Q1 2022 Africa Oil Corp Earnings Call

Hello, everyone. My name is Alan and I'll be your conference operator today at this time I would like to welcome everyone to the Africa oil Q1, 2022 results call and webcast. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session. If you'd like to ask a question at that time simply press star.

Hello everyone, my name is Alan and I'll be your conference operator today. At this time I'd like to welcome everyone to the Africa Oil Q1 2022 results call and webcast. All lines have been placed on mute to prevent any background noise. After the speaker's remarks there will be a questions and answer session. If you'd like to ask a question at that time simply press star then the number 1 on your telephone keypad.

And then the number one on your telephone keypad, if you'd like to withdraw your question. Please press the star followed by the number two please note that any time participants on the webcast can submit their questions using the Q&A option on the webcast interface.

If you'd like to withdraw your question, please press the star followed by the number 2.

Please note that at any time, participants on the webcast can submit their questions using the Q&A option on the webcast.

Please note that this event is being recorded the recording will be available for playback on the company's website.

Please note that this event is being recorded. The recording will be available for playback on the company's website.

I'd now like to pass the meeting over to Mr. Hanna Many Africa oils Investor Relations and commercial manager. Please go ahead Mr. <unk>.

I'd now like to pass the meeting over to Mr. Zhehan Amini, Africa Oil's investor relations and commercial manager. Please go ahead, Mr. Zhehan.

Thank you Alan.

On behalf of management, Thank you for joining us today.

Thank you, Alan. On behalf of management, I thank you for joining us today for our first quarter 2022 results for 2021 summer 2021 workforceshelfockinghome?oli Maya,

2022 results cool.

I'm joined today, with our President and Chief Executive Officer, Chief Hill, and our Chief Financial Officer, Scott Nichols.

I am joined today with our President and Chief Executive Officer, Keith Hill, and our Chief Financial Officer, Pascal Nicodem. Keith and Pascal will present the quarter highlights and the business outlook before we go into the Q&A session.

She's on Pascal will present, the quarter's highlights and the business outlook.

Before we go into the Q&A session.

I would like to remind everyone that remarks made during this session are subject to the forward looking statements, which involve significant risk factors and assumptions.

I would like to remind everyone that remarks made during this session are subject to forward-looking statements, which involve significant risk factors and assumptions, and have been fully described in the company's continuous disclosure reports.

And have been fully described when he is.

Genius disclosure reports.

The information discussed is made as of today's date and time and.

The information discussed is made as of today's date and time, and Africa oral assumes no obligation to update or revise this information to reflect new events or circumstances, except as required by law. The company's complete financial statements and related MDNA are available on the company's website and on CDAR. If we are ready for you, please go ahead.

In Africa.

No obligation.

Base or revise this information to reflect new events or circumstances.

As required by law the COO.

<unk> is complete financial statements related MD&A are available on the company's website and on seed.

No.

Keith we're ready for you. Please go ahead.

Alright, Thanks Shane.

I would like to thank everybody for dialing in are obviously, it's a Friday afternoon.

I'd like to thank everybody for dialing in. Obviously, it's Friday afternoon, and I'm the auspicious date of Friday the 13th.

These vicious data Friday the 13th.

I'm coming here from Vancouver.

And I'm coming here from Vancouver, and it's a rare sunny day out here in Vancouver. I understand it's a rare sunny day in London as well, so I appreciate you joining in. You know, this is, I think, an incredibly exciting time to be in our industry and to be in Africa oil in particular. I think, obviously, the world is going through a lot of turmoil and tragedy in Russia, Ukraine, and I appreciate your participation.

Rare Sunny day out here in Vancouver, I understand it's a rare sunny day in London as well so.

I appreciate you joining us.

Yes. This is David.

Credibly exciting time to be in our industry empathy and Africa oil in particular, I think obviously the world has gone through a lot of turmoil tragedy.

Yeah.

But I do think the world is starting to wake up and maybe help you buy that.

But I do think the world is starting to wake up and maybe help fuel by that, that energy transition is going to take some time. And the oil and gas, particularly the gas, is going to be an important part of that mix until that transition occurs. So I think we've put ourselves in the Africa oil. We're in a very good position to take advantage of this.

The transition is going to take some time.

Gas, particularly the gas is going to be.

Part of that mix until that transition occurs.

Put ourselves with Africa oil, we're in a very good position to.

Take advantage of this.

Situation, which I think is going to be with us for the next seven to 10 years.

situation, which I think is going to be with us for the next seven to ten years while the transition tries to catch up with the world demands. Anyway, for those of you who've been here a long time, you've seen we've actually transformed our company pretty dramatically in the past few years.

The transition charge to catch up with the world demand.

The man so any way out for those of you have been here a long time, you've seen we've actually transformed our company pretty dramatically in the past few years.

Starting with the pure electrification company in East Africa.

You know, we started as a pure little exploration company in East Africa. We parlayed that into a big success that we're developing now in Kenya. And we also used the proceeds from our farmhouse to a merist in particular to buy production in Nigeria.

Yeah.

Parlayed that into a big success with that they were developing down in Kenya.

And we also used the proceeds from our farm outs too bearish in particular by production in Nigeria.

Yes.

And for the first time in our company's history, we now are starting to start our shareholder returns. So I think the company's in very good shape. We've got over 80 million barrels of reserves. We're producing about 27,000 barrels a day in title and production.

For the first time in our company's history, we now start our shareholder return.

The company is in very good shape, we've got over 80 million barrels of reserves were producing about 47000.

<unk> thousand barrels a day is kind of a production to us.

We cleaned up our balance sheet, and we did that acquisition stressed our balance sheet quite a bit that we paid off all of our debt at the corporate level, we actually had $140 million of cash in the bank 100 million Undrawn line of credit and.

We've cleaned up our balance sheet, you know, when we did that acquisition, we stressed our balance sheet quite a bit, and now we've paid off all of our debt at the corporate level. We actually have $140 million cash in the bank, $100 million under online of credit, and we've also paid down a significant amount of debt in our Nigerian subsidiary.

And we also paid down significant amount of debt.

Nigeria subsidiary.

Probably the biggest thing we did this quarter as we brought with exploration.

I mean, the biggest thing we did this quarter is we brought the exploration back into focus, you know, I think.

I think you have to realize what you're good at and I still think that is what we are best at its exploration and I think Venus Venus discovery.

You have to realize what you're good at, and I still think that is what we are best at, is exploration.

I think the Venus Discovery, which we'll go through in a bit of detail, is really a reflection of us, our ability to get exposure to some of the best place in the world, both in the orange basin, the South African basin.

We'll go through a bit of detail is really a reflection of this.

Our ability to get the exposure.

Ladies in the World.

The Orange basin.

South Africa basins, but also through Echo Atlantic our Guyana basin.

but also through Echo Atlantic, our big guy on the base.

Probably probably the hottest places of the world to explore for oil and gas we've got a very interesting footprint there.

These are probably the hottest places in the world to explore for gas, and we've got a very interesting footprint there.

I will.

Yes, we are part of that transition, we won't be part of the solution not the problem and we have pledged to be carbon neutral by 2025, we continue to believe that is quite achievable.

I will state, you know, we are part of that transition, we want to be part of the solution, not the problem, and we have such to be carbon neutral by 2025, and we continue to believe that is quite achievable. So I think, you know, those companies that don't have a sterling reputation on the ESG front are not going to be investable in the future, and we want to make sure we are investable.

Those companies have done.

That doesn't have a sterling reputation.

Reputation on the ESG front are not going to be a festival in the future we want to make sure we are festival.

So like cyber.

I'll start with exploration, which is a good thing for me.

I'll start with exploration, which is a good thing for me as an explorer. We have made a major discovery through our subsidiary impact, or other subsidiary, our holdings in impact, and it looks like it could be very large. So I think that's kind of, gives us a bit of validation on our exploration portfolio approach. And we'll talk a little bit about that. Obviously, Pascal will go through in detail the financial results.

As an explorer.

We have made a major discovery.

Sure.

Gary impact other subsidiary our holdings in impact.

It looks like it could be very large.

So it kind of gives.

It gives us a bit of validation on our exploration portfolio approach and we will talk a little bit about that.

Scott will go through in detail the financial results.

Our balance sheet.

balance sheet another very good quarter, $45 million of that income. And again, all of our debt and ice metrics looking better and better.

Very good quarter of $45 million.

Thanks, Kevin.

Again, all of our debt metrics looking better and better.

Thanks.

But I think, you know, this is not the easiest business to raise money in these days to do new ventures, but I think we are in a unique position with our strong balance sheet and un-lovered unused credit facilities that we will be looking at acquisitions and we continue to look at acquisitions. So we have several that we're in the process of reviewing now and one of my big goals is to close one of those this year.

This is not the easiest business to raise money at these days.

Do do ventures.

We are in a unique position with our strong balance sheet and unlevered.

