Q1 2024 Africa Oil Corp Earnings Call
Okay.
Operator: Hello, everyone. My name is Shahin, and I will be your conference operator today. At this time, I would like to welcome everyone to the Africa Oil Corp First Quarter 24 Results Management Presentation. All lines have been placed on mute to prevent any background noise.
Sharon: Hello, everyone. My name is Sharon and I will be your conference operator today.
This time I would like to welcome everyone to the Africa Oracle first quarter 'twenty four resorts management presentation. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there'll be a question and answer session. If you'd like to ask a question. During this time simply press star one on one on your tongue.
Operator: After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press stars 1 and 1 on your telephone keypad. If you would like to withdraw your question, please press stars 1 and 1 again. Please note that at any time, participants on the webcast can submit questions using the Q&A box on the webcast interface. Please note that this event is being recorded, and the recording will be available for playback on the company's website.
Sharon: Turnkey pod, if you would like to withdraw your question. Please press star one on one again. Please note that any time participants on the webcast can submit questions using the Q&A box on the webcast interface.
Note that this event is being recorded the recording will be available for playback on the company's website I would now like to pass to be sent to you. Mr. Sahil Africa Investor Relations manager. Please go ahead Mr. <unk>.
Operator: I would now like to pass the meeting to Mr. Shahin Amini, Africa Oil's Investor Relations Manager. Please go ahead, Mr. Amini. Thank you, operator. On behalf of management, I thank you for joining us today for our first quarter 2024 results presentation. On the call today, we have President and CEO Roger Tucker, our CFO, Pascal Nicodeme, and our Chief Commercial Officer, Oliver Quinn.
Speaker Change: Thank you operator on behalf of management. Thank you for joining us today for our first quarter.
Speaker Change: 24 results presentation.
Speaker Change: On the call today, we have president and CEO Roger Soccer.
Our CFO Pascal, Nick with them and our Chief commercial officer Oliver quit.
Shahin Amini: There will be a presentation for around twenty-five minutes before we go into the Q&A session. 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 that have been fully described in the Company's Continuous Disclosure Report. The information discussed is made as of today's date and time, and Africa Oil 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 MD&A are available on the company's website and on CDOT. Roger, we are ready for you. Please go ahead.
Speaker Change: There will be a presentation of around 25 minutes before we go into the Q&A session.
Speaker Change: Sure.
Speaker Change: I'd like to remind everyone that remarks made during this session are subject to forward looking statements, which involve significant risk factors and assumptions.
Speaker Change: Have been fully described in the company's continuous disclosure reports.
Speaker Change: The information discussed is made as of today. It takes some time.
Speaker Change: Africa oil assumes no obligation to update or revise this information.
Like the new events or circumstances.
Speaker Change: As required by law.
The company is complete financial statements and related MD&A are available on the company's website and on SEDAR.
Speaker Change: Well, Jay we are ready for you. Please.
Speaker Change: Please go ahead.
Roger Morris Tucker: But thank you very much, Shahin, and if we can get. So what this shows is that we have had an extremely active first quarter of 2020 and 2024. And you can see on this timeline that since I started, this is where it starts. But if you actually focus in on the first quarter,
Speaker Change: Yeah.
Jay: Thank you very much.
Speaker Change: And if we can get.
Speaker Change: Hum.
Speaker Change: So.
Speaker Change: What this shows is that we have had an extremely active.
Speaker Change: First our first quarter 2000 22024.
Speaker Change: And if you can you can see on this Oh this time Lou.
Speaker Change: Since that since I started is where it's at where it starts but if you actually focusing.
Speaker Change: On the first the first quarter.
Roger Morris Tucker: You will see that we've had a significant number of transactions, which have effectively changed the shape of, to speak of part of our interest in impact in Namibia, in return for a full carry right the way through. And this was, as you can imagine, an incredible transaction. And so we have completely de-risked that part of our portfolio. In addition to that, we then continued in March with the farm-out.
You will see that we've had in.
Speaker Change: A significant number of transactions, which is effectively changed.
Speaker Change: The shape of what.
Speaker Change: That's one.
Speaker Change: Was the comment.
Speaker Change: To Oh Oh.
Speaker Change: And our interest or parcel part of our interest in.
Speaker Change: Impact in the Libya in return for a full carry right the way through.
Speaker Change: First I.
Speaker Change: And this was.
Speaker Change: As you can imagine an incredibly incredible transaction and so we have completely de risked that parts of our portfolio. In addition to that we then continued and Ah in March with the comments.
Roger Morris Tucker: We anticipate that we will see drilling in that block in 2025. We have effectively removed all capex from the company on a point-forward basis, therefore significantly de-risking the future of the company. And then in March, you will also note that we have made an offer to the minorities within IMPACT to increase our equity interest holding in the Namibian bloc, and that process is ongoing. So on the next slide, let's go and look at what underpins what we're trying to do with the company. And so what we're setting is these are our strategic principles. It's not a strategy, but they are our principles.
Speaker Change: And block three the fall bake in return for a two well carry through the initial exploration plays that are about block.
Speaker Change: And we anticipate that we would see drilling in that in that block in <unk> and.
Speaker Change: In 2025.
Speaker Change: Students.
Speaker Change: Affectively removed all capex.
Speaker Change: From the company on a point forward.
Speaker Change: Forward basis, therefore significantly de risking in the future.
Speaker Change: At the company.
Then in March you will also note that we had made an offer.
Speaker Change: To the minorities within impact to increase our interests are equity interest are holding in.
Speaker Change: <unk> block.
And that process is ongoing so the next slide let's go and look at what.
Speaker Change: What we're trying to do with the company. So then.
Speaker Change: Right.
Speaker Change: And so what we are setting these strategic principles is not a strategy, but it sound principles and we could go round.
Roger Morris Tucker: And if we go around the circle in the center, we are going to grow our business through the existing portfolio. And the existing portfolio, which we'll go on to look at, is based around Nigeria for our production, Equatorial Guinea, the development that we're now into with exploration in Namibia, and our exploration, carried exploration, and then trade off 3B4. We are partnered with Tier 1 operators, notably Total, as I've just mentioned, and Chevron, and we're going to try to maintain our interests and focus our attention on our existing assets.
Speaker Change: At circle in the center, we are going to grow our business.
Speaker Change: The existing portfolio.
Speaker Change: In the existing portfolio, which will go on to them.
Speaker Change: To look at.
Speaker Change: Based around Nigeria crop production.
Speaker Change: Equatorial Guinea, the developments that we're now into with exploration in Namibia, and our exploration target exploration.
Speaker Change: Three three before.
Speaker Change: We are partnered with tier one.
Speaker Change: Prices, notably textile as I've just mentioned.
Speaker Change: And Chevron.
Speaker Change: We're going to try to maintain our interests and focus our attention on our existing asset.
Roger Morris Tucker: We believe that we've got significant running room within the assets that we hold. [inaudible] And we're in the process of doing that at the moment through impact in Namibia. And our current growth strategy is to grow around those existing assets. Next slide, please. Let's focus then on what you're only going to hear us talk about.
Speaker Change: Assets Festival, so in other words, you're not going to see us leap into a new country entry or anything like that because we believe that we've got significant running room within the assets that we are that.
Speaker Change: We hope.
Speaker Change: You can see that's a key fundamental element. This is that we're going to try to consolidate.
Speaker Change: Our own more assets and we're in the process of doing that at the moment.
Speaker Change: The impact in <unk> and in Namibia and.
Speaker Change: Our current growth strategy is to grow around those existing our existing assets next slide please.
Speaker Change: Okay.
Speaker Change: And so let's.
Roger Morris Tucker: There is still some noise in our portfolio, which we're trying to clean up, and I'm sure there'll be questions about that at the end. But you're going to see us talk about Nigeria, which is where we are actually in three fields, which are three of the top five fields in the whole of Namibia, operated by Chevron and Total. You'll see us talk about Equatorial Guinea, where we've just entered as an operator and are in the process of trying to farm down that area. You'll see us talk about Namibia, where we are in partnership with Total, another world-class operator there. And you'll see us talk about Block 3B, 4B, on the western side of South Africa.
Speaker Change: Let's focus them.
Speaker Change: What you are only going to hear us talk about so there is still some noise in our portfolio, which we are trying to to clean up and I'm sure there's going to be questions about say about that at the end, but you're going to see us talk about Nigeria, which is where we are actually in three fields, which are three of the top.
Speaker Change: <unk> fields in the hole.
Speaker Change: Namibia operated by Chevron and that checks all you'll see us talk about Equatorial Guinea, where we've just statement, there's an operator or in the process of trying to farm down that that area, you'll see us talk about in Namibia, where we're in with total another world class operators that and you'll see us talk about walk through.
Speaker Change: <unk> in the western side of.
Of South Africa.
Roger Morris Tucker: And we believe that what we're doing at the moment is creating, from a position that I inherited, effectively a world-class independent E&P company exposed to some fairly significant growth opportunities and a very stable production base. So let's go and look in some detail at what we hold. And if anyone's been with us for a long time, you will actually know this.
Speaker Change: And we believe that what we're doing at the moment is creating from.
Speaker Change: Yeah.
Speaker Change: Positioning that I inherited.
Speaker Change: A effectively a world class independent E&P company exposed to some fairly significant growth opportunities and very stable production base. So next slide please.
Speaker Change: So let's go looking.
Speaker Change: In some detail.
Speaker Change: What we hold.
Speaker Change: <unk> been with us for a long time, you will actually notice and one of the things which is different than the way that I'm, describing the company since I came in.
Roger Morris Tucker: And one of the things that is different in the way that I've been describing the company since I came in is that we often used to just say that we... In actual fact, what we do is we have an equity interest in the three fields which are actually doing over 300,000 barrels a day. They are mature, well-known, stable assets.
Speaker Change: Is that we often used to just say that we produced circa 20000 barrel.
Speaker Change: Nigeria.
Speaker Change: In actual fact.
Speaker Change: What we do is we have an equity interest in the three deals which are actually doing over 300000 barrels a day.
Speaker Change: Mature well known stable assets.
