Q2 2024 Frontera Energy Corp Earnings Call

August 8, 2024

Joanna: Good morning, my name is Joanna, and I will be your conference facilitator today. Welcome to Frontera Energy's second quarter 2020 operating and financial results conference call. All lines are currently on mute to prevent any background noise.

Operator: Thank you for calling; may I know the name of the contact? I guess it's for Frontera Energy Corp.'s earnings call during that dispelling of your first and last names. Sure. David Brown.

Good morning, My name is Joanna and I will be your conference facilitator today.

Joanna: Welcome to <unk> Energy's second quarter, 2020 for operating and financial results Conference call.

Operator: I'll join you in a moment. Thank you so much. The conference is now being recorded.

Joanna: All lines are currently on mute to prevent any background noise I.

Joanna: I would like to remind you that this conference call is being recorded today and will be available through an audio webcast on the company's website. Following the speaker's remarks, there will be time for questions. Analysts and investors are reminded that any additional questions can be directed to Frontera following today's call at IR at FronteraEnergy.ca. This call contains forward-looking information within the meaning of applicable Canadian securities laws relating to activities, events, or developments the company believes or expects will or may occur in the future.

Speaker Change: I would like to remind you that this conference call is being recorded today and is also available through audio webcast on the company's website.

Joanna: Following the speakers remarks, there will be time for questions analysts and investors are reminded that any additional questions can be directed to you from Terra following todays call at IR Frontera energy Dot C E.

Joanna: Forward-looking information reflects the current expectations, assumptions, and beliefs of the company based on information currently available to it. Although the company believes the assumptions are reasonable, forward-looking information is not a guarantee of future performance. Forward-looking information is subject to a number of risks and uncertainties that may cause the actual results of the company to differ materially from those discussed in the forward-looking information. The company's MD&A for the quarter ended June 30, 2024, and the company's annual information form dated March 7, 2024, and other documents it files from time to time with securities regulatory authorities describe the risks, uncertainties, material assumptions, and other factors that could influence actual results. Any forward-looking information speaks only as of the date on which it is made, and the company disclaims any intent or obligation to update any forward-looking information, except as required by law.

Joanna: This call contains forward looking information within the meaning of applicable Canadian securities laws relating to activities events or developments. The company believes or expect will or may occur in the future.

Joanna: Forward looking information with Baxter current expectations assumptions and beliefs of the company based on information currently available to it.

Joanna: Though the company believes the assumptions are reasonable forward looking information is not a guarantee of future performance.

Joanna: Forward looking information is subject to a number of risks and uncertainties that may cause the actual results of the company to differ materially from those discussed in the forward looking information.

U.S. Department of State: [music] I'm going to show you guys a little bit of what I'm going to show you guys. Thanks for watching! This is a production of the U.S. Department of State. [music]

Joanna: The company's MD&A for the quarter ended June 30th 'twenty, 'twenty, four and the company's annual information form dated March 7th 2024, and other documents filed from time to time with Securities regulatory authorities described our risks uncertainties materialized assumptions and other factors that could influence actual results.

Joanna: Any forward looking information speaks only as of the date on which it is made and the company disclaims any intent or obligation to update any forward looking information, except as required by law.

Joanna: I would now like to turn the call over to Mr. Gabriel de Alba, Chairman of the Board of Frontera Energy. Mr. de Alba? Mr. D'Alba, you may begin. Thank you.

Joana: Good morning, my name is Joana, and I will be your conference facilitator today. Welcome to Frontera Energy's second quarter of 2024 operating and financial results conference call. All lines are currently on mute to prevent any background noise.

Speaker Change: I'd now like to turn the call over to Mr. Gabriel de Alba Chairman of the board of Frontera Energy Mr. Alba.

Speaker Change: Mr. <unk> you may begin.

Joanna: Yeah.

Speaker Change: Hey, Joe.

Joanna: Okay.

Joanna: Yeah.

Joanna: Yes.

Joanna: Okay.

Joanna: Yeah.

Unnamed: Bye-bye.

Joanna: Okay.

Unnamed: Okay.

Speaker Change: Please standby.

Unnamed: Thank you.

Unnamed: Yes.

Unnamed: Okay.

Unnamed: Let's get the video started.

Unnamed: Sure.

Unnamed: Good.

Gabriel de Alba: Thank you, operator. Good morning, everyone, and welcome to Frontera's second quarter 2024 earnings call. Joining me on today's call are... Orlando Cabrales, Frontera's CEO; and Rene Burgos, Frontera's CFO. Also joining us today and available to answer questions at the end of the call are Victor Vega, VP of Field Development, Reservoir Management, and Exploration; and Alejandra Bonilla, General Counsel. Ivan Arevalo, VP Operations, and Renata Campagnaro, VP Marketing, Logistics, and Business Sustainability. Thank you for joining us.

Joana: I would like to remind you that this conference call is being recorded today and will be available through an audio webcast on the company's website. Following the speaker's remarks, there will be time for questions. Analysts and investors are reminded that any additional questions can be directed to Frontera following today's call at IR at FronteraEnergy.ca. This call contains forward-looking information within the meaning of applicable Canadian securities laws relating to activities, events, or developments the company believes or expects will or may occur in the future.

Speaker Change: Thank you operator, good morning, everyone and welcome to <unk> second quarter 2024 earnings call.

Joana: Forward-looking information reflects the current expectations, assumptions, and beliefs of the company based on information currently available to it. Although the company believes the assumptions are reasonable, forward-looking information is not a guarantee of future performance. Forward-looking information is subject to a number of risks and uncertainties that may cause the actual results of the company to differ materially from those discussed in the forward-looking information. The company's MGNA for the quarter ended June 30, 2024, and the company's annual information form dated March 7, 2024, and other documents it files from time to time with its regulatory authorities to describe the risks, uncertainties, materialized assumptions, and other factors that could influence actual results Any forward-looking information speaks only as of the date on which it is made, and the company disclaims any intent or obligation to update any forward-looking information except as required by law.

Gabriel de Alba: Joining me on today's call are.

Joana: I would now like to turn the call over to Mr. Gabriel De Alba, Chairman of the Board of Frontera Energy. Mr. De Alba? Mr. D'Alba, you may begin. Thank you.

Speaker Change: Or run the Cabela's Frontera CEO Brendan.

Rene Burgos: We're in the Burgas Frontera CFO.

Gabriel de Alba: Okay.

Speaker Change: Also joining us today and available to answer questions at the end of the coal we have Victor Vega BB fuel development reservoir management and exploration.

Gabriel de Alba: Alejandro <unk> General counsel.

Speaker Change: <unk> been unable to repeat operations.

Speaker Change: Every other company Arrow, VP marketing logistics and business sustainability.

Gabriel de Alba: Alright.

Gabriel de Alba: Frontera continues to execute on its strategic priorities in support of long-term growth and the sustainability of its business. During the quarter, Frontera and Ecopetrol entered into a two-year contract to treat and dispose water from the Kifa block at Frontera's Sara Reverse Osmosis Water Treatment Facility. This agreement is set to increase crude oil production capacity at the Kifa Block. By the end of 2024, Frontera aims to increase processing capacity at Sahara to 250,000 barrels per day. Every 100,000 barrels of water treated at SARA is expected to translate into 1,000 barrels of production net to Frontera, subsequent to the end of the quarter.

Unnamed Participant: [inaudible] Can you give me a chance to get in there next to you? [inaudible] Please stand by. Go, go, go, go, go, go, go, go, go, go, go, go, Thank you.

Gabriel de Alba: Thank you for joining us.

Unnamed Participant: I look good when you're all started. And I'll be right back. I'll be back.

Gabriel de Alba: Thank you, operator. Good morning, everyone, and welcome to Frontera's second quarter 2024 earnings call. Joining me on today's call are... Orlando Cabrales, Frontera's CEO; and Rene Burgos, Frontera's TFO. Also joining us today and available to answer questions at the end of the call are Victor Vega, VP of Field Development, Reservoir Management, and Exploration; and Alejandra Bonilla, General Counsel. Ivana Rebono, VP Operations; and Andrea Campagnaro, VP Marketing, Logistics, and Business Sustainability. Thank you for joining us.

Gabriel de Alba: So there continues to execute on these strategic priorities.

Gabriel de Alba: Report of long term growth.

Gabriel de Alba: Sustainability of its business.

