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>Three intervals in the Reifling formation (1324 m - 1340 m, 1346 m - 1351 m and 1358 m -1382 m MD) were perforated but only limited inflow was determined.</li>
<li>No fluid could reach the surface after the well was shut in.</li>
<li>Sampling of the well indicated only completion brine (not reservoir fluid) and fine solid particles of unknown origin.</li>
</ul>


Three intervals in the Reifling formation (1324 m - 1340 m, 1346 m - 1351 m and 1358 m -1382 m MD) were perforated but only limited inflow was determined.
No fluid could reach the surface after the well was shut in.
Sampling of the well indicated only completion brine (not reservoir fluid) and fine solid particles of unknown origin.


ADX Energy (ASX: ADX): Reflections on Welchau

<ul>
<li>Two intervals in the Steinalm formation (1452.5 m-1463.5 m and 1474.5 m-1480 m MD) were tested at a stable rate (natural flow) of 240-290 bbl/d of drilling mud, likely contaminated formation water and some oil traces.</li>
<li>Gas was initially observed at surface.</li>
<li>While the achieved flow rate highlights the high permeability of the natural fractures, the absence of hydrocarbons is disappointing and surprising given the results of the logs, the inflow of gas while drilling, the analysis of the retrieved cores (with indication of hydrocarbons) and the fact that down hole oil samples were recovered from this interval.</li>
</ul>


Two intervals in the Steinalm formation (1452.5 m-1463.5 m and 1474.5 m-1480 m MD) were tested at a stable rate (natural flow) of 240-290 bbl/d of drilling mud, likely contaminated formation water and some oil traces.
Gas was initially observed at surface.
While the achieved flow rate highlights the high permeability of the natural fractures, the absence of hydrocarbons is disappointing and surprising given the results of the logs, the inflow of gas while drilling, the analysis of the retrieved cores (with indication of hydrocarbons) and the fact that down hole oil samples were recovered from this interval.


ADX Energy (ASX: ADX): Water Inflow from a Small Interval in Welchau Deeper Formation.

<ul>
<li>All necessary approvals have been received to commence flow testing operations on the Welchau-1 discovery well for the period from 30 October 2024 until 31 March 2025.</li>
<li>A workover rig has been mobilised to the Welchau-1 drill site with flow testing due to commence during the second half of November.</li>
<li>There are multiple zones to test.</li>
</ul>


All necessary approvals have been received to commence flow testing operations on the Welchau-1 discovery well for the period from 30 October 2024 until 31 March 2025.
A workover rig has been mobilised to the Welchau-1 drill site with flow testing due to commence during the second half of November.
There are multiple zones to test.


ADX Energy (ASX: ADX): Approvals to Start Well Testing at Welchau Received.

<ul>
<li>MCF Energy (the partner of ADX at Welchau) has announced that the well test at Welchau is expected to start on 4th of November.</li>
<li>The initial well test results could also be available during November.</li>
<li>The full well test operations will last much longer given that there are multiple zones to test.</li>
</ul>


MCF Energy (the partner of ADX at Welchau) has announced that the well test at Welchau is expected to start on 4th of November.
The initial well test results could also be available during November.
The full well test operations will last much longer given that there are multiple zones to test.


ADX Energy (ASX: ADX): Welchau Test to Start on 4th of November

<ul>
<li>Welchau is now interpreted as a light oil rather than a gas condensate discovery based on detailed analysis of samples recovered from the well and other well data.</li>
<li>While this means that the energy equivalent hydrocarbon volumes may be smaller than the original pre-drill estimates, onshore oil can be more valuable than gas to a small company due to the ability to produce and progressively develop a field without having to first prove up sufficient reserves to underwrite a pipeline and secure a gas contract.</li>
<li>Welchau is estimated to hold 90-95% oil and the production from Welchau-1 could be trucked to a point of sale or to ADX’s existing 3,000 bbl/d Anshof facility for processing when stable flows can be established.</li>
</ul>


Welchau is now interpreted as a light oil rather than a gas condensate discovery based on detailed analysis of samples recovered from the well and other well data.
While this means that the energy equivalent hydrocarbon volumes may be smaller than the original pre-drill estimates, onshore oil can be more valuable than gas to a small company due to the ability to produce and progressively develop a field without having to first prove up sufficient reserves to underwrite a pipeline and secure a gas contract.
Welchau is estimated to hold 90-95% oil and the production from Welchau-1 could be trucked to a point of sale or to ADX’s existing 3,000 bbl/d Anshof facility for processing when stable flows can be established.


ADX Energy (ASX: ADX): Welchau Is About Oil Rather than Gas: Perhaps Smaller but Higher Value Boe

Australia

ADX Energy Ltd. explores for oil and natural gas.  The Company operates onshore and offshore in Tunisia, offshore in Italy, and onshore in Australia.

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ADX Energy Ltd (ADX AU)

ADX Energy (ASX: ADX): Reflections on Welchau

Three intervals in the Reifling formation (1324 m - 1340 m, 1346 m - 1351 m and 1358 m -1382 m MD) were perforated but only limited inflow was...

Auctus Advisors

ADX Energy (ASX: ADX): Water Inflow from a Small Interval in Welchau Deeper Formation.

Two intervals in the Steinalm formation (1452.5 m-1463.5 m and 1474.5 m-1480 m MD) were tested at a stable rate (natural flow) of 240-290 bbl/d of...

Auctus Advisors

ADX Energy (ASX: ADX): Approvals to Start Well Testing at Welchau Received.

All necessary approvals have been received to commence flow testing operations on the Welchau-1 discovery well for the period from 30 October 2024...

Auctus Advisors

ADX Energy (ASX: ADX): Welchau Test to Start on 4th of November

MCF Energy (the partner of ADX at Welchau) has announced that the well test at Welchau is expected to start on 4th of November.

Auctus Advisors

ADX Energy (ASX: ADX): Welchau Is About Oil Rather than Gas: Perhaps Smaller but Higher Value Boe

Welchau is now interpreted as a light oil rather than a gas condensate discovery based on detailed analysis of samples recovered from the well and...

Auctus Advisors

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Market Cap (USDm)

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