Roger Morris Tucker: What's going on at the present time is shown in this diagram. First of all, our OML130 was extended for 20 years, which gives you an indication of how long those assets are going to produce for. We have an ongoing drilling program, and that actually is ongoing at the present time. We've just extended the rig to continue drilling in Aegina.
Speaker Change: And what's going on at the present time as shown on this.
Speaker Change: This diagram first of all.
Speaker Change: Oh email 130 was extended.
Further for the 20 years, which gives you an indication of how long those assets are going to produce for we have an ongoing drilling drilling.
Speaker Change: Program math actually.
Speaker Change: Is ongoing at the present time, and we just extended the rig to continue drilling.
Speaker Change: In the <unk>.
Speaker Change: Gina and so the next slide please.
Speaker Change: And then.
Roger Morris Tucker: I mean, in this area, you are going to see organic growth because the prayaway field in PML4 has gone through the feed process, and we are preparing to develop that field, which will add fairly significant production to us, about 6,000 barrels a day. But again, a very material position. And so it's P on the bottom bullets here that is actually going to produce at a gross level of 65,000 barrels a day over the existing infrastructure. So a big, big development that we have a reasonably material position in. And then if we leap down and have a look at what's going on in Namibia, we have two licenses there, but they're both encompassed by the red line around the two of them.
Speaker Change: In this area you are going to see organic growth because the prey away field.
Speaker Change: Email for has.
Speaker Change: <unk> gone through the process and we are preparing to develop that sales, which will add fairly significant production tourists about 6000.
Speaker Change: <unk> barrels a day, but again a very material developed.
Speaker Change: Sure.
Speaker Change: The bottom bullet here that is actually going to produce at a gross level of 65000 barrels a day.
Speaker Change: Over the existing.
Speaker Change: Infrastructure, so a big big development that we have a reasonably material position.
Speaker Change: Position positioning.
Speaker Change: Next.
Speaker Change: And then if we look down and have a look at what's going on in Namibia, where in two licenses there but.
Speaker Change: Both income.
Speaker Change: Encompassed by the Red line around the around the two of them.
Roger Morris Tucker: And this is an area receiving significant activity at the present time, and what we have in this area is a very significant major oil discovery. We're totally beginning to feed out into the market; the sheer scale of the first field, Venus, has been drilled and appraised by four wells which have been tested, the most recent of which is Mangetti, up in the north of the block. It is a fantastically interesting world because that... This is an extension of the Venus deal. [inaudible] a younger fan on the top of the Venus Reservoir, which is also hydrocarbon-bearing.
And this is an area.
Speaker Change: Receiving significant.
Speaker Change: Activity at the present time and what we have in this area is a very significant major oil discovery.
Speaker Change: We're total all are beginning to succeed I don't seem to be.
Speaker Change: The market the sheer scale of them.
Speaker Change: The.
Speaker Change: The first deal Dana has been now drilled an appraised by four wells, which have been being tested the most recent of which is main getty I've been in the north of the block.
Speaker Change: Is a fantastically interesting well because of that.
Speaker Change: It's just an extension of the Venus field.
Speaker Change: We also tested.
Speaker Change: A young a fan on the Taco.
Speaker Change: Depending on the top of the venous reservoir, which is also hydrocarbon bearing so we know.
Pascal Nicodeme: So we now effectively have two fields identified in this area, and we are actively reviewing development options. And you will have seen that Total is beginning to present data both on the subsurface geology and, in their capital market state, have given an indication, feed on the development, which will be Venus sometime this year. And what I'm going to do now is pass this over to Pascal, and I hope you can see the slides. I can see the slides.
Speaker Change: We have two fields.
Speaker Change: Okay fine too.
Speaker Change: We are actively reviewing.
Speaker Change: The development our development options and you will have seen this hotel is beginning to present data both on the subsurface geology and in there in the capital.
Speaker Change: A couple of markets they have given an indication.
Speaker Change: Okay.
Speaker Change: Seed on that.
Speaker Change: Development, which will be themis sometime.
Speaker Change: Sometime this year next slide.
Speaker Change: And I'm, what I'm going to do now is pass this over to Pascal.
Pascal: You can see on the slot.
Speaker Change: Alright, Thank you Roger.
Pascal Nicodeme: Thank you, Roger. So, yeah, let me go through the financial highlights for the quarter. We are posting for the quarter $3.5 million net income, which is relatively lower than the usual run rate profit that we are posting, and this is due to a loss that has been posted by Africa Energy. They posted that they impaired their working interest in the 11B12B block in South Africa by 114 million dollars. So we have picked up our net share of that impairment via Africa Energy directly but also indirectly via our ownership in impact.
Pascal: So yes, let me go over the financial highlights for their for the quarter.
Pascal: We are posting for the quarter or a three five.
Pascal: Our net income.
Pascal: Which is relatively lower than the usual run rate profit that we are pushing initiatives due to.
Pascal: Loss that has been posted by <unk> energy the positives the impasse.
Pascal: Walking interesting 11 beat well be blocking South Africa by $114 million. So we have picked up.
Our net share of that.
Pascal: Impairments.
Pascal: Africa NRG directly but also indirectly via our now ship kind of an impact.
Pascal Nicodeme: So as a consequence, we've also reversed part of the impairment that we had booked in the last quarter, so we've reversed more or less half of that net loss, which means that the net impact this quarter of that Africa Energy loss is about $14 million net to Africa Oil, which explains the relatively low net income in this quarter.
Pascal: So as a consequence, we've also reversed part of the.
Pascal: Impairment that we had always had booked in the last quarter. So we've reversed my wife's out off of that.
Pascal: Which means that the net impact this quarter of that.
Pascal: At Oh that after carrying a G loss is about.
Pascal: $14 million net to Africa, which explains the relatively low net income in this quarter.
Pascal Nicodeme: If you look on the right-hand side of this slide, you can see that the prime performance has been stable. We are having continued strong EBITDAX and cash flow from operations, $95 million of EBITDAX for the quarter and $77 million of cash flow from operations, which is explained by sustained strong production. As Roger mentioned, we have two new wells in production on ACPO. The actual net entitlement production for the quarter has been in the upper range of our guidance.
Pascal: If you look on the on the right hand side of this slide you can see that.
Pascal: The Prime performance has been has been stable.
Pascal: We are having.
Pascal: Continued strong EBITDAX and cash flow from operation $95 million EBITDAX for the quarter and at 77.
Pascal: Cash flow from operations.
Pascal: Which which is explained by a sustained.
Pascal: One correction we are.
Roger Morris Tucker: As Roger mentioned, we have two new S in production on Apple.
Roger Soccer: The.
Roger Soccer: Actual net entitlement production for the quarter has been up in the upper range of our guidance.
Pascal Nicodeme: And as Roger also mentioned, the current rig contract has been extended until October, so we expect to see continued improvement in production in the second half of the year. Next slide, please. So this shows our discipline. We've continued to be disciplined in terms of managing our liquidity. We started the quarter with $232 million of cash.
Speaker Change: And as I also mentioned the <unk>.
Speaker Change: Current rig contract has been extended until October so we expect to see.
Speaker Change: Continued improvement in production in the second half of the year.
Speaker Change: Next slide please.
Speaker Change: Okay.
Speaker Change: So this this this shows our discipline, we've continued to be in terms of managing our liquidity.
Speaker Change: We started the quarter with $232 million.
Pascal Nicodeme: The main use of that cash during the quarter has been the shareholder return program via the payment of a dividend at the end of March, about $12 million, and the continued purchase of shares since January 2024, when we restarted the share buyback program after the announcement of the firm down to total. So in total, we've written in the quarter more than $25 million to the shareholders, and our cash balance is now down to $195 million.
Speaker Change: Of cash the menus of that cash during the quarter as being the shareholder return via the payment of a dividend end of March.
Speaker Change: About.
Speaker Change: $12 million and continued share purchases of share since <unk> since January 2024.
Speaker Change: When we restarted our share buyback program after the announcement of the farm down too.
Speaker Change: So in total we've written in the quarter 25 more than $25 million.
Speaker Change: And to the shareholders and all our cash balance is now down to 195 million $9 million.
Pascal Nicodeme: Prime has continued to have stronger cash balances. The prime net debt was, at the end of the quarter, $240 million, and combined with our own cash balance, it's a net debt position of $45 million. Next slide, please. In terms of voice health.
Speaker Change: A prime.
Speaker Change: Continue to have stronger cash balances.
Speaker Change: The prime net debt was at the end of the project $240 million and.
Speaker Change: And combined with our with our all in cash burn assets net debt position of $45 million.
Speaker Change: Next slide please.
Speaker Change: In terms of voice out.
Pascal Nicodeme: Again, very stable behavior. Again, this quarter, we managed to get a sale price that was higher than the average dated brand for the quarter, which is due to the efficiency of our new marketing strategy, as I explained in the previous quarters. And we achieved more than $85 per barrel average sale price versus an $83 average brand over the same period. And post-period, we also sold two cargos, again, with an average sale of $93 million. $93 per barrel compared to an average jetted brand of $90 per barrel.
Speaker Change: Again very stable behavior.
Speaker Change: Again this quarter, we managed to get our.
Speaker Change: Sale price, which is higher than the average dated rainfall.
Speaker Change: For the quarter.
Speaker Change: Which is due to the efficiency overall.
Speaker Change: <unk> marketing strategy is as I explained in the previous quarters.
And we achieved 85 more than $85 per barrel average sale price versus a 93 year Dora Unlike brands over the same period and postpaid users. We also saw the prime missile tube cargos.
Speaker Change: Again with average sales of 93 million.
Speaker Change: Yeah, 90 to $93 per barrel.
Speaker Change: Compared to <unk> Branco $90 per barrel.
Pascal Nicodeme: Next slide, please. So focusing on our capital framework and the main priorities that the company has, I think we've explained that in previous quarters, but we want to keep a strong balance sheet. Prime continues to deliver and repay its RBL facility, and the objective in the medium term is to get its RBL facility extended in order to make the amortization of the debt profile smoother. On our side, we are working with our lenders at the moment to extend our corporate facility, and we've obtained credit approval from our four banks to extend the existing facility for another three years at a lower amount because we believe that at this stage we don't need so much available liquidity, so it will be renewed at a level of $65 million initially against the existing $175 million.