Unused credit facilities.

We will be looking at the acquisitions that we continue to look at acquisitions. So we have several that were in the <unk>.

That reviewing now.

One of my goals is to close one of those this year.

But we don't really we don't we're not we're hearing our shareholders loud and clear about shareholders' returns. So we started a fairly modest dividend.

But we don't, we're not, we're hearing our shareholders loud and clear about shareholders' return.

So we started a fairly modest dividend, five cents a share, last quarter, you know, we see this as a base to build on, you know, we do believe that, you know, returning money to shareholders either through buybacks or through dividends is a primary goal of the company.

Sure.

Last quarter.

We see this as a base to build off.

We do believe that.

Returning money to shareholders either through buybacks or through dividends is a primary goal of the company I think the good news for US is we think we have we'll be generating enough cash that we can still have a very aggressive shareholder return program.

I think the good news for us is we think we have will be generating enough cash that we can

still have a very aggressive shareholder return program and still go out and look for new opportunities and fund our own ongoing opportunities both in exploration and in Kenya development.

Still go out and look for new.

New opportunities and fund our ongoing opportunities.

Exploration and it cant get developed.

So next slide.

So I'm going to start with exploration usually yes.

I'm going to start with exploration. Usually in the past few years, exploration has been the last slide in the chart, so I'm happy to see it advancing up to the front. We do have a very good exploration program up ahead. We'll talk about a couple of the opportunities here, but we have some very significant wells that we'll be drilling not only this year but next year, and I think we still see this as a big value driver for the company.

Past few.

Few years exploration within the last slide.

So I'm happy to see it advancing up to the process. We do have a very good exploration program up ahead, we'll talk about a couple of the.

Opportunities here, but.

We have some very significant wells that we'll be drilling not only this year, but next year and I think we still see this as a big value driver for the company.

The world searches for more and more.

as the world searches for more and more non-Russian FSU oil supplies, I think Africa will become more and more focused to the source of not only oil but also of gas as well.

Russia.

FSU oil supplies, I think Africa will become more and more focus as a source of not only oil, but also of gas as well.

So just to highlight that we have made two discoveries one in south Africa through our <unk>.

So just to highlight that, we have made two discoveries, one in South Africa through Africa Energy, which, again, looks very interesting from a short-term development, but also interesting from an upside exploration standpoint. We have only explored about 2% of that basin that we hold, and I think there's a lot more to come there. I think in the orange basin, maybe move to the next slide, Mr. Heane.

Africa energy, which again looks very.

Very interesting from a short term development also interest income upside exploration standpoint.

We have already explored about 2% of that basin that we hope and I think theres a lot more to come there I think in the Orange basin.

Let me move to the next slide.

This is one I think is really going to be become one of our products.

This is one I think is really going to become one of the hottest places in the world for exploration, and we are very well positioned there.

A lot of places in the world for exploration and we are very well positioned there.

So not only do we have the Venus discovery through our impacted vessel.

So not only do we have the Venus discovery through our impact investment.

Again, I'm not going to go into reserves I think you can read all the things in the press about what how big it could be.

Again, I'm not going to go into reserves. I think you can read all the things in the press about how big it could be. I think, you know, not only in the trade journals, but Wood Mac and also Patrick Pouyanné, the CEO of Total, have expressed their idea that this could be a big multi-billion barrel field. But I think, you know, caution is that it is early. We've drilled one well here.

<unk>.

Hello.

But not only in the trade journals.

So Patrick <unk> CEO .

As expressed.

The idea that this could be.

Big multibillion barrel field.

But I think caution is that it is early we drilled one well here, but I think the results of that were high way above our expectations and I think given the right next door shop with firewalls or what looks like a 1 billion barrel of oil field for the first two wells in this space.

But I think the results of that were high, way above our expectations, and I think

given that the right next door shelf is found also what looks like a billion barrel oil field. For the first two wells in this basement, really in the last 25 years, both five billion barrel oil fields is pretty amazing.

Really in the last 25 years with both 5 billion barrel oilfield, it's pretty amazing.

I think.

I think, you know, Venus will be a focus for us going forward. The plans announced by Total at the recent conference in Namibia suggested they're going to drill two appraisal wells in the third quarter, commencing in third quarter.

Venus will be a focus for us going forward.

Plans announced by some of the recent conferences that maybe suggest that theyre going to drill two appraisal wells.

In the third quarter commencing in third quarter.

This is what we buy.

I think this is one we'd like to bring on stream as quickly as possible and delineate as quickly as possible. It has a chance to become certainly the largest field in sub-Saharan Africa.

Upstream as quickly as possible and delineate as quickly as possible.

Certainly the largest field in sub Saharan Africa.

Again, remember one well we need to drill more wells, we need to get some test data.

Again, remember one well, we need to drill more wells, we need to get some test data.

But the other thing we're interested in of three blocks <unk> four.

But the other thing we're interested in is block 3B4B. If you look, that's the block to the southeast of the Venus discovery. It actually looks quite a bit like the shell block where the graph discovery was made.

The work for the Covid.

The southeast the Venus discovery, it actually looks quite a bit like the shell block or the graph discovery was made.

<unk> has a number of durable prospects.

It has 3D on it, has a number of drivable prospects, and it's very large in size. I think to give you an appreciation of how big it is, we put the inset box on the left bottom corner there. That's the Guyana trend, where there's 12 billion barrels of oil at the same scale.

It's very large in size I think to give you an appreciation of how big it is we put the inset box on the left bottom corner there.

The Guyana trend, whether it's 12 billion barrels of oil at the same scale. So you can fit that entire Guyana trend inside of our block <unk>.

So you can fit that entire Gaianic trend inside of our bot 3D4B.

Yes.

I think that's pretty amazing that this giant, unexplored delta of the Orange River Delta, which is really the last unexplored delta in Africa, has this kind of potential and has laid dormant for all of this time.

Pretty amazing that this giant unexplored Delta the Orange River Delta, which is really the last unexplored.

Africa.

Has this kind of potential as it related to <unk> for all of his time.

The third block on there as it gets.

The third lock on there is that it gives us sort of a block 2B in South Africa. That's the one, both Eko Atlantic and Africa Energy, two of our...

<unk> to be in South Africa, that's the one both Echo Atlantic and Africa energy to a R.

Our portfolio of companies have the dominant interested they.

uh, portfolio companies have the dominant interest in.

They have 38, 5%.

They have 85% of that block, so.

So.

We are planning to drill a well there later this year, it's a slightly different play it's a risk based and it's not quite as related to either the <unk> graph discovery.

We are planning to drill a well there later this year. It's a slightly different play. It's a risk-based and it's not quite as related to either the Venus or Graft Discovery.

It's been very shallow water and its already got it well thats proven hydrocarbon system. So we'll.

But it's in very shallow water, and it's already got a well that's proven the hydrocarbons.

We will see that well this year, we'll see probably two wells in venous.

We'll see that well this year, we'll see probably two wells in Venus appraisal wells, and we'll look to drill in 3B, 4B next year. So exciting times in the Orange Basin, and I think we're quite well located.

And we will look to drill on <unk> next year.

Exciting times in the R&R space I think we're quite well located.

The next slide.

But we have certainly don't forget our corridor project, which is.

But we certainly don't forget our core project, which is Offshore Nigeria. This is kind of a gift that just keeps on giving. You know, these are the three largest fields in Nigeria. Akami, Akto, and Agena, we were fortunate to get into these at a reasonable cost, a reasonable price. We've essentially paid back that entire investment that we made a little over two years ago. I think, interestingly,

Offshore Nigeria. This is kind of a gift that just keeps on giving.

These are the three largest fields in Nigeria.

Bobby.

We were fortunate to get into these at a reasonable cost a reasonable price we've essentially paid back that entire investment that we made a little over two years ago.

Interestingly.

From a reserve standpoint, we still have more reserves than we did when we bought this year. So.

from a reserve standpoint, we still have more reserves than we did when we bought these fields. So it's been quite a good acquisition for us, and I think it's going to continue to be our main cash generator in the medium term.

Been quite a.

Been quite a good acquisition for us and I think it's going to continue to be our main.

Cash generator.

Medium term.

Next slide.

And I think Thats high.

And I think that's, you know, highlighted by the amount of dividends we've received. So again, we've basically received dividends equivalent to what we paid for the bank, but we still have quite a bit of money in the bank there. So there's $405 million in the bank.

Highlighted by the amount of dividends, we receive so again, we basically received dividends equivalent to what we paid for the bank.

But we still have quite a bit of money in the bank debt. So this is.

As $405 million in the bank.

Sorry.

Sorry, there's an increase of $195 million in the bank there that to us. So I think, you know, you'll see this as being really our primary funding engine. And we've got the debt down from around $900 million that to us to about $400 million that to us. So I think this is really a great accomplishment from this act.

No.

An increase of $195 million.

There.

That to us so I think youll see this as being really our primary funding engine and we've got the.