Gabriel de Alba: Frontera continues to execute on its strategic priorities in support of long-term growth and the sustainability of its business. During the quarter, Frontera and Ecopetrol entered into a two-year contract to treat and dispose water from the GIFA block at Frontera's Sara Reverse Osmosis Water Treatment Facility. This agreement is set to increase crude oil production capacity at the Kifa Block. By the end of 2024, Frontera aims to increase processing capacity at SARA to 250,000 barrels per day. Every 100,000 barrels of water treated at SARA is expected to translate into 1,000 barrels of production net to Frontera, subsequent to the end of the quarter.

Gabriel de Alba: Yeah.

Gabriel de Alba: During the quarter from theoretical patrol enter into a two year contract to treat and dispose water from the Gita block at Frontera thorough reverse osmosis water treatment facility.

Gabriel de Alba: This agreement is set to increase crude oil production capacity via the keto block buy.

Speaker Change: Dana of 'twenty 'twenty four for dinner.

Gabriel de Alba: Our aims to increase processing capacity is Sarah to 250000 barrels per day.

Speaker Change: Every hundred dozen barrels of water.

Gabriel de Alba: <unk> et cetera is expected to translate in 1000 barrels of production net to frontier.

Gabriel de Alba: Subsequent to the end of the quarter.

Gabriel de Alba: Frontera broke ground on the construction of the bidirectional hydrocarbon flowline connection between the Puerto Valle Liquid Terminal and Refineria de Cartagena, Reficar. The company expects the connection will drive significant volumes and shall become operational by year-end 2024. Frontera also announced that it executed an agreement with Gasco, a leading Latin American energy provider, that will see the companies develop the lowest-cost liquefied petroleum gas, also known as LPG, import facilities for Colombia and Puerto Baha.

Gabriel de Alba: Frontera broke ground on the construction of the bidirectional hydrocarbon flowline connection between the Puerto Vallarta Liquids Terminal and Refineria de Cartagena, Reficar. The company expects the connection will drive significant volumes and shall become operational by year-end 2024. Frontera also announced that it executed an agreement with Gasco, a leading Latin American energy provider, that will see the companies develop the lowest cost liquefied petroleum gas, also known as LPG, import facilities for Colombia and Puerto Bahia.

Gabriel de Alba: There are broke ground on the construction of the bidirectional hydrocarbon flow line connection.

Speaker Change: Between portable liquid terminal and ruffino, yet because the Hana terrific Guy.

Gabriel de Alba: The company expects the connection will drive significant volumes and shall become operational by year end 2024.

Speaker Change: For data also knows that he has executed an agreement with <unk>, a leading Latin American energy provider that we'll see that companies develop the lowest cost liquefied petroleum gas also known as LPG import facilities for Colombia at Port Goodbye yet.

Gabriel de Alba: As part of the agreement, Puerto Vallarta & Gasco will establish a joint venture to develop, construct, and operate a 20,400-ton LPG refrigerated storage facility at Puerto Baha's port terminal in Cartagena. The project is expected to cost between $50 million and $60 million, which will be shared between Puerto Vallarta and Gascony. Puerto Valle's contributions are expected to be largely in kind. The collaboration is a significant step forward in meeting Colombia's growing energy needs and demonstrates Puerto Vallarta and Gasco's commitment to investing in the country's energy infrastructure.

Gabriel de Alba: As part of the agreement.

Gabriel de Alba: <unk> and Gasco will establish a joint venture to develop construct and operate.

Speaker Change: 20400 tonne LPG repeater generated storage facility at port the bias for terminal in Cartagena.

Speaker Change: The project is expected to cost between 50, and $60 million, which will be shared between quarters to by yen Gasco.

Speaker Change: Further by yes contributions I expect it to be largely in Chi.

Gabriel de Alba: The collaboration is a significant step forward in meeting Columbia's growing energy needs and.

Gabriel de Alba: And demonstrates further by year's end gas goes commitment to investing in the country's energy infrastructure.

Gabriel de Alba: These are concrete actions Frontera is taking to create value. Today, Frontera's board declared a quarterly dividend of 6.25 cents Canadian per share. Year-to-date, the company has declared $11.7 million in dividends. In addition to our quarterly dividend, the company announced its intention to commence a substantial issuer bid of $30 million, pursuant to which the company will offer to purchase, for cancellation, a portion of its common shares at a fixed price per share.

Gabriel de Alba: These are concrete actions Frontera is taking to create value. Today, Frontera's board declared a quarterly dividend of 6.25 cents Canadian per share. Year-to-date, the company has declared $11.7 million in dividends. In addition to its quarterly dividends, the company announced its intention to commence a substantial issuer bid of $30 million, pursuant to which the company will offer to purchase for cancellation a portion of its common shares at a fixed price per

Speaker Change: These had concrete actions from dairy is taking to create value.

Dennis: Today for Dennis Board declared a quarterly dividend.

Gabriel de Alba: <unk> 6.25 cents Canadian per share.

Gabriel de Alba: Year to date, the company has declared $11.7 million in dividend.

Gabriel de Alba: In addition to our quarterly dividend.

Gabriel de Alba: Company announced its intention to commence a substantial issuer bid of 30 million or so.

Gabriel de Alba: To which the company will operate to purchase for cancellation a portion of its common shares at a fixed price per share.

Gabriel de Alba: The terms of the SAB, including pricing, shall be communicated in due course, and the company expects that the SAB will be completed in October 2024. Under the company's current NCIB, the company has purchased $6.6 million year-to-date. The company has also bought back $3.5 million of its 2028 unsecured notes. In total, the company is poised to return, so far, $51 million of capital to our stockholders. Frontera will also continue to take actions to unlock value for its stakeholders and remains committed to these efforts for the remainder of 2024 and beyond, including potential additional dividends, share buybacks, distributions, or bond buybacks based on the company's results, cash flow generation, and the company's strategic goals, including our ongoing pursuit of strategic alternatives for interest in the quarantine block in Guyana and our growing Colombian infrastructure business. I'd like now to Orlando?

Speaker Change: The terms of day type b, including pricing shall we communicated in due course and the company expects that the SCB would.

Orlando: It would be completed in October 2024.

Gabriel de Alba: Under the company's current N V. The company has purchased $6 $6 million year to date.

Gabriel de Alba: The company has also bought back $3 5 million of its 2028 unsecured notes.

Gabriel de Alba: In total the company is poised to return so far 51 million of capital to our stockholders.

Orlando: For data shall also continued to take actions to unlock value for its stakeholders remains committed to these air force for the remainder of 2024 and beyond.

Gabriel de Alba: Including potential additional dividend.

Gabriel de Alba: Chair Buybacks, Distributions, or Born Buybacks, based on the company's results, cash for generation, and the company's strategic goals, including our ongoing pursuit of strategic alternatives for interest in the quarantine block in Guyana and our growing Colombian infrastructure business. I'd like now to turn the call over to Orlando Cabrales, Frontera's CEO, and Rene Burgos, Frontera's CFO, who will share their Orlando?

Gabriel de Alba: Share buybacks distributions or bond buybacks based on the company's results cash flow generation and the company's strategic goals.

Orlando: <unk>, our ongoing pursuit of strategic alternatives for our interest in the current <unk> block in Guyana, and a growing Columbia and infrastructure business.

Orlando Cabrera: I'd like now to turn the call over to Orlando Cabrera. This front that our CEO and Randy Burgas front, our CFO, who will share their views on our second quarter results Orlando.

Gabriel de Alba: Yeah.

Orlando Cabrales: Thank you, Gabriel. Good morning, everyone.

Orlando Cabrales: Thank you, Gabriel. Good morning, everyone, and thank you for joining us on today's call. Fronteras demonstrated solid second quarter and half-year 2024 results. Production increased approximately 5% on a quarter or a half basis to 39,912 barrels per day. Production for June and July was on average 40,600 barrels per day. During the quarter, our heavy crude oil production grew 6% on a quarter-over-quarter basis, reaching approximately 24,800 barrels per day. The increase in heavy production was mainly driven by increased water disposal capacity from a new injector well in the Kippa block and the start-up of the Caida plant during the month of May, which is currently processing approximately 50,000 bottles of water per day.

Orlando: Thank you.

Orlando: Good morning, everyone and thank you for joining us for today's call.