Speaker Change: Next slide please.
Speaker Change: So focusing on the capital framework.
Speaker Change: And.
Speaker Change: The domain.
Speaker Change: Priorities that the company has I think we've explained in the previous quarters, but we want to keep a strong balance sheet.
Speaker Change: Crime continued due to delayed wedge and repay the RBS facility and the objective in the media channels too.
Speaker Change: Yes.
Speaker Change: Facility extended in order to.
Speaker Change: Make the amortization of the debt profile smooths out.
Speaker Change: On our side, we are working with our lenders at the moment to extend our corporate facility and we should we've obtained credit approval from multiple banks to extend the existing facility for another three years at a lower amount because we believe that.
Speaker Change: At this stage, we don't need so much.
Speaker Change: Available liquidity, so it will be renewed.
Speaker Change: At a level of $65 million initially against the existing laundry Simmons family.
Pascal Nicodeme: So in terms of order of priority, organic growth, of course, we are focusing on developing our existing assets. The farm down to a total in Namibia has been very good news. That's free or balance sheet basically from potential capital expenditures to come in the future. And therefore, with the new focus on shareholder returns and the resumption of our share buy-back program, we've completed about 38% of that NCIB since January, and since 2022, we've returned $130 million to our shareholders. Next slide, please, and I will hand over to Oliver now. Oliver, can you hear us? You may be on mute.
Speaker Change: So and in terms of order of priority organic growth of course, we are we are.
Speaker Change: We are focusing on developing our existing assets.
Speaker Change: Found down to total in Namibia.
Speaker Change: It's been very good news.
And.
Speaker Change: As for your own balance sheet basically.
Speaker Change: Potential capital expenditures to come in the future.
Speaker Change: Therefore, the the new focus on shareholder returns.
Speaker Change: The resumption of our share buyback program.
Speaker Change: We've completed about 38% of that and CIBC and sessions January 19, 2022, we generated $2 million.
Speaker Change: To our to our shareholders.
Speaker Change: Next slide please and I will hand over to Alejandro.
Speaker Change: Oliver.
Speaker Change: Have you hear US you may be old news.
Oliver Quinn: Yeah, thanks, Shahin. A minor technical difficulty. Thanks, Pascal. So I think, you know, Roger mentioned earlier, we, of course, announced in Thank you. Thank you. Thank you, impact minority shareholders to acquire up to an 8% incremental stake in impact at a valuation of 100% of impact at 805, million dollars, which would have been a maximum spend of 64. Again, the rationale is, of course, as we've talked about on this call, consolidation of the current portfolio with the Capex taken out of impact, and Namibia through the total deal earlier in the year. It represents an important long-term growth opportunity for us. More of an impact.
Speaker Change: Yes, Thanks, Jim.
Speaker Change: Minor technical difficulties. Thanks.
Pascal: Thanks, Pascal so I think.
Speaker Change: Roger mentioned earlier, we of course announced in.
Speaker Change: Gotcha.
Speaker Change: Over to <unk>.
Speaker Change: Impacts minority shareholders to acquire.
Speaker Change: Up to an 8% incremental stake and impact.
Speaker Change: At a valuation of 100% impact to 805.
Speaker Change: Millions of dollars, which would have been a maximum spend of 64.
Speaker Change: Okay.
Speaker Change: Again, the rationale is of course as we've talked about in this call consolidation of the current portfolio with with the Capex taken out of a impact and they may be it through the total deal earlier in the year.
Speaker Change: It represents.
Speaker Change: And long term growth opportunity for us so.
Speaker Change: Of impact.
Oliver Quinn: The process has gone well. As you'll see on the slide, we're nearing the end of that process, and we'd expect to close and give an update on the final conclusion before the end of the second quarter, so the next six weeks. Next slide, please. So I think that, you know, just as a brief comment here. We've talked about consolidating the current portfolio. The transactions, obviously, Namibia, South Africa, again, as just discussed, buying a little bit more impact. So that helps.
Speaker Change: We think provides extra strength in that long term portfolio. So the process is going well I think as youll see on the slide we are nearing the end of that process.
Speaker Change: And we'd expect to close and give an update on the final conclusion before the end of the second quarter. So kind of next next week six weeks really.
Speaker Change: Next slide please.
Oliver Quinn: And I think, you know, there's a couple more things to go there. As Roger mentioned earlier, there's the wider kind of legacy portfolio that we're working on to simplify as well. So I think, you know, again, that's the next step is to try and just continue, if you like, the simplification of the business. And again, to the capital framework, it's, you know, discipline on capital and simplification. And that's what will be the focus as we move into the third and fourth quarters here. So I'll hand it back to Roger. Thank you very much, Oliver.
Speaker Change: So I think that just as a brief comment here.
Sure.
Speaker Change: We've talked about consolidating the current portfolio I think we've made good progress on that.
Speaker Change: The transactions, obviously, Namibia, South Africa again, as just discussed buying a little bit more of a impact.
So that helps and I think there's a couple more things to go with that as Roger mentioned earlier Theres, a wider kind of legacy portfolio that we're working on to simplify as well. So I think again. That's the next step is to try and just continue if you like the simplification of the business.
Speaker Change: And again to the capital framework, it's discipline on capital.
Speaker Change: And simplification that will be the focus.
Speaker Change: As we move into the third and fourth quarters here.
Speaker Change: So how much of Roger Thank you very much all.
Roger Morris Tucker: So the next slide, which is now up, the strategic priorities that we focus on, and this has evolved since I've been here, is that the easiest place to consolidate your business is with assets that you know. And so we will continue to attempt to consolidate and beef up our portfolio of existing world-class assets. We are going to maintain our financial flexibility in order to accelerate growth. And you will hear as we go through these presentations that we're now focused entirely on capital allocation.
Roger Morris Tucker: All of it.
Speaker Change: So the next slide which is <unk>, which is now.
Speaker Change: The strategic priorities that we have.
Speaker Change: We focus on and this has evolved since then.
Speaker Change: Sorry.
Speaker Change: Theme here.
Speaker Change: Is that the.
Speaker Change: The easiest place to consolidate your businesses and assets that you have that you know and so we will continue to attempt to consolidate and consolidate and beef upon a room.
Speaker Change: Portfolio in existing World class World class assets.
Speaker Change: We are going to maintain our financial flexibility in order to accelerate growth and you will hear as we go through these presentations that were now focused entirely on capital allocation and you've seen the benefits of that I am removing all capex from the future portfolio.
Shahin Amini: And you've seen the benefits of that by removing all capex from the future portfolio. And that we are now, at the corporate level, completely debt-free. We're focused on shareholder returns, and as you see in this moment, we managed to farm out and remove the risk. The capital risk, if you like, of investing in the development in Namibia, we recommenced a very significant share buyback program, which is continuing to today, and always to maintain our balance sheet strength when we then use that balance sheet to try to..., identify additional growth opportunities. And with that, I'm going to pass this over to Shahin to administer the Q&A session, during which we will have three executives that you've got on the table, Thank you very much.
Speaker Change: And that we were also at the corporate level completely debt free.
Speaker Change: We're focused on shareholder returns.
Speaker Change: And as you've seen in the moment that we managed to farm outs and removed the risk.
Speaker Change: The risk if you like of investing in the development in Namibia.
Speaker Change: We recommenced the very significant share buyback program, which is continuing to.
Speaker Change: Today.
Speaker Change: Uh huh.
Speaker Change: And always to maintain balance sheet strength. When we then use that balance sheet to try to ring.
Speaker Change: Identify additional growth opportunities and with that I'm going to pass this over to Janine to administer.
Operator: Thanks, Roger. Sharon, could you remind people on how to submit their questions on the conference call, please? Thank you. To ask a question, you will need to press star 1 and 1 on your telephone and wait for your name to be announced.
Speaker Change: The Q&A session.
Speaker Change: We will.
Janine: Three executives that you've got on the on the tight around the table.
Speaker Change: You very much.
Speaker Change: Thanks Roger.
Speaker Change: Sharon if you could remind people on how to submit their questions on the conference call. Please.
Operator: To withdraw your question, please press star 1 and 1 again. If you wish to ask a question via the webcast, please type it into the box and click submit. We will now go to our first phone question. One moment, please. And your first question comes from the line of Theodore Sven Nielsen from SB1M. Please go ahead. Good morning, guys, or good afternoon.
Speaker Change: Thank you.
Sharon: To ask a question you press star one on your telephone and wait for your name to be announced to withdraw your question. Please press star one again.
Speaker Change: Wish to ask a question via the webcast. Please type it into the box and click submit.
Speaker Change: We will now go to wildfire same question.
Speaker Change: More mainland please.
Speaker Change: And your first question comes from the line of.
Speaker Change: Nielsen from SB, one and please go ahead.
Unknown Executive: Thanks for taking my questions. A couple of questions from me, actually three questions. First on guidance. You have provided production guidance working interest from in the range of 16,500 to 19,500 per year and noticed a first quarter production of 17,000 approximately. Is there any downside risk to that, or should we accept it? They've lagged this at the current level throughout the next few quarters.
Speaker Change: Good morning, guys or good afternoon.
Speaker Change: Thanks for taking my questions.
Speaker Change: A couple of questions from me actually three questions first of all the guidance.
Youll provide our production guidance working interest from in the range of 16519, Tulsa Provender pretty yes, I noticed that first quarter production was 17000 approximately.
Speaker Change: Is there any downside risk to that or should we expect production to stay flat.
Speaker Change: At the current level throughout them.
Speaker Change: The next few quarters.
Unknown Executive: The second question is on the Venus capex, of course, a great deal you did there on the farm, but could you just remind me of the estimated value of the capex carry? And then, finally, the question is on the clean-up of the entire structure with the impact of eco, Atlantic, and African energy.
Speaker Change: Second question is on the venous Capex of course, a great deal you did there.
Speaker Change: Could you just remind me of that.
Speaker Change: Estimated value of the Capex Carey.
And then finally the question is on.
Speaker Change: The key in all of the entire structure with the impact equal Atlanta again in Africa, and then Jan.
