PetroTal Corp (AIM: PTAL): Good balance sheet. Flexible capex

• 1Q25 production and net cash at the end of March had been previously announced. • PetroTal maintains a solid financial position with US$116.6 mm in cash. Additionally, the company has secured a term loan with a syndicate of Peruvian banks, with commitments of up to US$65 mm to finance the erosion project at Bretana. The interest rate is 8.65%; which compares favourably with other credit options available to the company. The loan terms do not impose any material restrictions on PetroTal’s abili...

AUCTUS ON FRIDAY - 09/05/2025

AUCTUS PUBLICATIONS ________________________________________ Panoro Energy (PEN NO)C; Target price of NOK49 per share: ~12 mbbl/d in 1Q25. Re-iterating FY25 guidance – 1Q25 production was ~12 mbbl/d, including 6,841 bbl/d in Gabon, 3,661 bbl/d in Equatorial Guinea and 1,492 bbl/d in Tunisia. Production in Gabon and Equatorial Guinea was previously reported by BW Energy and Kosmos Energy. Equatorial Guinea output was temporarily impacted by unplanned downtime at the Ceiba Cluster, but operations ...

Panoro Energy ASA (OSE: PEN): ~12 mbbl/d in 1Q25. Re-iterating FY25 gu...

• 1Q25 production was ~12 mbbl/d, including 6,841 bbl/d in Gabon, 3,661 bbl/d in Equatorial Guinea and 1,492 bbl/d in Tunisia. • Production in Gabon and Equatorial Guinea was previously reported by BW Energy and Kosmos Energy. Equatorial Guinea output was temporarily impacted by unplanned downtime at the Ceiba Cluster, but operations are now back online. We project ~3,800 bbl/d WI production in Equatorial Guinea over 2Q-4Q25. • Output in Tunisia has increased compared to 4Q24 (1,467 bbl/d) foll...

Zephyr Energy Plc (AIM: ZPHR): Well test success unblocks the Paradox

• The State 36-2 well achieved peak rates of 2,848 boe/d, including 856 bbl/d of oil, on a small 18/64 choke. During a separate, 48-hour phase of testing on an 8/64 choke, production ranged between 700-1,066 boe/d, with 200-400 bbl/d of oil. Importantly, there was no material drop in bottomhole pressure in either test, confirming that sustained production at these levels is feasible long-term. Zephyr highlighted that well deliverability is more than sufficient for commercial operations. • In add...

Serica Energy Plc (AIM: SQZ): Catalysts ahead

• The envisaged merger between EnQuest and Serica is not proceeding at this time. Given the drop in Brent since the potential transaction leaked on 7 March, this outcome is unsurprising. Given Serica’s prospects as a standalone company, there was no imperative for the company to force a deal. There are multiple catalysts to the share price in the coming months. • Production at Triton is expected to restart in June. With the W7Z well on the Guillemot North West field (Serica: 10%) and the EV02 we...

ADX Energy (ASX: ADX): Readying-up the portfolio to return to drilling...

• 1Q25 net production was 246 boe/d. This is in line with our expectations. ADX held A$6.7 mm in cash at the end of March. • ADX is prioritizing production growth in Austria, with plans to advance up to 12 shallow gas prospects across ADX-AT-I and ADX-AT-II where it has varied its exploration acreage to maximise exposure to the proven gas play. The company aims to secure a partner for the first cluster of three prospects in 3Q25, with two of these wells potentially being drilled in 4Q25. • These...

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...

Pulsar Helium Inc. (TSX-V: PLSR): Flow test results delayed by 6-10 we...

• During flow testing activities on the Jetstream #1 and Jetstream #2 wells, it was discovered that drilling fines (rock dust) created by the air drilling method (that pulverizes the rock) were present within fractures and partially coating the wellbore wall. As a result, the flow rate was constrained and the wells need to be cleaned-up before the flow tests can restart. • The generation of drilling fines is a frequent outcome of air drilling, a widely utilized method in numerous shale plays acr...

Arrow Exploration Corp. (AIM: AXL): Second drilling rig to be mobilize...

• 4Q24 net production was 4,738 boe/d. The YE24 cash position had been reported previously and there are no surprises in the remainder of the YE24 balance sheet. • The existing rig is being mobilized to Alberta Llanos to drill two new horizontal development wells in 2Q25. • In May, a second rig will be mobilized to undertake development drilling at Rio Cravo Este and Carrizales Norte. • The company has maintained its US$51 million capital expenditure plan for 2025, which includes drilling 23 wel...