Down from.

Around 900 million that to ask you about $400 million net to us. So I think this is really a great accomplishment.

Yes.

From this acquisition.

The next slide.

Yeah.

And again this is about our positive reserve replacement so.

And again, this is about our positive reserve replacement, so since we bought it both years that we've done reserve replacements, we've replaced more than we've produced, so I think, again, a very positive sign that these assets will continue to improve in the future.

Since since we bought it.

Both years that we've got that reserve replacement. Please.

Replace more than we produce.

Again, a very very positive sign that these assets will continue to do.

Improve in the future you will.

Notice of that.

You will notice that on the right side, we're talking about $40 million of capex. So, we haven't spent much capex over the last two years, you know, and that was partially by design. I think in these difficult times, we were trying to increase our cash flow, pay back our debt, but we also need to take care of these fields. So, I think what you'll see is an increased expenditure going forward. If you go to the next slide.

On the right side of the talks about $40 million of Capex. So we havent spent much capex over the last few years.

By design I think in these difficult times, we are trying to increase our cash flow pay back our debt, but we also need to take care of these fields. So I think what youll see is.

It increased expenditure going forward if you go to the next slide.

We do have some pretty aggressive investment strategies.

We do have some pretty aggressive investment strategies in OML 130 in particular. So, Agena is our newest field. This is a block we have 16% interest in as opposed to the 8% interest we have in OML 127. We get about 75% of our revenues out of this block. So, it's very important to us. So, again, we need to spend a little bit of...

And <unk> in particular, so gene as our newest field. This one.

We have 16% interest in as opposed to the 8% interest we have in all of our two seven we get about 75% of our revenues out of this.

This block so it's very important to us so again, we need to spend a little bit.

Private money too.

time and money to keep these fields up and running.

Keep these fields up and running.

Yes.

You know, we have a rating secured, or very close to being secured, and we're looking to drill up to nine wells on ACCO and the GINA to kind of stem that decline. You may notice, we had a pretty significant decline in the last six months, and it's really because we haven't been drilling. So I think once we drill these wells, you'll see that decline arrested, and we'll be able to keep them much more stable for production platform.

We have already secured.

Pretty close to being secured and we are.

Looking to drill up to nine wells on <unk> for the Gina to kind of stem that decline you may notice.

We had a pretty significant decline.

Last six months.

Really because we havent been drilling so I think once we drill these wells, you'll see that decline the rest of it.

Yes.

We'll be able to.

Keep them much more stable.

Production platform.

Again, we also see great opportunities here to expand so right away is the obvious markets appeal that we can tie into our existing CFO , but there are a number of other fields that were looking at really potentially in the short term or medium term now the goal at least in these boxes keep these two fps's falls as long as possible.

So, again, we also see great opportunities here to expand. So, pray away is the obvious one. It's a field that we can tie into our existing FPSO. But there are a number of other fields that we're looking at drilling potentially in the short term and medium term. Now, the goal in these blocks is keep these two FPSOs full as long as possible. The infrastructure costs of this are the primary operating costs. And the more barrels you can put through it, the lower your offenses.

Dave.

Infrastructure costs of this are.

The primary operating costs of the more barrels you can put through it lower your opex as well.

Again, Trey away, where we hope to sanction that next year.

Again, pray away, we hope to sanction that next year. We are in license extension discussions now under the new PIA, and I think that's also going to give us a lot of opportunities if we're able to extend this license and give us a bit more confidence so we can keep moving forward with the expenditures of these licenses.

Our license extension discussions now under the new EIA and I think that's also going to give us a lot of opportunities that we're able to extend this license and give us a bit market give us confidence that we can keep moving forward.

Expenditures and devices.

I do want to make sure I get a lot of questions about license extension I just want to make the point license extension in Nigeria is automatic we'd get a 20 year automatic renewal. So we don't have any concerns over extending the license.

But I do want to make the point, I get a lot of questions about license extension. No, I just want to make the point, license extension in Nigeria is automatic. We get a 20-year automatic renewal. So we don't have any concerns over extending the license.

There's never been a license that has not been extended in Nigeria for companies that are complying with.

There's never been a license that has not been extended in Nigeria for companies that are complying with their work obligations and tax obligations, which of course we are doing both of those. So what we're actually talking about is extending these licenses early.

<unk> obligations.

Obligations, which of course, we are doing both of those so what we actually talked about his extended licenses.

Under the new surely the best impact of the PAA, we have a chance to early extension.

under the new Petroleum Investment Act of the PIA, we have a chance for an early extension.

That does a few things for us probably most importantly, it puts us under the new tax regime, which is more favorable to the oil companies, but it also.

That does a few things for us, but probably most importantly, it puts us under the new tax regime, which is more favorable to the oil companies.

But it also will allow us to push out our debt over a much longer period.

It will allow us to push out our debt over a much longer period, we have been aggressively paying back debt for the last year last year and this year in particular and.

We have been aggressively paying back debt for the last year, last year and this year in particular, and we'd like to spread that out a little so we can use some of the revenues being generated here for shareholder returns and possibly for acquisitions.

And we'd like to spread that out a little so we can use some of the.

Revenues being generated year or shareholder return that possibly for acquisitions.

So next slide.

Don't forget about Kenya, Kenya was looked like it started the company and as you heard in the press we are actively engaged in the bridge.

Don't forget about Kenya. Kenya was the second start of the company and as you heard in the press, we are actively engaged in bringing in a strategic partner. I think we're coming to the end of that path. I think we are getting very close to signing a deal. Nothing is done until it's done. But I think we've got some very interested parties and I think there's a fairly good chance that we are able to get them over the finish line in the next couple of months.

<unk> strategic partner I think we're coming coming too.

The end of that path.

We're getting very close to signing a deal.

Nothing is done until it's done but I think we've got some very interested party.

A fairly good chance that we are output over the finish line in the next couple of months. So again. This project is one that I think the market has given up on it but I can tell you that it is a good project not only at the project the way it spans we make very good investments.

So again, this project is one that I think the market has given up on, but I can tell you I haven't. It is a good project. Not only is the project good the way it stands.

We make very good returns on the project as it stands, but I think we have a chance to double the reserves there. And once that pipeline is in and the infrastructure is in, I think you'll see us being a lot more aggressive and developing additional resources here. So Kenya, we still think, is a real cornerstone project for the company.

Returns on the project as it stands.

We have the chance to double the reserves there once that I find with them and the infrastructure that I think youll see us being a lot more aggressive in developing additional resources here. So Kenya, we still think is a real cornerstone.

<unk> for the company.

So with that I'm going to turn it over to Pascal and he can run you through some of the financials.

So, with that, I'm going to turn it over to Pascal, and he can run you through some of the financial highlights.

Thank you Keith.

Yes, I'll, let me just go through again has been very strong and has been on lithium.

Yeah, so I mean this quarter again has been very strong and has been end up in by Prime's very strong performance.

Crimes.

Strong performance.

Stable production.

with stable production and contributing for $51 million in our profit this quarter. So we are posting a $45.6 million net income.

And contributing trial on $61 million.

In our profit.

This culture. So we are posting a four.

Our net income.

This quarter, which is stable compared to Q.

quarter, which is stable compared to the last six quarters that we had since we've closed the prime acquisition.

Yes.

Next quarter that we had.

Since we've closed the prime acquisition.

Also in this quarter and as we have received their not just did you don't have a problem.

It's also in this quarter that we have received the largest dividend ever from prime world million dollar net to net to us.

The prime laundry beyond our net to net to us with.

<unk> increased our cash balance to up to $114 million.

which has increased our cash balance to up to $140 million.

Which is quite quite significant now.

which is quite significant now. I would just like to remind everyone that the red bar on this chart is the impairment we've posted in Kenya in Q1 2020. So all this is behind us now, and what you can see here is a stable and strong production under cash flows and in net income coming from China. Next slide, Shane, please. Thank you.

I would just like to remind everyone that the red bar on this chart.

The impairment we've posted in.

In Q1 Covid mentioned so all this is all behind us now.

<unk> is a stable and strong.

Net cash.

Cash flows and indebtedness Hum.

Okay.

Next slide Shine please.

Thank you.

So yes, as I said, our strong results have been.

So, yeah, as I said, I mean, all strong results have been underpinned by prior performance in these last quarters, these last two years. We are now posting an EBITDAX, quarterly EBITDAX, above $100 million on average in the last quarters. Free cash flow has been also very consistent in the $50 to $150 million range on a quarterly basis.

Bye.

Try and performance in these last quarters.

These last two years.

We all know twisting and EBITDAX quarterly EBITDAX, both long Jimmy I'm not all that much.

In the last quarters.

Free cash flow has been very consistent.

In the industry keeps you just used $2 million range on a quarterly basis.

As mentioned by Keith crimes to stand on this very significant cash balance.

