Q4 2022 Africa Oil Corp Earnings Call
Hello, everyone. My name is Roberto and that would be a comfort in <unk> cause they.
At this time I'd like to welcome to the Africa oil foot <unk>.
T 22, Russel skull and broadcast.
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<unk> alright, thank you for joining us today. So once you just want to be sued results cool I'm.
Joined today, with all President and Chief Executive Officer too.
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Alright, thanks to everybody for joining obviously kind of an interesting quarter. Some good news and some that may be quite so good news, but I think in general we're moving ahead quite well with the company.
You are going to start with exploration because I think that's probably our biggest tablets.
Oh, six or anything coming up this year.
Really focus around Venus, So Venus is getting a lot of attention in the world for us.
You've seen several articles by the operator Toto.
Claiming to be the largest discovery in 2022.
It has the potential to become one of the top 10 offshore oil discoveries in the world.
According to we also have several <unk>.
Sources, it could be quite large.
The reason we're excited is because the first well we drilled on it was well above our expectations.
Very nice light sweet crude very high mobility ratio 84 meters with net Autopay and I think one of the one of our advantages.
Advantages is what are the only publicly listed independent.
With an interest so if you want to play the Venus.
Play the really we are the only public for them to stop it will have a significant impact on that.
So I think the the the the upcoming program extra large.
This is going to be quite exciting.
I think the in fact, the operator of the car.
Hotel the operator.
I've talked about spreading the well very early in March so hopefully within the next week or so we'll see the spell out the first appraisal well the Venus won.
Is being drilled 13 kilometers to the north of the Venus discovery, well and it will be a big appraisal on what kind of what we call. The the Venus main structure, but as you see on this chart, there's a very large.
Extensive program being laid out not only the drilling a D V as Venus appraisal well, but also there's a large block to the west Carbonara exploration, what we used to call the west Venus.
We'll be drilling that and we will be running D. S. T. As on all three of the wealth, including the existing well and then it's successful in our there are those the idea that we will drill appraisal well in our house as well so I think the what the operator to a towel has been saying the press is that they believe the fast track development could be underpinned by this.
Graham.
You'll see you'll see that's Thomas prototypes, but they're putting $300 million, which is roughly 50 per cent of their exploration budget on this this year.
Of course this is turning into one of the most exciting place.
The world.
So next fight it kind of gives you a little.
Geographic perspective on this we've always said the Orange River Delta is kind of the last big unexplored Delta and the work and West Africa.
Wherever the Niger Delta, obviously the cargo Delta.
Larger doses to the north.
<unk> produced most of the big.
Big oil in West Africa. This one always was kind of held back because of who do discovery. So 30 years ago. <unk> was discovered it was gas it was fairly poor reservoir in I think.
The orange based on kind of a bad name.
Since then we we came in with our partners shelves for the.
East of Us that we believe that could be light oil and would you believe it could be quite big and I think we've been we've been proven that that's the case so billion barrel discoveries in both the Venus prospects, but also in the show prospects is reported.
The media that they also are finding billion barrel prospects.
Think that's quite interesting for us the first two two real prospects <unk>, both confirm light oil both confirm good reservoir, both confirm the there's a huge size.
And we're just scratching the surface of this based on the.
The base in itself is very large I'd like to put a little inset map of the other real hot spot in the world can assure them at the same scale and you can see the the the the area. We've got here is roughly seven times the size of the basement. So huge amount of running room and we do have some good additional acreage in this <unk>.
And as well, but you blocked three b for B, which has a number of drill ready prospects that are supported by three D.
We're in the process of looking for a partner with that.
Partner with our partners reached secure and with extra with my <unk>.
Also the Orange basin deep block, which is another deepwater blocked again very lightly explore that have you know we threw impact also have I'm interested in that as well.
So this is a possibility of turning into the hottest part of me up in the world for exploration I think it's gonna be a very interesting summer as we go through and drill these appraisal wells and get the results of the test as well.
So moving on to.
The next five yeah. This is kind of a repeat of the the last finally just wanted mostly show on this one that we are most of the big major oil companies are now all around us. So this has turned it into a kind of a supermajor playground. So it's hotel energies shell of the dominant acreage holders that you've seen chevron come in there.
<unk> me as well.
<unk> good neighborhood and I think you'll see see the industry is is quite focused on on the space.
X five.
We also decided to new Bloxham, Equatorial Guinea that we're quite excited about <unk>.
I think expiration still has a very strong place within their industry any of the transition I think the world is coming to grips now that's going to probably take decades not years to fulfill the transition that we are going to need more reserves to bridge. The gap when we have the energy transition. So the two blocks we <unk>.
Signed up and <unk> look quite interesting to us we have a very large prospecting E. G. 31, that's already has three D seismic and just ready to drill and it's right next to the the infrastructure that puts the Europa I've only 80 meters of water depth. So it's it's one that we think we can quickly get them.