Orlando Cabrales: And thank you for joining us for today's call. Fronteras demonstrated solid second quarter and half year 2024 results. Production increased approximately 5% on a quarter or a quarter basis to 39,912 barrels per day. Production for June and July was on average 40,600 barrels per day. During the quarter, our heavy crude oil production grew 6% on a quarter-on-a-quarter basis, reaching approximately 24,800 barrels per day. The increase in heavy production was mainly driven by increased water disposal capacity from a new injector well in the Kipa block and the start-up of the Chiara plant during the month of May, which is currently processing approximately 50,000 bottles of water per day.

Orlando Cabrales: Total data demonstrated solid second quarter on half year 'twenty 'twenty forward results.

Orlando Cabrales: Production increased approximately 5% on a quarter over quarter basis.

Orlando Cabrales: <unk> 9912 Boes per day.

Orlando Cabrales: Production for June and July Washington, either US 40600 barrels per day.

Orlando Cabrales: During the quarter, our heavy crude oil production grew 6% in a quarter.

Orlando Cabrales: Quarter over quarter basis, reaching.

Orlando Cabrales: Reaching approximately 24800 barrels per day.

Orlando Cabrales: The increase in heavy production was mainly driven by increased water disposal capacity from our new injectors in the keep up block.

Orlando Cabrales: The startup of this out of loan during the month of May which is currently processing approximately 50000 bottles with water for me.

Orlando Cabrales: Increased water handling capacity in GP6, where we are handling approximately 300,000 bottles of water per day at the moment and where we are on track to increase to $360,000 per day by the end of the year, as well as additional activities in the Sabanero block. Frontera Conventional Natural Gas and Natural Gas Liquids increased 22% and 9%, respectively, quarter over quarter, increasing production at La Reyesa Field as a result of the compression facilities expansion and gas re-injection project, which increased processing capacity from 2,000 to 30,000 NCF per day in the Beam 1 block.

Orlando Cabrales: Increased water handling capacity in CP6, where we are handling approximately 300,000 bottles of water per day at the moment and where we are on track to increase to 360,000 barrels per day by the end of the year, as well as additional activities in the Sabanero block. Frontera's conventional natural gas and natural gas liquids increased 22% and 9%, respectively, quarter over quarter, to increase production at Magallanesa Field as a result of the compression facilities expansion and gas re-injection project, which increased processing capacity from 2,000 to 30,000 NCF per day in the Beam 1 block.

Orlando Cabrales: Increased water handling capacity at <unk> six.

Orlando Cabrales: We are currently approximately 300000 bottles of water per day at the moment.

Orlando Cabrales: Where we are on track to increase to 360000 barrels per day by the end of the year as well as additional activities Ingersoll on Antelope.

Orlando Cabrales: For a better combination of natural gas and natural gas liquids.

Orlando Cabrales: <unk>, 22%.

Orlando Cabrales: 90%, respectively quarter over quarter.

Orlando Cabrales: We increased production in other years.

Orlando Cabrales: As a result of the compression facility expansion on gasoline diction project, which increased processing capacity from 2002.

Orlando Cabrales: Okay.

Orlando Cabrales: 30000.

Orlando Cabrales: <unk> beauty they intervene in the B one block.

Orlando Cabrales: The company's light and medium crude oil production was flat compared to the prior quarter, as we benefit from an increase in our Ecuadorian production from the Perico Norte 6 and Perico Centro 2 wells coming online, offset by natural declines in our Colombian light and medium crude oil fields. We continue to invest in work order and well service activities to maintain production, primarily in the light and medium blocks. In the second quarter, we completed 32 well work orders and currently have four work order weeks active on our blocks.

Speaker Change: The company like a medium crude oil production was flat compared to the prior quarter.

Orlando Cabrales: As we benefit from an increase in our production grow their economic and.

Orlando Cabrales: Political central two wells.

Speaker Change: Your line.

Orlando Cabrales: By natural declines in our Colombian light or medium crude oil fields.

Orlando Cabrales: We continue to invest in work over and will serve as a key piece to maintain production primarily in the light and medium blocks.

Orlando Cabrales: In the second quarter, we completed 32 wells and currently have four workover rigs.

Orlando Cabrales: On our blocks.

Orlando Cabrales: In total, we drilled 30 wells at our kitchen, CP6 and Perico blocks during the quarter. And we currently have three drilling rigs active at our chip-on and CPT store and at the exploration site at the Hydro One Exploration Well.

Orlando Cabrales: In total, we drilled 30 wells in our kitchen, CP6 and Perico blocks during the quarter. And we currently have three drilling rigs active on our T-PAN and TPC stores and on the exploration site at the Hydro One Exploration Well.

Orlando Cabrales: In total we drilled 30 wells.

Orlando Cabrales: Keith.

Orlando Cabrales: Thanks, Anthony for blocks during the quarter.

Orlando Cabrales: We currently have pleased the rigs active on our Keybank on CPP stocks.

Orlando Cabrales: On the exploration site at the EBITDA, one exploration well.

Orlando Cabrales: All pre-drill activities have been completed, with grid modernization and spotting of the well expected in the third quarter. In the Janus 119 block, the company acquired 80 square kilometers of 3D cycling during the second quarter. In the journal's 99th book, we continue pre-psychic and social and environmental studies.

Orlando Cabrales: All pre-zoo activities have been completed, with grid mobilization and spalling of the well expected in the third quarter. In the Janus 119 block, the company acquired 80 square kilometers of 3D cycling during the second quarter. In the January 99 block, we continue pre-cyclic and social and environmental studies in Ecuador, following recent successes in the Perico block.

Speaker Change: I'm pleased really lucky to have been completed.

Orlando Cabrales: With grid modernization on the starting of the World is quite good in the third quarter.

Orlando Cabrales: <unk> was 119 block the company acquired 80 square kilometers of <unk> during the second quarter.

Orlando Cabrales: In the genre with 99 look we compete we continue precisely on social and environmental studies.

Orlando Cabrales: In Ecuador, following recent successes in the Perico block, the first well of the Espejo campaign, called Espejo Sur B3, has been completed, showing initial gross production of 500 barrels per day. The second well, Espejo Norte A1, was spotted at the end of July, and drilling operations are ongoing. Despite some inflationary pressure on costs across the industry, we remain on track to achieve our 2024 capital production and EBITDA guidance in our infrastructure business during the quarter.

Orlando Cabrales: In Ecuador, following recent successes in that particular block.

Orlando Cabrales: The first well of the Espejo campaign, called Espejo Sur V3, has been completed, showing initial gross production of 500 barrels per day. The second well, Espejo Norte A1, was spotted at the end of July, and drilling operations are ongoing. Despite some inflationary pressure on costs across the industry, we remain on track to achieve our 2024 capital production and EBITDA guidance in our infrastructure business during the quarter. ODL paid its first dividend and return of capital of $31.3 million in April, for approximately 50% of the $62.8 million total dividend and capital returns payments the company expects to receive this year.

Speaker Change: Well of the Springhill campaign, it's very wholesome.

Orlando Cabrales: <unk> has been completed.

Orlando Cabrales: Showing emotional in Israel.

Orlando Cabrales: Production of 500 barrels per day.

Speaker Change: The second well if the whole North Bay outline eight one plus.

Orlando Cabrales: Scott at the end of July and drilling operations are ongoing.

Orlando Cabrales: Despite some inflationary pressure on costs across the industry we.

Speaker Change: We remain on track to achieve our 2034 coffee, though production on EBITDA guidance.

Orlando Cabrales: In our infrastructure business during the quarter.

Orlando Cabrales: ODL paid the first dividend and return of capital of $31.3 million in April, for approximately 50% of the $62.8 million total dividend and capital returns payments the company expects to receive this year. Operationally, ODL continues to maintain strong operating and financial performance, with transported volumes increasing about 1% quarter over quarter and EBITDA reaching $68 million for the quarter. Puerto Vallarta continues to move forward with its strategic agenda, breaking ground on the construction of the Refi Car Connection and achieving an important milestone with the start of horizontal drilling and directional drilling in the Canal del Vique in July.

Orlando Cabrales: <unk> paid the first dividend return of capital of $31 $3 million in April.

Orlando Cabrales: Approximately 50% of the.

Orlando Cabrales: 62.8 million total TVN on capital returns payments the company expects to receive this year.

Orlando Cabrales: Operationally, ODL continues to maintain strong operating and financial performance, with transported volumes increasing about 1% quarter over quarter and EBITDA reaching $68 million for the quarter. Puerto Vallarta continues to move forward with its strategic agenda, breaking ground on the construction of the refrigerant connection and achieving an important milestone with the start of horizontal drilling and directional drilling in the Canal del Vique in July.

