AUCTUS ON FRIDAY - 04/07/2025
AUCTUS PUBLICATIONS________________________________________
Chariot (CHAR LN)C; Under review: Potential demerger – The management of Chariot is considering splitting the company in two entities, one focusing on upstream oil and gas and the other on renewable power. The latter will also house the hydrogen and water assets. Pending further details, we are placing the company under review.
New Zealand Energy (NZ CN)C: Operating update in New Zealand. Equity raise – The copper Moki-2 well has been restored to production at an oil rate of 48-60 bbl/d. Workover operations on the Copper Moki-1 well commenced on 26 June and are expected to be completed by 6 July. Once both wells are on production New Zealand will carry out rate testing to establish the maximum sustainable rates for these wells. The modelling confirms that gas-lift for a period of up to three weeks is likely to be sufficient to re-establish gas production from the up-dip gas volumes. As a result, the company plans to commence well and facility engineering activities to restart gas flow at Tariki in 3Q25.New Zealand is raising up to C$3 mm of new equity.
Serica Energy (SQZ LN)C; Target price of £2.70 per share: Start up at Triton in line with expectations – Repairs and scheduled maintenance work on the Triton FPSO have been completed, and the restart process for production operations is now underway. This is consistent with the management’s indicated timing of “around end of June” as stated in the AGM update. Production is expected to ramp up progressively, reaching steady-state levels later in July. No further shutdowns are planned for Triton in 2025. We continue to anticipate 2H25 production in the range of 41–47 mboe/d. Before shutdown, Triton was producing ~25 mboe/d. Upon restart in mid-2025, adding the W7z and EV02 wells could increase Triton’s output to 30 mboe/d, with the tie-in of BE01 in early 2026 also boosting production. With extensive inspection and maintenance completed, and both compressors coming on line, we believe Triton is well positioned to put the troubles behind it and deliver more stable and resilient performance than in the last year. The share price could benefit from a progressively more supportive business environment in the North Sea. We maintain our expectation for total 2025 dividends of £0.16 per share (implying a ~10.5% yield).
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Zephyr Energy (ZPHR LN)C: Equity raise for Rocky Mountain acquisition and working capital to Paradox first production – Zephyr has raised £10.5 mm of new equity at £0.03 per share. The proceeds of the raise will fund (1) a £5.4 mm acquisition of 0.6 mmboe 2P and ~400 boe/d net production in the Rocky Mountains and (2) working capital and capex through to first production at its flagship Paradox Basin development. The acquisition includes working interests in a portfolio of over 400 wells, with 21 to be operated by Zephyr. It also brings near-term PUD upside across 20,000+ acres, including 17 drilled but uncompleted wells nearing completion and 13 new wells scheduled for near-term drilling. The transaction enables access to a recently announced US$100 mm funding agreement with a US private equity group, which may fund the drilling programme. With a strengthened balance sheet, Zephyr will be better positioned to monetize initial Paradox gas output via local pipeline infrastructure or direct CNG offtake to nearby data centre and crypto-mining operators. We have changed our target price to £0.15 per share in line with our new ReNAV to reflect (1) the equity issue (2) the acquisition and (3) the appreciation of £ vs. US$ since 1Q25. This valuation excludes the potential upside from new Rocky Mountains drilling and potential Paradox resources beyond the current 3D seismic coverage (~50% of the acreage) and the Cane Creek reservoir, above which lie eight analogous horizons.
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IN OTHER NEWS
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AMERICAS
Alvopetro Energy (ALV CN): Operating update in Brazil – June sales volumes were 2,514 boe/d.
Mosman OI & Gas (MSMN LN): Disappointing well results in USA – The main target (Lyons) at the Garcias prospect was water bearing. A flow test conducted at the top of the Lyons formation indicated a small percentage of helium, but the flow rate was weak, likely due to tight rock with low porosity. The company is pulling out of the Vecta helium project.
Parex Resources (PXT CN): 2Q25 update in Colombia – 2Q25 production was 42,550 boe/d with production averaging 43,950 boe/d in June.
TotalEnergies (TTE FP): Acquiring asset in Suriname – Total is acquiring a 25% interest in Block 53 from Moeve (formerly CEPSA). Block 53 contains the Baja-1 discovery, drilled near the border of Block 58.
Touchstone Exploration (TXP LN/CN): Private Placement closing on smaller amount than previously indicated. US$18 mm of additional equity to be found by YE25 - £10.3 mm of the £15.375 mm gross proceeds from the previously announced private placement have still not been received. Touchstone closed on £5.05 mm. The remaining 50.4 mm shares associated with the £10.3 mm will be cancelled. Under the terms of a loan agreement, in addition to the amount that has settled to date pursuant to the placement, Touchstone is required to raise at least ~US$18 mm in equity before YE25.
