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>1Q24 production of 3,009 boe/d was in line with our forecasts.</li>
<li>The net debt at the end of March was ~US$1 mm below our expectations.</li>
<li>We continue to assume that the 2nd DUC will not be completed before 4Q24 with the further DUCs being completed in 1Q25 and 2Q25.</li>
</ul>


1Q24 production of 3,009 boe/d was in line with our forecasts.
The net debt at the end of March was ~US$1 mm below our expectations.
We continue to assume that the 2nd DUC will not be completed before 4Q24 with the further DUCs being completed in 1Q25 and 2Q25.


Southern Energy Corp: Increased Premium to Henry Hub Suggests Strong Underlying Fundamentals

<ul>
<li>4Q23 production of 2,793 boe/d and YE23 net debt of US$26.7 mm were in line with forecasts.</li>
<li>The GH 14-06 #3 Upper Selma Chalk well delivered an IP30 rate of 5.2 mmcf/d.</li>
<li>This is a good rate compared to the other Upper Selma Chalk wells of 2022-2023 which had IP30 rates of 3.3-6.5 mmcf/d.</li>
</ul>


4Q23 production of 2,793 boe/d and YE23 net debt of US$26.7 mm were in line with forecasts.
The GH 14-06 #3 Upper Selma Chalk well delivered an IP30 rate of 5.2 mmcf/d.
This is a good rate compared to the other Upper Selma Chalk wells of 2022-2023 which had IP30 rates of 3.3-6.5 mmcf/d.


Southern Energy Corp. -  Managing the Balance Sheet in the Context of Low US Gas Prices

<ul>
<li>The recently completed GH 14-06 #3 Upper Selma Chalk well at Gwinville has delivered average natural gas flow rate in excess of 6.5 mmcf/d over the first days of production.</li>
<li>By comparison, the 18-10#2 Upper Selma Chalk well completed in 1Q23 had an IP rate of only 3.3 mmcf/d.</li>
<li>The three wells that are awaiting completion include the first two Lower Selma Chalk laterals, along with the second City Bank lateral.</li>
</ul>


The recently completed GH 14-06 #3 Upper Selma Chalk well at Gwinville has delivered average natural gas flow rate in excess of 6.5 mmcf/d over the first days of production.
By comparison, the 18-10#2 Upper Selma Chalk well completed in 1Q23 had an IP rate of only 3.3 mmcf/d.
The three wells that are awaiting completion include the first two Lower Selma Chalk laterals, along with the second City Bank lateral.


Southern Energy Corp. (SOUC LN/SOU CN): Positive Results at First DUC

<ul>
<li>2Q23 production stood at 2,651 boe/d, in line with 1Q23 (2,607 boe/d).</li>
<li>Net debt at the end of March stood at ~US$26.2 mm including working capital (net debt at the end of March: US$19.7 mm).</li>
<li>We now forecast 3,070 boe/d production in 2023 (with ~US$9-10 mm capex in 2H23) increasing to ~5.2 mboe/d in 2024.</li>
</ul>


2Q23 production stood at 2,651 boe/d, in line with 1Q23 (2,607 boe/d).
Net debt at the end of March stood at ~US$26.2 mm including working capital (net debt at the end of March: US$19.7 mm).
We now forecast 3,070 boe/d production in 2023 (with ~US$9-10 mm capex in 2H23) increasing to ~5.2 mboe/d in 2024.


South Energy Corp. (SOUC LN/SOU CN): Returning to Growth from 3Q23

<ul><li>1Q23 production stood at 2,607 boe/d, which is in line with our forecasts.</li><li>The company held ~US$12 mm in cash, which is line with previous indications.</li><li>Southern has achieved drilling cost efficiencies and the cost of drilling and completing new wells is expected to be around US$5.7 mm.</li></ul>

1Q23 production stood at 2,607 boe/d, which is in line with our forecasts.The company held ~US$12 mm in cash, which is line with previous indications.Southern has achieved drilling cost efficiencies and the cost of drilling and completing new wells is expected to be around US$5.7 mm.

