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>VAALCO’s YE23 cash position of US$121 mm and FY23 WI production of 23,946 boe/d were in line with previous indications.</li>
<li>The company held 77.3 mmboe WI 2P reserves at YE23 including 15.8 mmbbl in Gabon, 24.5 mmbbl in Egypt, 18.6 mmboe in Canada and 18.5 mmboe in EG. This represents a 1% increase vs YE23 as VAALCO has more than replaced its FY23 production given the strong performance of the producing assets in 2023.</li>
<li>The FY24 capex budget is US$70-90 mm (we forecasted US$138 mm) as only US$30-40 mm will be spent in Gabon (on long lead items) with a larger than previously expected drilling programme starting in 2025.</li>
</ul>


VAALCO’s YE23 cash position of US$121 mm and FY23 WI production of 23,946 boe/d were in line with previous indications.
The company held 77.3 mmboe WI 2P reserves at YE23 including 15.8 mmbbl in Gabon, 24.5 mmbbl in Egypt, 18.6 mmboe in Canada and 18.5 mmboe in EG. This represents a 1% increase vs YE23 as VAALCO has more than replaced its FY23 production given the strong performance of the producing assets in 2023.
The FY24 capex budget is US$70-90 mm (we forecasted US$138 mm) as only US$30-40 mm will be spent in Gabon (on long lead items) with a larger than previously expected drilling programme starting in 2025.


VAALCO Energy (NYSE: EGY): Increasing Reserves.

<ul>
<li>VAALCO is acquiring Svenska Petroleum Exploration for a headline price of US$66.5 mm.</li>
<li>This price includes a pre-closing dividend of cash on Svenska’s balance sheet to the seller and an estimated cash payment by VAALCO of ~US$30-40 mm on closing in 2Q24.</li>
<li>The primary asset of Svenska is a 27.39% interest in Block CI-40, offshore Cote d'Ivoire with 1P and 2P reserves of respectively 13 mmboe (99% oil) and 21.7 mmboe (97% oil) (as at the end of 3Q23) and current WI production of 4,500 boe/d at the Baobab offshore field (900-1,300 m water depth).</li>
</ul>


VAALCO is acquiring Svenska Petroleum Exploration for a headline price of US$66.5 mm.
This price includes a pre-closing dividend of cash on Svenska’s balance sheet to the seller and an estimated cash payment by VAALCO of ~US$30-40 mm on closing in 2Q24.
The primary asset of Svenska is a 27.39% interest in Block CI-40, offshore Cote d'Ivoire with 1P and 2P reserves of respectively 13 mmboe (99% oil) and 21.7 mmboe (97% oil) (as at the end of 3Q23) and current WI production of 4,500 boe/d at the Baobab offshore field (900-1,300 m water depth).


VAALCO Energy (NYSE: EGY): New country entry with immediate production

<ul>
<li>VAALCO is in discussions with Svenska Petroleum Exploration regarding a possible corporate transaction to acquire Svenska, whose primary asset is a 27.39% interest in Block CI-40, offshore Cote d'Ivoire.</li>
<li>Current working interest production is approximately 4,500 boe/d net to Svenska.</li>
<li>In 2022, Svenska generated after tax cashflow (before changes in working capital) of ~US$115 mm.</li>
</ul>


VAALCO is in discussions with Svenska Petroleum Exploration regarding a possible corporate transaction to acquire Svenska, whose primary asset is a 27.39% interest in Block CI-40, offshore Cote d'Ivoire.
Current working interest production is approximately 4,500 boe/d net to Svenska.
In 2022, Svenska generated after tax cashflow (before changes in working capital) of ~US$115 mm.


VAALCO Energy (NYSE: EGY): Potentially Acquiring Producing Assets in Cote D’Ivoire?

Research from Water Tower Research, Water Tower Research

Water Tower Research

Research from Water Tower Research

Water Tower Research is a leading equity research firm that provides research on micro, small and mid cap companies.

Water Tower Research was founded by Wall Street veterans after witnessing a fundamental shift in the investment research industry with the result being a declining knowledge base among investors, a lack of awareness and a shrinking pool of fundamental research being conducted on companies across the small-cap and micro-cap spectrum. The same issues are now increasingly occurring in the mid-cap space. This sea change within the investment community is impacting not only the companies themselves but also current shareholders and potential investors. With significantly less active sell-side sponsorship by Wall Street, a substantial information gap has developed between companies and various constituents in the financial community. The net result is fewer channels for insight and information to flow between companies and investors.