EUROPE
Aker BP (AKERBP NO): 2Q25 operating update – 2Q25 production in Norway was 415 mboe/d.
Deltic Energy (DELT LN): Cash acquisition by Viaro Energy – Viaro is offering to acquire Deltic for 7.46 p per share in cash.
Equinor (EQNR NO)/Var Energi (VAR NO): Discovery in Norway – 9-15 mmboe have been discovered at Johan Castberg.
UK Oil & Gas (UKOG LN): Selling assets in the UK – UK Oil & Gas is selling UKOG (GB) to Servatec for £0.4 mm in cash. UKOG (GB) holds a 10% interest in PL211 and a 5% interest in PEDL070, containing the Horndean and Avington oil fields, respectively.
Prax Group: Liquidation proceedings – Prax Group's parent company, State Oil has entered liquidation. As a result, there is uncertainty surrounding Prax’s pending acquisition of a 7.5 mboe/d production portfolio from TotalEnergies, which may now be at risk of not completing. Prax had previously expanded its upstream presence through the acquisition of Hurricane Energy and its producing Lancaster oil field.
FORMER SOVIET UNION
Enwell Energy (ENW LN): 2Q25 operating update in Ukraine – The MEX-GOL, SV and VAS production licences are currently suspended. The company held US$100.7 mm in cash at the end of June.
EVENTS TO WATCH NEXT WEEK
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07/07/2025: Galp Energia (GALP LI) – 2Q25 trading update
07/07/2025: Repsol (REP SM) – 2Q25 trading update
08/07/2025: OMV (OMV AG) – 2Q25 trading update
10/07/2025: BueNord (BNOR NO) – 2Q25 trading update
Aker BP ASA engages in the exploration, development, and production of petroleum resources on the Norwegian Shelf. In addition, Co. has a separate Johan Sverdrup business unit to manage its interest.
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.
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.
Cluff Natural Resources invests in global resources opportunities with a primary focus on U.K. based upstream energy projects. Co.'s principal activity is the exploration, evaluation and development of mineral exploration targets. As of Dec 31 2016, Co. held a 100% interest in two gas licenses in the Southern North Sea.
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.
Mosman Oil and Gas is a New Zealand and Australia oil exploration and development company. Co. is engaged in examining resource opportunities in overlooked and emerging resource areas. Co. objective is to discover economic oil and gas reserves and realize value through the development, joint venture or sale of its oil and gas interests.
Parex Resources is engaged in oil and natural gas exploration, development and production in South America and the Caribbean region. As of Dec 31 2010, Co. had gross proved light and medium oil reserve of 1,066 thousand barrels (net: 980 thousand barrels).
Serica Energy is an independent oil and gas company with production, development and exploration licence interests in the U.K. Continental Shelf and exploration interests in Ireland, Morocco and Namibia. As of Dec 31 2016, Co. had proved plus probable reserves of 3.8 million barrels of oil equivalent, which consisted of 2.1 million barrels of oil and 10.40 billion cubic feet of gas.
Sintana Energy is a development stage company engaged in oil and gas exploration and development activities in the United States.
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.
Touchstone Exploration Inc., formerly Petrobank Energy and Resources Ltd., is an oil and gas exploration and production company. The Company's segments include Trinidad and Canada. The Company's core producing properties are located onshore within Trinidad. The Company's producing properties in Trinidad include Coora 1, Coora 2, New Dome, South Palo Seco, Barrackpore, Fyzabad, Icacos, Palo Seco and San Francique. The Company's exploratory properties in Trinidad include Bovallius, Moruga, New Grant, Ortoire, Otaheite, Piparo, Rousillac, Siparia and St. John. Its exploratory properties in Canada include Beadle, Druid, Luseland and Winter. The gross acres of the properties include approximately 106,604. The Company operates a total of approximately 370 wellbores on the Coora blocks. The New Dome block is located onshore in the southwest portion of Trinidad in the Ward of Siparia. The Barrackpore Block is located approximately 11 kilometers southeast of the city of San Fernando.
Rose Petroleum is an oil and gas (O&G) and mining company with exploration assets and an operational crushing and flotation mill. Co.'s principal activities are the exploration and development of O&G resources together with the evaluation and acquisition of other mineral exploration targets, principally gold, silver, uranium and copper, and the development and operation of mines in Mexico. In Co.'s O&G division, the area of focus is on two unconventional oil and gas basins in the U.S.: the Uinta Basin and the Paradox Basin. In its mining division, Co. continues its milling operations through its subsidiary, Minerales VANE S.A. de C.V., which owns the SDA Mill in Mexico.
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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