AUCTUS ON FRIDAY - 25/04/2025

Panoro Energy (PEN NO)C; Target price of NOK49 per share: Reserves addition much larger than expected – YE24 2P reserves were independently estimated at 42.3 mmbbl (+7.6 mmbbl vs YE23, representing a Reserve Replacement Ration of 309%). This figure far exceeds our previous expectation of 34.5 mmbbl for YE24 2P reserves - an estimate that included a 4 mmbbl addition in 1H24 to counterbalance 2024 production. The higher than expected reserves addition is driven by robust reservoir performance in G...

Sintana Energy Inc. (TSX-V: SEI): Oil discovery adjacent to two Sintan...

• The Capricornus 1-X exploration well on PEL 85 (bp/Eni/Rhino) found 38 m of net pay, with the reservoir showing good petrophysical properties and no observed water contact. The well achieved a surface-constrained flow rate in excess of 11,000 bbl/d. The light 37° API oil exhibited limited associated gas with less than 2% CO2 and no hydrogen sulphide. • There are potential readthroughs for Sintana’s assets. Capricornus-1X is located ~40-50 km south of Mopane-3X that encountered light oil and c...

Panoro Energy ASA (OSE: PEN): Reserves addition much larger than expec...

• YE24 2P reserves were independently estimated at 42.3 mmbbl (+7.6 mmbbl vs YE23, representing a Reserve Replacement Ration of 309%). This figure far exceeds our previous expectation of 34.5 mmbbl for YE24 2P reserves - an estimate that included a 4 mmbbl addition in 1H24 to counterbalance 2024 production. • The higher than expected reserves addition is driven by robust reservoir performance in Gabon coupled with the conversion of contingent resources into 2P reserves in EG. • In Gabon, YE24 WI...

AUCTUS ON FRIDAY - 18/04/2025

AUCTUS PUBLICATIONS ________________________________________ Panoro Energy (PEN NO)C; Target price of NOK47 per share: High production in Gabon – BW Energy reported gross production in Gabon of 39.3 mbbl/d. This equates to 6.9 mbbl/d net to Panoro’s 17.5% WI. IN OTHER NEWS ________________________________________ AMERICAS Galp Energia (GALP LI): 1Q25 update – 1Q25 production in Brazil was 104 mboe/d. Pantheon Resources (PNR LN): Disappointing well test results in Alaska – The Megrez-1 well fl...

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 ...

Arrow Exploration Corp. (AIM: AXL): Stable production, 10% cash increa...

• 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 HZ09 well, situated in the southern area of the field, is producing 244 bbl/d of oil (122 bbl/d net) from the Ubaque res...

Sintana Energy Inc. (TSX-V: SEI): Galp reports ~875 mmboe 3C contingen...

• Galp’s independent auditor estimated approximately 700 mmboe of 3C contingent resources net to Galp for Namibia as of the end of November 2024, translating to ~875 mmboe gross 3C contingent resources or 43 mmboe net to Sintana • The resources estimate is based on AVO-1, AVO-2 and AVO-3 and does not include the impact of the results of the Mopane-2A and Mopane-3X wells. Mopane-2A confirmed the lateral extent of AVO-3 and encountered a hydrocarbon column of light oil at AVO-4. Mopane-3X encounte...

PetroTal Corp (AIM: PTAL): Another strong quarter

• 1Q25 production was 23,280 bbl/d, comprising 22,660 bbl/d at Bretana and 620 bbl/d at Los Angeles. • 1Q25 production at Bretana was ~1 mbbl/d above our expectations. The high production reflects the strong performance of the recent wells. Well 23H produced 3,363 bbl/d in March, reaching a maximum daily high of 5,110 bb/d. Well 22H, which was brought onstream in mid-January, produced an average of 4,386 bbl/d in March. • The company has re-iterated its FY25 production guidance of 21,000 bbl/d t...

Valeura Energy (TSX: VLE): Lower oil prices could generate acquisition...

• 1Q25 production averaged 23.9 mboe/d, which is in line with previous indications. This included a planned seven-day annual maintenance shutdown at the Nong Yao field near the end of the quarter. Production resumed on 1 April. • Valeura has re-iterated its FY25 production guidance of 23-25.5 mbbl/d. • FID for the Wassana redevelopment is still anticipated in 2Q25, with first oil expected in early-2027, though the company has indicated that it will "review and optimise its expenditures" given th...

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...

GeoPark Limited (NYSE: GPRK): Selling Manati and LL-32