Auctus on Friday - 05/05/2023
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ADX Energy (ADX AU)C: Target price of A$0.100 per share: 1Q23 in line with expectations. Growing production at Anshof – 1Q23 production was 299 boe/d including 88 bbl/d for Anshof. In March net production from Anshof has increased to 94 bbl/d. Overall net production in March including the Zistersdorf & Gaiselberg fields (Z&G) was 336 boe/d. Additional site storage is planned to be installed at the Anshof-3 well location in June which will enable the production rate to be increased to ~ 150 bbl/d (120 bbl/d net to ADX). A second 50 m³ oil storage tank is expected to be installed and commissioned on the well site by end 3Q23 to facilitate the increased field production after drilling of the Anshof-2 well. ADX held A$3.4 mm in cash at the end of March. ADX has identified a number of shallow gas opportunities in the KTZ area in Upper Austria (ADX-AT-I licence). Many identified leads are supported by amplitude versus offset (AVO) anomalies. A typical discovery is anticipated to be able to deliver initial flow rates of 5-10 mmcf/d. Further visibility on prospective resources volumes for leads to be matured into prospects is expected in May. Further details on the GRB oil prospect and other Anshof satellite prospects are also expected to be provided in May. ADX continues to offer a combination of strong underlying value, increasing cashflow and reserves growth with very material exploration upside from an expanded near-term drilling programme.
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Arrow Exploration (AXL LN)C; target price of £0.45 per share: Good 4Q22 results. First Carrizales Norte well spudded– 4Q22 production was 1,736 boe/d with cash of US$13 mm at YE22. This is broadly in line with expectations. Production at the new wells on the Rio Cravo Este field continues to ramp-up slowly to prevent early water breakthrough. The company continues to expect to drill at least 10 wells in 2023 (of which three have been already drilled). Arrow has spudded the first well on the Carrizales Norte field . Two further wells will be drilled on the field. At least two Gacheta wells will then be drilled on the Rio Cravo Este field. Two wells at Oso Pardo will also be drilled. The total FY23 capex of US$32 mm is in line with previous guidance. The 130 square kilometre 3D seismic at West Tapir has now been completed. This is one of the larger 3D surveys undertaken in the last few years in the Llanos Basin. The results of the campaign are expected to provide drilling running room for the next one to two years. Arrow had previously reported its reserves at YE22. We continue to forecast YE23 production at ~5 mboe/d.
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Calima Energy (CE1 AU)C; target price of A$0.50 per share: Better than expected performance. A$3 mm dividend distribution. High free cashflow expected in 2Q23 – 1Q23 production was 4,532 boe/d slightly higher than previous indications (~4,500 boe/d) and our initial expectations (4,378 boe/d) given the strong performance of recent wells. The 1Q23 financials were in line with the latest guidance. 2Q23 production is expected to be ~4,200 boe/d. This is higher than we anticipated (3,935 boe/d) given the better-than-expected performance of the recently completed Pisces #8 and #9 wells. These wells were tied-in late in 1Q23 and were ~22% longer and had 15 additional fracs each, compared to the 12-23 well, resulting in anticipated higher production and reserves. The production from these two wells will primarily contribute to production levels in 2Q23. With minimal capex during the break-up period in 2Q23 (A$3 mm), and much lower WCS/WTI price differentials (below US$20/bbl so far in 2Q23 vs US$24.77/bbl in 1Q23), we forecast free cash flow >A$6 mm in 2Q23.
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Chariot (CHAR LN)C; target price of £0.55 per share: Forming a JV with Vitol subsidiary to target the highly profitable industrial gas market in Morocco – Chariot has entered into a partnership agreement with Vivo Energy to develop the industrial gas market in Morocco. The industrial domestic market is one of the three routes to market targeted by Chariot, alongside sales to ONEE and to Europe through the Maghreb Europe Gas Pipeline. As illustrated by the prices achieved by SDX (~US$12/mcf), the domestic industrial market can be very lucrative. The 50/50 JV will market and commercialize the gas produced from Anchois and build the distribution infrastructure (pipeline, CNG, etc) necessary to develop the industrial market. The partnering with Vivo provides access to an established energy distribution network in Morocco. Securing a farm-in partner for the development of Anchois continues to be expected in 2Q23.