Well done and and bring it on stream they they're they they need gas and the LNG Prague trained.
And <unk> I think there'll be a ready market for that you've already been approached by several big oil companies about pardon me in with us.
Which I think is quite interesting, but southern <unk> E G. A T and a little bit more like the Venus in.
Southern transfer it's it's a submarine fan based on for a plan that has very good aptitude. It's okay. So it'd be quite large as well. So again, we are already in discussion with potential partners on that one I think this is kind of getting back to our old exploration philosophy, where we go sign up box gets bigger Royal company to come in and pay our way, but keep a.
Second interested so again, we we we quite like the quite like these blocks are happy to have those signed up.
But we won't forget where I bread is buttered, which is Nigeria.
Syria has been you know the the the core of the company since we signed the deal in 2020 I think it's been an outstanding deal for the company you know we we.
We've already paid it off.
And more and and.
Time that we've had it in these fields keep keep getting you will see that we have done a little right down of our reserves on Ah Gina.
Part of the reason is because we we just haven't been able to drill as we plan to on those on those.
On that field, we were expecting to have a rig location last March.
We finally have a right now I'm drilling ahead, you know hopefully we've <unk>. We've got now three years of production on that field. It does look like it's a little more complicated than we thought originally.
Perhaps a little more compartmentalize.
Channelize reservoirs, then we thought I think we have now 40 Seismically shot last year was really we're going to be shooting. Another 40 seismic and we've got a rig that's going to be there for the foreseeable future. So I think there's a good chance to to move a Gina forward and I think our operators hotel is very focused on making.
Sure that we optimize this field.
The other two feel doctor on Gina.
I've been behaving nicely.
We did take part of our reserves right down was on a balmy, where we've written down the reserves associated with the gas project.
Which just is not economic at this time due to that total gas prices being achieved.
Cheetah.
And gas development.
Anyway, the the fields I think you'll <unk>, you'll go to the next slide you look at the the cash it's been generating and continues to generate.
It's been a great acquisition for US we've received $650 million.
And we only pay $519 million, we pay down 500 million of depth, we've increased the cash balance and accompanied by $96 million.
Thank you I'll use. These these are the three largest fields in Nigeria that appeal to continue to keep giving one of the keys here his license extension and the best call, we'll talk a little bit more about the ramifications for that I think we're very close on that if you ask me.
Our two biggest catalyst. This you are probably going to be B in Australia, but also license extension in in Nigeria.
So next line, we do have a number of projects that we also wanted to bring in one of the best things. We can do here is we've got two F. P. S are those that have significant capacity on them now.
We've already you know, we're very close to pulling the trigger on the prey awaited element, which would be be into infill of <unk> F. P. S. So, but there's a number of other prospects. Some of the wells were planning to drill this year will be exploration slash appraisal wells and then around our existing fields and the block.
130.
I do think that's one of the best Deerfield exploration or near field development. We we see this as a big countless going forward.
And we are very conscious of.
Went to the E. S. P from I think we've had quite a.
Quite a remarkable decrease in flaring over the years, particularly since we bought it and and the last and the last.
Quarter, we're actually seeing assist <unk> significant downgrading me the amount of firing desk. So if it reached a peak of over 100, an hour down to about 14 million cubic feet, a day and still working with the operator I'm getting that reduced even further so I think that's especially in today's E. S T focused and <unk>.
Ironman and transition environment I think this is a very important accomplishment.
So with that I'll turn it over to <unk>, let him kind of talk about some of the the financial results for the order.
So I think.
Most internet so it doesn't show orders might that okay. So <unk>, we were supposed to eat this morning, but actually be the phone number listed on the company <unk> crime at <unk> outstanding last year crime must continue to do that much hold on whether you're on a prepaid about <unk> about <unk>.
<unk>, we at the agency level that free we tried to about two at Gmail Dot all of cash on the comfort of your day to day J. So a a cheap trashy 50 per cent of the prime we only have data magenta and crime. That's a very low <unk> level of one point you have a bunch of old so.
And then I mean primary continued to generate significant <unk> 250 million dollar lost your horny, which is the best show I've. Since we we made the acquisition. So as a reminder, we got <unk>.
<unk> 2021, and 250 last year, so it's $650 million since we could with the acquisition and we basically paid back in Internet and trying to ask here. So last year was also the the first show anyway, <unk> <unk> alright, your total or whether you're in between the.
The D V down under Shanghai back we have distributed <unk> give me on that out to about our shoulders.
Of course, the one of the May 99th of Master idea Cardenas discovery, and and all the potential upside that you're going to get to India and it you know share prices.
Next time please.
<unk> production I think.
May 9th 19 <unk>.
<unk> Oh, let me just point guidance bullshit in terms of working interest connection and that kind of entitlement connection.
<unk> <unk> <unk>, which is now starting and and also the shut down for maintenance <unk>. So you started these these are yes.
You've elements, we we were still able to meet <unk> prediction guidance.
Thank you Shane.
