Southern Energy Corp. (SOUC LN/SOU CN): Shallower decline at LSC well ...

• Southern Energy’s 2Q25 production averaged 1,883 boe/d, exceeding our forecast of 1,698 boe/d. Current assets minus accounts payable stood at ~US$1.5 mm at end-June, in line with expectations. • The GH LSC 13-13 #2 well in the Lower Selma Chalk continues to exhibit a notably shallower decline rate than the previous Upper Selma Chalk wells. This is a key development: sustained performance combined with a lower cost structure could materially enhance YE25 reserves bookings. The current reserves ...

AUCTUS ON FRIDAY - 01/08/2025

AUCTUS PUBLICATIONS ________________________________________ ADX Energy (ADX AU)C; Target price of A$0.30 per share: Operating update – Net production in Austria was 303 boe/d. The company held A$4.8 mm in cash at the end of June. Criterium Energy (CEQ CN)C; Target price of C$0.35 per share: Successful flow test at North-MGH boosts expected 2H26 gas production to 7-10 mmcf/d – The MGH-20 well in the North Mengoepeh (MGH) field tested 2.8 mmcf/d with associated oil. This is a positive surprise a...

Southern Energy Corp. (SOUC LN/SOU CN): IP30 flow rate at first DUC co...

• The GH LSC 13-13 #2 well (Lower Selma Chalk) commenced production at ~4.0 mmcf/d and averaged 3.6 mmcf/d over its IP30 period. Although below the initial 5.5 mmcf/d forecast, the observed decline rate is notably shallower than expected, with flow rates holding at 3.4 mmcf/d after one month (~15% decline). • This performance benchmarks favourably against Upper Selma Chalk (USC) wells, which typically exhibit higher IP30 rates of 5.0–6.5 mmcf/d but decline more steeply, often down to ~3.0 mmcf/d...

AUCTUS ON FRIDAY - 30/05/2025

Arrow Exploration (AXL LN/CN)C; Target price of £0.70 per share: Gearing-up for acquisitions? – 1Q25 production was 4,085 boe/d with no horizontal wells drilled in the period. RCE is more mature than CN and while no drilling has taken place at RCE, the decline rate between 4Q24 and 1Q25 was only ~5%. 1Q25 Production was constrained by increased water production preventing the company increasing the speed of the pumps at some of its producing wells. The increased amount of produced water increase...

Southern Energy Corp. (SOUC LN/SOU CN): 1Q25 production in line. First...

• 1Q25 production of 2,135 boe/d was broadly in line with our expectations. • The company’s gas production was sold a US$0.49/mcf premium to Henry Hub (+13%). • Field operations are scheduled to commence on the 13‐13 #2 Lower Selma Chalk horizontal well in the next few weeks, and Southern with production due to commence in June. This is an important well that will boost production and potentially derisk further locations. There are 45 additional drilling locations in the Lower Selma Chalk. This...

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 ...