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>2Q24 production in the Williston Basin was 1,226 boe/d.</li>
<li>This excludes natural gas liquids (historically 150-200 bbl/d).</li>
<li>This represents an increase of 7% compared to 1Q24 but 2Q24 production from the six wells Slawson wells continues to be partially impacted by gas export infrastructure constraints.</li>
</ul>


2Q24 production in the Williston Basin was 1,226 boe/d.
This excludes natural gas liquids (historically 150-200 bbl/d).
This represents an increase of 7% compared to 1Q24 but 2Q24 production from the six wells Slawson wells continues to be partially impacted by gas export infrastructure constraints.


Zephyr Energy Plc (AIM: ZPHR): Production Guidance for Non Op. Assets in Line.

<ul>
<li>The FY23 operating cashflow after interests of ~US$9 mm was above our forecasts (US$7 mm) due to change of working capital.</li>
<li>We expected a negative change of working capital given (1) Zephyr had to make advance payments for the remedial of the State 36-2R well ahead of being reimbursed by the insurance and (2) the fact that the proceeds of the production for the Slawson wells were not received until part way through 1H24.</li>
<li>Zephyr’s revolving credit facility (RCF) has been redetermined with an unchanged borrowing base (compared to December 2023) of US$15.15 mm.</li>
</ul>


The FY23 operating cashflow after interests of ~US$9 mm was above our forecasts (US$7 mm) due to change of working capital.
We expected a negative change of working capital given (1) Zephyr had to make advance payments for the remedial of the State 36-2R well ahead of being reimbursed by the insurance and (2) the fact that the proceeds of the production for the Slawson wells were not received until part way through 1H24.
Zephyr’s revolving credit facility (RCF) has been redetermined with an unchanged borrowing base (compared to December 2023) of US$15.15 mm.


Zephyr Energy Plc (AIM: ZPHR): Reducing the cost of debt. Testing at State 36-2R to start imminently

<ul>
<li>The State 36-2R well has reached TD.</li>
<li>The well penetrated a folded and naturally fractured section of the Cane Creek reservoir, encountering drilling mud gas shows of a similar magnitude to the original well.</li>
<li>Pore pressure analysis suggests formation pressures estimated at approximately 9,300 psi (which is broadly consistent with previously drilled offset wells).</li>
</ul>


The State 36-2R well has reached TD.
The well penetrated a folded and naturally fractured section of the Cane Creek reservoir, encountering drilling mud gas shows of a similar magnitude to the original well.
Pore pressure analysis suggests formation pressures estimated at approximately 9,300 psi (which is broadly consistent with previously drilled offset wells).


Zephyr Energy Plc (AIM: ZPHR): Spotless Execution at Twinning of High Impact Well.

<ul>
<li>1Q24 production (excluding NGL) in the Williston was 1,151 boe/d.</li>
<li>This is 140 boe/d above our expectations and ~100 boe/d above 4Q23 production.</li>
<li>Production in March (excluding NGL) had increased to 1,212 boe/d.</li>
</ul>


1Q24 production (excluding NGL) in the Williston was 1,151 boe/d.
This is 140 boe/d above our expectations and ~100 boe/d above 4Q23 production.
Production in March (excluding NGL) had increased to 1,212 boe/d.


Zephyr Energy Plc (AIM: ZPHR): Higher 1Q24 Production than We Anticipated. All Eyes on High Impact Drilling in the Paradox

<ul>
<li>In October 2023, Zephyr announced the acquisition of at least a 75% WI in the Salt Wash field, located ~3 miles to the south of the Paradox project.</li>
<li>Salt Wash has a 15 feet oil rim, above which is an inert gas cap (~500 feet of gas column) which consists of ~72% nitrogen, 22% hydrocarbon gases, and 1.4% to 1.7% helium content.</li>
<li>The field was abandoned in 2014 after having produced 1.65 mmbbl of oil and 11.7 bcf of natural gas.</li>
</ul>


In October 2023, Zephyr announced the acquisition of at least a 75% WI in the Salt Wash field, located ~3 miles to the south of the Paradox project.
Salt Wash has a 15 feet oil rim, above which is an inert gas cap (~500 feet of gas column) which consists of ~72% nitrogen, 22% hydrocarbon gases, and 1.4% to 1.7% helium content.
The field was abandoned in 2014 after having produced 1.65 mmbbl of oil and 11.7 bcf of natural gas.


Zephyr Energy Plc (AIM: ZPHR): Potential for helium well to be drilled mid 2024

United Kingdom

Zephyr Energy plc operates as a technology-led exploration and production company. The Company focuses on the delivery of economic returns from developed oil and gas projects in the Rocky Mountain region of the United States.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Zephyr Energy (ZPHR LN)

Zephyr Energy Plc (AIM: ZPHR): Production Guidance for Non Op. Assets in Line.

2Q24 production in the Williston Basin was 1,226 boe/d.This excludes natural gas liquids (historically 150-200 bbl/d). This represents an increase...

Auctus Advisors

Zephyr Energy Plc (AIM: ZPHR): Reducing the cost of debt. Testing at State 36-2R to start imminently

The FY23 operating cashflow after interests of ~US$9 mm was above our forecasts (US$7 mm) due to change of working capital.

Auctus Advisors

Zephyr Energy Plc (AIM: ZPHR): Spotless Execution at Twinning of High Impact Well.

Pore pressure analysis suggests formation pressures estimated at approximately 9,300 psi (which is broadly consistent with previously drilled...

Auctus Advisors

Zephyr Energy Plc (AIM: ZPHR): Higher 1Q24 Production than We Anticipated. All Eyes on High Impact Drilling in the Paradox

1Q24 production (excluding NGL) in the Williston was 1,151 boe/d. This is 140 boe/d above our expectations and ~100 boe/d above 4Q23 production.

Auctus Advisors

Zephyr Energy Plc (AIM: ZPHR): Potential for helium well to be drilled mid 2024

In October 2023, Zephyr announced the acquisition of at least a 75% WI in the Salt Wash field, located ~3 miles to the south of the Paradox project.

Auctus Advisors

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)