So in terms of <unk> I think we we wanted to just tell you where we stand as appreciate that I've been many questions about though and you can pull out my at at primary level.
So we used to have a good program, whereby we will setting forwards between 50 to 70 per cent of about protection. So that's west <unk> <unk> 2022, when we decided to change that.
That policy.
The the fact that we sold for one O.
2020th 2021 added stress too much weather for the the credit crisis and when the.
In fact of this <unk> John can be seen on the average price we've managed to join 2020 and in the middle of the current crisis.
I think we realize that as I'd be the market was picking up and your prices going up again, we got to change this dispute and.
And and which we did in the last year and instead upsetting for with oral production basically we all know.
I think our system of facial Dwale nine <unk> doesn't go below the threshold <unk> spot and you will see the impact of this change between two <unk> 220, 2200 to 300, <unk>, well, yeah, which said price starting to be <unk> data.
Brain. So it shows on it so I'll be a successful Lisa and you I'm not kissing yeah. She knows where we all die we all know able to to set off Oh yeah.
That's market <unk> market price.
<unk> <unk>.
In terms of financial 99, so I'd have to take care of level. So the the original to can sit here on 20th 2020 to read the I just didn't I can come at 151, magenta, which she before me the between governments made so one in Kenya 170 <unk>.
Did you enjoy the delays in English found out and.
<unk> I would say a cautious.
<unk> on the on the N P. D O B S have going forward. So we can pay off the the <unk> books, all Nevada and <expletive>, that's $58 million.
And and also there is being back over the <unk> <unk> <unk> <unk> <unk> <unk> <unk> <unk>, we we are actually pushing a next I'll spell. Thank you <unk>, but before these two <unk> <unk>.
<unk> the <unk> would have been budgeting, which one do you want me on that all sounds very constant since we had the.
Two Peter So you just kind of know what production.
In terms of <unk> and cash flow Prime has continued to deliver consistent.
Consistently so around 600 million dollar all of <unk>, <unk>, which is consistent with the two previous here. The capsule Corporation has been it's a value of one of the payment of what are your teeth in queue for which actually the the depot show where you cheated.
That has been a queen since.
<unk> sure <unk> was passed on to one of payment to the west Megan choosing to 459, magenta, which has an extra decided to schedule appointment <unk>.
So yeah do you want to take the fight it out yeah.
Looking forward to the company and I think you know what you've seen kind of in this corner was a bit of cleanup I think we cleaned up Kenya took care of some tax issues.
A bit outstanding.
And I wrote it down to what I would call a more reasonable value you know, we're still hopeful that the farmout does happen. It's just taken about a year longer than we expected projects still looks good but I think I think we're being a little more realistic on the timing.
Of the farm out it.
Travelers around that.
<unk> pressed the big things that are going to happen this year Venus appraisal drilling.
Both the dizziness made it in our.
In in the <unk> 130 renewal, you're pulling that 130 renewal brings with it a few big benefits if we get the all about what 30 renewals renewal you'll see the other bullet point there we refinance the prime RVO M. P access facilities as long as well as the.
Corporate facility.
So.
If you put it in round numbers D. As a different so it would be instead of paying $400 million of debt back this year as would be required under the existing or veto. We would rita refinance that are be allen have roughly that amount of money to be able to dividends to shareholders.
So it's a big deal for us and I think it really is.
Doesn't happen is not the end of the world, there's nothing wrong with paying down debt.
This market, we still think there's a lot of opportunities that kind of goes to the other bullet point there.
Of potential acquisition of strategic producing assets I think we're quite laser focus on what we Wanna buy now I think it's going to be production that's cash flowing.
We're we're very targeted to basically majors that are looking to to rationalize their portfolios and sell off uhm core assets, particularly off shore West Africa.
So I think what we will continue that strategy, but I think you know obviously every every time, we look at a deal.
With our share price still what we think is underperforming will have to compare that against buying back upstairs.
So.
I think a potential apartment I was trapped bought three before V is also a good one and I think you know we are I think we are told the market. This before but I think we are looking at ways that you know.
Trying to clean up this exploration portfolio structure, I think looking forward, we'd like to see if a lot more clean and nature.
Really refocusing the company my <unk> and Venus and then you know having option on Kenya.
Also potentially having some structure that can can we give shareholders some some value and.
The expiration portfolio that we have.
Uhm, but keeping keeping a core principle for the company going forward is.
Focused on production cash flow dividends shareholder returns and hopefully a big windfall I'm Venus as well.
So I think I'll give you time to slip through the forward looking statements.
And read them at your leisure and then the I think we're happy to take it.
Take some questions.
And I think again, we now begin the question and answer session.
They might get <unk> to ask a question. Please press one and one on your telephone.
Once again please.
<unk> <unk> <unk> <unk> to ask the question.
We are now taking the first question.
The first question <unk> <unk>. Please go ahead and lightning telecom.
