AUCTUS ON FRIDAY - 06/06/2025
Criterium Energy (CEQ CN)C; Target price of C$0.35 per share: On track for first gas in 1Q26 – 1Q25 production of 988 boe/d had been previously reported. Criterium held ~C$1.6 mm in cash at the end of 1Q25. The company has reduced its accounts payable by ~C$3.5 mm while inventory + amounts receivable were flat vs. YE24. Operations are expected to commence at North MGH in June. Four wells were shut-in in 2014 due to high GOR. Criterium is looking to re-open some of the wells in the area. No resources are currently assigned on North MGH. In July, Criterium plans to re-test the SE MGH well that was previously tested at 8 mmcf/d. This area is expected to start production at 5-7 mmcf/d in 1Q26. In addition, taking FID on the project would allow Criterium to convert 15 bcf 2C resources into 2P reserves. Capex to first gas continues to be estimated at US$3-5 mm, with the 14 km pipeline to the existing facility funded by the off-taker in exchange for a small gas transportation fee. This initial development is forecast to generate ~US$6 mm FCF per year and, due to fixed gas prices, FCF remains insulated from oil price fluctuations, equating to 1.2-2x the initial capex annually. We also note an increased amount of industry interest in Indonesian gas. Media reports highlighted that Chevron is planning to return to the country while, in late 2024, Petronas announced plans for an aggressive expansion in Indonesia with the goal to establish an operational hub in East Java.See website for full report
IN OTHER NEWS
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AMERICAS
Rockhopper Exploration (ENQ LN): Resources update in the Falklands Islands. Award in Italy cancelled – Rockhopper is estimated to hold net 2C resources of 321 mmbbl including 255 mmbbl classified as development pending. The EUR190 mm award in Italy to Rockhopper under the energy charter treaty has been annulled.
TotalEnergies (TTE FP): Asset swap in Brazil – Total is acquiring 3% interest in the Lapa oil field from Shell (SHEL LN). In return, Total is selling 20% interest in the Gato de Mato project to Shell.
EUROPE
Gran Tierra Energy (GTE CN/US/LN): Selling UK assets – Gran Tierra is selling its UK north Sea business with the Serenity discovery, to NEO Energy for total consideration of US$7.5 mm.
SUB-SAHARAN AFRICA
Kosmos Energy (KOS US/LN)/Tullow Oil (TLW LN): Licence extension in Ghana – The companies have signed a MOU to extend the West Cape Three Points and Deep Water Tano licences to 2040, which cover the Jubilee and TEN fields. The MOU includes approval to drill up to 20 additional wells in the Jubilee field, representing investment of up to US$2 bn over the life of the licences. As a result of the extension the gross 2P reserves are expected to materially increase. The price for Jubilee associated gas will be reduced.
Reconnaissance Energy Africa (RECO CN): Raising new equity for Namibia exploration – The company is raising C$16.5 mm of new equity at a price of C$0.50 per share. Participants in the transaction will also receive one warrant per new share with a exercise price of C$0.60 per share. BW Energy is buying C$2 mm as part of this offering. The proceeds will fund the drilling of Prospect I, which has been named the Kavango West 1X well.
Savannah Energy (SAVE LN): FY24 results – FY24 gross production in Nigeria was 23.1 mboe/d with YE24 net debt of US$636.9 mm. The gross 2P reserves estimates at Uquo has increased from 400.5 bcf to 484.9 bcf.
Gran Tierra Energy, together with its subsidiaries, is a company focused on oil and gas exploration and production in Colombia. Co. is primarily engaged in the exploration and production of oil and natural gas. Co. has one reportable segment based on geographic organization, Colombia. As of Dec 31 2017, Co. had total estimated proved reserves of 59.3 million barrels of oil and natural gas equivalent, consisting of 58.9 million barrels of oil and 2.1 million cubic feet of natural gas.
Kosmos Energy is a holding company. Through its subsidiaries, the company operates as a deepwater independent oil and gas exploration and production company focused along the Atlantic Margins. The company's assets include production offshore Ghana, Equatorial Guinea and U.S. Gulf of Mexico, as well as gas development offshore Mauritania and Senegal. The company also maintains a sustainable exploration program balanced between proven basin infrastructure-led exploration (Equatorial Guinea and U.S. Gulf of Mexico), emerging basins (Mauritania, Senegal and Suriname) and frontier basins (Cote d'Ivoire, Namibia and Sao Tome and Principe).
Rockhopper Exploration is an oil and gas exploration and production company with key interests in the North Falkland Basin and the Greater Mediterranean region.
Savannah Petroleum is an oil and gas company. Co.'s principal activity is the management of its investment in Savannah Petroleum 1 Limited (SP1). SP1's principal activity is the management of its investment in Savannah Petroleum 2 Limited (SP2), and the provision of services to other companies within Co. SP2 has a 95% interest in Savannah Petroleum Niger R1/R2 S.A. whose principal activity is the exploration of hydrocarbons in the Republic of Niger.
Total is an international integrated oil and gas company also active in solar and biomass energy sources. Co. engages all aspects of the petroleum industry, including Upstream operations (oil and gas exploration, development and production, and LNG (Liquefied Natural Gas)) and Downstream operations (refining, petrochemicals, specialty chemicals, marketing and marketing and trading and shipping of crude oil and petroleum products). In addition, Co. is engaged in the coal mining and power generation sectors. Co.'s worldwide operations are conducted through three business segments: Upstream, Refining & Chemicals, and Marketing & Services.
Tullow Oil is an independent oil and gas exploration and production company. Co.'s focus is on finding oil in Africa and South America. Co.'s primary activities include targeted exploration and appraisal, selective development projects and growing its production. As of Dec 31 2017, Co.'s portfolio included 90 licences in 16 countries. Co.'s operations are organized into three business delivery teams: West Africa; East Africa; and New Ventures. As of Dec 31 2017, on a working interest basis, Co. had commercial reserves of 245.7 million barrels of oil, 268.90 billion cubic feet of gas, and 290.5 million barrels of oil equivalent (petroleum).
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.
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