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Hartshead Resources (HHR AU)C: Target price of A$0.17 per share: Operational update – Harshead has completed the Geophysical Survey across the Anning and Somerville fields and interfiled pipeline locations. The company continues to target FID in 3Q23.
Longboat Energy (LBE LN)C; target price of £0.90 per share: US$1.8 bn oil producer joins Longboat in Norway – JAPEX (Japan Petroleum Exploration) is acquiring 49.9% of Longboat Energy Norge in return for an initial cash injection of US$16 mm in Longboat Norge with an additional contingent cash consideration of US$4 mm linked to a production acquisition in Norway. Longboat Energy will keep the remaining 50.1% in Longboat Norge. JAPEX could inject up to a further US$30 mm in cash in case of a discovery at Velocette. The exact amount depends on the discovered volume with a sliding scale of US$/boe values applied to the gross resources approved for development by the Norwegian authorities. The scale has a minimum of 85 mmboe and maximum of 200 mmboe. The mid case prospective resources for Velocette is 177 mmboe. JAPEX will also provide Longboat Norge with a 5-year US$100 mm financing facility to finance acquisitions and development costs. The interest cost for the facility begins at 6% with all-in cost of
ADX Energy is engaged as an oil and gas exploration company. As of Dec 31 2015, Co. operated five oil and gas permits in North Africa and Europe, which under following projects: Kerkouane project located in Tunisia; Pantelleria project, Nilde project and Orlando project, which are located in Italy; and Romania project, which Co. held 50% interest on its project.
Africa Oil is an international oil and gas exploration company based in Canada with oil interests in Kenya, Ethiopia, Puntland (Somalia) and Mali. Co. is an exploration stage enterprise that participates in oil and gas projects located in sub-Saharan Africa.
Alvopetro Energy is a resource company and is engaged in the exploration for, and the acquisition, development and production of, hydrocarbons in the Reconcavo, Tucano, Camamu-Almada and Sergipe-Alagoas basins in onshore Brazil. Co. develops producing hydrocarbons by appraising and developing existing discoveries and exploring in areas considered by management to be prospective for hydrocarbon resources. Co.'s assets consist of interests in three producing fields and 16 exploration blocks comprising 148,500 gross acres onshore Brazil.
Front Range Resources is engaged in oil and natural gas exploration and production focusing on horizontal multi-stage frac development in Montney, Bluesky, Wilrich and Falher formations in the Deep Basin area of west central Alberta.
BP is an integrated oil and gas group based in the United Kingdom. Co. is engaged in the exploration and production of crude oil and natural gas; refining, marketing, supply and transportation; and the manufacture and marketing of petrochemicals. Co. operates globally, with business activities in Europe, the U.S., Canada, Russia, South America, Australasia, Asia and parts of Africa. Co. operates in two business segments: Exploration and Production - including oil and natural gas exploration and development and production; and Refining and Marketing- activities include the refining, manufacturing, supply and trading, marketing and transportation of crude oil, petroleum and petrochemicals.
Cairn Energy is an oil and gas exploration and development company. Co. has three groups of business unit: Senegal, which focuses on appraising the discoveries offshore Senegal and to identify further exploration prospects for drilling; U.K and Norway, which includes exploration activities in the North Sea, Norwegian Sea and Barents Sea and management of Co.'s development assets in the U.K. North Sea; and International, which consists of all other regions where Co. holds exploration licenses, including Greenland, Ireland, Morocco, Western Sahara, Mauritania and the Mediterranean. As at Dec 31 2016, Co. had total proved plus probable reserves of 51.5 million barrels of oil equivalent.
