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 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

<ul>
<li>YE23 1P and 2P reserves are estimated at 29.9 mmbbl and 37.9 mmbbl respectively. This represents a reserve replacement ratio of 219%.</li>
<li>The reserves addition is much greater than we expected.</li>
<li>Valeura has booked 7 mmbbl at Wassana (we expected only 5 mmbbl) and has replaced 112-147% of the 2023 production at each of the other fields. </li>
</ul>


YE23 1P and 2P reserves are estimated at 29.9 mmbbl and 37.9 mmbbl respectively. This represents a reserve replacement ratio of 219%.
The reserves addition is much greater than we expected.
Valeura has booked 7 mmbbl at Wassana (we expected only 5 mmbbl) and has replaced 112-147% of the 2023 production at each of the other fields. 


Valeura Energy (TSX: VLE): 219% reserve replacement ratio in 2023

<ul>
<li>The first two wells of the Wassana drilling programme have exceeded the company’s expectations with production from the field now over 4,000 bbl/d.</li>
<li>With a third well expected to boost production further in the next few days, production from the field could be higher than the target of 4.5 mbbl/d.</li>
<li>The company has decided to extend the current drilling programme at Wassana by adding two wells (from 3 to 5).</li>
</ul>


The first two wells of the Wassana drilling programme have exceeded the company’s expectations with production from the field now over 4,000 bbl/d.
With a third well expected to boost production further in the next few days, production from the field could be higher than the target of 4.5 mbbl/d.
The company has decided to extend the current drilling programme at Wassana by adding two wells (from 3 to 5).


Valeura Energy (TSX: VLE): Wassana: Strong Performance and Accelerated Drilling Programme.

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): 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

Valeura Energy (TSX: VLE): 219% reserve replacement ratio in 2023

YE23 1P and 2P reserves are estimated at 29.9 mmbbl and 37.9 mmbbl respectively. This represents a reserve replacement ratio of 219%.

Auctus Advisors

Valeura Energy (TSX: VLE): Wassana: Strong Performance and Accelerated Drilling Programme.

The first two wells of the Wassana drilling programme have exceeded the company’s expectations with production from the field now over 4,000 bbl/d.

Auctus Advisors

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