Equity Research Firm

<ul><li>Continued strong asset performance across VAALCO’s portfolio in Gabon, Egypt, and Canada contributed to 4Q23 production and sales at, or above, the high end of management’s November 7, 2023, updated outlook.</li><li>4Q23 working interest (WI) production and sales fell to 23.1-23.5 MBOE/d and 27.4-27.6 MBOE/d, compared with guidance of 22.9- 24.6 MBOE/d and 25.3-27.6 MBOE/d, respectively.</li><li>4Q23 net revenue interest (NRI) production and sales volumes averaged 17.9-18.2 MBOE/d and 21.725-22.125 MBOE/d, compared with guidance of 17.6-19.4 MBOE/d and 19.8-22.0 MBOE/d, respectively.</li></ul>

Continued strong asset performance across VAALCO’s portfolio in Gabon, Egypt, and Canada contributed to 4Q23 production and sales at, or above, the high end of management’s November 7, 2023, updated outlook.4Q23 working interest (WI) production and sales fell to 23.1-23.5 MBOE/d and 27.4-27.6 MBOE/d, compared with guidance of 22.9- 24.6 MBOE/d and 25.3-27.6 MBOE/d, respectively.4Q23 net revenue interest (NRI) production and sales volumes averaged 17.9-18.2 MBOE/d and 21.725-22.125 MBOE/d, compared with guidance of 17.6-19.4 MBOE/d and 19.8-22.0 MBOE/d, respectively.

VAALCO Energy, Inc. - 4Q23 Production Outperformed Guidance

<ul><li>• 4Q23 WI production of 23.1-23.5 mboe/d was comfortably within the management guidance of 22.9-24.6 mboe/d. • VAALCO held >US$120 mm in cash and cash equivalents at the end of December, up from US$103 mm at the end of September.</li><li>The YE23 cash position was impacted by the fact the Egyptian sales during 4Q23 were for the domestic market rather than exported (domestic sales carry a lower value than exported cargoes).</li></ul>

• 4Q23 WI production of 23.1-23.5 mboe/d was comfortably within the management guidance of 22.9-24.6 mboe/d. • VAALCO held >US$120 mm in cash and cash equivalents at the end of December, up from US$103 mm at the end of September.The YE23 cash position was impacted by the fact the Egyptian sales during 4Q23 were for the domestic market rather than exported (domestic sales carry a lower value than exported cargoes).

VAALCO Energy (NYSE: EGY): Good operational performance in 4Q23

United States

VAALCO Energy, Inc. acquires, explores, and develops crude oil and natural gas properties. The Company owns producing properties and conducts exploration activities in the Philippines and Gabon, and has interest in the Texas Gulf Coast area. VAALCO, through participation in a partnership, has additional international exploration interests in South and North America and Africa.

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VAALCO Energy (EGY US)

VAALCO Energy (NYSE: EGY): Increasing Reserves.

VAALCO’s YE23 cash position of US$121 mm and FY23 WI production of 23,946 boe/d were in line with previous indications.

Auctus Advisors

VAALCO Energy (NYSE: EGY): New country entry with immediate production

This price includes a pre-closing dividend of cash on Svenska’s balance sheet to the seller and an estimated cash payment by VAALCO of ~US$30-40 mm...

Auctus Advisors

VAALCO Energy (NYSE: EGY): Potentially Acquiring Producing Assets in Cote D’Ivoire?

VAALCO is in discussions with Svenska Petroleum Exploration regarding a possible corporate transaction to acquire Svenska, whose primary asset is a...

Auctus Advisors

VAALCO Energy, Inc. - 4Q23 Production Outperformed Guidance

4Q23 working interest (WI) production and sales fell to 23.1-23.5 MBOE/d and 27.4-27.6 MBOE/d, compared with guidance of 22.9- 24.6 MBOE/d and 25.3...

Water Tower Research

VAALCO Energy (NYSE: EGY): Good operational performance in 4Q23

• 4Q23 WI production of 23.1-23.5 mboe/d was comfortably within the management guidance of 22.9-24.6 mboe/d. • VAALCO held >US$120 mm in cash...

Auctus Advisors

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