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 State 16-2 well was initially flow tested at a choked back rate of 2 mmcf/d of natural gas and 100 bbl/d of condensate (433 boe/d), a measured rate which allowed the company to successfully commission surface facilities and improved flow assurance processes.</li><li>As flow rates were increased above those levels, well performance became limited by fresh water pumping capacity and was subsequently impacted by the formation of down hole salt precipitate, an issue not uncommon with this type of completion.</li><li>The precipitate, which blocked and subsequently cleared multiple times, impacted the well's flow capacity to achieve higher rates for an extended period of time.</li></ul>

The State 16-2 well was initially flow tested at a choked back rate of 2 mmcf/d of natural gas and 100 bbl/d of condensate (433 boe/d), a measured rate which allowed the company to successfully commission surface facilities and improved flow assurance processes.As flow rates were increased above those levels, well performance became limited by fresh water pumping capacity and was subsequently impacted by the formation of down hole salt precipitate, an issue not uncommon with this type of completion.The precipitate, which blocked and subsequently cleared multiple times, impacted the well's flow capacity to achieve higher rates for an extended period of time.

Zephyr Energy Plc: State 16-2 Well Test to Be Extended While Precipitate Issues Are Addressed

<ul><li>Positive testing results opens the Montney - Calima has so far obtained very good results from the re-testing of the Calima #2 and Calima #3 wells.</li><li>This could de-risk the initial development of the Montney with potential for production in 2024.</li><li>This could also materially increase the likelihood of attracting an industry partner. </li></ul>

Positive testing results opens the Montney - Calima has so far obtained very good results from the re-testing of the Calima #2 and Calima #3 wells.This could de-risk the initial development of the Montney with potential for production in 2024.This could also materially increase the likelihood of attracting an industry partner. 

<ul><li>4Q22 sales volumes averaged 1,192 boe/d, resulting in 1,490 boe/d over FY22, which is near the top end of the FY22 sales guidance and in line with our forecasts.</li><li>FY22 revenue is estimated at US$42.9 mm, in line with the upgraded guidance of US$40-45 mm.</li><li>In the coming weeks and subject to service availability, Zephyr plans to commence production testing and potential completion of the fractured Cane Creek reservoir interval.</li></ul>

4Q22 sales volumes averaged 1,192 boe/d, resulting in 1,490 boe/d over FY22, which is near the top end of the FY22 sales guidance and in line with our forecasts.FY22 revenue is estimated at US$42.9 mm, in line with the upgraded guidance of US$40-45 mm.In the coming weeks and subject to service availability, Zephyr plans to commence production testing and potential completion of the fractured Cane Creek reservoir interval.

Zephyr Energy Plc (AIM: ZPHR): High production and income in the Williston

<ul><li>The State 36-2 LNW-CC well in the Paradox basin encountered a significant influx of natural gas and condensate from the Cane Creek reservoir.</li><li>The influx was caused by the well intersecting an apparent major natural fracture network in the reservoir.</li><li>The ongoing drilling programme has an unrisked value of £0.14/sh just based on the contingent resources (39 mmboe) in the Cane Creek reservoir.</li></ul>

The State 36-2 LNW-CC well in the Paradox basin encountered a significant influx of natural gas and condensate from the Cane Creek reservoir.The influx was caused by the well intersecting an apparent major natural fracture network in the reservoir.The ongoing drilling programme has an unrisked value of £0.14/sh just based on the contingent resources (39 mmboe) in the Cane Creek reservoir.

Zephyr Energy Plc (AIM: ZPHR): Paradox well encounters substantial hydrocarbons while drilling

<ul><li>Zephyr Energy (ZPHR LN)C: Target price of £0.20 per share: Very accretive acquisitions boost production and add resources upside – Zephyr is acquiring the 25% WI across the White Sands Unit (WSU) in the Paradox it does not hold from Rockies Standard Oil (RSO).</li><li>In return, Zephyr will issue US$3 mm in shares at a price of 6.05 p/sh (~11% above the share price the day prior to the announcement) to RSO.</li><li>Beacon Energy (BCE LN): Reserves and resources update in Germany – Net 2P reserves in Germany were estimated at 85 mmbbl with 22.96 mmbbl net 2C resources.</li></ul>

Zephyr Energy (ZPHR LN)C: Target price of £0.20 per share: Very accretive acquisitions boost production and add resources upside – Zephyr is acquiring the 25% WI across the White Sands Unit (WSU) in the Paradox it does not hold from Rockies Standard Oil (RSO).In return, Zephyr will issue US$3 mm in shares at a price of 6.05 p/sh (~11% above the share price the day prior to the announcement) to RSO.Beacon Energy (BCE LN): Reserves and resources update in Germany – Net 2P reserves in Germany were estimated at 85 mmbbl with 22.96 mmbbl net 2C resources.

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: State 16-2 Well Test to Be Extended While Precipitate Issues Are Addressed

The precipitate, which blocked and subsequently cleared multiple times, impacted the well's flow capacity to achieve higher rates for an extended...

Auctus Advisors

Auctus on Friday - 17/02/2023

Positive testing results opens the Montney - Calima has so far obtained very good results from the re-testing of the Calima #2 and Calima #3 wells.

Auctus Advisors

Zephyr Energy Plc (AIM: ZPHR): High production and income in the Williston

4Q22 sales volumes averaged 1,192 boe/d, resulting in 1,490 boe/d over FY22, which is near the top end of the FY22 sales guidance and in line with...

Auctus Advisors

Zephyr Energy Plc (AIM: ZPHR): Paradox well encounters substantial hydrocarbons while drilling

The State 36-2 LNW-CC well in the Paradox basin encountered a significant influx of natural gas and condensate from the Cane Creek reservoir.

Auctus Advisors

Auctus on Friday - 06/01/2023

Zephyr is acquiring the 25% WI across the White Sands Unit (WSU) in the Paradox it does not hold from Rockies Standard Oil (RSO).

Auctus Advisors

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