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.

Thematic (Sector/Industry)

<ul><li>Arrow Exploration (AXL LN) C; Target price of £0.45 per share: The RCE-5 well encounters one of the largest net pay to date in the RCE field – The RCE-5 well encountered 90 feet of net oil pay across the Carbonera C7 (36 feet) and the Lower Gacheta sands (54 feet).</li><li>RCE-5 encountered the largest net pay in the current programme.</li><li>Hurricane Energy (HUR LN): Operating update in the UK – Oil production from Lancaster was 7,672 bbl/d in May with 52% water cut.</li></ul>

Arrow Exploration (AXL LN) C; Target price of £0.45 per share: The RCE-5 well encounters one of the largest net pay to date in the RCE field – The RCE-5 well encountered 90 feet of net oil pay across the Carbonera C7 (36 feet) and the Lower Gacheta sands (54 feet).RCE-5 encountered the largest net pay in the current programme.Hurricane Energy (HUR LN): Operating update in the UK – Oil production from Lancaster was 7,672 bbl/d in May with 52% water cut.

Equity Bottom-Up

<ul><li>With the acquisition of the Mubadala assets having been completed only recently, Valeura has not provided any guidance for YE22 reserves, FY23 production and capex guidance nor working capital on completion.</li><li>This is now expected to be provided in the coming weeks as Valeura management engages fully with the team joining from Mubadala.</li><li>Until then and Pending further details on (1) the working capital at completion of the Mubadala assets acquisitions, (2) the FY23 production guidance and (3) the YE22 reserves estimates at the new assets, the only change we have made to our forecast is a month delay at Wassana.</li></ul>

With the acquisition of the Mubadala assets having been completed only recently, Valeura has not provided any guidance for YE22 reserves, FY23 production and capex guidance nor working capital on completion.This is now expected to be provided in the coming weeks as Valeura management engages fully with the team joining from Mubadala.Until then and Pending further details on (1) the working capital at completion of the Mubadala assets acquisitions, (2) the FY23 production guidance and (3) the YE22 reserves estimates at the new assets, the only change we have made to our forecast is a month delay at Wassana.

Valeura Energy (TSE VLE): Waiting for a formal guidance for 2023

<ul>
<li>Arrow Exploration (AXL LN) C; Target price of £0.45 per share: Good flow rate at RCE-4 – The RCE-4 well has been put in production.</li>
<li>This is a similar result as at RCE-3 (24 h flow rate of 968 bbl/d gross/484 bbl/d net).</li>
<li>Serinus Energy (SEN LN): FY22 results – FY22 production was 889 boe/d including 379 boe/d in Romania and 510 boe/d in Tunisia.</li>
</ul>


Arrow Exploration (AXL LN) C; Target price of £0.45 per share: Good flow rate at RCE-4 – The RCE-4 well has been put in production.
This is a similar result as at RCE-3 (24 h flow rate of 968 bbl/d gross/484 bbl/d net).
Serinus Energy (SEN LN): FY22 results – FY22 production was 889 boe/d including 379 boe/d in Romania and 510 boe/d in Tunisia.


<ul><li>The MT Jaka Tarub crude oil storage vessel for the Wassana field has sailed away and is now on its way to the Wassana field.</li><li>The vessel is expected to arrive at Wassana in the next few days, to be followed by first oil shortly thereafter.</li><li>At US$70/bbl for Brent, YE23 net cash would be US$145 mm increasing to US$275 mm at YE24.</li></ul>

The MT Jaka Tarub crude oil storage vessel for the Wassana field has sailed away and is now on its way to the Wassana field.The vessel is expected to arrive at Wassana in the next few days, to be followed by first oil shortly thereafter.At US$70/bbl for Brent, YE23 net cash would be US$145 mm increasing to US$275 mm at YE24.

Valeura Energy (LSE: VLU): Wassana FSO sales away. Accretive acquisition of minorities.

<ul><li>Over January, production was ~1,800 boe/d with short term outages due to weather at Ombu and Pepper.</li><li>This compares with production rate of 1,900-2,000 in November which included an initial high contribution at East Pepper (that has since declined, as expected).</li><li>4Q22 production of 3,727 boe/d including 1,132 boe/d at Thorsby and 2,595 boe/d at Brooks was below our expectations of 3,970 boe/d.</li></ul>

Over January, production was ~1,800 boe/d with short term outages due to weather at Ombu and Pepper.This compares with production rate of 1,900-2,000 in November which included an initial high contribution at East Pepper (that has since declined, as expected).4Q22 production of 3,727 boe/d including 1,132 boe/d at Thorsby and 2,595 boe/d at Brooks was below our expectations of 3,970 boe/d.

Canada

Valeura Energy Inc. operates as an exploration company. The Company engages in the development and production of petroleum and natural gas. Valeura Energy focuses on growing its resource base and production in the Thrace Basin in Northwest Turkey.

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Valeura Energy Inc (VLE CN)

Auctus on Friday - 06/04/2023

Hurricane Energy (HUR LN): Operating update in the UK – Oil production from Lancaster was 7,672 bbl/d in May with 52% water cut.

Auctus Advisors

Valeura Energy (TSE VLE): Waiting for a formal guidance for 2023

With the acquisition of the Mubadala assets having been completed only recently, Valeura has not provided any guidance for YE22 reserves

Auctus Advisors

Auctus on Friday - 24/03/2023

Arrow Exploration (AXL LN) C; Target price of £0.45 per share: Good flow rate at RCE-4 – The RCE-4 well has been put in production.

Auctus Advisors

Valeura Energy (LSE: VLU): Wassana FSO sales away. Accretive acquisition of minorities.

The MT Jaka Tarub crude oil storage vessel for the Wassana field has sailed away and is now on its way to the Wassana field.

Auctus Advisors

Auctus on Friday - 03/02/2023

4Q22 production of 3,727 boe/d including 1,132 boe/d at Thorsby and 2,595 boe/d at Brooks was below our expectations of 3,970 boe/d.

Auctus Advisors

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