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>• 2Q23 sales volumes averaged 1,385 boe/d compared to 1Q23 sales volumes of 1,093 boe/d as more of Zephyr's existing production wells were changed from temporarily shut-in to producing status during 2Q23.</li><li>Production from these working interests continues to be expected to be online by October following completion of surface facilities on the well pad.</li><li>We continue to forecast overall net production increasing from ~1 mboe/d in 1Q23 to >4.5 mboe/d d in 1Q24 and >7.5 mboe/d in 4Q24.</li></ul>

• 2Q23 sales volumes averaged 1,385 boe/d compared to 1Q23 sales volumes of 1,093 boe/d as more of Zephyr's existing production wells were changed from temporarily shut-in to producing status during 2Q23.Production from these working interests continues to be expected to be online by October following completion of surface facilities on the well pad.We continue to forecast overall net production increasing from ~1 mboe/d in 1Q23 to >4.5 mboe/d d in 1Q24 and >7.5 mboe/d in 4Q24.

Zephyr Energy Plc (AIM: ZPHR): High sales in the Williston. Progress at Well 36 2 (Paradox) hindered by extreme heat

Thematic (Sector/Industry)

<ul>
<li>ADX Energy (ADX AU)C; target price of A$0.10 per share: Securing additional loan to prepare for drilling – ADX is issuing A$1.5 mm of loan notes with a term of 18 months.</li>
<li>A$1.0 mm of the loan notes carry an interest rate of 8% per annum with 30 mm options with an exercise price of A$0.01 per share and 30 mm options with an exercise price of A$0.014 per share.</li>
<li>Chariot (CHAR LN)C; target price of £0.50 per share: Adding portfolio depth and near term newsflow – Chariot has raised US$16.1 mm of new equity priced at £0.14 per share.</li>
</ul>


ADX Energy (ADX AU)C; target price of A$0.10 per share: Securing additional loan to prepare for drilling – ADX is issuing A$1.5 mm of loan notes with a term of 18 months.
A$1.0 mm of the loan notes carry an interest rate of 8% per annum with 30 mm options with an exercise price of A$0.01 per share and 30 mm options with an exercise price of A$0.014 per share.
Chariot (CHAR LN)C; target price of £0.50 per share: Adding portfolio depth and near term newsflow – Chariot has raised US$16.1 mm of new equity priced at £0.14 per share.


<ul>
<li>Initial invoices submitted to the insurer have now been approved and reimbursement totalling ~US$0.8 mm have been received.</li>
<li>Additional invoices are being submitted on a regular basis with payments expected within 30 days of receipt by the insurer.</li>
<li>Greater costs will come later in the process and are expected to be regularly re-imbursed as invoices are submitted.</li>
</ul>


Initial invoices submitted to the insurer have now been approved and reimbursement totalling ~US$0.8 mm have been received.
Additional invoices are being submitted on a regular basis with payments expected within 30 days of receipt by the insurer.
Greater costs will come later in the process and are expected to be regularly re-imbursed as invoices are submitted.


Zephyr Energy Plc (AIM: ZPHR): First payment from insurance received

<ul>
<li>ADX Energy (ADX AU) C ; target price of A$0.100 per share: Exploration portfolio update in Austria: larger volume, lower risk – The exploration portfolio in Upper Austria is now estimated to hold 213 mmboe of best technical prospective resources (previously 200 mmboe) in 20 prospects.</li>
<li>The importance of the upgrade is as much about risk reduction as it is about resources increase.</li>
<li>The expansion of the portfolio also provides new opportunities for further farmouts. </li>
</ul>


ADX Energy (ADX AU) C ; target price of A$0.100 per share: Exploration portfolio update in Austria: larger volume, lower risk – The exploration portfolio in Upper Austria is now estimated to hold 213 mmboe of best technical prospective resources (previously 200 mmboe) in 20 prospects.
The importance of the upgrade is as much about risk reduction as it is about resources increase.
The expansion of the portfolio also provides new opportunities for further farmouts. 


<ul>
<li>FY23 production, revenue and operating income had been reported previously.</li>
<li>The timing of the well test is the main factor driving the delivery of first production in the Paradox.</li>
<li>We now forecast Zephyr to hold &gt;US$50 mm mm in net cash by YE24.</li>
</ul>


FY23 production, revenue and operating income had been reported previously.
The timing of the well test is the main factor driving the delivery of first production in the Paradox.
We now forecast Zephyr to hold &gt;US$50 mm mm in net cash by YE24.


Zephyr Energy Plc (AIM: ZPHR): Waiting on well 36-2 test

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.

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Zephyr Energy (ZPHR LN)

Zephyr Energy Plc (AIM: ZPHR): High sales in the Williston. Progress at Well 36 2 (Paradox) hindered by extreme heat

• 2Q23 sales volumes averaged 1,385 boe/d compared to 1Q23 sales volumes of 1,093 boe/d as more of Zephyr's existing production wells were changed...

Auctus Advisors

AUCTUS ON FRIDAY - 14/07/2023

ADX Energy (ADX AU)C; target price of A$0.10 per share: Securing additional loan to prepare for drilling – ADX is issuing A$1.5 mm of loan notes...

Auctus Advisors

Zephyr Energy Plc (AIM: ZPHR): First payment from insurance received

Initial invoices submitted to the insurer have now been approved and reimbursement totalling ~US$0.8 mm have been received.

Auctus Advisors

Auctus on Friday - 30/06/2023

The exploration portfolio in Upper Austria is now estimated to hold 213 mmboe of best technical prospective resources (previously 200 mmboe) in 20...

Auctus Advisors

Zephyr Energy Plc (AIM: ZPHR): Waiting on well 36-2 test

FY23 production, revenue and operating income had been reported previously. The timing of the well test is the main factor driving the delivery of...

Auctus Advisors

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