Speaker Change: Operationally audio continues to maintain a strong operating and financial performance.

Orlando Cabrales: With transported volumes decreased about 1% quarter over quarter on EBITDA, reaching $68 million for the quarter.

Orlando Cabrales: <unk> continues to move forward with <unk> strategic agenda, breaking ground on the construction of the rupee cargo nexium.

Orlando Cabrales: TV, an important milestone with the stock.

Orlando Cabrales: Horizontal drilling directional drilling in the kind of indicate in July.

Orlando Cabrales: During the quarter, we also started up our Sahara Water Treatment Plant with a goal of reaching 250,000 bottles of water treated per day by the end of the year. During the month of June, the plant realized its first gross revenues associated with the Water Treatment Collaboration Agreement with Eco-Petrol for the Kifa Block. I would now like to turn the call over to Rene Burgos, Fronteras' CFO. Thank you, Orlando.

Orlando Cabrales: During the quarter, we also started up our Sahara Water Treatment Plant with a goal of reaching 250,000 bottles of water treated per day by the end of the year. During the month of June, the plant realized its first gross revenues associated with the Water Treatment Collaboration Agreement with Eco-Petrol for the IFA Block. I would now like to turn the call over to Rene Burgos, Fronteras' CFO. Thank you, Orlando.

Orlando Cabrales: During the quarter, we also started up our <unk> water treatment plant.

Orlando Cabrales: With a goal of reaching 250000 bottles of water treated per day by the end of the year.

Speaker Change: During the month of June the brand realized its first gross revenues associated with the Walker Friedman collaboration agreement with difficult withdrawal.

Rene Burgos: The eco block.

Rene Burgos: I'd like to take a moment to highlight a few key financial aspects of our second quarter results. For the second quarter, the company recorded a net loss of $2.8 million, or $0.03 per share. This quarter's net loss follows approximately $59 million in income from operations plus share of income from associates, which includes $13 million of share of income from ODL. All set primarily by roughly $16 million in net finance costs, $8 million in losses related to risk management contracts, and approximately $33 million in income tax expenses, including almost $31 million in deferred income taxes, primarily due to the impact of non-deductible expenses and differences related to foreign currency fluctuations During the quarter, the company assumed an income tax rate of 50% inclusive of the 15% surtax associated with the 2022 colony tax report.

Rene Burgos: I would now like to turn the call over to Rene <unk> from Ddos CFO.

Rene Burgos: Yeah.

Linda: Thank you Linda.

Rene Burgos: I'd like to take a moment to highlight a few key financial aspects of our second quarter results.

Rene Burgos: For the second quarter. The company recorded a net loss of $2 8 million or <unk> <unk> per share.

Rene Burgos: This quarter's net loss as follows approximately 59 million income from operations plus share of income from associates, which include $17 million a share of income from Leo.

Rene Burgos: Also that primarily by.

Rene Burgos: Roughly $16 million in net finance costs, $8 million in losses related to risk management contracts, and approximately $33 million in income tax expenses, including almost 31 million in deferred income taxes primarily due to the impact of non-deductible expenses and differences related to foreign currency fluctuations. During the quarter, the company assumed an income tax rate of 50 percent, inclusive of the 15 percent surtax associated with the 2022 column in tax reform. Operating EBITDA for the quarter was approximately $110 million.

Rene Burgos: Roughly $60 million and net finance costs 8 million losses related to risk management contracts and approximately $33 million and income tax expenses.

Rene Burgos: Including almost $31 million in deferred income taxes, primarily due to the impact of non deductible expenses and differences related to foreign currency fluctuations.

Rene Burgos: During the quarter the company as soon as income tax rate of 50% inclusive of the 15% surtax associated to the 2022 column and tax reform.

Rene Burgos: Operating EBITDA for the quarter was approximately $110 million. Compared to the prior quarter, our EBITDA benefited from higher production volumes and sales volumes as well as higher oil prices partially offset by mixed results on our cross-site. From a buyer's standpoint, I would like to take a moment to share the key indicators related to our realized prices and costs.

Rene Burgos: Operating EBITDA for the quarter was approximately $110 million.

Rene Burgos: Compared to the prior quarter, our EBITDA benefited from higher production volumes and sales volumes, as well as higher oil prices, partially offset by mixed results on our cross-site. From a buyer's standpoint, I'd like to take a moment to share the key indicators related to our real-life prices and costs.

Rene Burgos: Compared to the prior quarter, our EBITDA benefited from higher production volumes.

Rene Burgos: And sales volume as well as higher oil prices.

Rene Burgos: Really offset by mix result on our cost side.

Roberto: Roberto standpoint, I'd like to take a moment to share the key indicators related to our realized prices and costs.

Rene Burgos: During the quarter, we saw weighted average Brent self-prices for Frontera of $84.06, and an average Vascone differential on our export sales of $4.10. This quarter, we also added a reconciliation of our purchase crew activities. This edition, we believe, will aid in understanding our operations and the impact of these operations on our operating networks.

Rene Burgos: During the quarter, we saw weighted average Brent self prices for Frontera of $84.06, and an average Vascone differential on our export sales of $4.10. This quarter, we also added a reconciliation of our purchased crude activities. This edition, we believe, will aid in understanding our operations and the impact of these operations on our operating network.

Rene Burgos: During the quarter, we saw weighted average Brent self prices forefront of $84 in <unk>.

Speaker Change: And in average about Kona differential on our export sales of $4.10.

Rene Burgos: This quarter. We also added a reconciliation of our purchased crude activities.

Rene Burgos: This revision, we believe will aid in understanding our operations and the impact of the operation activities on our operating netback.

Rene Burgos: Our purchase crude net margin represents the difference between a purchase crude volume cost and the associated sales. These purchase crudes are used as part of our ongoing solution needs, as well as to be refined domestically for use within our internal operating consumption and domestic sales. For the second quarter, the purchase crude net margin was $2.13, lower than $2.39 for the prior quarter. The quarter over quarter variance was the result of lower dilution.

Rene Burgos: Our purchase crude margin represents the difference between a purchase crude volume cost and the associated sales. These purchase crude volumes are used as part of our ongoing dilution needs, as well as to be refined domestically for use within our internal operating consumption and domestic sales. For the second quarter, the purchase crude net margin was $2.13, lower than $2.39 for the prior quarter. The quarter over quarter variance was the result of lower dilution.

Rene Burgos: Our purchased crude net margin represents the difference between the purchase crude volume cost and the associated sales.

Rene Burgos: These purchase crudes are used as part of our ongoing dilution needs.

Rene Burgos: Well as degree refined domestically for use within our internal operating consumption and domestic sales.

Rene Burgos: For the second quarter, the purchase crude net margin was $2.13 lower than $2 39.

Rene Burgos: For the prior quarter.

Rene Burgos: Quarter over quarter variance was the result of lower dilution.

Rene Burgos: Taking a closer look at our operating costs, our production, energy, and transportation costs per barrel for the quarter totaled $10.78, $4.74, and $10.92, respectively. This compares with $10.21, $5.29, and $11.33 in the prior quarter. The increasing production costs quarter over quarter resulted primarily from higher world service activity, as well as the impact of FX rates and persistent inflationary pressures. On the energy front, as the dry season concludes, electricity prices in Colombia appear to be normalizing and are also trending lower so far this quarter, helping reduce energy costs, yet partially offset by higher energy use during the quarter. For the second quarter, electricity costs accounted for 31% of our energy consumption and 46% of our total energy costs.

Rene Burgos: Taking a closer look at our operating costs, our production, energy, and transportation costs per barrel for the quarter totaled $10.78, $4.74, and $10.92, respectively. This compares with $10.21, $5.29, and $11.33 in the prior quarter. The increasing production costs quarter over quarter resulted primarily from higher world service activities, as well as the impact of FX rates and persistent inflationary pressures. On the energy front, as the dry season concludes, electricity prices in Colombia appear to be normalizing and are also trending lower so far this quarter, helping reduce energy costs, yet partially offset by higher energy use during the quarter. For the second quarter, electricity costs accounted for 31% of our energy consumption and 46% of our total energy costs.

Rene Burgos: Taking a closer look at our operating costs.

Rene Burgos: Our production energy and transportation cost per barrel for the quarter totaled $10 7 million $4 74.

Rene Burgos: $10 and 90% respectively.

Rene Burgos: This compares with $10 in 'twenty one.

Rene Burgos: $5 in 2009 and.

Rene Burgos: $11 and 33% in the prior quarter.