Unknown Executive: Of course, we'll briefly discuss that, but could you just give us an update on how we should expect this to look going forward? Thank you. Okay. Blah, blah, blah. Shahin, there were three questions there, but here in Montreal, actually, that didn't come across terribly clearly. So we'll pass them around. So can you actually just summarize the first question? Yes. So the first question... Yes. So the first question... The first question is on production guidance, and do we see downside risk to that over the next few quarters? Pascal, do you want to do that, or do you want me to do it? I can do it if you wish.
Speaker Change: Course, you'd be for discuss that a bit.
Speaker Change: Just give us an update on how we should expect it to be.
Speaker Change: Going forward. Thanks.
Speaker Change: Yes.
Speaker Change: Okay.
Speaker Change: Platform.
Jamie.
Speaker Change: There were three questions.
Here in Montreal, let's see that didn't come across terribly.
Speaker Change: So.
Speaker Change: So can you actually just summarized the first but yes. So the first question.
Speaker Change: First question is on production guidance.
Speaker Change: And do we see downside risk over the next few quarters to that.
Speaker Change: Scott do you want to do that.
Speaker Change: Or Germany today.
Speaker Change: I can do it situations.
Shahin Amini: So, I mean, I think it's clear that production in Nigeria has been declining. When looking at Q1 last year, production was higher, obviously, than this quarter. But as Roger mentioned, the current drilling campaign has been extended. So we expect this decline to continue to be compensated for by this new wealth coming on stream. We recently had two new aqua wells that came on stream, which is extremely good news for us.
Speaker Change: So I.
Speaker Change: I think the.
Speaker Change: I mean, it's clear that production in Nigeria has been has been declining.
Speaker Change: When looking at.
Speaker Change: So Q1 last year production.
Speaker Change: <unk> was higher obviously than in this culture.
Speaker Change: But as Joe mentioned.
Speaker Change: Current drilling campaign has been extended so we expect this decline to continue to be compensated by by these new wells coming on stream. So we had recently to two new <unk> that came on stream.
Speaker Change: Which is extremely good news for us. So we expect these new west to at least compensate for the decline. So the answer to your question is yes, we expect that production to be at least stable for the rest of the year.
Pascal Nicodeme: So we expect these new wells to at least compensate for the decline. So the answer to your question is yes, we expect production to be at least stable for the rest of the year and probably increase slightly. Yeah, I'll just add in there. What you're seeing in the Q1 numbers is a different work program as well. I mean, the shutdown was extended slightly, so we lost production there due to the shutdown.
Speaker Change: Probably increases slightly yes.
Speaker Change: Yes, I'll just add in.
Speaker Change: What youre, saying.
Speaker Change: <unk>.
Speaker Change: The Q1 numbers is a.
Speaker Change: What program as well I mean, the shutdown was extended slightly so we lost production due to the.
Pascal Nicodeme: And we are actively drilling. But these fantastic fields are over their peak of production, and they will decline over the next sort of 30 years, if you like, on a steady basis. There is no indication that there is either a subsurface problem that we don't understand or a problem with the infrastructure on the surface.
Speaker Change: Shutdown.
Speaker Change: And we are actively drilling.
Speaker Change: This fantastic fields over the peak of production and they will decline.
Speaker Change: Okay.
Speaker Change: Over the next 30 years, if you if you like on a steady basis. There is no indication that there is a either a sub surface problem that we don't understand or a problem with the.
Speaker Change: The infrastructure on the surface.
Roger Morris Tucker: What you'll see is the effect of a delayed work program, and there is no fundamental problem with the underlying asset. It's a delay in the work program, but at some point, these assets are going to decline, and that's one of the great things about them. They are so well known in the subsurface.
Speaker Change: You will see is a delayed effect.
The delayed work program and there is no fundamental problem with the underlying asset it's a delay in the work program, but at some point these assets.
Speaker Change: They are going to they are going to decline and that's one of the great actually from one of the great things about them. They are so well known in the subsurface when we give you guidance on the on the production.
Roger Morris Tucker: When we give you guidance on production, barring some major issues in the operability of the infrastructure, they will perform as we predicted. They're extremely well known in the subsurface. Pascal, do you want to add anything more to that? No, no. Next question, Shahin, if you want to just cover that off, because we couldn't hear it exactly. Yeah, it's on Venus Capex.
Speaker Change: Barring some major issue and the operability of the infrastructure.
Speaker Change: They will perform as we predicted they are extremely well known in the subsurface.
Speaker Change: Scott you want add anything more to that.
Speaker Change: Next question.
Speaker Change: Shaheen, if you want to.
Roger Morris Tucker: Could you just remind listeners and participants of the expected value of the Capex carry? Yeah, and so on. We can't give you the exact number, but you can start to work it out yourself because Total has indicated that we are all ready for a 2-FPSO case on Venus, and you'll have seen that from their Capital Markets Day, although strangely, the headline in Offshore and all of the industry pundits talk about 180,000 barrels a day.
Speaker Change: Cut that off because we couldnt exactly.
Venus Capex.
Speaker Change: Could you just remind listeners and participants.
Speaker Change: The expected value of the Capex Carey.
Speaker Change: Yes.
Speaker Change: We can't give you the exact number but you can start to work it out.
Speaker Change: South because.
Speaker Change: So tal have indicated that we are already.
Speaker Change: Into two at DSO case.
Speaker Change: On Venus and you'll have seen that from their capital markets day OLED strangely.
Speaker Change: The headline in offshore and all of the.
Speaker Change: The the industry pundits talk about 180000 barrels a day.
Roger Morris Tucker: That is actually per FPSO. And there are two on the way. Now, you can work out the numbers now and start to get a slightly clearer idea of the numbers, but I can't give you the internal numbers from Total.
Speaker Change: That is actually.
Speaker Change: So.
Speaker Change: And there are two on the way.
Speaker Change: Now you can work out the.
The numbers now.
Speaker Change: And suddenly start getting slightly clearer.
Shahin Amini: But it is multi, multi billions of dollars that are going to be spent on this. And as I say, we are completely carried away by it. And that's all I can give you at the moment, but you can go on to the, you know, and talk in the industry about how much two FBSOs will cost you, and you can work out that what we've got here is a very, very significant..., carried the situation that we've managed to negotiate. I think Theodore's line is still open, so before going to his third question, I want to revert back to him and see whether he has any further comments on the responses to the first two questions.
Speaker Change: The numbers, but I cant give you the internal numbers from total but it is multi multi billions of dollars is going to be spent in this and as I say we are completely carried.
Speaker Change: Through it.
Speaker Change: And Thats all I can give you at the moment, but you can go onto the.
Speaker Change: And talk in the industry about how much to Dsos will cost you and you can work out what we've got here.
Speaker Change: A very very significant.
Speaker Change: Carrier situation that we've managed to negotiate.
Speaker Change: I think until those lines still open so before country is first question.
Speaker Change: We went back to them and to see whether he has any follow on the responses. The first two questions.
Unknown Executive: Well, no, actually, I think I'll find out all about it when they build. There's no downside to this company of current kinds, as far as I'm concerned, is that correct? Yeah, what we're trying to point to here is, I mean, I mean, this is the oil and gas industry, but as we model it at the moment. We are happy with our guidance on Nigerian production.
Speaker Change: Well.
Speaker Change: There's no extra I think a final all vessel and then they'd be also important level of production.
There's no downside risk with no current guidance.
Speaker Change: As far as lines of our business is that correct.
Speaker Change: Yes.
Speaker Change: What we're trying to point to here is.
Speaker Change: I mean, this is the oil and gas industry.
Speaker Change: As we model it.
Speaker Change: At the moment.
Speaker Change: Fields.
Speaker Change: We are happy with our guidance on.
Speaker Change: On the Nigerian production.
Roger Morris Tucker: I'm sure I understood the next time. And I believe Teodos' third question was to do with our non-core assets and how the company could be looking in the future. Teodos, do you want to elaborate on that and perhaps repeat your question, if necessary? Yeah, sure, absolutely. You have already discussed it briefly, but I just wanted the structure you have with the impact eco and Africa Energy and then, maybe, in particular, the impact eco and Africa Energy.
Speaker Change: Sure understood.
Speaker Change: And I believe charter's third question.
Speaker Change: To do with our non core assets and how the company could be looking at.
Speaker Change: In the future.
Speaker Change: Right on down perhaps repeats.
Your question if necessary.
Unknown Executive: How should we expect this structure to look like in the future? Are you looking to divest the eco Atlantic and Africa Energy shares? Or will that be merged into Africa Oil? Or what should we expect here to get a simpler structure?
Speaker Change: Yes sure absolutely.
Speaker Change: You all have discussed it briefly better just all the best structure, you had with the impact equal in Africa, and then Jan that made it particular eco in Africa, and then Jay.
Speaker Change: How should we expect the district, because you get stuck in the future looking to divest AG.
Speaker Change: It sounds great and or Africa, innogy shares or will definitely emerged into it.
Speaker Change: I think oil or <unk>.
Speaker Change: Okay.
Speaker Change: To get the restructurings picture.
Speaker Change: Obviously.
Roger Morris Tucker: [inaudible] We kind of sort of, you know, forward statements here because we're actually talking about the Q1 result. But then I pointed out in the presentation that we are actively looking at rationalizing our portfolio and I would prefer us to get the historic way that we've held equity interests in companies, and so we are looking at... [inaudible] Okay. Thank you. Thank you. As a reminder, if you would like to ask a question via the telephone, please press stars 1 and 1. I will now hand you over to Shahin for web questions. Thank you, Operator.
Speaker Change: And we kind of sort of forward statements.
Speaker Change: Because we are actually talking about Q1 results.
Speaker Change: But and I pointed to in the presentation that we are actively looking at rationalized.
Speaker Change: <unk>.
Speaker Change: Portfolio.
Speaker Change: I would prefer us to get to.
Speaker Change: The historic way that we've held equity interest in companies and so we are looking at.
Speaker Change: Options for those which we are evolving.
As we speak but I won't give the rate.
Speaker Change: Our forward statements on what we're going to do but it is.
Speaker Change: That is going on at the moment.
Speaker Change: Understood. Thank you.
Speaker Change: Thank you.
