AUCTUS ON FRIDAY - 16/05/2025

AUCTUS PUBLICATIONS ________________________________________ Chariot (CHAR LN)C: Recovering 75% WI of licences in Morocco – Energean has returned its Moroccan offshore interests to Chariot. As a result, Chariot now holds 75% in the Lixus Offshore and Rissana Offshore licences. Condor Energies (CDR CN)C; Target price of C$5.90 per share: Acquiring a LNG facility for Kazakhstan to deliver first LNG sale in 2Q26 – 1Q25 production in Uzbekistan was 11,179 boe/d (+6% vs. production in 4Q24). Condor ...

Hybridan Small Cap Feast: 14/05/2025

Our daily digest of news from UK Small Caps 14th May 2025 @HybridanLLP * A corporate client of Hybridan LLP ** Potential means Intention to Float (ITF) or similar announcement has been made ***Arranged by type of listing and date of announcement ****Alphabetically arranged Dish of the day Admissions: None Delistings: None What’s baking in the oven? Potential** Initial Public Offerings: 12th May: Cobalt Holdings, a Company create...

Southern Energy Corp. (SOUC LN/SOU CN): Taking measures to resolve a l...

Southern Energy Corp. (SOUC LN/SOU CN): Reserves resilient to low US g...

• Southern achieved production of 2,259 boe/d in 4Q24, close to with our forecasts of 2,192 boe/d. The YE24 working capital deficit of US$24.9 mm also met our expectations. • YE24 1P and 2P reserves were estimated at 12.7 mmboe and 27.9 mmboe, respectively. Accounting for 0.9 mmboe production in 2024, the reduction from YE23 to YE24 is attributed to technical factors (0.3 mmboe due to a minor shrinkage adjustments in Gwinville) and economic factors (0.5 mmboe). • Despite Southern investing only...

AUCTUS ON FRIDAY - 11/04/2025

AUCTUS PUBLICATIONS Arrow Exploration (AXL LN/ CN)C; Target price of £0.70 per share: Stable production, 10% cash increase – Net production is currently exceeding 4.5 mboe/d, consistent with January levels. The CN HZ10 well, located in the northern area of the CN field, commenced production on 31 March, delivering 1,183 bbl/d of oil (591 bbl/d net to Arrow) with a 21% water cut from the Ubaque reservoir. The well is in the process of cleaning up, with the water cut gradually decreasing. The CN ...

Southern Energy Corp. (SOUC LN/SOU CN): First recompletion expected by...

• Southern has raised US$5 mm in new equity at a price of 3.8p per share (C$0.07 per share). Investors participating in the transaction will also receive a full warrant for each new share, with an exercise price of 4.8p per share (C$0.09 per share). • US$3.1 mm of outstanding convertible debenture will be converted into equity on the same terms. • This capital injection allows Southern to complete the three drilled and uncompleted (DUC) wells, drilled in 1Q23 at Gwinville and to drill two vertic...

AUCTUS ON FRIDAY - 28/03/2025

AUCTUS PUBLICATIONS ________________________________________ Condor Energies (CDR CN)C; Target price of C$5.60 per share: Production rises again. Maiden reserves report. First LNG sales in Kazakhstan on track for 1H26 – YE24 2P reserves in Uzbekistan were estimated at 18.5 mmboe. 4Q24 production was 10,511 boe/d increasing to 12,019 boe/d in March to date and 12,288 boe/d over the past five days. In March, Condor signed a non-binding letter of intent outlining the basic terms and conditions for ...

AUCTUS ON FRIDAY - 21/03/2025

AUCTUS PUBLICATIONS ________________________________________ Chariot (CHAR LN)C; Target price of £0.10 per share: Significant power transaction highlights the value of the S. Africa electricity trading business – Etana Energy, the South African electricity trading business (49% held by Chariot) has arranged a US$55 mm guarantee finance facility through Standard Bank and secured an equity investment of up to US$20 mm from Norfund for working capital. In exchange, Standard Bank and Norfund will ho...

Southern Energy Corp. (SOUC LN/SOU CN): Back to growth

• Southern is expecting to raise US$6 mm in new equity at a price of 4.3p/sh (C$0.08/sh). Investors participating in the transaction will also receive half a warrant for each new share, with an exercise price of 5.3p/sh (C$0.10 /sh). • The existing ~US$3.2 mm convertible debenture will be equitized, at 102.5% of the principal outstanding amount plus accrued interest will be converted into equity at a price of 4.3p/sh (C$0.08/sh). Southern's credit facility has been amended, reducing monthly prin...

