern Energy Corp. (SOUC LN/SOU CN): Strategic partner for 2x liquid-rich wells at Williamsburg adds credibility to the play

• 1Q26 production averaged 1,695 boe/d, reflecting compressor downtime and several wells being temporarily offline. We forecast ~1,750 boe/d for...

Auctus Advisors

Southern Energy Corp. (SOUC LN/SOU CN): First liquid-rich well at Williamsburg to spud in June

Near‑term attention now shifts to the first liquids‑rich well at Williamsburg, scheduled to spud in late June.The potential prize is significant,...

Auctus Advisors

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

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