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>New seismic over Kossipo in Côte d’Ivoire has further de‑risked the structure, increasing gross 2C resources from ~90 mmboe to ~102 mmboe.</li>
<li>With Canadian Natural Resources choosing not to participate in the development as it refocuses on Canada, VAALCO’s working interest rises from 27.39% to 60%, with PetroCI holding the balance as a paying partner.</li>
<li>This shift is highly material: VAALCO gains ~37 mmboe of additional WI 2C resources, becomes operator, and will control the development timeline.</li>
</ul>


New seismic over Kossipo in Côte d’Ivoire has further de‑risked the structure, increasing gross 2C resources from ~90 mmboe to ~102 mmboe.
With Canadian Natural Resources choosing not to participate in the development as it refocuses on Canada, VAALCO’s working interest rises from 27.39% to 60%, with PetroCI holding the balance as a paying partner.
This shift is highly material: VAALCO gains ~37 mmboe of additional WI 2C resources, becomes operator, and will control the development timeline.


Vaalco Energy (NYSE: EGY): Kossipo shines

<ul><li>• Vaalco has agreed to divest its Canadian producing assets for US$25.6 mm, effective 1 February 2026.</li><li>• Although the price is below our expectations, the Canadian portfolio is non‑core.</li><li>In the context of (1) growing resource potential in Egypt following the successful H‑field exploration well in the Eastern Desert, and (2) the capital requirements associated with developing the Equatorial Guinea assets—where we estimate total project capex at approximately US$350 mm—we view the decision to recycle capital into higher‑impact projects as strategically sound.</li></ul>

• Vaalco has agreed to divest its Canadian producing assets for US$25.6 mm, effective 1 February 2026.• Although the price is below our expectations, the Canadian portfolio is non‑core.In the context of (1) growing resource potential in Egypt following the successful H‑field exploration well in the Eastern Desert, and (2) the capital requirements associated with developing the Equatorial Guinea assets—where we estimate total project capex at approximately US$350 mm—we view the decision to recycle capital into higher‑impact projects as strategically sound.

Vaalco Energy (NYSE: EGY): Much stronger balance sheet than expected. Exploration success in Egypt opens a new area

<ul>
<li>FY25 WI production averaged 21,150 boe/d, landing comfortably within the upgraded guidance range of 20.8–22.2 mboe/d.</li>
<li>Vaalco ended FY25 with US$58.8 mm in cash, an increase of ~US$35 mm versus end‑September levels, achieved without drawing further on the RBL facility.</li>
<li>YE25 net debt position (based on cash and debt and excluding the rest of the balance sheet) was just US$1 mm, far below our expectation of ~US$100 mm.</li>
</ul>


FY25 WI production averaged 21,150 boe/d, landing comfortably within the upgraded guidance range of 20.8–22.2 mboe/d.
Vaalco ended FY25 with US$58.8 mm in cash, an increase of ~US$35 mm versus end‑September levels, achieved without drawing further on the RBL facility.
YE25 net debt position (based on cash and debt and excluding the rest of the balance sheet) was just US$1 mm, far below our expectation of ~US$100 mm.


Vaalco Energy (NYSE: EGY): Much Stronger Balance Sheet than Expected.

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.

Research from Water Tower Research, Water Tower Research

Water Tower Research

Research from Water Tower Research

Water Tower Research is a leading equity research firm that provides research on micro, small and mid cap companies.

Water Tower Research was founded by Wall Street veterans after witnessing a fundamental shift in the investment research industry with the result being a declining knowledge base among investors, a lack of awareness and a shrinking pool of fundamental research being conducted on companies across the small-cap and micro-cap spectrum. The same issues are now increasingly occurring in the mid-cap space. This sea change within the investment community is impacting not only the companies themselves but also current shareholders and potential investors. With significantly less active sell-side sponsorship by Wall Street, a substantial information gap has developed between companies and various constituents in the financial community. The net result is fewer channels for insight and information to flow between companies and investors.

Equity Research Firm

<ul><li>The midpoint of Vaalco’s updated FY26 capex range is $243 million, 20% lower than the original guide, while the midpoint of NRI sales guidance is 16.5 MBoe/d, 6% above the original guide.</li><li> Lower capex is primarily attributable to pulling back from Canadian development due to low prices, a delayed start to the Phase 3 drilling campaign in Gabon, and operational efficiencies in Egypt. </li><li>About $10 million of capex was added to the FY25 plan to keep the Baobab FPSO upgrade and maintenance program on track for a late January sale away from drydock</li></ul>

The midpoint of Vaalco’s updated FY26 capex range is $243 million, 20% lower than the original guide, while the midpoint of NRI sales guidance is 16.5 MBoe/d, 6% above the original guide. Lower capex is primarily attributable to pulling back from Canadian development due to low prices, a delayed start to the Phase 3 drilling campaign in Gabon, and operational efficiencies in Egypt. About $10 million of capex was added to the FY25 plan to keep the Baobab FPSO upgrade and maintenance program on track for a late January sale away from drydock

Upcoming Development Activity in Gabon and Cote D'Ivoire Expected to Drive Production in 2H26/27

United States

VAALCO Energy, Inc. acquires, explores, and develops crude oil and natural gas properties. The Company owns producing properties and conducts exploration activities in the Philippines and Gabon, and has interest in the Texas Gulf Coast area. VAALCO, through participation in a partnership, has additional international exploration interests in South and North America and Africa.

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VAALCO Energy (EGY US)

Vaalco Energy (NYSE: EGY): Kossipo shines

New seismic over Kossipo in Côte d’Ivoire has further de‑risked the structure, increasing gross 2C resources from ~90 mmboe to ~102 mmboe. With...

Auctus Advisors

Vaalco Energy (NYSE: EGY): Much stronger balance sheet than expected. Exploration success in Egypt opens a new area

• Vaalco has agreed to divest its Canadian producing assets for US$25.6 mm, effective 1 February 2026. • Although the price is below our...

Auctus Advisors

Vaalco Energy (NYSE: EGY): Much Stronger Balance Sheet than Expected.

FY25 WI production averaged 21,150 boe/d, landing comfortably within the upgraded guidance range of 20.8–22.2 mboe/d.

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

Upcoming Development Activity in Gabon and Cote D'Ivoire Expected to Drive Production in 2H26/27

The midpoint of Vaalco’s updated FY26 capex range is $243 million, 20% lower than the original guide, while the midpoint of NRI sales guidance is...

Water Tower Research

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