Rene Burgos: The increase in production costs quarter over quarter resulted primarily from higher well service activity as well as the impact of FX rates and persistent inflationary pressures.

Rene Burgos: On the energy front and the dry season concludes electricity prices in Colombia appear to be normalizing.

Rene Burgos: And are also trending lower so far this quarter, helping reduce energy costs.

Rene Burgos: Partially offset by higher energy east during the quarter.

Rene Burgos: For the second quarter electricity costs accounted for 31% of our energy consumption and 46% of our total energy cost.

Rene Burgos: On transportation, we saw cost decreases during the quarter due to an increase in local soap volumes, as well as improved routing for some of our heavy crude oil production. During the quarter, we were operating it back with 46 dollars and 40 cents per VLE compared with 43 dollars and 97 cents per VLE in the prior quarter. The increase was a result of higher oil prices during the quarter, lower transportation costs, and energy costs partially offset by higher production costs.

Rene Burgos: On transportation, we saw a cost decrease during the quarter due to an increase in local sales volumes, as well as improved routing for some of our heavy crude oil production. During the quarter, we were operating at back with 46 dollars and 40 cents per VLE compared with 43 dollars and 97 cents per VLE in the prior quarter. The increase was a result of higher oil prices during the quarter, lower transportation costs, and energy costs partially offset by higher production costs.

Rene Burgos: On transportation, we saw cost decreased during the quarter due to an increase in local sales volumes as well as improved routing for some of our heavy crude oil production.

Rene Burgos: During the quarter, our operating netback with 46.

Rene Burgos: Dollars and $40 per Boe, compared with $43 97 per Boe.

Rene Burgos: In the prior quarter.

Rene Burgos: The increase was a result of higher oil prices during the quarter lower transportation costs and energy costs, partially offset by higher production costs.

Rene Burgos: Gas generation for the quarter remains strong, with cash flow from operations totaling $150 million, thanks in part to the strong Brent oil price environment, the reduction in withholding tax rates on export sales, receipt of dividend and capital payments from ODL, and short-term prepayment receipts from customers associated with crude sales. Capital expenditures for the quarter were roughly $80 million, primarily due to costs associated with drilling 31 wells, up from 21 the prior quarter, at Kifa, Kahua, CT6, and Pelico blocks for a total of $38 million.

Rene Burgos: Gas generation for the quarter remains strong, with cash flow from operations totaling $150 million, thanks in part to the strong Brent oil price environment, the reduction in withholding tax rates on export sales, receipt of dividend and capital payments from OVL, and short-term prepayment receipts from customers associated with crude sales. Capital expenditures for the quarter were roughly $80 million, primarily due to costs associated with drilling 30 million wells, up from $21 million the prior quarter at Tifa, Kahua, CT6, and Federico Blocks for a total of $38 million.

Rene Burgos: Cash generation for the quarter remained strong with cash flow from operations totaling $150 million. Thanks in part to the strong Brent oil price environment that reduction or withholding tax rates on export sales.

Speaker Change: Seat of dividend and capital payments from ONEOK and short term prepayment received from customers associated with crude sales.

Rene Burgos: Okay.

Rene Burgos: Capital expenditure for the quarter were roughly $80 million, primarily due to costs associated with drilling 30 development wells up from 21, the prior quarter and two five Gigawatts DC six and vehicle block for a total of $38 million.

Rene Burgos: On the infrastructure side, adjusted EBITDA in the second quarter of 2024 was $27.8 million, compared with $25.7 million in the prior quarter. The quarter-over-quarter increase was due to improved performance at Puerto Valle, driven by higher liquid volumes and cost optimizations, and greater sales volumes and revenues from Puerto Vallanos, a formal plantation operation, during the quarter. Volumes transported were 249,000 barrels per day during the second quarter of 2024, compared to 246,000 in the first quarter. This may be due to an increase in crude oil volume received and transported from Caliazur and Genoa's 34 blocks. ODL's EBITDA for the second quarter was approximately $68 million, down 3% on a quarter-over-quarter basis, with inflationary pressures driving higher operating costs and GMA, partially offset by slightly higher volumes as compared to the third quarter.

Rene Burgos: On the infrastructure side, adjusted EBITDA in the second quarter of 2024 was $27.8 million, compared with $25.7 million in the prior quarter. The quarter-over-quarter increase was due to improved performance at Puerto Valle, driven by higher liquid volumes and cost optimizations, and greater sales volumes and revenues from Puerto Vallanos, a formal plantation operation, during the quarter. Volumes transported were 249,000 barrels per day during the second quarter of 2024, compared to 246,000 in the first quarter. This may be due to an increase in crude oil volume received and transported from Caliazul in Genoa's 34 blocks. ODF EBITDA for the second quarter was approximately $68 million, down 3% on a quarter-over-quarter basis with inflationary pressures driving higher operating costs and GMA, partially offset by slightly higher volumes as compared to the third quarter.

Rene Burgos: Yes.

Speaker Change: On the infrastructure side adjusted EBITDA in the second quarter of 2024 was $27 8 million compared with 25%.

Rene Burgos: In the prior quarter.

Rene Burgos: Quarter over quarter increase was due to improved performance uplift Hawaii driven.

Rene Burgos: Driven by higher liquid volumes and cost optimizations, and greater sales volumes and revenues from Robert Donald automaton patient operation during the quarter.

Rene Burgos: Audio volumes transported were 249000 barrels per day during the second quarter of 2024 compared to 246000 in the first quarter.

Rene Burgos: Mainly due to an increase in crude oil volumes with deep and transported from Gartner food and Jennifer 34 blocks.

Rene Burgos: 40 of EBITDA for the second quarter was approximately $68 million down 3% on a quarter over quarter basis, with inflationary pressures driving higher operating costs and G&A.

Rene Burgos: Partially offset by slightly higher volumes.

Rene Burgos: Paired to the prior quarter.

Rene Burgos: As of June 30, 2024, the company reported a total cash position of $215 million, including $181 million of unrestricted cash, of which $142 million is in the issuer and bond guarantors. Following the quarter, the company received approximately $90 million in tax refund proceeds associated with its 2023 income tax return. Turning now to risk management, our current risk management strategy continues to show how our hedging disciplines support our operations and planning. Frontera uses instruments to manage exposure to oil prices and affect volatility.

Rene Burgos: As of June 30, 2024, the company reported a total cash position of $215 million, including $181 million of unrestricted cash, of which $142 million is in the issuer and bond guarantors. Following the quarter, the company received approximately $90 million in tax refund proceeds associated with its 2023 income tax return. Turning now to risk management, our current risk management strategy continues to show how our hedging discipline supports our operations and planning. Frontera uses instruments to manage exposure to oil prices and affect volatility.

Rene Burgos: As of June 30th 2024, the company reported a total cost decision of $215 million, including 181 million of unrestricted cash of which $142 million or in the issuer and bond guarantors.

Rene Burgos: Following the end of the quarter. The company received approximately $90 million impact recon proteins associated to its 2023 income tax return.

Rene Burgos: And on the oil side, the company entered into hedges, successfully securing a 40% hedging ratio until November 2024, protecting against a potential drop in oil prices, an average strike of $75 to $78 per barrel. Frontera has also entered into foreign exchange rate hedges totaling $90 million, covering 40% and 20% of our expected peso exposure for the third and fourth quarter, above the $4,000 peso rate, respectively. These edges provide the company with stability and help mitigate impacts from future fluctuations while allowing the business to deliver on its targets.

Rene Burgos: Turning now to risk management, our current risk management strategy continues to show, how our hedging discipline support the operations and planning.

Rene Burgos: Frontera uses instruments to manage exposure to oil price and FX volatility.

Rene Burgos: On the oil side the company enter into hedges successfully security a 40% hedge ratio until November 2024.

Speaker Change: I guess a potential drop in oil prices on average strike of 75 to $78 per barrel.

Rene Burgos: From there has also entered into foreign exchange rate hedges totaling $90 million, covering 40% and 20% of our expected pace of exposure for the third and fourth quarter above the 4000 peso rate respectively.

Rene Burgos: These synergies provide the company with stability and help mitigate impacts from future fluctuations while allowing the business to deliver on its targets. Finally, I'd like to provide an update on our shareholder development initiative. Under the company's current NCIB, which commenced on November 21st, 2023, the company has repurchased approximately 1.4 million common shares, or just over 2% of our total common shares outstanding for cancellation, for approximately $8.2 million as of August 7.

