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>Zephyr has nominated ~38,000 net contiguous Paradox acres for inclusion in upcoming federal lease sales by the U.S. Bureau of Land Management.</li>
<li>If fully awarded, this would represent a material expansion of the current 46,000 net acre position, of which only ~20,000 acres are currently covered by seismic.</li>
<li>Existing estimates of ~35 mmboe 2P reserves and 39 mmboe contingent resources are based solely on those 20,000 acres.</li>
</ul>


Zephyr has nominated ~38,000 net contiguous Paradox acres for inclusion in upcoming federal lease sales by the U.S. Bureau of Land Management.
If fully awarded, this would represent a material expansion of the current 46,000 net acre position, of which only ~20,000 acres are currently covered by seismic.
Existing estimates of ~35 mmboe 2P reserves and 39 mmboe contingent resources are based solely on those 20,000 acres.


Zephyr Energy Plc (AIM: ZPHR): Potential resource boost in the Paradox

<ul>
<li>The first investment under the US$100 mm Zephyr Hawk partnership has been approved, comprising a US$2.5 mm commitment fully funded by Zephyr’s partner.</li>
<li>The investment secures a share in a work programme targeting up to 13 wells.</li>
<li>Zephyr estimates life-of-well undiscounted cashflows of ~US$1.8 mm, net to its interest.</li>
</ul>


The first investment under the US$100 mm Zephyr Hawk partnership has been approved, comprising a US$2.5 mm commitment fully funded by Zephyr’s partner.
The investment secures a share in a work programme targeting up to 13 wells.
Zephyr estimates life-of-well undiscounted cashflows of ~US$1.8 mm, net to its interest.


Zephyr Energy Plc (AIM: ZPHR): Initial investment through US$100 mm partnership in the Rockies. More to come

<ul>
<li>Zephyr is estimated to hold 35.2 mmboe net 2P reserves (net of royalty) and 74.2 mmboe 3P plus contingent resources in the Paradox.</li>
<li>The 2P case assumes 12 drilling locations, including 3 existing wells.</li>
<li>These volumes are materially higher than in the 2022 CPR (25x for 2P) and align with the May management estimates (25.6–89.5 mmboe vs. 35.2–74.2 mmboe in the new CPR’s 2P–3P+2C range).</li>
</ul>


Zephyr is estimated to hold 35.2 mmboe net 2P reserves (net of royalty) and 74.2 mmboe 3P plus contingent resources in the Paradox.
The 2P case assumes 12 drilling locations, including 3 existing wells.
These volumes are materially higher than in the 2022 CPR (25x for 2P) and align with the May management estimates (25.6–89.5 mmboe vs. 35.2–74.2 mmboe in the new CPR’s 2P–3P+2C range).


Zephyr Energy Plc (AIM: ZPHR): ~35 Mmboe Net 2P Reserves in the Paradox

<ul>
<li>2Q25 sales (excluding NGLs) averaged 632 boe/d, reflecting continued operator-imposed constraints on the six Slawson wells due to prevailing low commodity prices.</li>
<li>Aggregate production from these wells in 1H25 was 141 boe/d, below management’s forecast of 214 boe/d.</li>
<li>Importantly, there are no reservoir integrity concerns.</li>
</ul>


2Q25 sales (excluding NGLs) averaged 632 boe/d, reflecting continued operator-imposed constraints on the six Slawson wells due to prevailing low commodity prices.
Aggregate production from these wells in 1H25 was 141 boe/d, below management’s forecast of 214 boe/d.
Importantly, there are no reservoir integrity concerns.


Zephyr Energy Plc (AIM: ZPHR): All eyes on upcoming CPR for the Paradox

<ul><li>• Zephyr has completed the acquisition of its new Rockies portfolio.</li><li>On closing, the company divested a small package of newly acquired operated wells in North Dakota and Wyoming to a neighbouring private upstream operator for US$0.7 mm in cash.</li><li>The buyer also assumed approximately US$0.8 mm in predominantly near-term plugging and abandonment liabilities that Zephyr would otherwise have incurred within the next year.</li></ul>

• Zephyr has completed the acquisition of its new Rockies portfolio.On closing, the company divested a small package of newly acquired operated wells in North Dakota and Wyoming to a neighbouring private upstream operator for US$0.7 mm in cash.The buyer also assumed approximately US$0.8 mm in predominantly near-term plugging and abandonment liabilities that Zephyr would otherwise have incurred within the next year.

Zephyr Energy Plc (AIM: ZPHR): Completing Rockies acquisition with lower abandonment costs. Non-op drilling imminent.

United Kingdom

Zephyr Energy plc operates as a technology-led exploration and production company. The Company focuses on the delivery of economic returns from developed oil and gas projects in the Rocky Mountain region of the United States.

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Zephyr Energy (ZPHR LN)

Zephyr Energy Plc (AIM: ZPHR): Potential resource boost in the Paradox

Zephyr has nominated ~38,000 net contiguous Paradox acres for inclusion in upcoming federal lease sales by the U.S. Bureau of Land Management.

Auctus Advisors

Zephyr Energy Plc (AIM: ZPHR): Initial investment through US$100 mm partnership in the Rockies. More to come

The first investment under the US$100 mm Zephyr Hawk partnership has been approved, comprising a US$2.5 mm commitment fully funded by Zephyr’s...

Auctus Advisors

Zephyr Energy Plc (AIM: ZPHR): ~35 Mmboe Net 2P Reserves in the Paradox

Zephyr is estimated to hold 35.2 mmboe net 2P reserves (net of royalty) and 74.2 mmboe 3P plus contingent resources in the Paradox.

Auctus Advisors

Zephyr Energy Plc (AIM: ZPHR): All eyes on upcoming CPR for the Paradox

2Q25 sales (excluding NGLs) averaged 632 boe/d, reflecting continued operator-imposed constraints on the six Slawson wells due to prevailing low...

Auctus Advisors

Zephyr Energy Plc (AIM: ZPHR): Completing Rockies acquisition with lower abandonment costs. Non-op drilling imminent.

• Zephyr has completed the acquisition of its new Rockies portfolio. On closing, the company divested a small package of newly acquired operated...

Auctus Advisors

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