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>Valeura is raising C$10 mm through a bought deal priced at C$2.54 per share.</li><li>The dilution associated with the C$10 mm equity issue is very small in the context of the company’s ~C$220 mm market cap.</li><li>Our net cash forecast at YE23 is now ~US$220 mm (versus market cap of ~US$165 mm) increasing to ~US$380 mm at YE24.</li></ul>

Valeura is raising C$10 mm through a bought deal priced at C$2.54 per share.The dilution associated with the C$10 mm equity issue is very small in the context of the company’s ~C$220 mm market cap.Our net cash forecast at YE23 is now ~US$220 mm (versus market cap of ~US$165 mm) increasing to ~US$380 mm at YE24.

Valeura Energy (TSX: VLE): C$10 mm financing

<ul><li><strong>GeoPark (GPRK US)C: Target price of US$31 per share:</strong><strong>Two new strong development wells at CPO-5</strong> – Two new development wells, Indico 6 and Indico 7, tested over 11,000 bbl/d gross (in aggregate) with hardly any water (Indico 6: 6,270 bbl/d, Indico 7: 5,245 bbl/d).</li><li>This would take gross production from the field from ~20 mbbl/d in 4Q22 to 25-27 mbbl/d.</li><li>OKEA Energy (OKEA NO): 4Q22 update – 4Q22 production in Norway was 19,887 boe/d.</li></ul>

GeoPark (GPRK US)C: Target price of US$31 per share:Two new strong development wells at CPO-5 – Two new development wells, Indico 6 and Indico 7, tested over 11,000 bbl/d gross (in aggregate) with hardly any water (Indico 6: 6,270 bbl/d, Indico 7: 5,245 bbl/d).This would take gross production from the field from ~20 mbbl/d in 4Q22 to 25-27 mbbl/d.OKEA Energy (OKEA NO): 4Q22 update – 4Q22 production in Norway was 19,887 boe/d.

<ul><li>Valeura has increased its stake the Thailand SPV from 85% to 87.5%, reflecting its increased investment in the SPV.</li><li>As a result, Valeura will capture a larger proportion of the value of the Thai assets, which we view as very positive.</li><li>We are increasing our target price from C$4.50/sh to C$4.70/sh after incorporating the increased stake in the Thai SPV and revisiting our model.</li></ul>

Valeura has increased its stake the Thailand SPV from 85% to 87.5%, reflecting its increased investment in the SPV.As a result, Valeura will capture a larger proportion of the value of the Thai assets, which we view as very positive.We are increasing our target price from C$4.50/sh to C$4.70/sh after incorporating the increased stake in the Thai SPV and revisiting our model.

Valeura Energy (TSX: VLE): Increasing stake in Thailand SPV. Wassana MOPU recertified.

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>Valeura continues to execute on its acquisition strategy in Thailand.</li><li>Valeura Energy Asia (85% owned by Valeura) is acquiring 3 shallow water licences in the Gulf of Thailand with total net oil production of 21.2 mbbl/d and net 2P reserves of mmbbl (at YE21) from Mubadala Energy for just US$10.4 mm in cash. </li><li>With 25 mbbl/d production by YE22, Valeura is set to become one of the larger international producers listed on the TSX.</li></ul>

Valeura continues to execute on its acquisition strategy in Thailand.Valeura Energy Asia (85% owned by Valeura) is acquiring 3 shallow water licences in the Gulf of Thailand with total net oil production of 21.2 mbbl/d and net 2P reserves of mmbbl (at YE21) from Mubadala Energy for just US$10.4 mm in cash. With 25 mbbl/d production by YE22, Valeura is set to become one of the larger international producers listed on the TSX.

Valeura Energy (TSX: VLE): Transaction in Thailand with a “wow” Factor

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)

Valeura Energy (TSX: VLE): C$10 mm financing

The dilution associated with the C$10 mm equity issue is very small in the context of the company’s ~C$220 mm market cap.

Auctus Advisors

Auctus on Friday - 27/02/2023

Two new development wells, Indico 6 and Indico 7, tested over 11,000 bbl/d gross (in aggregate) with hardly any water (Indico 6: 6,270 bbl/d,...

Auctus Advisors

Valeura Energy (TSX: VLE): Increasing stake in Thailand SPV. Wassana MOPU recertified.

We are increasing our target price from C$4.50/sh to C$4.70/sh after incorporating the increased stake in the Thai SPV and revisiting our model.

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

Valeura Energy (TSX: VLE): Transaction in Thailand with a “wow” Factor

Valeura Energy Asia (85% owned by Valeura) is acquiring 3 shallow water licences in the Gulf of Thailand with total net oil production of 21.2 mbbl...

Auctus Advisors

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