Southern Energy Corp. (SOUC LN/SOU CN): Drilling Cost Down.

Canada

Sunshine Oilsands Ltd. explores for oil.  The Company operates on the West Ellis, Thickwood, Legend Lake, Muskwa and Harper properties in the Athabasca oil sands region in Canada.

Centaurus Energy Inc. operates as an upstream oil and gas company. The Company explores, develops, and produces crude oil, natural gas liquids, and natural gas. Centaurus Energy serves customers in Canada.

Niko Resources Ltd. is an international oil and gas exploration and development company.  The Company operates in Bangladesh, India, Indonesia, Kurdistan, Madagascar, Pakistan & Trinidad and Tobago.

Canacol Energy Limited is an international junior energy company with production and exploration operations located in South America. The Company's operations are focused in Colombia, with operations also in Ecuador.

Bonterra Energy Corp. is an oil and gas exploration company operating in the Western Canadian Sedimentary Basin. The Company's core areas of operations are in Alberta, Saskatchewan and British Columbia.

Gran Tierra Energy, Inc. is an international oil and gas exploration and production company. The Company operates in South America.

Crew Energy Inc. acquires, explores, and develops oil and natural gas properties.  The Company is currently producing natural gas and light oil and liquids in Alberta and Saskatchewan, both located in Canada.

Frontera Energy Corporation provides oilfield services. The Company explores, develops, and produces crude oil and natural gas. Frontera Energy serves customers worldwide.

Kelt Exploration Ltd is an oil and gas exploration and production company.  The Company owns properties at Grande Cache, Alberta; Inga, British Columbia; and Karr, Alberta.

Fission Uranium Corp. is a Canadian based resource company specializing in the strategic acquisition, exploration and development of uranium properties.

Global Oil & Gas Limited provides exploration services for oil and gas sectors. The Company specializes in identification, exploration, and development of energy and resource assets. Global Oil & Gas operates worldwide.

Feishang Anthracite Resources Limited produces anthracite coal. The Company is engaged in the acquisition, construction and development of anthracite coal mines and the extraction and sale of anthracite coal.

Ouhua Energy Holdings Ltd. imports, processes, and wholesales liquefied petroleum gas.

Chinese People Holdings Co Limited, through its subsidiaries, supplies natural gas and provides gas pipeline connection service.  The Company also manufactures and sells glass products, and invests in properties.

Red Sky Energy Limited is an oil and gas exploration and production company. The Company explores for oil and gas in the Cooper basin in Australia.

Cauldron Energy Ltd. explores for uranium in Australia and Argentina.

Triangle Energy (Global) Limited is an oil and gas exploration and production company. The Company owns and operates assets in Indonesia and Australia.

Pilot Energy Ltd operates as a oil and exploration company. The Company acquires, explores, and produces crude oil and natural gas. Pilot Energy serves customers in Australia.

Central Petroleum Ltd. explores for and produces oil and natural gas, and operates pipelines.  The Company operates throughout Australia.

Everest Metals Corporation Ltd operates as a metal exploration company. The Company explores for base and precious metals. Everest Metals serves customers in Australia and Northern Territory.

Southern Energy Corp. operates as an oil and natural gas exploration and production company. The Company focuses on developing conventional and unconventional light oil and liquids rich natural gas resources. Southern Energy serves customers in Canada and the United States.

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Southern Energy Corp (SOUC LN)

Southern Energy Corp: Increased Premium to Henry Hub Suggests Strong Underlying Fundamentals

• 1Q24 production of 3,009 boe/d was in line with our forecasts. The net debt at the end of March was ~US$1 mm below our expectations. • We...

Auctus Advisors

Southern Energy Corp. - Managing the Balance Sheet in the Context of Low US Gas Prices

4Q23 production of 2,793 boe/d and YE23 net debt of US$26.7 mm were in line with forecasts. The GH 14-06 #3 Upper Selma Chalk well delivered an...

Auctus Advisors