Rene Burgos: These hedges provide the company with stability and help mitigate impacts from future population, while allowing the business to deliver on historic targets.

Rene Burgos: Finally, I'd like to provide an update on our shareholder development initiative. Under the company's current NCIB, which commenced on November 21, 2023, the company has repurchased approximately 1.4 million common shares, or just over 2% of our total common shares outstanding for cancellation, for approximately $8.2 million as of August 7. With respect to our quarterly dividend on July 16th, Frontera paid approximately $3.9 million or $6.25 cents per share Canadian to the shareholders.

Speaker Change: Finally, I'd like to provide an update on our shareholder nomination.

Speaker Change: Under the company's current MTBE, which commenced on November 21, 2023, the company has repurchased approximately one 4 million common shares or just over 2% of our total common shares outstanding for cancellation.

Rene Burgos: Approximately $8 2 million as of August seven.

Rene Burgos: With respect to our quarterly dividend on July 16, Frontera paid approximately $3.9 million or $0.0625 per share Canadian to the shareholders. Together with today's results announcement, the board declared a quarterly dividend of 6.25 cents per share Canadian payable to shareholders for record as of October 2nd, 2024 on or around October 16th, 2024.

Rene Burgos: With respect to our quarterly dividend on July 16th Frontier paid approximately $2 8 million or $6 25 per share Canadian.

Rene Burgos: To the shareholders.

Rene Burgos: Together with today's results announcement, the board declared a quarterly dividend of 6.25 cents per share Canadian, payable to shareholders for record as of October 2nd, 2024, on or around October 16th, 2024. Additionally, Frontera also announced its intention to commence a substantial issuer bid, to which the company will offer to purchase $30 million of its common shares for cancellation at a fixed price per share. The terms of the SIB, including pricing, will be determined in due course, and the company expects that it will be completed in October 2024. The SID will not be conditional upon any minimum number of shares being tendered and will be subject to conditions customary for transactions of this nature.

Rene Burgos: Together with today's results announcement, the board declared a quarterly dividend of $6 25 per share Canadian payable to shareholders of record as of October 2nd 2024 on around October 16 2024.

Rene Burgos: Additionally, Frontera also announced its intention to commence a substantial issuer bid, through which the company will offer to purchase $30 million of its common shares for cancellation at a fixed price per share. The terms of the SIV, including pricing, will be determined in due course, and the company expects that it will be completed in October 2024. The SID will not be conditional upon any minimum number of shares being tendered and will be subject to conditions customary for transactions of this nature.

Rene Burgos: Additionally, frontier also announced its intention to command a substantial issuer bid.

Rene Burgos: To which the company will offer to purchase $30 million of its common shares for cancellation at a fixed price per share.

Rene Burgos: The terms of the.

Rene Burgos: Pricing will be determined in due course, and the company expects that it will be completed in October 2024.

Rene Burgos: <unk> will not be conditional upon any minimum number of shares being tendered and will be subject to conditions customary for transactions of this nature.

Rene Burgos: As our chairman said, this proposed distribution highlights the strong financial results of the first half of 2024. And the company believes this format, the SIB, is the most efficient means to distribute capital to all of our shareholders and looks forward to the launch of this process soon. Together with the proposed SID, the company is poised to return more than $51 million of capital to its stakeholders so far this year, including $11.7 million in declared dividends, $6.7 million of common share repurchases, and $3.5 million in buybacks of its 2028 unsecured notes.

Speaker Change: As our chairman said this proposed distribution and highlight the strong financial results of the first half of 2024.

Rene Burgos: And the company believes this format.

Rene Burgos: Is the most efficiently distribute capital to all of our shareholders and look forward to the launching of this process soon.

Rene Burgos: Together with the proposed SMB the company's points of return so far this year over $51 million of capital to our stakeholders, including $11 7 million and declared dividends of $6 7 million of common share repurchases and $3 $5 million buyback of its 2028 unsecured notes.

Rene Burgos: Frontera continues to take actions to unlock value for all of its stakeholders and is committed to its efforts for the remainder of 2024 and beyond, including the ongoing strategic review processes, as well as potential additional distribution. I would like to now turn the call back to you. Thank you. Thank you, Rene. Before I wrap up today's call, I would like to highlight that Frontera achieved 48% of its sustainability goals for the year. During the second quarter, Frontera expanded its protection and preservation activities to 168 hectares.

Rene Burgos: From that are continued to take actions to unlock value for all stakeholders and is committed to separate for the remainder of 2024 and beyond.

Rene Burgos: Including the ongoing strategic review processes as well as potential additional distributions.

Speaker Change: I would like to note that our conductor in London.

Rene Burgos: Okay.

Orlando Cabrales: Thank you. Thank you, Rene. Before I wrap up today's call, I would like to highlight that in the Quarter, Frontera achieved 48% of its sustainability goals for the year. During the second quarter, Frontera expanded its protection and preservation activities to 168 hectares.

Speaker Change: Thank you. Thank you are there before.

Rene Burgos: Before I wrap up today's call I would like to highlight that in the quarter from <unk>, 48% of its superiority the goals for the year.

Rene Burgos: During the second quarter from data expanded its protection and preservation of coverage activities to 168 acres.

Orlando Cabrales: The company invested $500,000 in projects in communities near our operations in Colombia, Ecuador, and Guyana and purchased 10.7% of our total goods and services from local suppliers. And finally, the joint venture and the government of Guyana have engaged in regular, constructive, and collaborative conversations throughout the joint venture's tenure on the quarantine block, including discussions regarding the notice of potential commercial interest for the wave one discovery, timing, and conditions under which further activities could be performed in the quarantine block.

Speaker Change: The company invested $500000 in projects and communities near our operations in Colombia, Ecuador, and Guyana. Unfortunately is 10.7% of our total goods and services from local suppliers.

Speaker Change: And finally, the joint venture and the government of Great Donna have engaged in regular constructive.

Speaker Change: Colella co Lour based conversations throughout the joint venture Sandler O'neill currently block.

Speaker Change: Including discussions regarding the notice of potential mature interest toward the way, one discovery timing and conditions under which for the activities could be performed in the current environment.

Orlando Cabrales: The JV looks forward to completing these discussions in an expeditious manner and will provide an update as soon as possible, along with our active pursuit of a strategic alternative for our interest in the quarantine block in Guyana, which is still ongoing, and our recently announced strategic alternative review for our growing Colombian infrastructure business. The company remains focused on unlocking value from the sum of its parts.

Speaker Change: The JV looks forward to completing these discussions in an expeditious manner and will provide an update as soon as brook.

Rene Burgos: Hello.

Rene Burgos: Along with our active pursuit of strategic alternatives for our interest in the accounting block in Guyana, which is still ongoing and our recently announced strategic alternatives review for our growing Colombian infrastructure business.

Rene Burgos: The company remains focused on unlocking value from the some of its parts.

Orlando Cabrales: With that, I would like to conclude by saying thank you to Gabriel and Rene for their comments, and thank you everyone for attending our call. I will now turn the call back to our operator, who will open up the line for questions. Ladies and gentlemen, we will now begin

Speaker Change: With that I would like to conclude by saying Thank you for Gabriele diner for the comment and thank you everyone for attending our call.

Speaker Change: I will now turn the call back to our operator will open up for questions.

Speaker Change: Thank you.

Gabriel de Alba: With that, I would like to conclude by saying thank you to Gabriel and Rene for their comments, and thank you everyone for attending our call. I will now turn the call back to our operator, who will open up the call for questions. Ladies and gentlemen, we will now begin the call.

Operator: Ladies and gentlemen, we will now begin the question and answer session. Should you have a question, please press the star followed by the number on your touch-tone phone. You will hear a three-tone prompt acknowledging your request. If you would like to remove a question, please press star followed by 2. And if you are using a speakerphone, please lift the handset before pressing any key. One moment, please, for your first question. Your first question comes from Daria Lima at Bloomberg Intelligence. Please go ahead. Good morning, everyone.

Gabriel de Alba: The company invested $500,000 in projects in communities near our operations in Colombia, Ecuador, and Guyana and purchased 10.7% of our total goods and services from local suppliers. And finally, the joint venture and the government of Guyana have engaged in regular, constructive, and collaborative conversations throughout the joint venture's tenure on the quarantine block, including discussions regarding the notice of potential commercial interest for the wave one discovery, timing, and conditions under which further activities could be performed in the quarantine block.

