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>Two wells recently drilled at Nong Yao are likely to add some reserves.</li>
<li>The 37H development well has been put on production from the primary reservoir at an initial flow rate of ~500 bbl/d net to Valeura’s WI.</li>
<li>The well has also encountered 68 feet of net oil pay across eight separate appraisal target intervals.</li>
</ul>


Two wells recently drilled at Nong Yao are likely to add some reserves.
The 37H development well has been put on production from the primary reservoir at an initial flow rate of ~500 bbl/d net to Valeura’s WI.
The well has also encountered 68 feet of net oil pay across eight separate appraisal target intervals.


Valeura Energy (TSX: VLE): Drilling success likely to add further resources

<ul><li>• The 1Q24 production of 21.9 mbbl/d and cash position of ~US$194 mm at the end of March had been reported previously.</li><li>• Operations are on track.</li><li>Drilling is underway at the Nong Yao A platform, with two new wells that are expected to be completed in the coming week.</li></ul>

• The 1Q24 production of 21.9 mbbl/d and cash position of ~US$194 mm at the end of March had been reported previously.• Operations are on track.Drilling is underway at the Nong Yao A platform, with two new wells that are expected to be completed in the coming week.

Valeura Energy (TSX: VLE): Financials in line. Operations on track.

<ul>
<li>The Nong Yao-13 exploration well in the new Nong Yao D area that was targeting multiple zones has encountered &gt;30 feet of new oil play across several new shallow intervals which have not been produced elsewhere on the concession.</li>
<li>These reservoirs are believed to be recurring across the Nong Yao D area.</li>
<li>The drilling result confirms that oil has successfully migrated into this area of the block (a factor that was seen to be a risk in the Nong Yao D area) and open the opportunity for further appraisal and exploration drilling in the vicinity to derisk sufficient volumes to justify a future development.</li>
</ul>


The Nong Yao-13 exploration well in the new Nong Yao D area that was targeting multiple zones has encountered &gt;30 feet of new oil play across several new shallow intervals which have not been produced elsewhere on the concession.
These reservoirs are believed to be recurring across the Nong Yao D area.
The drilling result confirms that oil has successfully migrated into this area of the block (a factor that was seen to be a risk in the Nong Yao D area) and open the opportunity for further appraisal and exploration drilling in the vicinity to derisk sufficient volumes to justify a future development.


Valeura Energy (TSX: VLE): Three exploration wells deliver three discoveries

<ul>
<li>1Q24 production was 21.9 mbbl/d in line with our expectations.</li>
<li>Production at the end of March was ~23 mbbl/d.</li>
<li>Net cash of US$193.6 mm (US$176.3 mm unrestricted) was high given that the company sold only 1.8 mmbbl in 1Q24 with inventory building-up ~0.21 mmbbl vs YE23 to 0.9 mmbbl.</li>
</ul>


1Q24 production was 21.9 mbbl/d in line with our expectations.
Production at the end of March was ~23 mbbl/d.
Net cash of US$193.6 mm (US$176.3 mm unrestricted) was high given that the company sold only 1.8 mmbbl in 1Q24 with inventory building-up ~0.21 mmbbl vs YE23 to 0.9 mmbbl.


Valeura Energy (TSX: VLE): Net cash up by >US$40 mm since YE23

<ul>
<li>FY23 production, YE23 net cash and YE23 reserves and resources had been reported previously.</li>
<li>The FY24 production guidance of 21.5-24.5 mbbl/d with US$205-235 mm opex and US$135-155 mm capex has been re-iterated.</li>
<li>Current production continues to be high, with average production for the first half of March of ~23,000 bbl/d, including ~7.9 mbbl/d for Jasmine, 7.2 mbbl/d for Nong Yao, 2.9 bbl/d for Manora and 4.9 mbbl/d for Wassana.</li>
</ul>


FY23 production, YE23 net cash and YE23 reserves and resources had been reported previously.
The FY24 production guidance of 21.5-24.5 mbbl/d with US$205-235 mm opex and US$135-155 mm capex has been re-iterated.
Current production continues to be high, with average production for the first half of March of ~23,000 bbl/d, including ~7.9 mbbl/d for Jasmine, 7.2 mbbl/d for Nong Yao, 2.9 bbl/d for Manora and 4.9 mbbl/d for Wassana.


Valeura Energy (TSX: VLE): Additional exploration upside. Lower decommissioning liabilities

Canada

Valeura Energy Inc. operates as an exploration company. The Company engages in the development and production of petroleum and natural gas. Valeura Energy focuses on growing its resource base and production in the Thrace Basin in Northwest Turkey.

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Valeura Energy Inc (VLE CN)

Valeura Energy (TSX: VLE): Drilling success likely to add further resources

The 37H development well has been put on production from the primary reservoir at an initial flow rate of ~500 bbl/d net to Valeura’s WI.

Auctus Advisors

Valeura Energy (TSX: VLE): Financials in line. Operations on track.

• The 1Q24 production of 21.9 mbbl/d and cash position of ~US$194 mm at the end of March had been reported previously. • Operations are on...

Auctus Advisors

Valeura Energy (TSX: VLE): Three exploration wells deliver three discoveries

The drilling result confirms that oil has successfully migrated into this area of the block (a factor that was seen to be a risk in the Nong Yao D...

Auctus Advisors

Valeura Energy (TSX: VLE): Net cash up by >US$40 mm since YE23

Net cash of US$193.6 mm (US$176.3 mm unrestricted) was high given that the company sold only 1.8 mmbbl in 1Q24 with inventory building-up ~0.21...

Auctus Advisors

Valeura Energy (TSX: VLE): Additional exploration upside. Lower decommissioning liabilities

FY23 production, YE23 net cash and YE23 reserves and resources had been reported previously. The FY24 production guidance of 21.5-24.5 mbbl/d with...

Auctus Advisors

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