Good afternoon, and thanks for the update that thanks for taking my my question that I'm Gonna ask me questions first of all I'll need must of course, very exacting any sides stare at and just wonder at how the news flow will try calling for should I expect <unk> to be announced.
Spring.
And and <unk>.
Second question, it's on that <unk>.
And then third question I I think maybe we did discuss four days to regarding this <unk> <unk> <unk>.
<unk> and the impact that keep you previously set up that you're looking for <unk>.
Okay, well Nina so obviously, we're not the operator avena, it's been tower, operator, and I think any public disclosure will be will be handled by them.
If you look at the schedule that <unk> yoga at the first world should be done you know in in the next 60 to 90 days. So I would I would expect to see an announcement that the conclusion to that.
<unk> <unk>.
That right would move over and spot the norwell. So I think the the disclosure will be controlled by the operator.
We are.
We are only shareholders of one of the working interest partner. So I have got the impact in hotel would be that would be the main can't do it for for announcements I will say that you know if there seems to be a lot of bottom announcements being made him Scream magazine and other sources. So.
I think if I was very hard to <unk> that are this high profile keeping things secret.
I can assure you that you know, we we will not be the source of of any of those disclosures.
I think a gina prepare them if they don't have the number right now that what what we've written that down to you know.
What the value is I don't know if you have that and I'm <unk> to that level of detail. So so I think you're right I mean, the the the the main the main reason the main reason that it got written that was really because we haven't drilled in three years.
When we started developing ear.
She believed that we would be drilling March of next year.
We've learned a lot about this field sound good some bad.
<unk> that you shop at 11 coming up you know I'm just the operator is very focused as as crime private was doing it's all independent valuation of this <unk>. This is our biggest field and this is one that we will be focused on going forward and I think now that we're we're basically and drilling mode. I think there's a lot of.
It used to be.
Bring back some of those reserves are to increase production, but.
At the end of the day the operators, who is in charge of that process. Some.
There'll be ones the ones that will that'd be making a.
Statements about that but.
The field as good as maybe a little more complicated than you know the oil in place for probably doesn't change that much. It's just a question or maybe you have how many miles we need to get that recovery.
Current development plan is still the original development plan that within 20 square would that the the original reserves.
As far as Africa that is.
Cleaning up our portfolio with I think we've talked many times about.
We need we need to stop being a portfolio company. We are an oil company, where that a portfolio of older. So I think you know each of these has its own.
The individual.
Uhm.
That is a negative impact I think.
Is is very focused on Venus and you know what I think they've made up.
Public statements that they're considering selling their interest at some point. So we have to realize which is a 3000 meter.
Water depth deep waterfield no matter, how big it is it's probably something for the majors to develop a little guys like us. So I think you know they they discuss the sale process and I think before the end of the year I think they would hope to conclude a sales process hopefully on the back of a positive results with the exploration and drilling.
And each of those three wells that are being drilled including the original well that had been drilled last year. There will be three wells that are tested this year as well so two new wells in three tests for what else I think we'll have a much better idea of what what we've got at that point.
But I think you know some of the ideas, we talk about spinning out some of the assets since you have separate portfolio selling off assets.
Yeah, I think I think everything's still on the table, but I think you know we we we do want to clean the structure of the.
The first half of this year and I think you'll see a much putting your structure.
The resulting company really being focused mostly on.
Hi, Julia and emptiness M M M buying cash falling producing assets shareholder returns.
[noise], Okay. So you go into it sounds good.
Excellent yeah, well <unk> can I have just a <unk>.
Oh, sorry go ahead.
Yeah, Yeah, just get back on on <unk>.
<unk> <unk> <unk> <unk> <unk>.
<unk> <unk> <unk> <unk> <unk>.
Yeah, I think I, you know I I I wouldn't want to I wouldn't want to make any promises on that front I mean, we're obviously looking at the field again and you know.
The <unk>.
The operator will be the one that controls that process, but I think there's opportunities.
When the original development plan was put in place over 44 development well, we cut that back to 38 and I think you know maybe what we're learning is that we might need to drill a few more wealth to recover some of those volumes, but again I can't presuppose the answer until the until the operator stuff at work until two a prime has done the work and <unk>.
They've got them together, we don't really know what the answer will be but you know I can tell you we're focused on the Gina.
This this if if there is a way to restore some of those reserves or destroy that production I think it will be a primary goal for.
Put me up for it.
<unk>.
Understood. Thank you.
Thank you for your question as a reminder, if you wish to ask a question. Please press that one one on your phone.
With one question.
So right now I'm thinking the next question.
The next question Sir James <unk>. Please go ahead, you will I need to open.
Hi, there I am good afternoon, I haven't got a couple of questions for me just just first off on Kenya, and the impairment of the asset size like it's driven by a reduction your confidence into the five by transaction can be completed just wondered if you could elaborate on <unk> change within that process over the last few months to <unk> the right at night.
And then just in the dividends from prying toxic oil are.
