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 decided to extend the State 36-2R well in the Paradox basin by drilling a 5,500 ft lateral on the well.</li>
<li>We are not surprised by this decision given that the acid job performed on the existing 130 ft interval was very successful with peak test production of &gt;2,100 boe/d.</li>
<li>Zephyr believes that the ultimate recovery of the extended well could reach 2 mmboe, which is well above what would have been recovered from the 130 ft interval.</li>
</ul>


Zephyr has decided to extend the State 36-2R well in the Paradox basin by drilling a 5,500 ft lateral on the well.
We are not surprised by this decision given that the acid job performed on the existing 130 ft interval was very successful with peak test production of &gt;2,100 boe/d.
Zephyr believes that the ultimate recovery of the extended well could reach 2 mmboe, which is well above what would have been recovered from the 130 ft interval.


Zephyr Energy Plc (AIM: ZPHR): Paradox well to be lengthened. Potential funding by industry partner provides external validation

Thematic (Sector/Industry)

<ul>
<li>Arrow Exploration (AXL LN/CN)C; Target price £0.70 per share: Another horizontal well with high flow rate – The fourth horizontal well at Carrizales Notre (CNB HZ-5) has been put on production at a gross oil rate of 2.7 mbbl/d (1.35 mbbl/d net to Arrow) with a water cut of 11%.</li>
<li>This flow rate compares favourably with CNB HZ-4 that was put on production at a gross oil rate of &gt;2.5 mbbl/d (8% water cut).</li>
<li>Overall gross oil production from the three other horizontal wells is ~5.62 mbbl/d (~2.8 mbbl/d net to Arrow) including 2.1 mbbl/d for CNB HZ-4, 1.9 mbbl/d for CNB HZ-3 and 1.6 mbbl/d for CNB HZ-1.</li>
</ul>


Arrow Exploration (AXL LN/CN)C; Target price £0.70 per share: Another horizontal well with high flow rate – The fourth horizontal well at Carrizales Notre (CNB HZ-5) has been put on production at a gross oil rate of 2.7 mbbl/d (1.35 mbbl/d net to Arrow) with a water cut of 11%.
This flow rate compares favourably with CNB HZ-4 that was put on production at a gross oil rate of &gt;2.5 mbbl/d (8% water cut).
Overall gross oil production from the three other horizontal wells is ~5.62 mbbl/d (~2.8 mbbl/d net to Arrow) including 2.1 mbbl/d for CNB HZ-4, 1.9 mbbl/d for CNB HZ-3 and 1.6 mbbl/d for CNB HZ-1.


<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>Condor Energies (CDR CN)C; Target price C$5.80 per share: Initiating coverage – Condor Energies is a ~US$75 mm market cap TSX-listed company focused on low carbon and energy transition opportunities in Central Asia.</li>
<li>Condor was transformed in 2024 by the acquisition of &gt;10 mboe/d production of natural gas in Uzbekistan.</li>
<li>The key value driver for the shares is the imminent sanction of Condor’s 1st liquefaction plant in Kazakhstan to convert low-cost natural gas into high value LNG to displace expensive diesel for rail and mining haul truck transportation.</li>
</ul>


Condor Energies (CDR CN)C; Target price C$5.80 per share: Initiating coverage – Condor Energies is a ~US$75 mm market cap TSX-listed company focused on low carbon and energy transition opportunities in Central Asia.
Condor was transformed in 2024 by the acquisition of &gt;10 mboe/d production of natural gas in Uzbekistan.
The key value driver for the shares is the imminent sanction of Condor’s 1st liquefaction plant in Kazakhstan to convert low-cost natural gas into high value LNG to displace expensive diesel for rail and mining haul truck transportation.


<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.

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): Paradox well to be lengthened. Potential funding by industry partner provides external validation

Zephyr believes that the ultimate recovery of the extended well could reach 2 mmboe, which is well above what would have been recovered from the...

Auctus Advisors

AUCTUS ON FRIDAY - 27/09/2024

This flow rate compares favourably with CNB HZ-4 that was put on production at a gross oil rate of >2.5 mbbl/d (8% water cut).

Auctus Advisors

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

AUCTUS ON FRIDAY - 06/09/2024

Condor Energies is a ~US$75 mm market cap TSX-listed company focused on low carbon and energy transition opportunities in Central Asia.

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

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