As mentioned by Keith, Prime still stands on a very significant cash balance, $265 million of share, which includes the Akbami security deposit. And Prime has continued their efforts to de-leverage. So the most debt number at Prime level is a billion, a billion and $2 million. So that's $501 million of share.

265 million shares which includes the security deposit.

Prime is continues their efforts to get as much so.

The.

Gross debt number one private label as 1 billion <unk> 2 million dollar so that's $501 million Oh sure.

<unk> continued to amortize on it is expected that the obviously will continue to amortize poverty.

The RBL has continued to amortize, and it is expected that the RBL will continue to amortize probably by an order of $300 million by the end of the year, and which has been compensated by the closing of the $300 million payexf, which is now free-drawn. So we have basically $700 million of RBL outstanding on a close basis, plus $300 million of payexf.

Thats pretty good.

By the end of the year.

Which has been compensated by the closing of the 300 million that are big heavy which is now free drill. So we have a busy 700 me a little of that will be an outstanding.

The closed business plus $300 million.

Okay.

Next slide this is Shane so this translates in a very strong position.

Next slide please, Shane. So this translates in a very strong position at Africa's level in terms of liquidity. We now stand on $140 million of cash. As mentioned by Keith, the corporate facility has been refinanced and increased earlier in January , so it's now $100 million available until the end of the year, and roll.

Africa was enabled in terms of liquidity, we now stand alone was about $2 million of cash.

As mentioned by <unk>.

The <unk> facility has been a refinance and increased.

In January so, it's not $100 million available.

Available until the end of the year.

So we can basically the homeowners facility for general corporate purposes, including integrating our acquisitions.

So we can basically draw on this facility for general corporate purposes, including acquisitions.

We expect this facility to be increase in extended as soon as we get to the show more license revenue, Illinois amount of wealth that C, which we are working on of course.

We expect this facility to be increased and extended as soon as we get a formal license renewal on OML 130, which we are working on, of course.

We expect also to receive further dividends from prime by the end of the year, although they're $100 million.

and we expect also to receive further dividends from Prime by the end of the year, probably another $100 million net before the end of the year. This does not include the Acme security deposits, which we assume will stay for a couple of months at Prime, but we expect and we are in discussion now with Prime to distribute that security deposit as an exceptional dividend.

Sure sure.

Most of the year.

This does not seem should the security deposits, which we assume.

We stay.

For a couple of months.

At Prime, but we expect and we are in discussion now is primed to distribute that.

The securities they put it as an exceptional dividend.

Next slide please.

Next slide please, Shane. Thank you. That's okay, so I think over to you on this slide on the 2022 catalyst.

Thank you.

So I think I'll, let you do on this side on the 'twenty to 'twenty two.

Yes, I mean, obviously everybody loves catalog.

Yeah, I mean, obviously everybody loves catalysts, and we actually have quite a few in the second half of this year. I think, obviously, the market is very focused on Venus, and I think the results of those two appraisal wells and potentially some additional exploration wells with Venus, I think, may be our biggest catalysts. So, according to the operator, Total, they are well underway on putting that program together.

We actually have quite a few of the second half of this year I think.

Obviously the market is very focused on newness and I think the results of those two appraisal well potentially some additional exploration wells with Venus I think maybe our biggest catalyst.

According to the operator totality are well underway on putting that program together.

We'll be anxiously awaiting those results.

We'll all be anxiously awaiting those results. To me, one of the biggest ones we've got is the license extension in Nigeria. What that will do for us is really will free up a lot of cash to use both for shareholder returns, but also potentially for acquisition.

To me one of the biggest ones. We've got is the license extension at night Julia.

What that will do for US is really will free up a lot of cash to use both for shareholder returns, but also potentially for acquisitions.

I think.

So I think getting that into our security deposit for these is one of our big portions of that, but I think we're working towards that as well.

That echoed our security deposit released as well.

Our big portions of that.

Think we're working towards that as well.

Drilling at <unk>. This is one of them has been a little under the radar but.

drilling at a gizami well you know this is one that has been a little under the radar but it's a big prospect it's you know two to three hundred million barrel prospect according to the operator and it's in very shallow shallow water so if you do find something there it's one that you can you know it's what we call advantage barrels you could bring that thing on very quickly so I think we're we're quite excited about that again it's a proven petroleum system so it's a fairly low-risk operation

It's a big prospect, it's two to 300 million barrel prospect accordingly.

Operator, and its been very shallow shallow water. So if you do find something there that you can that's.

That's what we call advantaged barrels you could bring that back up very quickly. So I think we're quite excited about that again its a proven petroleum system. So it's a fairly low risk exploration law.

And then I think we've been talking about another strategic asset that we'd love to find another BV another Nigeria type asset.

And then, I think, you know, we've been talking about another strategic asset. You know, we'd love to find another POG-BV, another Nigeria-type asset. And there are ones that they're on the market. So, obviously, in today's oil price, it may be a little harder to find the types of bargains that we had before, but there are quite a few that we think you can still pick up at very reasonable prices. We're not buying things on $100 oil. We're buying them at $60 oil.

There are offset there on the market.

Obviously in today's oil price, maybe a little harder to find those types of targets that we had before.

There are quite a few that we think you can still pick up at very reasonable prices.

I think on $100 oil.

Thanks.

For a while.

At right about $100 oil being the norm for the next three to five years, we will make a lot of money, but I think the uncertainty in the market and the uncertainty in the world I think we have to be a little prudent on what we pay for these assets, we're not going to overpay for assets anything that we buy has to be accretive to the company and ask that basically.

But right about $100 oil being the norm for the next three to five years will make a lot of money. But I think the uncertainty in the market and the uncertainty in the world, I think we have to be a little prudent on what we pay for these assets and we're not going to overpay for assets. Anything that we buy has to be a creative to the company and has to basically be compared against taking that money and paying out those dividends to shareholders.

Be compared against taking that money and paying dividends to shareholders.

So again can you farm out I think by the end of June we should probably know one way or the other whether we close that deal.

Again, Kenya farm out. I think by the end of June , we should probably know what were the other or that we've closed that deal. But if we do, I think it's it's valued. It's not in the market now, and we're able to run out. So I think you will see value on the shares for that.

If we do I think it's value that is not in the market now we're able to run outside I think you will see value on the shares for that.

And again.

And again the 11b-12b we haven't really talked too much about that. That's that South African project that I mentioned early on that's primarily gas common space Total are working strongly to put that into an early production phase and they're in final negotiations with the government We can agree on gas terms. We plan on submitting the petroleum right there by the end of In September , so I think that also could be a quite a attractive project for us

11, <unk>, we haven't really talked too much about that south African projects that I mentioned early opex, primarily gas condensate.

Total are working strongly to put that into our early production phase and are in final negotiations with the government that we can agree on gas tax we plan out so they need the petroleum right there.

In September so I think that also.

So it could be quite attractive project for us.

So if you go to the next slide which is the last slide.

So if you go to the next slide, which is the last slide, you know, the question is always why should I buy Attric Oil? And I know some of the questions I've already seen on the website is why is our share price so significantly below what the value of the company is? I think it's getting better. You know, we've had a pretty good increase in our share price, but I think we're still trading at a very significant discount to what we think the actual value of the company is.

The question is always why should I buy ethical.

I know some of the questions I've already seen on the website is why is our share price so significantly below what the value of the company is I think it's getting better we've had a pretty good increase in our share price, but I think we're still trading at a very significant discount to what we think the actual value.

The company is so if you just look at the Blue bar the Blue bar.

of the company is. So if you just look at those blue bar, the blue bar, essentially, that's what the value of Nigeria is, about 60, 70 and 80 dollar oil price. And you can see we're trading at roughly half the value of what we think Nigeria alone.

Actually thats, what the value of Nigeria is about 60, 70, and $80 oil price and you can see we're trading at roughly half the value of what we think Nigeria losses worth if you take out the debt the net debt to the company of 200 provide a $1 billion, it's still a probably a 40%.

If you take off the net debt that's in the company of 211 million, it's still probably a 40% or more discount to our net. So I think the thing I like about the company and why I'm continuing to invest in the company is that you basically get everything else for free.

Our market cap.

Two two are that so I think.

The thing I like about the company.

The company is that.

You basically get everything else for free.

But pricing here as Venus that.

So, not priced in here is Venus, not priced in here is Kenya-Pharma, not priced in here is our 11B12B discoveries. All the exploration wells that we're planning to drill, not only in West Africa in the Orange Basin, but also other wells throughout Echo Atlantic that we have planned going forward and began on a base.

Price said gear is Kenya pharma.

Here's our 11th <unk> discoveries all the all the exploration wells that we're planning to drill.

In West Africa.

And the Orange basin, but also other wells through Echo Atlantic that we have planned going forward.

Basin.

And I think you basically get all that for free. So I think there's a huge amount of upside in the stock. There's very little downside because I think we're really underpinned by that strong cash flow out of Nigeria.

