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/CN)C; target price of £0.50 per share: No flow from the Gacheta but overall reserves addition from CN-1 larger than initially expected – The Gacheta zones proved unproductive at the CN 1 well location.</li><li>Management is investigating potential reasons for the lack of productivity and plans to re-evaluate these Gacheta zones in future wells.</li><li>Jadestone Energy (JSE LN): New equity raise – Jadestone Energy has raised US$50 mm of new equity priced at 45p per share.</li></ul>

Arrow Exploration (AXL LN/CN)C; target price of £0.50 per share: No flow from the Gacheta but overall reserves addition from CN-1 larger than initially expected – The Gacheta zones proved unproductive at the CN 1 well location.Management is investigating potential reasons for the lack of productivity and plans to re-evaluate these Gacheta zones in future wells.Jadestone Energy (JSE LN): New equity raise – Jadestone Energy has raised US$50 mm of new equity priced at 45p per share.

Equity Bottom-Up

<ul><li>Zephyr has raised £3.15 mm of new equity priced at 3.5 p per share.</li><li>As we incorporate the 5% equity dilution and a delay in production start-up in the Paradox from 4Q23 to 1Q24, we are changing our target price to £0.18 per share.</li><li>We forecast Zephyr to hold ~US$18 mm in net cash by YE24, up ~US$48 mm from our net debt estimate of ~US$30 mm at the end of June 2023.</li></ul>

Zephyr has raised £3.15 mm of new equity priced at 3.5 p per share.As we incorporate the 5% equity dilution and a delay in production start-up in the Paradox from 4Q23 to 1Q24, we are changing our target price to £0.18 per share.We forecast Zephyr to hold ~US$18 mm in net cash by YE24, up ~US$48 mm from our net debt estimate of ~US$30 mm at the end of June 2023.

Zephyr Energy Plc (AIM: ZPHR): Small equity raise to address capex increase and production delay

<ul><li>Arrow Exploration (AXL LN/CN)C; target price of £0.50 per share: Exploration success at Carrizales Norte –The Carrizales Norte-1 (CN-1) exploration well encountered a total of 148 feet of net oil pay measured depth (128 feet TVD) across three very high quality sands.</li><li>This is the largest net oil pay encountered by a well so far on Tapir (RCE-5: 90 feet, RCE-4: 45 feet, RCE-3: 58 feet, RCE-2 80 feet, RCS-1: 55 feet).</li><li>Tethys Energy (TETY SS) C; target price of SEK120 per share: Production update in April – Production in April was 9,225 bbl/d.</li></ul>

Arrow Exploration (AXL LN/CN)C; target price of £0.50 per share: Exploration success at Carrizales Norte –The Carrizales Norte-1 (CN-1) exploration well encountered a total of 148 feet of net oil pay measured depth (128 feet TVD) across three very high quality sands.This is the largest net oil pay encountered by a well so far on Tapir (RCE-5: 90 feet, RCE-4: 45 feet, RCE-3: 58 feet, RCE-2 80 feet, RCS-1: 55 feet).Tethys Energy (TETY SS) C; target price of SEK120 per share: Production update in April – Production in April was 9,225 bbl/d.

<ul><li>1Q23 sales volumes averaged 1,093 boe/d. This was in line with our expectations. 1Q23 sales volumes include 783 bbl/d of crude, 144 boe/d of NGL and ~1.3 mmcf/d of natural gas.</li><li>1Q23 operating income was US$5.7 mm, also in line with our expectations.</li><li>While the recently acquired wellbore interests operated by Slawson Exploration have now been drilled and completed, these wells are now forecasted to be online by October rather than by July.</li></ul>

1Q23 sales volumes averaged 1,093 boe/d. This was in line with our expectations. 1Q23 sales volumes include 783 bbl/d of crude, 144 boe/d of NGL and ~1.3 mmcf/d of natural gas.1Q23 operating income was US$5.7 mm, also in line with our expectations.While the recently acquired wellbore interests operated by Slawson Exploration have now been drilled and completed, these wells are now forecasted to be online by October rather than by July.

Zephyr Energy Plc (AIM: ZPHR): Well Test at State 36-2 Likely During 2Q23

<ul><li>Arrow Exploration (AXL LN)C: Target price of £0.45 per share: Reaching 2,635 bbl/d without Capella.</li><li>High cash position – The RCE-5 well flowed 680 bbl/d (340 bbl/d net to Arrow) of oil over the last 24 hours.</li><li>GeoPark (GPRK US) C; Target price of US$26 per share: First horizontal well at LL-34 in production at over 3,000 bbl/d – 1Q23 production was 36,578 boe/d.</li></ul>

Arrow Exploration (AXL LN)C: Target price of £0.45 per share: Reaching 2,635 bbl/d without Capella.High cash position – The RCE-5 well flowed 680 bbl/d (340 bbl/d net to Arrow) of oil over the last 24 hours.GeoPark (GPRK US) C; Target price of US$26 per share: First horizontal well at LL-34 in production at over 3,000 bbl/d – 1Q23 production was 36,578 boe/d.

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)

Auctus on Friday - 09/06/2023

Arrow Exploration (AXL LN/CN)C; target price of £0.50 per share: No flow from the Gacheta but overall reserves addition from CN-1 larger than...

Auctus Advisors

Zephyr Energy Plc (AIM: ZPHR): Small equity raise to address capex increase and production delay

As we incorporate the 5% equity dilution and a delay in production start-up in the Paradox from 4Q23 to 1Q24, we are changing our target price to...

Auctus Advisors

Auctus on Friday - 19/05/2023

Tethys Energy (TETY SS) C; target price of SEK120 per share: Production update in April – Production in April was 9,225 bbl/d.

Auctus Advisors

Zephyr Energy Plc (AIM: ZPHR): Well Test at State 36-2 Likely During 2Q23

1Q23 sales volumes averaged 1,093 boe/d. This was in line with our expectations. 1Q23 sales volumes include 783 bbl/d of crude, 144 boe/d of NGL...

Auctus Advisors

Auctus on Friday - 14/04/2023

GeoPark (GPRK US) C; Target price of US$26 per share: First horizontal well at LL-34 in production at over 3,000 bbl/d – 1Q23 production was 36,578...

Auctus Advisors

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)