Speaker Change: As a reminder, if you'd like to ask a question via the telephone. Please press star one on one.
Speaker Change: I will now hand back to Ian for.
Web questions.
Shahin Amini: Just a quick note from me. There was one question on the webcast about why there is no video broadcast for this event today. The management team, because of business travel, are actually joining you from three different locations.
Speaker Change: Thank you operator.
Ian: Just a quick note from me.
Speaker Change: There was one question on the webcast on why there is no video broadcast for this event today at the management team because of business travel are actually joining you from different locations. So thats. The reason why for this particular events haven't followed.
Shahin Amini: So that's the reason why, for this particular event, we haven't followed our usual approach of broadcasting media. So we'll go to questions submitted over the webcast system. And there's a couple of questions to do with special dividends, so they're kind of related, so let's get them addressed in the same go. So there was a comment that on slide 13, there was a reference to a special dividend upon monetization event. And a related question is, what needs to happen for shareholders to see a special dividend?
Speaker Change: Usual approach of both costs.
Speaker Change: So let's go to questions methods over the webcast system.
Speaker Change: And there's a couple of questions to do with special dividends, so that kind of relate to so let's get.
Speaker Change: The address and the same guy.
Speaker Change: So there is a comment that on slide so let's say.
Speaker Change: There was a reference to special dividends or monetization events.
Speaker Change: And the related question is what needs to happen for shareholders too.
Speaker Change: Special dividends.
Pascal Nicodeme: And so, Pascal, you may want to address this, please. Yeah, sure. I mean, yeah.
Speaker Change #100: So Pascal you may want to.
Speaker Change #101: Address this please.
Pascal: Yes sure.
Pascal: Yes.
Pascal Nicodeme: The question is about a special dividend in case of monetization. Well, we don't plan to monetize any of our assets at the moment. I mean, potentially, before signing the firm down to Total to monetize our contract and participation in Venus, which has not happened since we prefer to stay for the longer, longer term in the development. So there is no special dividend that would be related to a monetization event, for sure.
Pascal: So the question is about special dividend in case of monetization well, we don't plan to monetize any of our assets at the moment.
Pascal: We.
Pascal: Potentially the intention before signing the found down to attach to a.
Pascal: To monetize all.
Pascal: Top.
Pascal: Top sufficient Venus, which has not happened since we prefer to Stifel.
Pascal: The longer longer term and in the development.
Pascal: So.
Pascal: There is no.
Pascal: Envisage a special dividend that would be related to a monetization event for sure.
Pascal Nicodeme: I'm sure investors and shareholders have noticed that we have significantly increased our current returns to shareholders, especially via the share buyback. And we are buying our shares at the moment at almost the maximum rate we can buy the shares at, both in Toronto and Stockholm. We want to preserve some liquidity. As you know, we have an outstanding offer for the impact minorities at the moment.
Speaker Change #102: I'm sure the investors and the shareholders have not just us.
Speaker Change #103: Significantly stepped up Paul.
Speaker Change #103: Our current returns to the shareholders, especially via the share buyback and we are buying Arshad amendment.
Speaker Change #103: Almost a maximum rate we can we can buy their share of that.
Speaker Change #104: Voting to Antoine answer to call.
Speaker Change #104: We want to preserve some liquidity as you know we have a.
Outstanding offer for the impact of minorities at the moment, so until we know the final results of that.
Pascal Nicodeme: So until we know the final result of that process, we want to remain cautious in terms of managing our liquidity. Therefore, I would say to answer the question that we are fully committed to the existing NCIB. And depending on the outcome of the offers we've made to the unpacked minorities, we might reconsider this or increase the pace of the return.
Speaker Change #104: Of that process.
Speaker Change #104: We want to remain cautious in terms of managing our liquidity. So therefore, we are I would say to ask another question that we are fully committed to the existing in CIB.
Speaker Change #104: And depending on the outcome of the offers we've made sure the impacts minorities.
Speaker Change #104: We might reconsider this increase the pace of the returns.
Pascal Nicodeme: And I suppose the very important underlying message here is that we remain fully committed to shareholder capital returns. So at some time in the future, there will be a liquidity event. At that time, in the future, it is possible that companies subject to board approval could pay a special dividend, but that is part of our commitment.
Speaker Change #104: And also of course, the very important underlying message here is that we remain fully committed to shareholder capital returns.
Speaker Change #104: Funding the future there is a liquidity events.
Speaker Change #104: Time in the future it is possible the company's subjects.
Speaker Change #104: For the approval could pay a special dividend, but that is possible commitments exactly and see what happens in the future. Thank you Pascal.
Pascal Nicodeme: Right, there's a question about Prime's cash and debt balance. So they have $268 million in cash and $750 million outstanding in debt. Why don't they pay down their debts?
Speaker Change #105: Right. There is a question on cash.
Speaker Change #105: <unk>.
Speaker Change #106: So they have $268 million in cash of $760 million outstanding debts.
Pascal Nicodeme: And the follow-on question from the same participants is, have the actual wells met expectations? So, Pascal, perhaps you could tackle the first part of that question, which is Prime's debt management. Yeah, sure.
Speaker Change #107: Why don't they pay down debts and the follow up question from the same.
Speaker Change #108: <unk> has the actual wells met expectations.
Speaker Change #107: Yeah.
Speaker Change #109: So Pascal perhaps you could tackle the first part of that question, which is problems.
Speaker Change #110: That's management's yes sure.
Pascal Nicodeme: So the shareholder agreement we have with Prime provides that Prime needs to keep at least $150 million of cash balance at all times. So the fact that they have slightly more than $150 million of cash at the moment is exactly because they are planning to repay part of the RBL facility in the next quarters from their existing cash balance. So that's certainly done. And the way the RBL facility works is that there are six monthly redeterminations where the banks, at the end of March and the end of September, are basically determining the new maximum outstanding amount under the facility.
Speaker Change #111: Neither of the shareholder agreement, we are prime provisions that.
Speaker Change #111: Trying not to keep at least 150 million of cash balance at all time.
Speaker Change #112: So the fact that they are slightly more than $150 million of cash at the amendments ecp's exactly because they are they are planning to repay.
Speaker Change #112: Part of the LVL facility in the next quarters from their existing cash balance so that.
Speaker Change #113: <unk> done.
Speaker Change #113: The the way the albeit facility works is that there are six monthly rate determinations.
Speaker Change #113: The banks at.
Speaker Change #113: At the end of March and the end of September.
Speaker Change #114: Kelly <unk>.
Speaker Change #114: Determining the.
Speaker Change #114: The new maximum outstanding amount under the facility so prime would typically weights.
Pascal Nicodeme: So Prime would typically wait for April and May to repay the Boeing based out to the maximum level and then again in September. So that process is ongoing. And the fact that they have more cash at the moment than the $150 million is just to prepare for future amortization and also the fact that they are paying cash flows at the moment for the drilling campaign. The two elements explain why Prime has this slightly larger cash balance than expected.
Speaker Change #114: April.
Speaker Change #114: May do to repay the borrowing.
Speaker Change #114: Boeing baked out to the maximum level and then again in September so that's processes.
Speaker Change #114: Is ongoing and the fact that they have more.
Speaker Change #114: Cash at the moment in the $150 million is just too.
Prepare for Shai amortization and also the fact that they are paying cash flows at the moment for the drilling company.
Speaker Change #114: That's due to element explains why.
Speaker Change #114: Prime is slightly larger cash balance than that.
Pascal Nicodeme: And I will have a, I'll go first in trying to address the second part, which was on the actual well performance. Yes, there were two Aquawest wells that were completed in Q1, as we have described in our first quarter 2024 MDMA shareholder report. Those wells did exceed expectations.
Speaker Change #115: Got it.
Speaker Change #116: And I will have.
Speaker Change #117: I'll go first and address the second part which was on the actual well performance.
Speaker Change #118: Yes that would pursue actual west wells that we'll complete in Q1 as.
Speaker Change #118: As we have described.
Speaker Change #118: First quarter, 2020, and DNA shareholder reports.
Speaker Change #118: Well.
Speaker Change #118: Yes.
Speaker Change #118: Exceed expectations. However.
Pascal Nicodeme: However, please recall that the aqua field then went into a planned maintenance shutdown. That program is over, and the field is ramping up. So we will be able to provide further updates on that in due course when the field is out of this ramp-up phase. I don't know if Roger, Oliver, Pascal, you want to add anything else to that on the Actual Wealth? No, I don't.
Speaker Change #119: Please recall that at Brookfield, then was insane.
Speaker Change #119: Our planned maintenance shut down.
Speaker Change #119: That program is over and the field is ramping up.
Speaker Change #119: So we will be able to provide.
Speaker Change #119: Updates on that in due course when the field.
Speaker Change #119: Also base.
Speaker Change #119: Ramp up phase.
Speaker Change #120: Although knife Roger Oliver Pascal do you want to add anything else to that of <unk>.
Roger Morris Tucker: I think that's absolutely accurate. The wells have come in as predicted with pursuing an active... And so they gave no surprises at all. Very good. There are a number of questions on Namibia, specifically on Block 2913B. So this is Venus and Mangetti.
Speaker Change #121: No I.
Speaker Change #122: I think thats absolutely.
Speaker Change #123: Accurate the the wells have come in.
Adam.
Speaker Change #124: As predicted with pursuing an active.
Speaker Change #124: And so they gave no surprises.
Speaker Change #124: That's all.
Speaker Change #125: Alright good.
Speaker Change #126: There is a number of questions on maybe specific.
Speaker Change #126: Specific on.
Speaker Change #127: Blocks to 91, three B services.
Venus: Venus and I guess one question.
Roger Morris Tucker: One question. When do you expect that there could be a possible appraisal on the Manghetti family? Well, um... The Mangetti world came in.
Venus: When do you expect that there could be a possible appraisal on the mine gets hit.
Venus: Fine.
Venus: Well.
Venus: Sure.
Venus: The mine getting well came in.
Roger Morris Tucker: And at that time, what we were doing, what the other operation was going on, was we were acquiring 3D seismic to the south. We've got complete coverage of 3D over the whole block. And as I mentioned to you in previous calls, one of the reasons that we wanted to stay in this license is that there wasn't complete 3D in the South, and we liked the look of the Damara prospect.