And I think you basically get all of that for free.

There's a huge amount of upside in the stock is very little downside because I think they are really underpinned by the strong cash flow out of Nigeria.

We've got some pretty exciting times ahead, so I think we.

We've got some pretty exciting times ahead. So I think, you know, we've had a couple of transformations in the past, but I think this year is probably going to be one of our biggest transformational years.

We've had a couple of transformations in the past, but I think this year is probably going to be one of our biggest transformational years.

We come out of this year with even a few of these catalysts coming out in our favor I think youre going to be in a very strong position going forward and as I said in my opening speech I think it's a very strong market right. Now that you are seeing people retreating from some of the textbox retreating from solvent company that they'll actually make money I think youre seeing now.

And that we come out of this year with even a few of these catalysts coming out of, in our favor, I think we're going to be in a very strong position going forward. And as I said in my opening speech, I think it's a very strong market right now. You're seeing people retreating from some of the tech stocks, retreating from some of the companies that don't actually make money. And I think you're seeing now that even the black rocks and some of the bigger investment funds are realizing that we need oil and gas with the transition fuel and are starting to reinvest in those.

Even though the Blackrock from some of the bigger investment funds that are realizing that we need oil and gas as a transition fuel starting to reinvest in Cogs.

Again, I think we're going to order the company than a good position.

Again, I think summary is the company is in a good position and has a lot of catalysts and I think our industry is finally coming out of the shadows and I think it's going to be very investable in the future.

And has a lot of catalyst.

We are about our industry is finally coming out of the Shadows of I think it is going to be very invested a lot in the future.

With that ill close and.

With that, I'll close and I'll let the turnover for questions.

I'll.

Turn it over for questions.

Thank you Sir.

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Great.

Yes.

Okay.

Yes.

Yes.

Yes.

Okay.

And once again that is star one if you'd like to ask a question on the phones.

And once again, that is star one if you'd like to ask a question on the phones.

Great.

All right, we'll take our first question over the phone caller. Please go ahead. Your line is open.

Alright, we'll take our first question over the phone, so caller please go ahead, your line is open.

Hi, James Hosie from Barclays I Hope you can hear me.

Hi there, it's James Holder from Barclays. I hope you can hear me.

Yes.

Yes, I hear you James.

Yeah, I hear you. Great. Yeah, the first question I had is just when you outlined the investment outlook for OML 130, I was wondering how much of that activity you've listed has been approved by the partners and is definitely going ahead and how much of it is subject to say final sign-off and securing rigs, etc.

Great.

The first question I had is just when you mine.

Oh I'm sorry.

I'm just wondering how much of the activity you've listed has been approved by the partners and us.

Definitely going ahead, and how much of that is subject to the final sign off and unsecured rigs et cetera.

Yes, so the three three firm wells had been approved by the partnership.

Yeah, so the three three firm wells have been approved by the partnership this year and then the budget, you know, there's a budget that straddles this year and next year.

This year.

The budget budget that straddles this year and next year.

Well we are.

The fourth well, we're in the process of figuring out whether it should be an appraisal well on a GINA or possibly an expiration well. But I think the concept of drilling up to nine wells on the bulk bank flow on the GINA is fully supported by the partnership. But the ones that are firm approved right now are three. So those will be the first three. But I think the important thing is that all of the partners are aligned that we need to start putting some investment.

And the <unk>.

Process to figure out whether it should be an appraisal well at Gina over possibly an exploration well.

I think the concept of drilling up to nine wells on back book with Gena.

Is fully supported by the partnership but the ones that are firm and approved right now are three.

Those will be the first thing I think I think the.

The important thing is that all of the partners are aligned that we will.

Need to start putting some.

Investment it needs to be able to keep them.

Producing it.

producing it at higher levels. So GINA, of course, just went on stream two years ago, and I think it's performing at or above expectations. But, you know, all of these fields need infill drilling to keep arresting the decline rate. I think we're along.

So gena first just brought on stream two years ago, I think it is performing at or above expectations.

All of these fields need infill drilling to keep to keep.

Rest of the decline rate.

Were onboard for that.

Okay, and then just a second question for me.

Okay and then just a second question for me on the on the exploration inventory and I'm just wondering like is are you anticipating let's say cash calls from some of your equity investment companies ahead of further drilling I think in particularly impact oil and gas in fact should we be anticipating you participating in a fairly sizable sort of equity raise from them or indeed some of your african energy as well with the near term

On the exploration inventory I'm just wondering like is.

Are you anticipating let's say cash calls from some of your equity investment companies ahead of further drilling I think particularly impacts of oil and gas.

Should we be anticipating you participating in Australia sizable sort of equity raise from the R&D summit.

Africa energy as well the near term.

Yeah.

So I guess the positive thing in the near term almost all of these companies are pretty cashed up. So if you look at go just did a raise.

So I guess the positive thing in the near term, almost all of these companies are pretty cashed up.

So if you look, you know, echo just did a fun raise and they've got, they had some money in the bank and they've got more money in the bank now. So I think they're fully cashed up. We won't have to put any money into echo in the near term.

They've got they have some money in the bank and they've got more money in the bank now.

So I think theyre fully cached up we won't have to put any money into echo the near term.

Africa energy as well.

Africa Energy as well, until they get going in earnest on development, there's not much cash required on that. So once we have the petroleum right approved and we move into development, then there will be a need for Africa Energy to raise money.

Until they get going in earnest on developer there's not much cash required on that so once once we have the petroleum right approved and we move into <unk>.

Development, then there will be.

Lead traffic energy generated month Bobby.

Have a requirement to put that money in but I think we like the project and we certainly want a standout quarter on that.

We have no requirement to put that money in, but I think we like the project and we certainly want to stand our corner on that.

There will be a short term need for cash and we have approval from our board to sort of follow our money on that.

Venus, there will be a short-term need for cash, and we have approval from our board to sort of follow our money on that. So I think we will be making some investments in impact that support them moving forward as well. The other shareholders, the other key shareholders, 88% of the company is held by three shareholders, and I think all three shareholders have basically warranted that they will continue to support the financing going forward.

We will be making some investments.

Impact that support them moving forward as well the other shareholders. The other key shareholders, 88% of the company is held by three shareholders and I think all three shareholders.

Basically wanted that they will.

Continue to support.

I think going forward.

Okay. Thanks very good.

Alright.

Alright, and once again star one if you'd like to ask a question on the phone. So we'll pause for just another moment.

All right, and once again, star 1 if you'd like to ask a question over the phone. We'll pause for just another moment.

It was up.

Moderator I think there were some also some questions that were submitted by may or should be.

The moderator, I think there were some also some questions that were submitted by mail should be that was.

Backfill some of those are waiting.

Certainly if you'd like to go to someone's question go ahead.

If you'd like to go to some more questions, go ahead.

Hi.

Yeah.

Okay.

Yes.

Yeah.

Sorry, I was on mute.

sorry, I was on mute. So yes, I'm just going to go to a number of questions submitted online.

So yes, I'm just going to go through a number of questions submitted online.

Chris one is.

Why is the realized average oil price in Q1.

Why is the realized average oil price for Q1? And what is the reason between that delta, between the realized price and the market price for Q1? Clearly, that was due to the crime's hedging policy.

And.

What is the reason between that delta between the realized price.

And the market price for Q1.

And then clearly that was drawn.

That was due to then.

<unk> hedging policy.

Now there are a number of other questions Keith about hedging I don't know whether you can provide your views on what is the outlook for that going forward.

Now, there are a number of other questions, Keith, about hedging. I don't know whether you can provide your views on what is the outlook for that going forward.

Yes, obviously.

Yeah, obviously it's been a painful, the only pain I think I had in the whole quarter was watching my oil being sold significantly above market value. Those of you who know me, I've been an oil bull for a long time. I think

It's been a painful.

The only thing I think I had in the whole quarter was watching my hotel being sold significantly above market value. Those of you who may have been all eligible for a long time I think.

When the company was pretty significant debt.

When the company was in pretty significant debt, I think it made a lot of sense to hedge. So we had, particularly in 2020, we had a very strong year of hedging. We made $430 million of hedging gains at the Pong BB level.

A lot of sense to hedge so we had particularly in 2020, we had a very strong year that you can make $430 million of hedging gains at the park level in 2020.

So we've continued to be a little bit I would say over aggressive on hedging.

So we continue to be a little bit, I would say, over-aggressive on hedging.

Since then so.

So, we have changed our hedging policy now in Fogbeebee, and we will continue to look at that. I think we're at the point now with that paid down to reasonable levels, I would say that I even question the need for any hedging at all.

We have changed our hedging policy.

We will continue to look at that I think we're at a point now with the.

Debt pay down to reasonable levels I wouldn't say that.

Okay.

Even question the need for any hedging at all.