Are you, saying that trying to trying to see debit Davis from Prime are on hold until you are able to complete the license extension amended that refinancing.
I would say I'll take the first one.
Let the Pascal affect the second one but you know nothing's really changed on that can you farm on other than the passage of time, you know I think for our board for an auditor's you know that we've been making a promise for a year that we are imminent <unk> farm up and I think I think.
That's that that at some point our auditors are are bored started becoming more skeptical about the timing of that.
It can still happen I think that's still very active negotiations going on you know that by the operator to talk about.
So, but I think we thought it prudent at this time to kind of put that down we have you know.
We have looked at some of the other.
Uhm assumptions going in as the Pesto bench and then you know there are there are also timelines that are being challenged.
Some of those as well if you didn't figure into that that right, though I think if you look at what's happening in Uganda.
There is some concerns about the timing of pipeline approvals and things like that but that also went into that discussion, but <unk> I.
<unk> I will say I still think any of the great project Gonna take you know.
It deserves to go ahead, and I think with the <unk> with the right.
Strategic partner I think it will go ahead, but I think.
We just we just felt at this time it was it was <unk> and then there are a few other things you'll you'll notice if you go into the details on the financials you know we have the tech settlement.
Alright, that'd be prepared for that and we have a few other settlements being done with a partner accounting issues things like that so there was there was there were a few other items that went into that discussion.
I'll I'll, let the.
<unk> the question on that.
[laughter] no no sorry in terms of license getting your old I mean <unk>.
Interesting give his input as your primary remained in place and you're you're probably be no we would distribute any excess.
<unk> can refinance at that's prime and they will so yeah I'm sorry, you know like I did give me that he's not suspended and I mean, the primary begin so I'll not to spend it have you say you know that yeah. Yeah, you think I'll be interested in <unk> I mean next year, so we'd dizzy <unk> I've.
H N loans to repay whatever is left of the biamby electricity beaches around the cut.
<unk> so.
Oh and I teach you to pay me to go to the remaining I'm alteration. He's he's not massive <unk> of course, if we extend their license now and we would finance we'd we'd have again you are but you need to get your I was a kid.
<unk>, so I'm guessing the extension now iced tea <unk> not too I'm all types of that too quickly. So I think this is this is why we are so keen on getting to the license renewed but otherwise digidyne set to potentially yeah, I'm going to be deferred b.
<unk> sure I think you're getting the the license getting up now and get some get into refinancing completed E T to accelerate that <unk>.
As you know so but in terms of license renewal itself I know we've been sending the milk is for quite some time that it was imminent <unk> you see what.
I think we have a very good sign coming home from the country I'll just see <unk> <unk>. We asked you to very confident to get the license extension immunity.
Yeah, and I think the other thing and that James you know me.
And oil Bowl.
Yeah oil prices will have a big determinant of that as well.
Yeah, I like to read the Goldman Sachs report that says hundred dollar widows coming I I believe is coming again, whether it's.
Third quarter fourth quarter of next year.
The supply and demand an apartment is still on our side. So obviously anything that it goes like marijuana price.
Helps our ability to pay with it this year and I will say that no.
And they have no none of our cargos are actually hedged in any way. So if we did get to triggers in February those cargos, having souls or less than 10 per cent discount for the price of the day, but every existing card on out even though Elizabeth triggers is still open.
Open to the spot market, which I think is a real food for me that'd be hedging strategy.
Okay, Alright, thank you I'll I'll I'll, just ask one more while I, while I have.
Have you just <unk> just how can we think about nine O. One is the assumption that it's an extension of the nature target taken. So now is really a bold step I appraisal well are are you assuming they're separate structures.
I think he answered as we don't know [laughter], we will find out when we drill I think if you put it impacts disclosure you know they talk about being a an extension of the Venus structure I think you know.
One one can make that argument looking that'd be a seismic data, but I think you know, it's a it's a pretty big step out well and.
That's that's the real key if that is a extension of the Venus or even if it's a separate extension uhm.
It makes us into a really a world class size discovery.
Okay. Thank you very much.
Thank you for your question.
No further question at the moment.
Essentially well we've received cause a few questions for the webcast.
And there's a number of separate questions solved group them together is Humphrey before will be.
In a couple of specific questions and the one maybe more general one and that is is ethical oil in <unk>. This on this on the right is a farmhouse important to that and.
And then following from that I don't think this is perhaps picks up from one of our partners announcements will let you get our own and that's been about an environmental consultant being selected cause. That's unusual is thought I mean, I just had an issue.
And it says question is when will the S. C T I'll be published on <unk>.
Three good question.
You know I I think I think.
Our preference are strong preference is to have a partner of supermajor come in in the <unk>.
The operating partner in the three before being paid for at least one well that's not too and possibly some cash upfront. So that's that's what we're working towards that goal. We are we've had discussions with several companies will continue to be in discussions with those companies.