Gabriel de Alba: The JV looks forward to completing these discussions in an expeditious manner and will provide an update as soon as possible, along with our active pursuit of a strategic alternative for our interest in the quarantine block in Guyana, which is still ongoing, and our recently announced strategic alternative review for our growing Colombian infrastructure business. The company remains focused on unlocking value from the sum of its parts.

Speaker Change: Ladies and gentlemen, we will now begin the question and answer session should you have a question. Please press the star followed by the one on your Touchtone phone.

Tom: Tom prompt acknowledging your request.

Speaker Change: If you would like to remove your question. Please press star followed by Q.

Speaker Change: And if you are using a speaker phone please lift the handset before pressing any case.

Operator: Ladies and gentlemen, we will now begin the question-and-answer session. Should you have a question, please press the star followed by the number on your touch-tone phone. You will hear a three-tone prompt acknowledging your request. If you would like to remove a question, please press star followed by 2. And if you are using a speakerphone, please lift the handset before pressing any key. One moment, please, for your first question. Your first question comes from Daria Lima at Bloomberg Intelligence. Please go ahead. I'm on mute.

Speaker Change: One moment. Please for your first question.

Operator: Yes.

Speaker Change: Your first question comes from Gary Lima at Bloomberg Intelligence. Please go ahead.

Daria Lima: Hi, Hello. Congratulations on a great quarter. I just have a couple of questions. So I just have a couple of questions.

Daria Lima: Hi, hello, congrats on a great quarter. I just have a couple of questions.

Operator: Hi.

Operator: Hello.

Daria Lima: Congrats on another great quarter I, just have a couple of questions.

Daria Lima: Hello.

Unnamed: Can you hear me? Yes, we can hear you. We can hear you.

Operator: Can you hear me? Yes. We can hear you. We can hear you.

Speaker Change: And again, yes, we can we got here, we can hear you yes, okay.

Daria Lima: Yes. Okay. Great. Thank you.

Daria Lima: Yes. Okay. Great.

Daria Lima: Great, thank you. So my first question is on the cost base. I noticed that your energy costs are down, but your production costs have expanded. Could you please shed some light on that?

Unnamed: Great, thank you. So my first question is on the cost base. I noticed that your energy cost is down, but your production costs have expanded. Could you please shed some light on that?

Daria Lima: Great. Thank you. So my first question is on the cost base I noticed that your energy cost comes down all over your production costs have expanded could you. Please shed some light.

Unnamed: Okay.

Rene Burgos: As we said earlier, there are two things happening on the energy side. We continue to see a normalization of energy prices, particularly electricity costs, now that the dry season is over. And we actually do expect electricity costs to continue to trend lower for the remainder of the year. Today, for example, electricity costs account for 31% of our consumption, and yet they are still around close to 50% of our total cost, so we expect to continue to see some benefits there going forward.

Rene Burgos: As we said earlier, there are two things happening on the energy side. We continue to see a normalization of energy prices, particularly electricity costs, now that the dry season is over. And we actually do expect electricity costs to continue to trend lower for the remainder of the year. Today, for example, electricity costs account for 31% of our consumption, and yet they are still around close to 50% of our total cost. So we expect to continue to see some benefits there going forward.

Unnamed: As we said earlier there is two things happening on the energy side, we continue to see a normalisation.

Rene Burgos: Of energy prices, particularly electricity costs now that the dry season is over and we actually do expect electricity costs continued to trend lower for the remainder of the year.

Rene Burgos: Today for example, electricity costs account for 31% of our consumption and yet they were still around close to 50% of our total cost. So we expect to continue to see some benefits there going forward.

Rene Burgos: On the operation side, we have had – we communicated this last quarter – included additional workover activity in some of our blocks to optimize our production, potentially CapEx, and that has increased our cost. However, we have also seen the impact of FX and persistent inflation driving some of these costs higher. We expect those to normalize over the rest of the year, but we're still kind of in the middle of that.

Rene Burgos: On the operation side, we have had – we communicated this last quarter – included additional workover activity in some of our blocks to optimize our production due to potential cutbacks, and that has increased our cost. However, we have also seen the impact of FX and persistent inflation driving some of these costs higher. We expect those to normalize over the rest of the year, but we're still kind of in the middle of that.

Rene Burgos: On the operation side, we have had.

Rene Burgos: We communicated this last quarter, we've included additional workover activity.

Speaker Change: In some of our blocks to optimize our production this can be potentially capex and that has increased our cost. However, we have also seen the impact of FX and persistent inflation driving somewhat plus higher.

Rene Burgos: We expect those to normalize.

Rene Burgos: Oh the of the or the the rest of the year, but we're still kind of in the middle of that impact.

Daria Lima: Thank you. That's very clear. And just a second question on the Reficar connection. What do you estimate its EBITDA contribution would be and what would the timeline be for that?

Daria Lima: Thank you. That's very clear. And just the second question on the refi car connection: what do you estimate its EBITDA contribution would be and what would the timeline be for that?

Rene Burgos: Thank you that's very clear.

Speaker Change: And just the second question on the electric car connection.

Daria Lima: Thanks.

Speaker Change: What do you estimate the EBITDA contribution would be and what would be the timeline for that.

Rene Burgos: We are very excited about the Refica connection, and we expect it to become operational in December of this year.

Orlando Cabrales: We are very excited about the Refica connection, and we expect it to become operational in December of this year.

Speaker Change: We are very excited about that I think our connection we expected to become operational in December of this year and we believe this is something that would help the economy in the rigid and support.

Rene Burgos: We believe this is something that would help the economy in the region and support the significant investment by Ecopetrol in the Refica refinery. What we have guided to is that we believe a significant amount of volumes are going to go through the port, potentially even doubling the volumes of the port, if you think about it, as measured by the capacity of the pipe, but we have not yet indicated or guided on an EBITDA number.

Orlando Cabrales: We believe this is something that would help the economy in the region and support the significant investment made by Ecopetrol in the Refica refinery. What we have guided to is that we believe a significant amount of volumes are going to go through the port, potentially even doubling the volumes of the port, if you think about it, as measured by the capacity of the pipe, but we have not yet indicated or guided on an EBITDA number.

Rene Burgos: Difficult investment made by Ecopetrol S a refinery.

Speaker Change: Well, we have guided to.

Rene Burgos: We believe a significant amount of volumes are going to go through the port potentially doubling that onto the port. If you think about it as measured by the capacity of the pipe, but we have not yet indicated our guidance on an EBITDA number.

Orlando Cabrales: However, we do believe that the potential value or EBITDA driver here is significant, but it's measured just on a volume basis. Just to give you some color, as you can see in the press release, we handled around 64,000 barrels of liquids in the port in the second quarter. The connection line that we are building, as we speak, and we expect to become operational by the end of the year, has the capacity to handle 84,000. So that is why I am saying that this has the capacity to double, in terms of volumes, the handling of liquids in the port.

Rene Burgos: However, we do believe that the potential value or EBITDA driver here is significant if messages on a volume basis.

Rene Burgos: However, we do believe that the potential value or EBITDA driver here is significant, but it's measured just on a volume basis. Just to give you some color, as you can see in the press release, we handled around 64,000 barrels of liquids in the port in the second quarter. The connection line that we are building, as we speak, and we expect to become operational by the end of the year, has the capacity to handle 84,000. So that is why I am saying that this project has the capacity to double, in terms of volumes, the handling of liquids in the port.

Rene Burgos: Just to give you just to give you some.

Rene Burgos: Some corner.

Rene Burgos: As you can see in the press release, we are handling it in the second quarter, we had around 64000 borrowers.

Rene Burgos: Of liquids.

Speaker Change: The board.

David: David a connection line that we are building a flu season, we expect to become operational by the end of the year.

Speaker Change: The capacity to handle 84000, so that is why isn't it a shame that these horizontal display has the capacity to double.

Rene Burgos: Ballrooms.

Speaker Change: Beyond renal of liquids in the court.

Rene Burgos: Okay.

Orlando Cabrales: I see. Thank you. And do you expect to use this new pipeline to its maximum capacity? We, with, again,

Daria Lima: I see. Thank you. And do you expect to use this new pipeline to its maximum capacity?

Speaker Change: I see thank you.

Speaker Change: Expect to you think theres any pipeline to maximum capacity.

Rene Burgos: We, I think what we said earlier, our agreement with the cooperator for the connection is a take and pay. So that's what we're guiding based on, on, on volumes. And we would expect, look, we want to maximize the value. And I think there is a lot to be said about the benefits to our competitors. And let's be clear by doing so.