Particularly.

particularly on kind of giving away the upside going forward. So right now, we all of our hedges roll off roughly in September of this year. So everything we've got going forward is unhedged at this point. If we do any hedging going forward, it would be our recommendation that we only protect the downside, that we give ourselves the exposure to the upside. But obviously that's something the shareholders of PogVV need to open.

Giving away the upside going forward so.

Right now.

We all of our hedges roll off roughly in September of this year.

Everything we've got going forward is unhedged at this point, if we do any hedging going forward it would be our recommendation that only protect the downside that we give ourselves the opex.

Over to the upside, but obviously thats a something or.

The shareholders of <unk>.

Hi.

And we still.

Long story short I think when we were significant that we have to be a little more conservative.

So, you know, long story short, I think when we were in significant debt, we had to be a little more conservative. Now that we've basically gotten ourselves out of debt, I think we can afford to be more aggressive on oil prices. And I still am very aggressive on what I think could be interim oil prices.

We've placed ourselves out of that I think we can afford to be more aggressive price. It's still a very aggressive I think the medium term oil prices I think the supply demand function in the world.

I think the supply demand function in the world is there's zero chance that the existing supply is seeing opaque and they're not being able to meet its quotas. I think we're in for two to five, maybe as much as seven years of basically supply shortages

Zero chance, but.

Existing supply, we're seeing Opex can go about being able to meet its close I think we're in for two to two to five to.

Seven years basically supply growth.

Supply shortages, which will drive oil prices.

Moving on.

Moving on, there is a couple of questions on the company's stated objectives of acquiring producing assets. Some people are comparing that opportunity with buying back shares and some comments on inflationary environments are the really good opportunities out there.

Couple of questions on the company's stated objectives.

Acquiring producing assets.

Some people are comparing that.

Sure sure.

And some comments on that.

<unk> environments are they're really good opportunities out.

So perhaps if you could provide some color on your views of opportunities.

So perhaps if you could provide some color on your views of opportunities that you are looking at

You are switching apps and.

And how big can commit to.

and how they compare to, say, allocating capital to dividends or share buybacks.

Allocating Capex you will see.

<unk> share buybacks.

Yes.

That's question is spot on and Thats, what we will do with every acquisition. We will see is this an accretive acquisition is it going to be more impactful for our shareholders.

Yeah, I think that question is spot on, and that's what we will do with every acquisition. We will see, is this an accretive acquisition, and is it going to be more impactful for our shareholders? We're just returning cash to the shareholders, including 500.

Returning cash to the shareholders, including buybacks.

I think that.

So I think that's a question we'll have to ask ourselves, but I can tell you, we've been looking, since PogVV acquisition two and a half years ago, we've been looking at a lot of stuff. And there's still, even in today's price environment, I think there's still our acquisitions that make a lot of sense and are very agreed to the shareholders. The dividend and or buyback trust, though, is bank-assigned. I mean, we're not going.

Just a question of will have to ask yourself, but I can tell you we've been looking at <unk>, partly the acquisition.

Two and a half years ago, we've been looking at a lot of stuff.

There is still even in todays price environment I think there's still a lot of our.

<unk> that make a lot of sense.

Are very accretive to the shareholders the dividend.

And or buybacks us, though is sacrosanct.

We're not going to eliminate that.

We do is going to have at least the minimum dividend today.

So anything we do is going to have at least the minimum dividend that we're paying today. But hopefully, especially as we start freeing up some of the cash in Nigeria, we'll see a growing share buyback or dividend program moving forward.

Hopefully, especially as we start putting up some of the cash in Nigeria.

Sure.

Share buyback or dividend program going forward.

Yeah.

Yes.

Not to sit on cash.

Yeah, our goal is not to sit on cash. We are spending on a good acquisition that's accreted to the shareholders or we turn it to the shareholders. That's our program going forward.

On a good acquisition, that's accretive to the shareholders or return it to the shareholders.

Our program going forward.

Okay.

Well Keith you commentary on exploration has.

Okay. Well, Keith, your commentary on exploration has received a good reception. The number of questions on exploration matters. One is, what are the terms for the orange basin deep and AGC profile? Are they drill ready?

Received.

A good reception in the number of questions on exploration masseuse.

One is Walter grams orange the basement.

And AGC profile are they drill ready.

Yes.

The profile is a prospect, we really value the.

Yeah, the agency front line is a prospect we really like, you know, the impact prospect and one that we've been wanting to drill for some time.

The impact prospects, that's one that we've been running for some time. So I think the issue there is.

So I think, you know, the issue there is it was a renewal of the treaty. The AGC is a cooperation between two countries, Guinea-Bissau and Senegal. And I think, you know, that treaty is still undergoing revision. So I think we'd like to drill that well as soon as possible. CNAC has farmed into that block and will be carrying this for a while. So I think we'd like to keep pushing that realistically. We'll be doing it this year. Probably not, probably spilling into next year. But we like that block.

It was a renewal of the treaty.

ABC is a cooperation between the two countries Guinea Bissau, Senegal I.

I think.

That treaty is still undergoing revision.

So I think we'd like to drill that well as soon as possible not thus far been to that block and that will be carrying this for one well I think we'd like to keep pushing that realistically we will do it this year probably not.

I'll be spilling into next year, but we like that block.

The Orange basin deep block.

The Orange Basin Deep Block is another one that we quite like. It's a bit more frontier, it needs more seismic. I think it has a drivable prospect on.

Another one that we quite like.

Got it.

A bit more frontier that needs more seismic.

<unk> has a durable prospect.

As of yet.

as of yet, but it's in the pain system, and I think that's one we think is quite interesting.

In the same system and I think that's why we think this is quite interesting.

And moving on from that.

And moving on from that, what are the main exploration and appraisal targets that could be targeted on OML 130 offshore Nigeria?

What are the main exploration and appraisal targets.

It could be targeted on the <unk> see offshore Nigeria.

Yes, Gena West is one that we quite like it is a nice easy tieback.

Yeah, so the Gina West is one that we quite like. It's a nice, easy tieback, Acpo Deep is one that, again, we would be able to tie right back into the Acpo field. So all of the ones you see on this map that's up now, the orange and the yellow, those are all ones that we can do immediately. The other thing that's quite interesting, and it doesn't really show that well on this map, is there's a number of discoveries just outside of our blocks. So with this block on my 130, but also on my 127.

So deep.

It's one that again, we would be able to tie right back into that deal. So all of the what you see on this map to talk about the orange and yellow those are all ones that we can do immediately.

The thing that's quite interesting.

Doesn't really show that while on this map, but theres a number of discoveries just outside of our blocks. Both this block hour 30, but also wanted to setup.

No.

We are looking at.

You know, we are looking at, you know, possibly talking with those operators. They're stranded assets because they don't really have a way to produce them. We've got these nice FPSOs sitting there with the...

Possibly talking with those operators the stranded assets because they don't really have a way to produce that we've got the device at DSO sitting there.

With capacity.

capacity. So I think another interesting way to grow the business here is to make deals with them to basically farm.

Another interesting way to grow the business here.

Make deals with them to basically arm into the.

Interest by using our unused capacity in our <unk>.

interest by using our use capacity and our FPSOs. So we see organic growth in Nigeria, both the prospects you see here, but also potentially some stuff in and around the block is a good way to leverage our ownership. All three of those FPSOs we own out loud, right? So they're ours to use as we see fit. I think that's...

We see organic growth in Nigeria.

Both the prospects you see here, but also potentially some stock and proper block is a good way.

To leverage our ownership all three of those.

Right. So there are two.

As we seek bids.

I think I think that's something that.

Maybe under examined in the future.

This may have been under-examined in the future, but the team at PogVV and our CEO , Ilan Cochrane, who was five years in Nigeria with Shell, knows this area very well. I think there would be an opportunity to grow the production in and around these blocks.

<unk> it.

Sure.

Pardon me.

Our CEO Parker, who is five years in Nigeria with shell.

This area very well I think there would be at.

Opportunity to grow the production and the neuropathy blocks.

In the future.

in the future. I think...

Sure.

Excuse me.

With the <unk> now in place and with Newfield.

With the PIA now in place and with Newfield Discoveries getting a five-year royalty holiday, I think that also gives more incentive to start bringing Newfields onto production. So I do think it's a good question, and I think that's something you'll see us focus on in the next few years. You know, Aqua and Ekbami are on decline. There's just no way around that. I think we need to fill those in and add more resources into them.

Discoveries, giving a five year royalty holiday I think that also gives more incentive.

During new field production.

I do think it's a good question.

That's something you'll see us focus on in the next few years.

Bobby decline, there's just there's just no way of Opex I think we need to fill up.

Add more resources into those.

<unk> is a new field it will start it off decline already most of that decline will be ratified.

Gina is a new field, and it started on decline already. Most of that decline will be arrested by the Freyaway field being put in. But I think there's opportunities everywhere out here to keep those three FTSOs small.

Neil.

Being put in.

There's opportunities everywhere.