If we can't do that then we will probably test the market and see if there's a way that we can finance it ourselves because.
We really liked the prospects family, how we've got a nice thing that came with three b b for B as a full three D survey that's never been drilled upon.
Reprocessed it and it's it's very good quality data, we have several high quality drillable prospect. So I'm fairly confident we we didn't have the partnership will be able to find a partner to come in and do that.
But if we can't then I think we will have a good go with trying to drill it ourselves, but I think.
Again, that's probably not our first choice so.
It's hard to the environmental.
Permit you know the the.
The signing up and environmental company, that's very standard we've done it on every block that we've got that we're starting to ESI eight now so I think you know in the current climate, especially in South Africa, you have to make sure you do things right completely on all fronts not only the environment community engagement them all of the things that you need to be able to to take.
Boxes, because there is a fairly strong environmental movement trying to stop a lot of a hydrocarbon activities.
I think we proved would we drove <unk>, giving up with an unsuccessful well we proved that we did our homework right. There that we got all the necessary permits and we did not have any significant opposition to our thrilling.
That's what we want the three before.
Thank for bringing in a partner I think it's a useful thing to have <unk>. We've got a a C. P. R persons report being done that should be done in.
March for sure and we will publish the results of that so I think you know again.
We really liked this block I think we've picked it up at the opportune time before.
Based on <unk> and I think we you know.
Our goal will be to farm it up but if we camp and wait we made it we made like the the the try to pump it ourselves.
And the woman C P O.
Yeah.
Happy with that okay.
Maybe you can change a touch and maybe put this to you Pascal this is.
Shoveled a capsule returns.
What is the scope and there's also a question on buyback specific <unk>.
And then there's the question of saying what has been called irregular.
Basically trying to provide your thoughts on the way from the Al Smith.
I keep you mentioned I think we have seen a low cost me to hear that.
<unk> wanted to priority remains.
<unk>, so we <unk> and yes, we will C. As in Unfortunately, we wouldn't visit can you put that in perspective against the <unk>.
Yes, we have confidence soon to be able to appeal to an acquisition, which makes sense for the company in terms of metrics <unk>, otherwise, we don't waste balance it against the <unk> believe that's all <unk> valued at the moment. So he could always makes sense to us sorry back all she has in the next week.
The accompanying could you show up I'll change it. So I think that's that would be <unk>. The number one Chris How're, you and when we when we decided to <unk> back to <unk> going forward.
Yeah at least another 10 per cent that we announce about last fall.
Reviews about half of that money cause we still got half of that that we can do under the normal course issuer, but that doesn't necessarily constrain us if if we do you know, particularly if we get license extension.
A higher dividend you know we can always.
Looking at a special of course, there's some special I don't remember the acronym special issue, we're been substantially sure substantial issue. So you know I think buybacks still are you know we are continuing the dividend got your father, no matter, where they used to be announced.
The board has approved the dividend for for March and I think we see the dividend continuing but I think we got we certainly have heard from our shareholders.
Like the buyback showed that and we will continue to Opportunistically portrait pursuit, though.
<unk> you touched on <unk> and we have a questions as well. Your total Bill also about 130 can you shed some color on 127, yes of course, so actually promise taunted the the congestion perfect Sofa, a 4127, which means that the <unk>.
<unk>, Yeah, and then U P. I, a attempts which they'll have a label in different states as as in India Z as in PSA That's M. Andy Andy She's Gonna turn to adding today I just had it under the I had all come about it though so it makes sense.
How about you know if I'd like you to come in at two P. I of course on the 130, we went in because it's such a large a valued persons age for which we want to negotiate the the congestion to the P. I a at the same time and we get the license avenues.
127, it makes sense to convince the P. I N O one Prime Minister India.
<unk> get the first of April at the completion of this conversion to the P. I E. So in terms of license extension of course issues. Another priority for crime, maybe less at the top of the list <unk> because of the.
<unk> <unk> <unk> <unk> <unk>.
Thank you <unk>.
Three questions on the E G.
<unk> this procedure in bumpus.
Mm on you because it would come up and.
Basically the question is that we obviously being very much talking about I'll focus on producing assets and the question of say well you can talk about but you see houses and now you've gone pixel suite exploration cases, what days.
Other than that you wanted to talk about that <unk> I mean at the end of the day and we spent $7 million to pick up these licenses a fairly small amount of money.
If we're right about being able department.
Pardon me, let's do it.
To pay the money for us, while I get that $7 million back, but will be fully carry for the expiration work program. So I would say, we're not putting a lot of our attention that our money in to the expiration side of things, but when we see great opportunities like we did in Venus, we will still until still jump on those I think the one thing we.
He won't do is sign up exploration opportunities, they're gonna take a decade or more to come to fruition, Oh again as much as I like Kenya, I don't think I'm going to sign another Kenny that's gonna take 10 to 15 years to bring up production because I think there will come a point, where the transition has moved on and you know maybe we won't be able to monetize those.