Calima Energy and its subsidiaries are engaged in investing in oil and gas exploration and production projects internationally and more specifically in West Africa.
Canacol Energy is engaged in core petroleum and natural gas exploration and development activities in Colombia, Brazil and Guyana.
Chariot Oil & Gas is an independent oil and gas exploration company focused offshore in West Africa with a portfolio of assets located in the under-explored regions of Namibia, Mauritania and Morocco.
Regal Petroleum is an independent oil and gas company focused on gas and condensate field development in Ukraine. Co. is engaged in the oil and gas exploration, development and production. Co. developed its Mekhediviska-Golotvshinska and Svyrydivske gas and condensate fields in north-eastern Ukraine, which were held under 100% owned and operated production licenses, as of Dec 31 2016. Co.'s subsidiary, LLC Prom-Enerho Produkt holds a production license over the Vasyschevskoye gas and condensate field, which also includes the Vvdenska prospect, located in the Dnieper-Donets basin in the north-east of Ukraine.
Equinor is engaged in oil and gas exploration and production activities. Co. is primarily focused on exploration, development and production of oil and gas on the Norwegian continental shelf (NCS). Co.'s operations are organized into four segments. The Development and Production Norway and Development and Production International segments explore, develop, produce and extract crude oil, natural gas and natural gas liquids. The Marketing, Processing and Renewable Energy segment markets, trades, transports and processes oil and natural gas and renewable energy. The Other segment consists of global well and project delivery, research and develpoment, and business development.
Frontera Energy is a publicly traded oil and gas company engaged in the exploration, development and production of heavy crude oil and natural gas in Colombia, Peru, Brazil, and Guatemala.
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.
Independent Oil and Gas, through its subsidiaries, is engaged in the business of oil and gas exploration and/or operations in the North Sea. Co. has its oil and gas interests are in the U.K. sector of the North Sea.
Longboat Energy PLC, formerly Longboat Energy Ltd, is a United Kingdom-based investment company. The Company's investment objectives is to create a full-cycle North Sea exploration and production (E&P) company in order to deliver value to investors.
Okea ASA is a Norway-based oil company engaged in the oil and gas exploration and production industry. The Company contributes to the value creation on the Norwegian continental shelf with development and operation systems through the utilization of the result of previous and ongoing exploration activities in order to bring undeveloped oil on stream in strategic cooperation with service companies. Its services do not involve the exploration for petroleum. The Company operates an office in Trondheim, Norway.
Panoro Energy is an international independent oil and gas company engaged in the exploration and production of oil and gas resources in Brazil and West Africa. In Brazil, Co. participates in a number of oil and gas licenses located in the Santos basin outside the south-east coast of Brazil and in the Camamu-Almada basin in the state of Bahia. In West Africa, Co. participates in a number of licences in Nigeria and Gabon. As of Dec 31 2013, Co.'s commercial production is from the Manati field in Brazil.
Repsol is an oil and gas company. Co. is engaged in all the activities relating to the oil and gas industry, including exploration, development and production of crude oil and natural gas, transportation of oil products, liquefied petroleum gas (LPG) and natural gas, refining, the production of a wide range of oil products and the retailing of oil products, oil derivatives, petrochemicals, LPG and natural gas, as well as the generation, transportation, distribution and supply of electricity. Co. operates in more than 40 countries. Co.'s operations are divided into four segments: Upstream, Downstream, LNG and Gas Natural Fenosa.
Valeura Energy is engaged in the exploration, development and production of petroleum and natural gas in Turkey and Western Canada. As of Dec 31 2010, proven gross reserves for light and medium oil was 116 thousand barrels (net reserves of 104 thousand barrels); proven gross reserves for heavy oil was 10 thousand barrels (net reserves of 9 thousand barrels); proven gross reserves for natural gas was 1,047 million cubic feet (net reserves of 938 million cubic feet); and proven gross reserves for natural gas liquids was 26 thousand barrels (net reserves of 19 thousand barrels).
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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