To keep those three Fts's Paul.

There've been a couple of observations on why we haven't actually included.

There have been a couple of observations on why we haven't actually included a slide on Block 11b, 12b. Perhaps you could just elaborate a bit further on how that opportunity compares with what you've already spoken about in terms of Venus, Nigeria and Block 3b, 4b and Block 2b.

Slides on block 11 12.

And perhaps you could just.

Elaborate a bit.

How much opportunity you see.

That compares with what you've already spoken about.

In terms of being this Nigeria.

<unk> will be excuse me.

Yes.

Slide <unk>.

Yeah, and I have a slide in there. I mean, it's not that we aren't excited about that block, but we are.

It's not that we.

Excited about that block, we are I mean that.

We've made two massive discoveries there.

You know, we've made two massive discoveries there, and again, like I said in the intro, we've only scratched the surface on that block. We've got three more prospects that look identical to those two discoveries that, essentially, we consider almost discovered reservoir, discovered oil fields, you know, the chance of successes in the 90s on those because of the seismic signature that we can calibrate to do discovery.

Again like I said.

We've only scratched the surface on that block, we've got three more prospects.

Identical to those two discoveries that essentially we consider all discovered reservoir.

Discovered oilfields.

The successes in the <unk> because of the seismic signature that we can calibrate discoveries.

What I'm a little bit more excited about the eastern part of the block where the COO.

I think what I'm a little bit more excited about is in the eastern part of the block, where in the Klootpata area, where we've got a bunch of very large prospects, significantly larger aerially than the ones that we've already discovered, but we also think that those are oil-prone.

Part of the area.

We've got a bunch of very large prospects significantly larger than the ones that we've already discovered but we also think that those are oil problem.

If you look at the source kitchen.

So, if you look at the source kitchen, the burials shallower as you move to the east, so we think there's a chance that there's some oil from source rocks over there. So, I, you know, I really like that block. I think, you know, we've only scratched the surface with two wells we've drilled of both the major discoveries. I think very well positioned at the market too, because South Africa is just.

Aerials shallower as you move to the east So we think Theres a chance that there's some oil province.

Trucks over there.

I really think that block I think we've only scratched the surface of the two wells we drilled at both the major discoveries.

Very well positioned in the market too because south Africa is is highly.

is highly in need of energy and especially of clean energy.

Peter.

And especially as a clean energy.

If we can develop this gas, which I think the world is now kind of seeing it as a transition fuel and displace some of the.

You know, if we can develop this gas, which I think the world is now kind of seeing as a transition fuel and display some of the coal-fired power plants, I think it has a great advantage for the physician.

Colbert bark burning coal fired power plants.

Thank you Ted.

Yes.

Great advantage position.

Uh huh.

Yes.

Due to its location.

due to its location.

There are a couple of machines.

There are a couple of questions that I think can wrap the exploration theme quite well. One is, what is your strategy to monetize your exploration portfolio? And the second, which is more specific, is regarding Venus. Well, if Impact sells Venus and returns the money to Africa Oil, would Africa Oil return all or some of that proceeds to Africa Oil shareholders?

Ralph will explore.

Exploration quite well and.

One is what is your strategy to monetize your exploration portfolio and the second which is more specific.

Regarding maintenance as well.

<unk> venous and return the money to Africa oil with ethical oil return or some of that proceeds to optical oil shareholders.

Yes.

Yeah, I mean obviously monetizing the approach we took to make these portfolio companies was a little unorthodox. I think we did it because it was an expedient way to get into what we thought were some of the best exploration plays in the world, which I think is proven correct. So I think we're in some of the hottest spaces in the world because we're able to come in and take this investment into these companies that needed to raise cash in a very difficult market.

Obviously monetizing the approach we took to make these portfolio of companies with a little unorthodox I think we did it because it is an expedient way to get into what we thought were some of the best exploration plays in the World, which I think has proven track. So I think we're in some of the hottest basins in the world because we were able to come in and take this.

Desperate to these companies that needed to raise cash in a very difficult market.

Got it.

It's a question I get asked quite a bit not only by shareholders, but my board as well as how do we monetize this well.

So it's a question I get asked quite a bit, not only by shareholders, but by board as well, is how do we monetize this? Well, I think the short answer is, you know,

I think the short answer is.

We will we would potentially look to exit these projects at the right time at the right price.

we would potentially look to exit these projects at the right time, at the right price.

Yes.

At some point, once we've delineated these, for example, in 11B12B, once we have the petroleum right, once we've got the license issued, and once we have the thing going forward, it's possible that there will be a lot of people who will be interested in this law.

At some point once we have delineated. These for example, a lot of <unk>.

<unk> be once we have the petroleum right once we got the license issued.

And once we have the thing going forward, it's possible that there'll be a lot of people who would be interested in this block.

Same thing with Venus soon once we build the appraisal wells once we have about five months we've delineated.

Same thing with Venus. Once we build the appraiser wells, once we have a development plan, once we've delineated, we may think of selling the whole thing to somebody else.

We may think of selling the whole bank to somebody or we may think about staying yet again, depending on what our.

Or, we may think about staying in, again, depending on what our corporate structure looks like at that point, you know, what the world's energy markets are doing, we may decide to stay around. But I think it's a valid question. We, at some point, we need to figure out how to monetize these and return money to the shareholders. The one thing I can say is if we do sell any of these for a big windfall profit, that money would be returned to the shareholders. Once again, we wouldn't be just sitting on that cash

Corporate structure look like at that point, what the World Energy markets are doing we may decide to stay around but I think it's a valid question. We at some point, we need to figure out how to monetize these and returned one of its shareholders. The one thing I can say is if we do sell any of these for a big windfall profit that would be returned to shareholders.

Once again, we wouldn't be just sitting on that cash.

B.

As we have done in the past and royalty group, we'd be returning value to shareholders.

As we have done in the past in the Lundee Group, we'd be returning that money to shareholders in the form of a special dividend. Very good.

A special dividend.

Very good.

Moving back to.

Potential acquisition will produce very.

potential acquisition of producing assets, there is a question on whether Africa Oil would be willing and ready to raise equity at the current prices to fund a big M&A deal.

Bruce.

Question on whether that last peak oil goods be willing and ready to raise equity at the current prices to fund a big M&A deal.

The short answer is we will do everything.

The short answer is, we will do everything. It would have to be an exceptional thing for us to even consider it.

It would have to be an exceptional thing first Steven consider equity.

We share our shareholders' belief that our shares are incredibly undervalued right now.

We share our shareholders' belief that our shares are incredibly undervalued right now.

We really don't do anything that would make us. That's why we are keeping a bit of dry powder. We've got this undrawn $1 billion a lot of credit we have some cash in the bank now I think September is the next time, we announced our dividend.

We really don't want to do anything that would make us raise equity. That's why we're keeping a bit of dry powder. You know, we've got this undrawn $100 million line of credit. We have some cash in the bank now. I think September is the next time we announce our dividend. You know, and I think that's where we make the decision whether if we don't have an acquisition that we can use that money to fund, hopefully with no equity raised.

I think that's where we make the decision whether.

If we don't have.

Acquisition that we can use that much far hopefully with low <unk>.

Equity raise.

I think we can return that money to shareholders again, we should be getting more money out of Nigeria.

then I think we would return that money to shareholders.

Again, we should be getting more money out of Nigeria as the year goes on, especially as we, if we get that license extension, you know, we'll continue to do that. But equity rates right now, I think would be very difficult just because we think our shares are so undervalued.

It goes on especially as we.

If we get that license extension.

We'll continue to do that equity raise right now I think it would be very difficult just because we think our shares are so undervalued.

And there is one comments.

There is one comment that someone says that there's a very strong echo on the call, so I apologise for that, for that technical problem. It is Friday 13th, so yeah, the quality isn't as good as would have been expected. Let's go back to Alan, the operator, to see if there are any questions on the phone.

That is very strong.

On the call so I apologize for that.

Problem.

It is funded.

Again, the quality isn't as good.

Have been expected.

Let's go back to the operator to see if there are any questions on the same.

Once again that is star one if you'd like to ask a question.

China and do you have anymore and there is a couple more.

Shaheen do you have any more? There is a couple more, maybe we'll tackle two to three more as we have a few minutes left.

We will tackle.

Two to three months, we have a few minutes left.

And can you provide an update on the <unk> security deposits.

Can you provide an update on the Econos security deposit?

Yes.

Yeah, we're, there's an ongoing discussion regarding that, you know, it was put in as a security to settle the, the.

There is an ongoing discussion with regarding that.

It was put in as a security settled.

Yes.

The redetermination.

the redetermination of between Ecuador, between blocks 127 and 128. So the deal, this was the payment to finalize that dispute, and we no longer have that dispute. So I think the long and short of it is.

Between Ecuador joint box 12728.

No.

The deal this was the payment.

Finalize that dispute and we no longer have that dispute.

I think the.