Venus: And a very favorable.
Speaker Change #129: The situation if you like.
Speaker Change #129: And at that time, what we would what the other operation.
Speaker Change #129: As we were requiring the three D seismic to the south.
Speaker Change #129: To make sure.
Speaker Change #129: We've got a complete coverage of three D over the whole block and as I.
Speaker Change #130: Mentioned to you in previous calls one of the reasons that we wanted to stay in this license is there wasn't complete <unk> in the south and we liked the locals.
Speaker Change #130: The tomorrow and prospect.
Roger Morris Tucker: Now, what then happened is Manghetti, that 3D seismic that was going on in the South of the block, terminated, if you like, and the acquisition of 3D seismic moved to the north and east of Manghetti, which gives you an indication... We like the look of this Manghetti discovery. Now, on the map that you can see that we have up here, what it looks like is that the Manghetti fan heads off the block.
Speaker Change #131: Now what then happened has been getting.
Speaker Change #131: And that three D seismic that was going on in the south of the border was temporarily.
Speaker Change #131: Yeah.
Speaker Change #131: Terminated if you like in the acquisition of three D seismic moved to the North and east.
Speaker Change #131: Mango, which gives you an indication.
Speaker Change #131: We like the look of this magnitude discovery now.
Speaker Change #131: On the map that you can you can see that we have up there. It looks like is that the main get E. Tran heads off.
Roger Morris Tucker: It's very significant on our block, but it heads on to the Chevron block towards the discovery. And it will undoubtedly be appraised, but who's going to do the appraisal? Is it going to be us, or is it going to be Chevron? How is this going to work?
Speaker Change #131: The block is very significant on our block with a heads onto the chevron.
Speaker Change #131: Blocked up towards the disc.
Speaker Change #131: Discovery.
Speaker Change #131: And it will undoubtedly be appraised.
Speaker Change #131: Yes.
Speaker Change #132: Who is going to do the appraisal is it going to be us or is it going to be <unk>.
Roger Morris Tucker: So I cannot guarantee to you that in 2024, Manghetti is going to be drilled on our block. However, it is highly likely that the extension of that feature will be drilled at some point in the near future because it does look extremely attractive. That's basically all I can say at the moment, so don't necessarily wait for it to be us in total that do it, but that feature is going to get drilled at some point.
Speaker Change #132: Or is this going to work so I cannot guarantee.
Speaker Change #132: In 2024 main getsy is going to be drilled on our block.
Speaker Change #132: With.
Speaker Change #132: She is highly likely that the extension of that feature at some point in the near future will be.
Speaker Change #133: We'll be drilled because it does look extremely attractive.
Speaker Change #134: Does that answer.
Speaker Change #134: Basically all I can say at the moment so the wait.
Necessarily for it to be us in total it do it.
Speaker Change #134: That feature is going to get.
It's going to get through at some point.
Roger Morris Tucker: I think it's important to highlight that, obviously, during this most recent appraisal exploration program on Block 2913B, Operator Total Energy has acquired a lot of data and also shot 3D seismics, so there is a treasure trove of data that needs to be processed and analyzed. And we, as we've always said, We will update the market in coordination with our investor company, Impact, and operator, Total Energy, when there is a material work plan confirmed.
Speaker Change #135: I think it's important to highlight that obviously during this most recent appraisal exploration program on blocks <unk>. One CB operates a total energy quarter losses, Batesville and also have shot <unk> seismic. So there is a pressure.
Speaker Change #135: Trove of data that needs to be.
Speaker Change #135: Process.
Speaker Change #135: The logs and we as we've always said, we will update the markets in coordination with our invested company impact on Opex at Lasalle energies. When there is a material book plan confirms.
Roger Morris Tucker: And what I will do is, whilst we're supposed to be talking about the Q1 results, there is another well immediately adjacent to us that is very important too, which is Shell's Enigma 1X, which is also a success, and you can plot it on a map and see where that is. And that is, potentially, like a significant discovery, right up dip from our Damara feature. And so, as I've tried to explain when I talk about Namibia, we're in the midst of the development, if you like, of a major new global petroleum province. The drilling isn't all going to be ours, and you need to keep your eye on what the other people are doing. I've seen some of the questions.
Speaker Change #135: What I will do as well.
Speaker Change #135: Whilst we expect to be talking about the Q1 results there is another well.
Speaker Change #135: Immediately adjacent to us that is very important.
Speaker Change #135: Shells and Nic map.
Speaker Change #135: <unk> X, which is also a success and you can plotted on a map and see where that is.
Speaker Change #135: And Thats.
Speaker Change #135: As a.
Speaker Change #135: Potentially like a significant discovery.
Speaker Change #135: As a REIT.
Speaker Change #135: From Tomorrow feature and so.
As I've tried to explain when I talk about midyear.
Speaker Change #135: We're in the midst of the.
Speaker Change #135: The developments if you like of a major new global Petroleum Province the.
Speaker Change #135: The drilling isn't all going to be ours.
And you need to keep your eye on what the other people are doing and I think.
Roger Morris Tucker: People are asking about what GALP has discovered and so on, and you'll see that we are in a very good place right now, in a very privileged position as a relatively small independent, exposed to drilling that's going to go on around us, which will delineate the shape of this entire province, and that's going on as we speak. It's very, very The first discovery in the area, which was a shell discovery, only occurred in 2022, and there have just been one after another in the area.
Speaker Change #135: And some of the questions people are asking about what <unk> discovered.
Speaker Change #135: Whatever and you're going to see that we are in.
Speaker Change #135: In a very privileged position as a very small number.
Speaker Change #135: Relatively small independent exposed to drilling thats going to go on around us, which will delineate the shape that this entire province, and Thats going on.
Speaker Change #135: We speak and it's.
Speaker Change #135: Very very.
You have a sort of like in the development. This president provinces, because the first discovery in the <unk>.
Speaker Change #135: In the area, which is Michelle discovery.
Speaker Change #135: Only occurred in 2022.
It's just been one after another.
Speaker Change #135: In the area will be a limit to it.
Roger Morris Tucker: There will be a limit to it at some point, but the industry is going through a learning curve on how these reservoirs work and the distribution of the hydrocarbons, and it's important that any investor in us keeps their eye on what's going on around our block as well as what we're doing on our own block. Yes, and there's a question that specifically mentions GALP because GALP didn't put out a press release saying there are 10 billion barrels of oil equivalent in place at the Mulparni discovery. I suppose that some of our shareholders, investors are, and continue to wonder. When can we expect to have a similar statement?
Speaker Change #135: Some point, but the industry is going through.
Speaker Change #135: Learning curve on how these reservoirs work the distribution of the at.
Speaker Change #135: At the hydrocarbons and it's important that any investor in us keeps their eye on what's going on around our block as well as what we're doing on our own block.
Speaker Change #135: Yes.
Speaker Change #135: Yes.
Speaker Change #135: Question.
Speaker Change #136: Specific dimension Gal, because <unk> put out a press release, saying Theres 10 billion barrels of oil equivalents in place on the <unk> discovery as opposed to some of our shareholders investors.
Speaker Change #136: Continuing to one.
Speaker Change #137: When can we expect to have a sim.
Roger Morris Tucker: Say on Venus or Mangetti or other opportunities that we have in our portfolio. Well, I think it's, I think it's interesting to, I mean, it was a fantastic press release. There's no question about that.
Speaker Change #137: Statements say on BMS or might get C or other opportunities that we have in our portfolio.
Speaker Change #137: But I think it's.
Speaker Change #137: It's interesting too.
Speaker Change #138: I mean, it was a fantastic press release I mean, there's no question about that.
Roger Morris Tucker: And the motivation behind it may mean that GALF is going through a farm-out process. [inaudible] What Patrick said when he was asked a very similar question, and I would tend to agree, it is very, very early having just drilled two wells to say exactly what the in-place reserves are. It is a very bold statement, because we haven't actively seen all of the data. GALP is a very well-respected company, but it is going to take a while to work out exactly what the... And what I will say is that you've seen that.
Speaker Change #137: <unk>.
Speaker Change #137: And the motivation behind it.
Speaker Change #137: We're going through a thorough process.
Speaker Change #137: And time, but then if you go to the total capital markets day.
Speaker Change #137: What.
Speaker Change #137: Patrick said when he was asked a very similar question.
Speaker Change #139: <unk> tended to agree it is very very early having just drilled two wells to say exactly what the in place reserves.
Speaker Change #139: It is a very bold statement.
Speaker Change #140: We haven't.
Speaker Change #140: <unk> seen all of the data.
Speaker Change #140: It's a very well respected company.
Speaker Change #140: Company.
Speaker Change #140: But it is going to take.
Speaker Change #141: While to work out.
Speaker Change #141: Exactly what the.
Speaker Change #141: And what I will say is that you've seen.
Roger Morris Tucker: So I've announced that it's a two FBSO development. What you're going to start to see, because these are such big developments, is that there will be reserves producible by each FDSO, and the positioning of the FDSO, the resource base, is a really critical thing to work out so that you maximize the overall recovery. And that is the work that is ongoing at the present time. And because of the way that we hold our interest in this, we follow Total, and Total will... Hopefully, when they go into sea, make a more fulsome announcement of what the reserve's base is. But we will try.
Speaker Change #141: <unk>.
Speaker Change #141: But such olive announced <unk> development.
Speaker Change #141: What youre going to start to see because these are such big developments, it's going to be reserves producible.
Speaker Change #141: By each at DSO.
Speaker Change #141: The positioning of DSO.
Speaker Change #141: The resource base is a really critical thing to work out so that you maximize the overall recovery and that is the work that is.
Speaker Change #141: There is ongoing at the present.
Speaker Change #141: Some time in terms of when we can make an announcement as we.
Speaker Change #141: We have.
Speaker Change #141: Because of the way that we hold our interest in this is.
Speaker Change #142: Hello, Tal and so Tal will.
Speaker Change #142: Hopefully when they are going to see.
Speaker Change #142: <unk> made some more fulsome announcements.
Speaker Change #142: Announcements of what the reserves basis, but we will.