Southern Energy (SOUC LN) - 3Q Results Update - Corporate

Southern Energy’s 3Q results (published 29 November 2024) were underlined by its focus on balance sheet preservation in a context of a period of weak natural gas prices. Notably, the company raised $2.0m through the sale of excess equipment.

AUCTUS ON FRIDAY - 29/11/2024

AUCTUS PUBLICATIONS ________________________________________ ADX Energy (ADX AU)C; Target price of NOK51 per share: Water inflow from a small interval in Welchau deeper formation. Continuing well test up hole – Two intervals in the Steinalm formation (1452.5 m-1463.5 m and 1474.5 m-1480 m MD) were tested at a stable rate (natural flow) of 240-290 bbl/d of drilling mud, likely contaminated formation water and some oil traces. Gas was initially observed at surface. While the achieved flow rate hig...

Southern Energy Corp. (SOUC LN/SOU CN): Better balance sheet than expe...

• 3Q24 production of 2,336 boe/d was in line with our expectations. • Southern has monetized excess inventory for US$2 mm during 3Q24, resulting in net debt being reduced by US$1.4 mm. • Southern estimates that further excess inventory could be sold for US$1-1.5 mm. The company is also involved in an ongoing dispute around transportation fees, which Southern believes are governed by a regulated rate. In case of success, Southern could recover overpaid historical fees. In addition, future transp...

Southern Energy (SOUC LN) - Disciplined for Growth

Based on the steeply strengthening futures curve for natural prices (see Summary sheet), we believe that Southern Energy’s period of capital discipline will evolve into a period of growth as rising natural gas prices encourage organic growth via drilling.

AUCTUS ON FRIDAY - 16/08/2024

AUCTUS PUBLICATIONS ________________________________________ Chariot (CHAR LN)C; Target price £0.45 per share: Commencing drilling operations at high impact well in Morocco – Drilling operations have commenced on the Anchois East well (now named Anchois-3). The well has three objectives. An initial pilot hole will be drilled to evaluate the potential of the Anchois Footwall prospect, located in an undrilled fault block to the east of the main field with a 2U Prospective Resource estimate of 170 ...

Southern Energy Corp. (SOUC LN/SOU CN): Improved gas fundamentals expe...

• 2Q24 production of 2,578 boe/d was in line with our forecasts (2,680 boe/d). In addition, ~150 boe/d are currently shut-in pending low-cost workovers. • Net debt (based on cash and debt) at the end of June was ~US$18.7 mm. This compares with our forecasts of US$19.1 mm but Southern has sold two compressors for US$1.36 mm. • While the company will not increase its capex programme until gas prices in the US improve, we note that the 3Q24 and 4Q24 futures for Henry Hub are now standing at ~US$2.3...

Hybridan Small Cap Feast 14 June 2024

14th June 2024 @HybridanLLP Status of this Note and Disclaimer This document has been issued to you by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. This document has no regard for the specific investment objecti...

AUCTUS ON FRIDAY - 14/06/2024

AUCTUS PUBLICATIONS ________________________________________ Chariot (CHAR LN) C: target price of £0.50 per share: High impact well offshore Morocco on track to spud in August – The FY23 financials were in line with our forecasts. The high impact Anchois East well is expected to spud in August. A drilling success could increase the size of Anchois to over 1 tcf (300 bcf net to Chariot). Our overall unrisked NAV for Anchois, including Anchois East Footwall and Anchois East North Flank, is £0.42 p...

AUCTUS ON FRIDAY - 31/05/2024

AUCTUS PUBLICATIONS ________________________________________ Arrow Exploration (AXL LN/AXL CN)C; target price of £0.65 per share: All eyes on the first horizontal well at Carrizales Norte – The 1Q24 production of 2,730 boe/d was close to our expectations. Arrow’s cash position of US$11.6 mm was also in line. The first water disposal well at RCE is being brought into production and the conversion of the CN-4 well is currently waiting regulatory approval. These two disposal wells are very importa...

Southern Energy Corp. (SOUC LN/SOU CN): Increased premium to Henry Hub...

• 1Q24 production of 3,009 boe/d was in line with our forecasts. The net debt at the end of March was ~US$1 mm below our expectations. • We continue to assume that the 2nd DUC will not be completed before 4Q24 with the further DUCs being completed in 1Q25 and 2Q25. • We note however the strengthening of US gas prices with 3Q24 futures for Henry Hub now standing at ~US$2.8/mcf (we previously forecasted US$2.5/mcf). • In addition, Southern is seeing a realization basis premium to Henry Hub in th...