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>Since production re-start at Wassana on 28 April, 11 of the 13 wells have been brought back into production.</li><li>We are increasing our average production forecast for Wassana in 2Q23 from 700 bbl/d to 1,700 bbl/d. </li><li>Production from the Mubadala assets averaged 20,475 bbl/d in 1Q23 and total production (including Wassana) has recently increased to over 23 mbbl/d.</li></ul>

Since production re-start at Wassana on 28 April, 11 of the 13 wells have been brought back into production.We are increasing our average production forecast for Wassana in 2Q23 from 700 bbl/d to 1,700 bbl/d. Production from the Mubadala assets averaged 20,475 bbl/d in 1Q23 and total production (including Wassana) has recently increased to over 23 mbbl/d.

Valeura Energy (TSE VLE): Delivering on Plan. Already 2.6 Mbbl/D Production at Wassana

<ul><li>The Wassana field has now re-started production.</li><li>This is much earlier than we were anticipating as we were forecasting almost no production from Wassana during 2Q23.</li><li>Palang Sophon will transfer its 11% working interest to Valeura, resulting in Valeura holding 100% WI in Wassana.</li></ul>

The Wassana field has now re-started production.This is much earlier than we were anticipating as we were forecasting almost no production from Wassana during 2Q23.Palang Sophon will transfer its 11% working interest to Valeura, resulting in Valeura holding 100% WI in Wassana.

Valeura Energy (TSX: VLE): Production Restart at Wassana Earlier than Expected.

<ul><li>ADX Energy (ADX AU) C : Target price of A$0.100 per share: Competent person report confirms the materiality of the Welchau pospect – The Welchau prospect has been estimated to hold between 365 bcfe and 1,128 bcfe of prospective resources by Gaffney, Cline &amp; Associates (GCA) with a mid-case at 645 bcfe including 10.1 mmbbl of condensate.</li><li>While this is below the 807 bcfe mid-case estimated by ADX, the fact that the lower end of the GCA range (332 bcf of natural gas plus 5.5 mmbbl of condensate in the 1U case) is significantly larger than ADX’s estimate of 212 bcfe is the most important take away in our view.</li><li>The unrisked value of the asset (A$0.09 per share) is very high even in the low case. Welchau is now expected to be drilled in September. </li></ul>

ADX Energy (ADX AU) C : Target price of A$0.100 per share: Competent person report confirms the materiality of the Welchau pospect – The Welchau prospect has been estimated to hold between 365 bcfe and 1,128 bcfe of prospective resources by Gaffney, Cline &amp; Associates (GCA) with a mid-case at 645 bcfe including 10.1 mmbbl of condensate.While this is below the 807 bcfe mid-case estimated by ADX, the fact that the lower end of the GCA range (332 bcf of natural gas plus 5.5 mmbbl of condensate in the 1U case) is significantly larger than ADX’s estimate of 212 bcfe is the most important take away in our view.The unrisked value of the asset (A$0.09 per share) is very high even in the low case. Welchau is now expected to be drilled in September. 

<ul><li>At completion of the Mubadala Acquisition on 22 March, the acquired entity held cash and cash equivalent resources of ~US$243 mm.</li><li>After accounting for inventories, accounts payable, and tax payable in May, the increase in Valeura’s adjusted net working capital position is estimated at ~$105 mm.</li><li>Valeura has budgeted US$180-200 mm capex in 2023 including ~US$34 mm for 1Q23 activities and mostly occurring before the completion of the Mubadala Acquisition (and already netted off from the adjusted working capital).</li></ul>

At completion of the Mubadala Acquisition on 22 March, the acquired entity held cash and cash equivalent resources of ~US$243 mm.After accounting for inventories, accounts payable, and tax payable in May, the increase in Valeura’s adjusted net working capital position is estimated at ~$105 mm.Valeura has budgeted US$180-200 mm capex in 2023 including ~US$34 mm for 1Q23 activities and mostly occurring before the completion of the Mubadala Acquisition (and already netted off from the adjusted working capital).

Valeura Energy - Working Capital Well Ahead of Expectations.

<ul><li>With the acquisition of the Mubadala assets having been completed only recently, Valeura has not provided any guidance for YE22 reserves, FY23 production and capex guidance nor working capital on completion.</li><li>This is now expected to be provided in the coming weeks as Valeura management engages fully with the team joining from Mubadala.</li><li>Until then and Pending further details on (1) the working capital at completion of the Mubadala assets acquisitions, (2) the FY23 production guidance and (3) the YE22 reserves estimates at the new assets, the only change we have made to our forecast is a month delay at Wassana.</li></ul>

With the acquisition of the Mubadala assets having been completed only recently, Valeura has not provided any guidance for YE22 reserves, FY23 production and capex guidance nor working capital on completion.This is now expected to be provided in the coming weeks as Valeura management engages fully with the team joining from Mubadala.Until then and Pending further details on (1) the working capital at completion of the Mubadala assets acquisitions, (2) the FY23 production guidance and (3) the YE22 reserves estimates at the new assets, the only change we have made to our forecast is a month delay at Wassana.

Valeura Energy (TSE VLE): Waiting for a formal guidance for 2023

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 (TSE VLE): Delivering on Plan. Already 2.6 Mbbl/D Production at Wassana

Since production re-start at Wassana on 28 April, 11 of the 13 wells have been brought back into production. We are increasing our average...

Auctus Advisors

Valeura Energy (TSX: VLE): Production Restart at Wassana Earlier than Expected.

The Wassana field has now re-started production. This is much earlier than we were anticipating as we were forecasting almost no production from...

Auctus Advisors

Auctus on Friday - 21/04/2023

The Welchau prospect has been estimated to hold between 365 bcfe and 1,128 bcfe of prospective resources by Gaffney, Cline & Associates (GCA) with...

Auctus Advisors

Valeura Energy - Working Capital Well Ahead of Expectations.

At completion of the Mubadala Acquisition on 22 March, the acquired entity held cash and cash equivalent resources of ~US$243 mm.

Auctus Advisors

Valeura Energy (TSE VLE): Waiting for a formal guidance for 2023

With the acquisition of the Mubadala assets having been completed only recently, Valeura has not provided any guidance for YE22 reserves

Auctus Advisors

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