Shahin Amini: Follow Total as a good partner. All right, good. Thank you, Roger. I think it's only fair to give you and Pascal a break, and maybe we could put a question to Oliver. If that's okay with you, Oliver.
Speaker Change #143: <unk> is a good is a good partner.
Speaker Change #144: Alright good.
Roger Morris Tucker: Thank you Roger.
Speaker Change #145: I think it's.
Speaker Change #146: On the search that gives you on Pascal.
Brian: Brian maybe you could put a question so all of us.
Oliver Quinn: But we have a question on, you know, basically capital allocation and the long-term strategy for the company. The question is, how do you measure and calculate return on investment? And what hurdle rates will you have? As an example, would you have a threshold internal rate of return around 20%?
Speaker Change #148: If that's okay with you all about but we have a question on the.
Brian: <unk>.
Speaker Change #149: Basically capital allocation the launch strategy for the company.
How do we measure calculates with settlement investments.
Speaker Change #150: Most hurdle rates will you have as an example would you either.
Speaker Change #151: First of all internal rates of return in around.
Speaker Change #151: Around 20%.
Oliver Quinn: for investments. And I know you've been very busy, Oliver, with some of those strategic points. Are you able to shed some light on our thinking? It's a good question. There are probably a couple of ways to address it. The first one is what's our cost of capital and, particularly, what's the cost of capital for the company in the jurisdictions that we're in. I think, You know, we think about IRR and Nigeria, where, of course, we've got production through Prime, you know, we're not going to do things that are low rates of return, right? I mean, there is typically a discount around the NAB and the asset value that you get for assets in those jurisdictions.
Speaker Change #152: For investments and I know you'd be very quickly all of that with some of those strategic.
Speaker Change #153: Points are you able to shed some color on our thinking.
Speaker Change #153: Yes, Thanks, Jason I think it's a good question.
Speaker Change #154: I think it's probably a couple of a couple of ways to address it I think.
Speaker Change #154: First one of course is what's our cost of capital right.
In particular, what's the cost of capital in the company, but in the jurisdictions that we're in right and I think.
Speaker Change #154: If you think about IRR in Nigeria, where of course, we got production through prime.
Speaker Change #154: We're not going to do things that are low rates of return right. I mean, there is a.
Speaker Change #154: Typically a discount around the NAV net asset value that you get for for assets in those jurisdictions, so again that drives.
Oliver Quinn: So, again, that drives the market. You know, as we talk about in the capital allocation slide here, it drives discipline around that. I think the second point is, you know, I don't think it's probably not helpful to put a specific number out there. It's an opportunity specific. Some of the infill wells that Roger and Pascal talked about have very high IRRs because they pay back extremely quickly. There are other things with lower but robust IRRs, but they're a different shape of profile and longer term.
Speaker Change #155: Yes, you're talking about capital allocation slide here drives that discipline.
Speaker Change #155: Around that.
The second point is I think it's <unk>.
Speaker Change #155: Probably not helpful to us to put a specific number out there.
Speaker Change #156: And the opportunity and its opportunity specific.
Speaker Change #157: Of course, some of the infill wells that Roger and Pascal talked about they have very high IRR because they payback extremely quickly there are other things.
Speaker Change #157: With lower but robust IRR, but it's different shape of profile in longer term.
Oliver Quinn: Cash Profiles. We're in, you know, a fairly active mode; you see that through the transactions that we've done. So just simply commercially, I think it's not, it's not advantageous to throw numbers out there that might, might distract us from executing there. But I think, you know, again, I point to the capital allocation framework, the discipline and the execution around that discipline, both in taking CapEx out of the business. And, you know, as Pascal talked about the share buybacks, right, which tells you how we ultimately see the value of the money, if you like, in returns. Thank you, Oliver. There's a couple of follow-on questions. FPSO's for Venus.
Speaker Change #157: Cash profiles.
Speaker Change #158: Youre talking about again.
Speaker Change #158: Fairly active mode, you see that through the transactions that we've done so just simply commercially I think it is not.
Speaker Change #158: Advantageous to throw numbers out there that might.
Speaker Change #158: Might distract us from executing that but I think I cannot point to the capital allocation framework, the discipline and the execution around that discipline.
Speaker Change #158: Both in taking capex out of the business and.
Speaker Change #158: As Pascal talked about the share buybacks rank, which tells you that tells you how we.
Speaker Change #159: Ultimately see the value.
Speaker Change #160: The money, if you like and returns.
Speaker Change #161: Thank you Oliver.
Speaker Change #162: There are a couple of follow up questions on.
Speaker Change #162: Spss.
Shahin Amini: I think it's fair to say that at this stage, you know, the operators are still analyzing data and developing a potential possible development concept. And the questions are, are there going to be two FPSOs produced from the beginning? And we haven't said that, but Roger, perhaps you just want to clarify that point, that it's likely, well, not likely, but it's possible that there could be two FPSOs on Venus, but they're not necessarily going to be producing in parallel from day one, correct? Listen, often people say that this is the first time they've ever seen anything like this.
Speaker Change #163: For Bemis.
Speaker Change #163: And it's fair to say that at this stage.
Speaker Change #164: Operator, still analyzing data and developing a potential possible development concepts.
Speaker Change #164: Questions are are they going to be to Fps source.
Speaker Change #165: Producing from the beginning.
Speaker Change #165: And we haven't said that but Roger perhaps you just wanted to clarify that point.
Speaker Change #165: That is.
Speaker Change #166: Well not likely but it's possible that there could be <unk>.
Speaker Change #166: Venus, but they don't necessarily.
Speaker Change #167: Not necessarily going to be producing in parallel from day one correct.
Speaker Change #167: Listen.
Speaker Change #167: <unk>.
Speaker Change #168: Often people say that.
Speaker Change #168: This is the fifth.
Roger Morris Tucker: I actually was lucky enough to see a very similar situation playing out while I was there... with the development of the Santos Basin, and I believe that this is going to follow the same route. There will obviously be a phased approach when the FPSOs arrive. It would be extremely rare if both FPSOs were built at the same time, maybe not even in the same yard. But there is an commitment to start the development with two FPSOs. The delay between the first and the second is dependent on the way that these FPSOs come through the yard process.
Speaker Change #168: First time, they've ever seen anything.
Speaker Change #169: Like this and it's unique in the world.
Speaker Change #169: I actually was lucky enough to see a very similar situation playing out well.
Speaker Change #169: I'll start with the development of the central Central space.
Speaker Change #169: I believe this is going to follow the same route.
Speaker Change #169: There will obviously be a phasing.
Speaker Change #169: When the Dsos.
Speaker Change #170: It would be.
Speaker Change #170: Streamlined.
Speaker Change #171: Brad if both spss.
Speaker Change #171: But at the same time, maybe not even in the same yes.
Speaker Change #172: But there is a commitment to start the development with two <unk>, what we do.
Speaker Change #173: Delay in between the first and the second.
Speaker Change #173: It's dependent on the way these episodes.
Roger Morris Tucker: I can't think of a logical thing to do to try to commission two at exactly the same time, and it would be more cost-effective if you did one, and then another arrived, and then the same team carried on and commissioned the next one. But this is me talking, and it's not what Total has done. All I'm doing is giving you my experience after living through a very similar thing with BG in the Santos Basin.
Speaker Change #174: Come through the <unk> process.
Speaker Change #173: Icon.
Speaker Change #175: <unk> thing to do to try to commission two at exactly the same at the same time and it would be more cost effective. If you did one and then another arrived and then the same team carried on and commission. The next one but this is me talking and it's not what it is.
Speaker Change #173: Thanks.
Speaker Change #173: And public and all I'm doing is give you my experience after living through a very similar thing with BG in the sense of central space.
Roger Morris Tucker: Do you think that answers the question? It might be worth refreshing people on the carry, as we talked about earlier, and the development funding and how that works in that context. Africa is for us, it's all spent on the blocks pre-first oil.
Does that answer the question it might be worth.
Refreshing people on carry as we talked about earlier in the development funding and how that works in that context.
Oliver Quinn: So, you know, even if you go down a road, as Roger described, where you just, let's say there's, there's a phase, development of two FPSOs, of course, the spend on the second FPSO up to the point of first oil on the block PSO is also covered. So I think that's a really important component that we're actually insured against that development timeline, if you like. So if it comes very aggressive and very early, that's OK, because we're carried.
Speaker Change #176: I suppose it's all <unk>.
Speaker Change #176: Spend.
Speaker Change #177: The blocks pre first oil so even if you go down the road as Roger described.
Speaker Change #177: Let's say, there's a phased.
Speaker Change #177: Development of <unk> of course, the spend on the second Fps, so up to the points of first oil on the.
Speaker Change #177: The block is also covered so I think thats, a really important component that we're actually ensure it against that.
Speaker Change #177: Development time on if you like so it becomes very aggressive and very early.
Speaker Change #177: Because we carried and if it comes later that's okay, because we're receiving cash flow from the assets to fund our future obligations.
Yes.
Speaker Change #178: Thank you I think Thats also the question well.
Oliver Quinn: And if it comes later, that's OK, because we're receiving cash flow from the asset to fund our future obligations. So. Thank you. I think that does answer the question well. We have three questions from one of our long-standing shareholders. The first one is, will pro-weight development costs be cost-recoverable?
Speaker Change #179: We have.
Speaker Change #180: Three questions from one of our longstanding shareholders first swap.
Speaker Change #181: We will pray await the development cost be cost recoverable.
Shahin Amini: Again, it's a production from Adjunan Agco, or only from Prairie Way. Pascal, do you want to have a go at this, or are they happy to? start, and then you can correct me if I get it wrong.
Speaker Change #181: Against the production from <unk>.
For the from pro away.
Speaker Change #181: Pascal if you want I haven't got that.
Speaker Change #182: Sure I'll be happy to.
Speaker Change #183: Start and then you can correct me if I got it wrong.
Shahin Amini: Yes, go ahead. First of all, I think on ProAway, one thing is that, well, certainly, my understanding is it will benefit from a five-year royalty holiday, so that's a positive, so that needs to be accounted for, and that basically Prime is now paying corporate tax, right? But, obviously, in terms of cost recovery, that will come under the PSA arrangements. So yes, it will have the benefits of that under the PSA for those assets. Pascal, do you want to confirm that? Yes, it is confirmed.
