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

Equity Bottom-Up

A Balanced Portfolio of African E&P Assets

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.

<ul><li>The North Tchibala 2H-ST well has been producing about 275 bbl/d (gross) during clean-up, while the post-frac modeling indicates that the well is capable of producing rates in excess of 1,500 bbl/d.</li><li>The lower zone was expected to be the most important contributor to production but it is not clear how much it is producing.</li><li>By contrast, the North Tchibala 2H-ST well was drilled as a Dentale producer.</li></ul>

The North Tchibala 2H-ST well has been producing about 275 bbl/d (gross) during clean-up, while the post-frac modeling indicates that the well is capable of producing rates in excess of 1,500 bbl/d.The lower zone was expected to be the most important contributor to production but it is not clear how much it is producing.By contrast, the North Tchibala 2H-ST well was drilled as a Dentale producer.

VAALCO Energy (NYSE: EGY): Reflections on the Dentale well result

Thematic (Sector/Industry)

<ul><li>Chariot (CHAR LN)C; Target price increased from £0.55 per share: Adding a new renewable power project in Zimbabwe - Chariot continues to execute on its strategy to build a 1 GW (gross) power business.</li><li>Chariot and Total Eren have announced that the partners will work on a solar photovoltaic (PV) project that will provide competitive electricity for the Karo Platinum Project, in Zimbabwe.</li><li>This compares to a read through value of Wentworth’s non cash assets based on the share price of Wentworth on 2 December of p per share (25 p less 12.9 p).</li></ul>

Chariot (CHAR LN)C; Target price increased from £0.55 per share: Adding a new renewable power project in Zimbabwe - Chariot continues to execute on its strategy to build a 1 GW (gross) power business.Chariot and Total Eren have announced that the partners will work on a solar photovoltaic (PV) project that will provide competitive electricity for the Karo Platinum Project, in Zimbabwe.This compares to a read through value of Wentworth’s non cash assets based on the share price of Wentworth on 2 December of p per share (25 p less 12.9 p).

<ul><li>Chariot (CHAR LN) C; Target price of £0.55 per share: Meeting with management: Operations on track – The Anchois project continues to make progress towards FID in early 2023.</li><li>We understand that the banking syndicate is likely to include Moroccan banks and that debt could represent 70% of the overall cost of the project to first gas.</li><li>GeoPark (GPRK US)C; Target price of US$31 per share – 3Q22 production had already been reported.</li></ul>

Chariot (CHAR LN) C; Target price of £0.55 per share: Meeting with management: Operations on track – The Anchois project continues to make progress towards FID in early 2023.We understand that the banking syndicate is likely to include Moroccan banks and that debt could represent 70% of the overall cost of the project to first gas.GeoPark (GPRK US)C; Target price of US$31 per share – 3Q22 production had already been reported.

<ul><li>3Q22 WI production of 10,525 bbl/d (NRI of 9,150 bbl/d) had previously been reported.</li><li>VAALCO generated operating cashflow of ~US$61 mm in 3Q22 which is above our expectations (~US$45 mm).</li><li>4Q22 production will be impacted by the shutdown associated with the field reconfiguration (switch from FPSO to FSO) and a staged production ramp-up to reach ~11.5 mbbl/d WI production by YE22.</li></ul>

3Q22 WI production of 10,525 bbl/d (NRI of 9,150 bbl/d) had previously been reported.VAALCO generated operating cashflow of ~US$61 mm in 3Q22 which is above our expectations (~US$45 mm).4Q22 production will be impacted by the shutdown associated with the field reconfiguration (switch from FPSO to FSO) and a staged production ramp-up to reach ~11.5 mbbl/d WI production by YE22.

VAALCO Energy (LSE: EGY): Another strong quarter

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)

A Balanced Portfolio of African E&P Assets

KEY POINTS VAALCO is an Africa-focused exploration and production company whose primary focus has been on producing assets offshore Gabon and...

Water Tower Research

VAALCO Energy (NYSE: EGY): Reflections on the Dentale well result

The North Tchibala 2H-ST well has been producing about 275 bbl/d (gross) during clean-up, while the post-frac modeling indicates that the well is...

Auctus Advisors

Auctus on Friday - 09/12/2022

Adding a new renewable power project in Zimbabwe - Chariot continues to execute on its strategy to build a 1 GW (gross) power business.

Auctus Advisors

Auctus on Friday - 11/11/2022

Chariot (CHAR LN) C; Target price of £0.55 per share: Meeting with management: Operations on track – The Anchois project continues to make progress...

Auctus Advisors

VAALCO Energy (LSE: EGY): Another strong quarter

3Q22 WI production of 10,525 bbl/d (NRI of 9,150 bbl/d) had previously been reported. VAALCO generated operating cashflow of ~US$61 mm in 3Q22...

Auctus Advisors

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