That could be comes traveling but I.
I do I do think you know the expiration still has a place I think we wanted to make sure that we don't focus a lot of time and money your expiration unless it's like this very advantage some very special evening.
And I'm moving chord here know messaging for for the last <unk>. The last couple of periods, where reports of all its infrastructure less exploration as you said short cycle.
Actually on my on my auto projects.
Pretty good staying on the a G could you just shut some color on I'm sure you'll use all of the central timelines to a possible phone miles and it's really.
<unk> yeah.
Yeah, I would say neither the drilling will not happen until we have a farm out in either of those box. So.
I think within the next year, we have a pretty good chance of getting both of those box found out you know, possibly with different partners cause there'll be different drivers on both of those parts.
You know <unk>, we're not looking to write big checks out of our account.
We need a <unk> bye Bye Board has told me the proof is in the pudding. If you can go find a phone call partner.
It means it's good enough that it should be moved forward if you can.
Could be out $7 million, but I'd have to say the response, we've got since we've announced fees that will be a bit shocked if we're not able to bring in a good partner on both of these blocks.
I understood. The question on the D. G. A would you consider going producing else does your natural restrictions.
We have looked at several of those that I do think it's a jurisdiction that we'd like to thank the.
Oh, obviously, there's been some very successful companies over the years they're marathon.
<unk> Chevron.
There's a number of companies that have done quite well <unk> more recently, so I think it's it's a place that we we would very much consider doing business today.
None of <unk> in the past, we just spoke about the economic security deposit receipts for.
<unk>.
There's still a couple of questions is that it is still an issue is just the kind of look at it was to fix with cash consideration how does that like <unk> <unk> and the presidential statement that the account balance actually want me to help you reduce them that the way we found two I should use that <unk>.
<unk> <unk> to pay the the casuals, while I'm at at 130 <unk>.
<unk>, so and it's been a cold a deposit but can affect its 12 belongs to prime cash Bonanza.
Alrighty, Nike damn payment distribute <unk>.
And if we do if we do the license extension the payments that wouldn't be sure of that payment.
Essentially draw that amount down to zero.
Very good.
<unk>, there's a question on here about to sell your home dependence is ongoing all production gone us with 2023.
On the successful performance of the infield drilling.
On one O one <unk>.
And what are we spending a little time as it seems that technical guys have done a fantastic job has gone into.
Low detail and we have almost like it's a number of scenarios.
For.
Potential outcomes with them. So we have that canceled for you we all very confidence and I'll go ahead I think the good news is we understand the field a lot better now all of our reservoir bottles are performing quite well that'd be we've got history matches for three years. So I think we we we'd get we've gained a lot of knowledge on that field that all of it has been positive knowledge of it that has pointed it do it.
<unk> or a complicated I think the guidance, we put forward as I would say if anything slightly conservative the results of the the <unk> and the number of miles that the only come in there there hasn't been a commitment to do all of the commitment what else would we would like to see them.
The guy in to see this year, we feel pretty confident that even with I'd say modest results of that info appropriate we're going to be able to be dark items.
Couple of sort of off the main track of questions Yeah.
You said your name the name I'm sick of oil considering a little ball appears we've gone from other on something or we also something energy.
I'll take the question of needed <unk> that is true we do take a bit of abuse about that we do point out that the <unk> that name Africa energy has already taken by one of our sister company.
The easiest wanted to change to the African energy.
But I do think you know you know we <unk>, we take the transition we'd take our yes G responsibilities very strongly and we didn't go through it on this call. What I think we did on the last you know we've we've been one of the largest rating agencies in the world <unk>. It was basically given us a.
A platinum ratings. So we were in the top two per cent of all companies that they read it out of 80 something thousand companies and we were the number one company oil company and their ratings system.
You know, we we take <unk> E. S. N G. All three of those components quite quite.
Yeah.
I strongly think we've always been very good yes, we've got a number of awards from our second largest shareholders IFC.
What are we <unk>.
Instead of sending that I would say the gold standard of <unk> operate socially and countries.
Governance, obviously, you confirm it's a V I P I principles, but on the east side I think we're making great progress. He saw those are our biggest E problem is blaring from it and.
And if you can see we've made great progress on that for about three years that we put in here and I think.
We will continue to do that so I do take your point I think there's not that many companies that have the word oil slept in their name and I think.
It sounds like we probably have to remedy that.
Nine Q case.
Why is it so difficult to get it will find it good and it was a good acquisition producing assets.
Yeah, I asked myself that [laughter].
We've we've been that we've been to the altar about three four times, though.
<unk>.
Get anybody to say I do.
I think each one of them had a different reason.
Number one we're not going to be overpaying for asset. So some of the competitive bid brown. So we'd been in people that paid prices. We think are are are over the top you know more like 70 to $80 a barrel type oil prices.
We'd like to buy things on the kind of $60.
Price.
Threshold and then if we're right at the oil prices are going to 100.