Speaker Change #184: So first of all on pro away.
Speaker Change #185: Is that my understanding is it will benefit from a quite yet royalty a holiday. So that's a positive so that has to be accountable.
Speaker Change #185: That's.
Speaker Change #186: Basic and crime.
Speaker Change #186: He's not paying corporate tax slides.
Speaker Change #186: But obviously in terms of the cost recovery that will come on to the PSA arrangements. So yes. It will have the benefits of that under the TSA for those assets.
Speaker Change #187: Scott do you want to.
Speaker Change #187: So yes.
Speaker Change #187: Yes.
Pascal Nicodeme: Excellent, thank you. So the second question from our investor: And how much maintenance-related downtime was there in Q1 for Adrenal-Aquan-Agbami? And how much downtime do we expect in the second quarter? Well, certainly, we didn't have any downtimes on a G9 Egg Barney, it was only on Agco.
Speaker Change #188: Thank you.
Speaker Change #189: So second question from our investors.
Speaker Change #190: And how much maintenance related downtime in.
Speaker Change #190: In Q1.
Speaker Change #191: Pardon me.
Speaker Change #191: And how much time do we expect in the second quarter.
Speaker Change #192: Well settled but do you have any tons times on Geno and I thought he was early on.
Shahin Amini: And I believe that starts on the 19th of March, so in Q1 we would have had around... 10 to 11 days of downtime. Roger, do you have any expectation for the number of days that the fields could be done in the second quarter? Oh, Pascal?
Speaker Change #192: And I believe that starts of 19th of March in Q1, we would have had the rounds.
Speaker Change #192: 10 to 11 days of downtime.
Roger: Roger do you have any expectation for number of days that sales could be done in the second quarter.
Pascal: So Pascal.
Pascal Nicodeme: Shahin, what we know from that planned shutdown, it took slightly longer than expected, and they are ramping up production again. We are not back to the previous production level, so it's now mid-May, so there will definitely be an impact on production for the second quarter. But we don't expect any impact on Aegina or Ikebami for this quarter.
Pascal: Sure.
Speaker Change #194: What we know from that.
Speaker Change #195: Plant shutdown, it took slightly longer unexpected and that at the moment.
Speaker Change #196: Humping at production again, now we are not back to the.
Speaker Change #196: Previous production levels. So it's now mid mid may so that will be definitely an impact.
Speaker Change #197: And the impact on production for the second quarter Okay.
Speaker Change #197: But we don't expect any impact from <unk>.
Speaker Change #197: Or I call me for this quarter.
Speaker Change #198: Very good.
Pascal Nicodeme: No. Very good. There's a couple of questions on Equatorial Guinea, basically people want to know an update and do we have a timing expectation for the farm then of EG31 and EG18?
Speaker Change #199: There is a couple of questions on Equatorial Guinea basically people once.
Speaker Change #199: And the updates.
Speaker Change #200: So do we have timing expectation for the format of EG 31 <unk>.
Speaker Change #200: Alright.
Oliver Quinn: Yes, we lost you for a second, Shahin, but I can take that. You know, the process is ongoing, and there have been, you know, several companies through that data room. I think the guidance that's probably most useful is that... You go back to the Capital Allocation Framework, and what we're saying there is we're going to be very, very disciplined about early stage pre-production work.
Speaker Change #201: Yes, So we lost you for a second gene but.
Speaker Change #202: I'll take that so I think the.
Speaker Change #203: <unk> is ongoing.
Speaker Change #204: There's been several companies through that data room I.
Speaker Change #204: I think the guidance, it's probably most useful is that.
Speaker Change #204: You go back to capital allocation framework and what we're saying there is we're going to be very very disciplined about.
Speaker Change #205: Spend particularly in the kind of.
Oliver Quinn: So I think what we're doing there is saying, look, we should take a little bit longer, but take a little bit longer to... that fulfills those strategies, if you like, that gives us a place where there's minimal zero capex in that. You know, it's probably slightly longer than people are expecting, but I think that's the reason for, you know, again, capital discipline and ensuring that we get things fully funded through those transactions and that. Thank you, Oliver. Operator, can I just check with you, are there any further questions on the..., on the telephone line? There are currently no further questions on the phone lines.
Speaker Change #205: Early stage pre preproduction work. So I think what we're doing now is saying look we we should take that take a little bit longer.
Speaker Change #205: But take a little bit longer too.
Speaker Change #205: As occupancy that fulfills those.
Speaker Change #206: Strategy, if you like that that gives us a place where there's more.
Speaker Change #206: Minimal zero capex in that so.
Speaker Change #206: There is probably slightly longer than people are expecting but I think thats. The reason is too.
Speaker Change #207: Again capital discipline, and ensuring that we get things falling funded through those transactions.
Speaker Change #207: Right.
Speaker Change #208: Thank you Oliver.
Speaker Change #209: Operator can I just check with you other any further questions on the.
Speaker Change #210: On the telephone line.
Speaker Change #211: There are currently no further questions on the phone line.
Operator: Thank you for checking. Right. There's a question about our ownership of assets in Nigeria. All the plans on the way for us to consolidate those are that. Well, we have indicated that's one of our aspirations. But Oliver, perhaps you'd like to share your thoughts on that. I think we may have lost Oliver and Roger again.
Speaker Change #212: Thank you for checking.
Speaker Change #213: Right. There is a question on FX.
Speaker Change #214: Effectively ownership of assets in Nigeria on the flattish on the way for us to consolidate.
Speaker Change #214: Is that.
Speaker Change #215: Well we have.
Speaker Change #216: And to take it up one of our exploration well, albeit perhaps you'd like to show your thoughts on that.
Speaker Change #217: I'll tell you we may have lost Alibaba and Roger again.
Shahin Amini: Hang on. Sorry. What I'm going to do is cut across that. It's a good question, but what we need to do is focus on the... We have an aspiration to consolidate in the assets that we like, but we're not going to give you any indication of that today. ...the time, the doability of any of that, that you've seen from the transactions that we've done in this first quarter, that it is pointing you to a direction of travel that we are actively pursuing. And I think I'd prefer just to... Yes. Shahin, if you're happy with that. No, absolutely not.
Roger Morris Tucker: I think that's a very fair comment. All right, good. Sorry, I'm just looking at the remaining list of questions. There's one question on the company's relationship to the Lundin Group. I will take this one. The Lundin family did exit the position.
Shahin Amini: And we were very fortunate that we had the Blue Chip International Fund that took that position and is now the second largest shareholder in Africa Oil, which is Fidelity. And on that note, Yes, I think we've answered all those other questions that I still see in the queue, and we've only got a minute left. So on that note, Roger, do you have any final comments that you want to share with the audience? I don't think I will, Shahin, unless you think that we've missed something.
Speaker Change #217: So what are those kind of cross that I mean, it's a good question, but what we need.
Its focus on the.
Speaker Change #217: Q1 results.
Speaker Change #217: We're just.
Speaker Change #217: Published to date.
Speaker Change #217: We have an aspiration to consolidate in the assets that we like but we're not going to today give you any indication of.
Speaker Change #217: We will tighten the durability.
Speaker Change #217: But you have seen from the transactions that we've done in this in this first quarter is pointing you to a direction of travel that we are actively.
Speaker Change #217: Actively pursuing.
Speaker Change #218: I think I'd prefer just to.
Speaker Change #217: Okay.
Yes, sure. If you are happy with that no absolutely, helping us the various covenants.
Speaker Change #219: Alright good.
Speaker Change #219: So I am just looking at the remaining list of questions.
Speaker Change #219: There is one question on what is the company's relationships in this group I will I will take this one.
Speaker Change #219: Thirdly due to exits.
Speaker Change #219: <unk>.
Speaker Change #219: We were very fortunate that we had the blue chip international funds.
Speaker Change #219: That position now.
Speaker Change #219: Now our second largest shareholder.
Speaker Change #219: Africa oil.
Speaker Change #219: Which is fidelity.
Speaker Change #219: Yes.
Speaker Change #219: And I think on that night.
Speaker Change #220: Yes, often we've also all the other questions are still see on the acute and we've only got a minute left.
So on that nice Roger do you have any final comments that you want to share with the audience.
Roger Morris Tucker: And I'd just like to thank everyone for dialing in and listening to this. And just watch this space, because we are in a very active mode. And that's all that I will say. Thank you, Roger.
Speaker Change #221: I don't think I do chain and as you think.
Mr.
Speaker Change #222: Miss something.
Speaker Change #223: I'd just like to thank everyone.
Speaker Change #223: For dialing in and listening to this.
Speaker Change #223: Just watch this space because we are in a very active mode and thats all the volume will take.
Shahin Amini: We will be hosting our AGM next week on the 23rd of May. I will be preparing a press release with details for shareholders that want to join a Q&A session. And we expect to send the details of that later today. So yeah, just a reminder, our next event is our AGM next week. And please, operator, I'll hand it back to you to end this call. Thank you. This concludes today's conference call. Thank you for participating. You may now disconnect, speakers, please stand by. Shahin Amini, Roger Tucker, Tom Kristiansen, Oliver Quinn, Africa Oil Corp. [inaudible]
Speaker Change #224: Thank you Roger final comments from me.
Speaker Change #225: We'll be hosting our.
Speaker Change #225: AGM next week.
Speaker Change #226: Antoine it further and they will be.
Speaker Change #227: <unk> press release with details for shareholders that want to join our Q&A session and we expect to send that details of that and makes it today. So just a reminder of next events.
Speaker Change #227: Our AGM next week.
Speaker Change #227: And <unk>.
Speaker Change #228: Please operator.
Speaker Change #229: Back to you to end this call.
Speaker Change #230: Thank you. This concludes today's conference call. Thank you for participating you may now disconnect.
Speaker Change #231: Speakers please standby.
Speaker Change #231: Yeah.
Speaker Change #232: Uh huh.
Speaker Change #232: [music].
Speaker Change #232: [music].
Speaker Change #232: Okay.
Speaker Change #232: [music].