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.

Thematic (Sector/Industry)

<ul>
<li>ADX Energy (ADX AU)C ; target price of A$0.08 per share : Completing farm-out transaction in Austria – The farm-out transaction of Anshof to MND has now completed with an initial payment of EUR1.93 mm.</li>
<li>MND has further Anshof development funding obligations of EUR4.683 mm for the drilling, completion and tie-in of the Anshof-2 and Anshof-1 wells as well as payment of further contingent amounts of EUR1.335 mm and EUR3.57 mm (A$ 5.95 million) if the Anshof-2 well meets agreed production performance criteria.</li>
<li>Arrow Exploration (AXL LN/CN)C ; target price of £0.55 per share: Good flow rate in the C7 at CN-3 – A 23 ft pay zone (25% porosity) in the Carbonera C7 formation in the CN-3 well has been perforated and put initially on production at a rate of 1,149 bbl/d on pump with a water cut of &lt;0.5%. </li>
</ul>


ADX Energy (ADX AU)C ; target price of A$0.08 per share : Completing farm-out transaction in Austria – The farm-out transaction of Anshof to MND has now completed with an initial payment of EUR1.93 mm.
MND has further Anshof development funding obligations of EUR4.683 mm for the drilling, completion and tie-in of the Anshof-2 and Anshof-1 wells as well as payment of further contingent amounts of EUR1.335 mm and EUR3.57 mm (A$ 5.95 million) if the Anshof-2 well meets agreed production performance criteria.
Arrow Exploration (AXL LN/CN)C ; target price of £0.55 per share: Good flow rate in the C7 at CN-3 – A 23 ft pay zone (25% porosity) in the Carbonera C7 formation in the CN-3 well has been perforated and put initially on production at a rate of 1,149 bbl/d on pump with a water cut of &lt;0.5%. 


<ul>
<li>ADX Energy (ADX AU)C; target price of A$0.08 per share: Drilling permit at key prospect awarded – The drilling permit for the Welchau prospect (807 bcfe prospective resources) has been awarded.</li>
<li>The permit allows drilling and testing of the Welchau-1 well, as well as a longer-term production test if required.</li>
<li>Serinus Energy (SENX LN): 2Q23 results – 1H23 production 677 boe/d including 533 boe/d in Tunisia and the balance in Romania.</li>
</ul>


ADX Energy (ADX AU)C; target price of A$0.08 per share: Drilling permit at key prospect awarded – The drilling permit for the Welchau prospect (807 bcfe prospective resources) has been awarded.
The permit allows drilling and testing of the Welchau-1 well, as well as a longer-term production test if required.
Serinus Energy (SENX LN): 2Q23 results – 1H23 production 677 boe/d including 533 boe/d in Tunisia and the balance in Romania.


Equity Bottom-Up

<ul><li>• 2Q23 sales volumes averaged 1,385 boe/d compared to 1Q23 sales volumes of 1,093 boe/d as more of Zephyr's existing production wells were changed from temporarily shut-in to producing status during 2Q23.</li><li>Production from these working interests continues to be expected to be online by October following completion of surface facilities on the well pad.</li><li>We continue to forecast overall net production increasing from ~1 mboe/d in 1Q23 to >4.5 mboe/d d in 1Q24 and >7.5 mboe/d in 4Q24.</li></ul>

• 2Q23 sales volumes averaged 1,385 boe/d compared to 1Q23 sales volumes of 1,093 boe/d as more of Zephyr's existing production wells were changed from temporarily shut-in to producing status during 2Q23.Production from these working interests continues to be expected to be online by October following completion of surface facilities on the well pad.We continue to forecast overall net production increasing from ~1 mboe/d in 1Q23 to >4.5 mboe/d d in 1Q24 and >7.5 mboe/d in 4Q24.

Zephyr Energy Plc (AIM: ZPHR): High sales in the Williston. Progress at Well 36 2 (Paradox) hindered by extreme heat

<ul>
<li>ADX Energy (ADX AU)C; target price of A$0.10 per share: Securing additional loan to prepare for drilling – ADX is issuing A$1.5 mm of loan notes with a term of 18 months.</li>
<li>A$1.0 mm of the loan notes carry an interest rate of 8% per annum with 30 mm options with an exercise price of A$0.01 per share and 30 mm options with an exercise price of A$0.014 per share.</li>
<li>Chariot (CHAR LN)C; target price of £0.50 per share: Adding portfolio depth and near term newsflow – Chariot has raised US$16.1 mm of new equity priced at £0.14 per share.</li>
</ul>


ADX Energy (ADX AU)C; target price of A$0.10 per share: Securing additional loan to prepare for drilling – ADX is issuing A$1.5 mm of loan notes with a term of 18 months.
A$1.0 mm of the loan notes carry an interest rate of 8% per annum with 30 mm options with an exercise price of A$0.01 per share and 30 mm options with an exercise price of A$0.014 per share.
Chariot (CHAR LN)C; target price of £0.50 per share: Adding portfolio depth and near term newsflow – Chariot has raised US$16.1 mm of new equity priced at £0.14 per share.


<ul>
<li>Initial invoices submitted to the insurer have now been approved and reimbursement totalling ~US$0.8 mm have been received.</li>
<li>Additional invoices are being submitted on a regular basis with payments expected within 30 days of receipt by the insurer.</li>
<li>Greater costs will come later in the process and are expected to be regularly re-imbursed as invoices are submitted.</li>
</ul>


Initial invoices submitted to the insurer have now been approved and reimbursement totalling ~US$0.8 mm have been received.
Additional invoices are being submitted on a regular basis with payments expected within 30 days of receipt by the insurer.
Greater costs will come later in the process and are expected to be regularly re-imbursed as invoices are submitted.


Zephyr Energy Plc (AIM: ZPHR): First payment from insurance received

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)

Auctus on Friday - 22/09/2023

ADX Energy (ADX AU)C ; target price of A$0.08 per share : Completing farm-out transaction in Austria – The farm-out transaction of Anshof to MND...

Auctus Advisors

Auctus on Friday - 18/08/2023

Serinus Energy (SENX LN): 2Q23 results – 1H23 production 677 boe/d including 533 boe/d in Tunisia and the balance in Romania.

Auctus Advisors

Zephyr Energy Plc (AIM: ZPHR): High sales in the Williston. Progress at Well 36 2 (Paradox) hindered by extreme heat

• 2Q23 sales volumes averaged 1,385 boe/d compared to 1Q23 sales volumes of 1,093 boe/d as more of Zephyr's existing production wells were changed...

Auctus Advisors

AUCTUS ON FRIDAY - 14/07/2023

ADX Energy (ADX AU)C; target price of A$0.10 per share: Securing additional loan to prepare for drilling – ADX is issuing A$1.5 mm of loan notes...

Auctus Advisors

Zephyr Energy Plc (AIM: ZPHR): First payment from insurance received

Initial invoices submitted to the insurer have now been approved and reimbursement totalling ~US$0.8 mm have been received.

Auctus Advisors

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