Very happy, but if we're wrong in oil prices go to 50, it's not gonna break the company. So I think I think that's one reason we've lost at least two of the ones I think world economic conditions, obviously, the the huge price spike of 2022 pretty good in the first half.
And it would be at the gas brake whenever you're looking at a gas project. You know those are made it very difficult for closed transactions.
Oil prices have returned to the gas prices are returned it a little bit more of normality. It may make it a little easier we're in three processes right now looking at assets.
I think there still are some good assets on the market and I still think there's a good chance that we could close ones.
I'd go back once again to the premise.
It has to be better than buying back her old chairs reached.
We still believe aren't sure trading at a significant discount for Nigeria alone.
And when you add in all the other things that could be positive for a company, particularly penis.
Yeah, we still might be better buying back around chairs and going up buying producing asset.
But we're on this survey in order for focus on this and I I do think you know there are still more sellers and buyers out there. So I think there's still are opportunities to pick up sounds good sounds good project.
Would you mind sharing some of you'll be coming out on C. A for perspective in terms of doing an acquisition.
<unk> the banking side as well, yes of course, I think yeah that'll take out unlucky because first we have the <unk> and then we have we have <unk>. We have five banking I was hoping to get today reached <unk> most of them two two she thought testing.
You're not gonna issue going forward.
I'll just need the the landscape the banking came back to change as soon as you can pull in the next few years.
Let some banks have existed <unk>, some new Thanksgiving, we took low frequency to an African focused institutions.
<unk> your local bank applied to a south African banks.
Nah Jackson banks so he's.
Even though the landscape has changed reached T to have good access to put that capacity.
I think we just need to not sure I'd <unk> you know.
To make sure all that going forward, we would still be able to to.
<unk> acquisitions on the on the diabetes, we seem to believe that the bank that is more affordable than bumps at the moment I <unk>. So I think it's it's it shows that we were writing that sent in that sense.
But I mean not show anyone without talking about the February <unk>, we were unable to write down in two months about 500 magenta that'll help that is there a reason by two institutions. So that <unk>, that's what I need to.
On the right.
Alright, good thank you so much.
I'll see you've already Keith sort of.
Well maybe.
Maybe when he was the type of this moment small, but some question specifically on Elizabeth <unk>.
Okay again, you'll need some won't be can say and considering we shoveled in Africa energy.
But just look you have to put the phone you or do you want to show a new phone abuse on so.
What we could see it happening.
With this looks for your company <unk>.
Well I think that that's it said.
Specific on 11, B 12 will be I mean, I think the operator to acknowledge them diligently you're looking at solutions try to modify that gas with the various opportunities in South Africa. So I think that's it.
The key to unlocking that value for me I I won't I won't presuppose to speak to the upgrade it I I think.
We we we are we are quite happy to have a company like to about representing our interests I think they will do so.
You know I think how it fits into the portfolio of of of the Greater Africa oil.
I think it's one of those things that you know, we we need to think about how we want to deal.
Deal with it going forward.
Think we've talked about it in the past you know spinning out some of the pure exploration things, we feel like there's a lot of potential that allowed them B 12, Big you know we've only looked at one small part of it we drove to prospects in that little string of five prospects, there's a whole eastern side of the base only think that's quite interesting so.
<unk> again, you know one of the ideas that we've toyed around with a spinning out some of these into a separate expiration focus vehicles that might be a candidate three before me might be a candidate Echo Atlantic Canada.
I think we're gonna <unk>, we're <unk>, we're looking we're looking at a number of options right now, but I think you know.
The message was clear from our shareholders Arab a word that we need to clean up the structure I think before the middle of the year I think we will we will come to the market with a a.
Solutions to make this a cleaner more streamlined process where.
Call Us the mother ship Africa available is really focused on hygeia and Venus.
Potentially yeah, there's another focus on pure exploration about perhaps in another vehicle.
Okay. You said you wanted to go to about 60 seconds left for the night Audit review has any funneled <unk> I think you know, but once again I feel the company's in great shape. You know we spent three years now this cleaning up our balance sheet. We are quite extended when we bought the bedroom you know feel that the time has proved that it was a great acquisition.
We got Venus on the horizon, but we've got some other good stuff too I think don't discount expiration because the amount of oil fields.
The world It didn't start with exploration.
Like I said, the Transition's coming to take 30 years and oil and gas is going to have a significant role in that transition. So I think.
So the order of the world is going to need energy and you know, it's our job to give opportunities to move that forward.
<unk> none of those slips that's one last one is we just wanted to get the results.
Speaking to a more normal times, you sleeping well <unk> <unk> <unk> <unk> <unk>.
Very good well. Thank you everyone I'm gonna handle what's it all price that for the final remarks on the closing remarks. Thank you.
Gotcha.
And now all prices <unk>, thank you for participating.
Disconnect.
Yeah.
Thank you bye bye.
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The conference will be canceled T can <unk> you can dial 911.
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