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>1H24 sales volumes in the Williston were 1,239 boe/d.</li>
<li>The FY24 production guidance for the Williston is unchanged at 1.1-1.3 mboe/d.</li>
<li>This excludes &gt;100 boe/d of natural gas liquids.</li>
</ul>


1H24 sales volumes in the Williston were 1,239 boe/d.
The FY24 production guidance for the Williston is unchanged at 1.1-1.3 mboe/d.
This excludes &gt;100 boe/d of natural gas liquids.


Zephyr Energy Plc (AIM: ZPHR): Decision on Next Steps in the Paradox Imminent. Potential Partnering.

<ul>
<li>Following a successful acidization job, Well State 36-2R has been tested at peak rates of &gt;2,100 boe/d, including up to 510 bbl/d of condensate/light oil and almost no water.</li>
<li>This excludes potential natural gas liquids production that would result in an even higher rate.</li>
<li>This flow rate compares very positively with the peak rate of 1,350 boe/d achieved during the first test (announced in July).</li>
</ul>


Following a successful acidization job, Well State 36-2R has been tested at peak rates of &gt;2,100 boe/d, including up to 510 bbl/d of condensate/light oil and almost no water.
This excludes potential natural gas liquids production that would result in an even higher rate.
This flow rate compares very positively with the peak rate of 1,350 boe/d achieved during the first test (announced in July).


Zephyr Energy Plc (AIM: ZPHR): Acidization Results in High Flow Rate at Paradox Well.

<ul>
<li>2Q24 production in the Williston Basin was 1,226 boe/d.</li>
<li>This excludes natural gas liquids (historically 150-200 bbl/d).</li>
<li>This represents an increase of 7% compared to 1Q24 but 2Q24 production from the six wells Slawson wells continues to be partially impacted by gas export infrastructure constraints.</li>
</ul>


2Q24 production in the Williston Basin was 1,226 boe/d.
This excludes natural gas liquids (historically 150-200 bbl/d).
This represents an increase of 7% compared to 1Q24 but 2Q24 production from the six wells Slawson wells continues to be partially impacted by gas export infrastructure constraints.


Zephyr Energy Plc (AIM: ZPHR): Production Guidance for Non Op. Assets in Line.

<ul>
<li>The FY23 operating cashflow after interests of ~US$9 mm was above our forecasts (US$7 mm) due to change of working capital.</li>
<li>We expected a negative change of working capital given (1) Zephyr had to make advance payments for the remedial of the State 36-2R well ahead of being reimbursed by the insurance and (2) the fact that the proceeds of the production for the Slawson wells were not received until part way through 1H24.</li>
<li>Zephyr’s revolving credit facility (RCF) has been redetermined with an unchanged borrowing base (compared to December 2023) of US$15.15 mm.</li>
</ul>


The FY23 operating cashflow after interests of ~US$9 mm was above our forecasts (US$7 mm) due to change of working capital.
We expected a negative change of working capital given (1) Zephyr had to make advance payments for the remedial of the State 36-2R well ahead of being reimbursed by the insurance and (2) the fact that the proceeds of the production for the Slawson wells were not received until part way through 1H24.
Zephyr’s revolving credit facility (RCF) has been redetermined with an unchanged borrowing base (compared to December 2023) of US$15.15 mm.


Zephyr Energy Plc (AIM: ZPHR): Reducing the cost of debt. Testing at State 36-2R to start imminently

<ul>
<li>The State 36-2R well has reached TD.</li>
<li>The well penetrated a folded and naturally fractured section of the Cane Creek reservoir, encountering drilling mud gas shows of a similar magnitude to the original well.</li>
<li>Pore pressure analysis suggests formation pressures estimated at approximately 9,300 psi (which is broadly consistent with previously drilled offset wells).</li>
</ul>


The State 36-2R well has reached TD.
The well penetrated a folded and naturally fractured section of the Cane Creek reservoir, encountering drilling mud gas shows of a similar magnitude to the original well.
Pore pressure analysis suggests formation pressures estimated at approximately 9,300 psi (which is broadly consistent with previously drilled offset wells).


Zephyr Energy Plc (AIM: ZPHR): Spotless Execution at Twinning of High Impact Well.

United Kingdom

Zephyr Energy is a technology-led oil and gas company focused on responsible resource development from carbon-neutral operations in the Rocky Mountain region of the United States. It engages in the exploration, development, and production of crude oil, natural gas, and natural gas liquids. The company is headquartered in Newbury, United Kingdom, and was incorporated in 2002.

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Zephyr Energy (ZPHR LN)

Zephyr Energy Plc (AIM: ZPHR): Decision on Next Steps in the Paradox Imminent. Potential Partnering.

1H24 sales volumes in the Williston were 1,239 boe/d.The FY24 production guidance for the Williston is unchanged at 1.1-1.3 mboe/d.This excludes...

Auctus Advisors

Zephyr Energy Plc (AIM: ZPHR): Acidization Results in High Flow Rate at Paradox Well.

Following a successful acidization job, Well State 36-2R has been tested at peak rates of >2,100 boe/d, including up to 510 bbl/d of condensate...

Auctus Advisors

Zephyr Energy Plc (AIM: ZPHR): Production Guidance for Non Op. Assets in Line.

2Q24 production in the Williston Basin was 1,226 boe/d.This excludes natural gas liquids (historically 150-200 bbl/d). This represents an increase...

Auctus Advisors

Zephyr Energy Plc (AIM: ZPHR): Reducing the cost of debt. Testing at State 36-2R to start imminently

The FY23 operating cashflow after interests of ~US$9 mm was above our forecasts (US$7 mm) due to change of working capital.

Auctus Advisors

Zephyr Energy Plc (AIM: ZPHR): Spotless Execution at Twinning of High Impact Well.

Pore pressure analysis suggests formation pressures estimated at approximately 9,300 psi (which is broadly consistent with previously drilled...

Auctus Advisors

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