The long and short of it is as.

We can take that money out.

We can take that money out, but there are some complications with Petrobras, particularly for some of our partners that they're trying to work through.

But there are some complications with Petrobras, particularly for some of our partners.

We're trying to work through.

So.

We believe we will have that released by the third quarter of this year, one way or the other.

We believe we'll have that money released by the third quarter this year one way or the other.

Our share of that of course with 152 borrowers.

Our share of that, of course, is $152.5 million, so it's important for us to get that money out of the bank and into our pockets.

So it's important for us to get that money out of the bank and into our pockets.

Okay.

And there are a number of questions on the hedging.

There are a number of questions on hedging. If it's OK, Kief, I'll tackle that. Basically, people want an update. And the short answer is there is no update. The hedging position for Prime hasn't changed since what we reported for Q4 2021 release.

If you can't keep I'll tackle that basically people.

Once an update and the the short answer is there is no update the hedging position for Prime Hasnt changed since what we reported for Q4 2021.

And release.

And the next question for you Keith.

And the next question for you, Keith, is Africa Oil or any of the other portfolio companies that Africa Oil has are considering other positions in the Orange Basin?

Optical or any of the other portfolio companies. The Africa will have are considering.

Other positions in the Orange basin.

Yeah.

Yes, we have several chats with people in the Orange basin, but I think our ports.

Yeah, we have several chats with people in the Orange Basin, but I think, you know, unfortunately, the price of cochlear has gone up since the Venus discovery and the graph discovery.

Fortunately the price of poker has gone up.

The Venus discovery.

And graph discovery so.

We continue to have discussions with other operators may be throwing in there with us.

We continue to have discussions with other operators, you know, maybe throwing in their lot with us to make a bigger, you know, Orange Basin position. But I think it's going to be more difficult. All of the majors now are approaching all of those smaller guys trying to find a position in there. So, you know, competing against the super majors to try to get big bridges is probably not the thing we'd like to do.

Make a bigger.

Our in patient physician.

But I think.

It's going to be more difficult all the lasers now are approaching all of those smaller guys trying to find a physician in there so.

Competing against the Super majors.

Try to get acreage is probably not the.

We'd like to do.

Yes.

Another question and this one I can tackle quickly as well.

Another question, this one I can tackle quickly as well. Pascal mentioned $300 million of expected RBL amortization. The question is that gross to prime or 50% share to Africa oil? I can confirm that is the gross number to prime. So net to Africa oil, that would be 150 million.

Pascal mentioned $300 million of expected amortization. The question is that gross to prime or 50% share to Africa oil I can confirm that is the gross number two prime so net Africa oil that would be $150 million.

We have tackled it.

We have tackled the problems on the hedging and...

Jean.

And.

Basically it another question on Kenya is just.

Basically another question on Kenya is just if things go well looking further ahead.

If things go well looking further ahead.

And what could be a possible timeline to funnel the aluminum plant FY <unk> final investment decision and oil.

What could be a possible timeline to final development plan, FID final investment decision and oil? What are we talking about number of years? How many years for instance? And again, we've got to be mindful, we're very difficult, we're not giving guidance, but Keith, if you were to provide some color on that, what would you say?

Are we talking about a number of years, how many years for instance, and again, we're going to be mindful.

We're not giving guidance.

If you were to provide some color on double would you say.

Yes, I think.

Getting a strategic partner is step one and then getting the government approval for this step for the strategic partner of ours, probably step two.

Yeah, I think, you know, obviously, getting the strategic partners step one and then getting government approval for the step for the strategic partners, probably step two. But I think, you know, we have invested a lot of time and money, you know, we think we're probably no more than a year away from FID, if all of the things fall into place.

But I think.

We have invested a lot of time and money.

We think we're probably.

No more than a year away from that if all of the things fall into place.

So I think it's really getting getting those first two steps done and then.

So I think it's really getting those first two steps done, and then FID will follow. Obviously, in today's oil price environment, that project looks a lot better than it did at $50 oil.

We'll follow up obviously in today's oil price environment that project looks a lot better than it did.

Dollar off but.

Given that we're not going to produce oil for probably three years after.

given that we're not going to produce oil for probably three years after FID, we do want to make sure it's robust at low oil prices as well. While we continue to be optimistic about oil price, I think we have to protect the downside.

Right.

We do want to make sure it's robust at low oil prices as well.

Continue to be optimistic about oil price I think we have to protect.

Protect the downside I think we all have memory it very clearly.

We all have memory very clearly of, you know, fairly low oil prices in the recent past, so, you know, I think, I think the project looks great today, but I think we have to make sure that it looks great at all oil prices, but I think, you know, we've done a lot of work on this project and we've made it very robust even to low oil prices, which I think is why we were able to attract the people. Yeah.

Fairly low oil prices in the recent past.

I think I think the project puts great today.

But I think.

We have to make sure it looks great at oil prices.

I think.

We've done a lot of work on this project and we've made it very robust even to low oil prices.

It's why we're able to attract.

The partners.

the partners that we're in discussions with now. So I think

We're in discussions with them now so I think.

I think if we can get the farmout deal over the line I think you'll see us moving fairly rapidly and aggressively towards up IP.

I think if we can get the farm-off deal over the line, I think you'll see us moving fairly rapidly and aggressively towards FIP.

Very good.

Sort of more.

Sort of more of a question on sort of the strategic portfolio management side. Does it make sense to combine Africa oil, Africa energy impact and eco into one larger entity?

A question on <unk>.

T J.

Yes.

Portfolio management side.

Does it make sense to combine Africa oil Africa energy impacts on eco into one larger entity.

Does that makes sense from a from a cost perspective, and an overall portfolio optimization point of view.

Does that make sense from a cost perspective and an overall portfolio optimization point of view? Would you say Keith?

Would you say Keith.

Chief I'll come here.

Chief, I can't hear you, I don't know, I can't hear you now.

Thank you.

Yeah.

Can you hear me, yes, yes.

Can you hear me? Yes. Yeah. I think in the longer term, I think that's something we certainly would consider. I think for the smaller companies like Africa Energy, they've got, you know, two big catalysts this year. They've got the billing, drilling of the Ghizami as well, and they've got the submission of the petroleum right application. So I think as a shareholder of Africa Energy, I think you'll want to see those things completed.

Yes, I think I think in the longer term I think thats something we certainly would consider I think for the smaller company in South Africa energy they've got two big catalysts. This year, they've got the $1 billion drilling at the Devonian well and they've got the submission of the petroleum right applications. So I think.

As a shareholder.

Energy I think youll see those completed.

Think for impact.

<unk> see the results of those two appraisal wells and maybe even a little bit further so I think at any time, we would consider trying to merge and pulled those companies back into that.

I think for impact, you'll want to see the results of those two appraisal wells and maybe even a little bit further.

So I think at any time, we would consider trying to merge.

fold those companies back into the mothership, especially if we start making the decision to move down the development path, I think it makes more sense to have a bigger company with a stronger balance sheet standing behind there. But I would say this year, I don't think that probably makes sense until next year.

The mother ship, especially at <unk>.

We start making the decision to move downward development path I think it makes more sense to have a bigger company with a stronger balance sheet standing behind that but I would say this year.

I don't think that probably makes sense until.

The smaller companies have some other catalyst.

the smaller companies have some other cowards come to fruition.

Fruition.

Certainly if you look at the longer term vision of Africa oil.

Certainly, if you look at the longer-term vision of Africa Oil, I think having some really good world-class development projects in the hopper with still remaining upside exploration potential makes a lot of sense.

Some really good world class development projects in the Hopper with its still remaining upside exploration potential makes lot of sense.

Sure.

We'll have we certainly have had the discussion with our board level already and will continue to examine and have those discussions.

So, you know, we'll certainly have had those discussions at our board level already. We'll continue to examine and have those discussions, but I don't think it's going to happen this year.

I don't think its going to happen this year.

Okay.

And a question on bromine is prime now guessing pace Scott gas <unk>.

Question on pro-lane, is prime now getting paid for its gas cells in Nigeria?

<unk> certainly got silicon Jeremy.

Hi.

The answer is yes.

I think the answer is yes, but I'd probably like to defer that. I'm not sure. I don't really have a position, it was good, but... Understood. Well, on that note, and I don't believe we have any more questions from the phone lines as we are running out of time. I'll bring this Q&A session to a close and I will hand it over to the operator for the final question.

I'd, probably like to defer that I'm not sure.

Related to this.

Yes.

Yes.

Understood.

Well on that night.

I don't believe we have any more questions from the phone lines and as we are running out.

Now I'll bring his Q&A session to explore an overhang.

Over to the operator.

So this final.

Good morning.

Yes, Sir Thank you Sir This concludes today's conference. Thank you for your participation you may now disconnect.

Yes, sir. Thank you, sir. This concludes today's conference. Thank you for your participation. You may now disconnect.

Okay.

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