Orlando Cabrales: We, I think what we said earlier, our agreement with the Cooperative for the Connection is a take and pay. So that's what we're guiding based on volumes. And we would expect, look, we want to maximize the value. And I think there is a lot to be said about the benefits to our competitors. And let's be clear by doing so.

Speaker Change: We are getting with what we said earlier our agreement with a competitor for the connection is a take or pay.

Rene Burgos: So that's why we're guiding based on on on volumes.

Rene Burgos: And we would expect look we want to maximize the value and I think there is a lot to be set up all the benefits to our company and let me start by doing it.

Speaker Change: Okay. Thank you.

Rene Burgos: Yeah.

Operator: Thank you. The next question comes from Christian Ferra at K&G Security. Go ahead.

Christian Ferra: Thank you. The next question comes from Christian Ferra at K&G Security. Go ahead.

Speaker Change: Thank you. The next question comes from question Sarah at J&J Securities. Please go ahead.

Christian Ferra: Hello everyone. Thanks for the presentation and congratulations on the results. So I have three questions. If you don't mind, I'd like to go one by one. The first question is regarding the tax situation. Could you please provide us with some color on that? Specifically, why did you receive this $19 million refund, and what are the taxes that we should expect for the full year?

Christian Ferra: Hello, everyone. Thanks for the presentation and congratulations on the results. I have three questions. If you don't mind, I'd like to go one by one. The first question is regarding the tax situation. Could you please provide us with some color on that? Specifically, why did you receive this $19 million refund, and what are the taxes that we should expect for the full year?

Christian Ferra: Hello, everyone. Thanks for the presentation and congratulations for the results.

Rene Burgos: Ah, no, excellent. So thank you very much for your question, Christine. So two – your two questions. The second question, which I'll tackle first, we are in line with our guidance as it relates to the net cash taxes to pay for the year. So I'll point you to that.

Christian Ferra: So I have three questions.

Speaker Change: I like to go one by one.

Rene Burgos: I think that we said we expected to pay for the year net taxes or receive a net benefit of between $10 and $20 million. So that is in line with that. As it relates to the tax situation, we need to remember that we pay taxes in primarily two ways. One is the withholding that we make, and we make a withholding based on 5.6% every year, every month, and that's on our crude sales.

Christine: The first question is regarding the tax situation, if you could provide us a little color on that.

Rene Burgos: <unk> why did you receive this $90 million.

Rene Burgos: <unk>.

Speaker Change: Well what.

Rene Burgos: What are the taxes that we should expect for the full year.

Rene Burgos: And then at the end of the year, when we actually file our tax declaration, then we pay up the difference. And hopefully, this will help me answer the second question, sorry, your first question. So on your first question, data has carried significant deferred tax assets for years. And what has happened is with the government increasing the tax rate to 50%, some of these dollars have now been accelerated, and what that $99 dollar recovery is the repayment of last year's tax payments in excess of our actual tax bill as offset by our DTA. That's effectively what it is, and the process to get a tax refund is one that started in March, and we successfully concluded that in July.

Rene Burgos: Ah, no, excellent. So thank you very much for your question, Christian. So two – your two questions. The second question, I'll tackle first. We are in line with our guidance as it relates to the net cash taxes to pay for the year. So I'll point you to that.

Rene Burgos: No excellent.

Rene Burgos: Thank you very much for your question Christian.

Rene Burgos: I think that we said we expected to pay for the year net taxes or receive a net benefit of between $10 and $20 million. So that is in line with that. As it relates to the tax situation, you need to remember that we pay taxes in primarily two ways. One is the withholding that we make, and we make a withholding based on 5.6% every year, every month, and that's on our crude sales.

Speaker Change: So to hear to question. The second question I'll tackle first.

Christian Ferra: And if so, or if not, do you plan to use all these $30 million by 2024?

Speaker Change: In line with our guidance as it relates to two.

Rene Burgos: Okay, so that means that by October you should be using these 30 million dollars to buy back the shares. Yeah. Thanks. And the third question is regarding your PIL loan. So I was wondering if, in case you sell the ODL pipeline, your stake, will you need to repay this loan, or are you interested in doing so?

Christian Ferra: Net cash taxes to pay for the year. It's all pointing me to that I can say, we said, we expect to pay for the year net taxes or we see a net benefit of between $10 million to $20 million. So that is in line with that.

Christian Ferra: Okay, that's great. Thank you so much.

Rene Burgos: And then at the end of the year, when we actually file our tax declaration, then we pay up the debt, and hopefully this will help me answer the second question, sorry, your first question. So on your first question, data has carried significant deferred tax assets for years, and what has happened is that the government has increased the tax rate by 50%. Some of these dollars have now been accelerated, and what that $99 recovery is the repayment of last year's. We're holding tax payments in excess of our actual tax bill as offset by our DTA. That's effectively what it is. And the process to get a tax refund is one that started in March, and we successfully concluded that in July.

Speaker Change: It relates to a tax situation you need to remember that we paid taxes in primarily two ways.

Speaker Change: One of our holdings that we make and we make up with holding base up five 6% every year every month.

Speaker Change: And that's on a crude sale and then at the end of the year when we actually file our tax declaration that we pay up the difference.

Speaker Change: Hopefully this will help me answer the second question sorry. Your first question. So on your first question from data has carried significant deferred tax assets for years and what is happening with the government increasingly.

Speaker Change: The tax rate to 50% some of them have now been a celebrated and what that $90 million recovery.

Speaker Change: The repayment of.

Speaker Change: Last years.

Christian Ferra:

Speaker Change: Withholding tax payments in excess of our actual tax bill is offset by our VTS. That's effectively what it is and deposits do get a tax refund is one that started in March and we were successfully concluded that in July.

Speaker Change: Does that make sense.

Rene Burgos: Okay. Yeah, that's great. Thanks. My second question is regarding this repurchase program, the new repurchase program that you announced. So will this be contingent on the infrastructure business sale, and if so, or if not, do you plan to use all these $30 million by 2034?

Christian Ferra: Okay, Yeah, that's great. Thanks.

Speaker Change: My second question is regarding these a.

Speaker Change: Our repurchase program and your repurchase program that you announced.

Judy: So will this be contingent Judy infrastructure business sale.

Christian Ferra: And.

Christian Ferra: If so or if not do you plan to use all of these are $30 million by 2024.

Rene Burgos: So look, this is a great question, and I want to do two things.

Speaker Change: So look this is a great question and one.

Rene Burgos: One, I will point people back in time. In June of 2022, we announced an SID. And at that time, we repurchased roughly $50 million worth of shares. At that time, we also used a modified dot auction process to perform that SID. This time around, we're assuming this process is one that is going to be launched. We hope to launch it in the next few weeks, and we expect to end it in October. So to answer your question, no, it's not contingent on any particular transaction.

Speaker Change: I wanted to do two things one I will point people back in time in in June of 2022, we announced and then sandy.

Christian Ferra: And at that time, we repurchased roughly $50 million worth of shares.

Christian Ferra: At that time, we also used a modified Dutch auction process.

Speaker Change: If you perform that.

Speaker Change: This time around we're assuming a mid process is one that it's going to be launched.

Speaker Change: We hope to relaunch it over the next few weeks and we expect to enter in October So to answer your question no its not contingent on any strategic transaction.

Rene Burgos: It is just a matter of time for us to get our documentation ready and be able to launch it for shareholders to participate. The second thing that I would say is, as we analyze the different alternatives for us to distribute capital to shareholders, an SIV at a fixed price is the most attractive way and the most efficient way, considering the jurisdiction and location of the different shareholders that support this company. So we hope for the full participation of all of our investors because this, we believe, is the best, cleanest, and most efficient way to distribute this capital back.

Speaker Change: Matter of time for us to get our documentation ready and be able to answer for travelers to participate.

Speaker Change: Second thing that I would say to that is as we analyze the different alternatives for us to distribute capital to shareholders and <unk> at a fixed price is the most attractive way.

Speaker Change: And the most efficient way considering the jurisdiction and.

Speaker Change: Location of the different shareholders that support this company. So we hope the full participation of all of our investors. Because this we believe is the best way cleanest and most efficient way to distribute capital back.

Christian Ferra: Okay. So that means that by October you should be using this $30 million due to a buyback shares.

Christian Ferra: Yes.

Christian Ferra: Okay.

Dean: Thanks Dean.

Christian Ferra: The third question is regarding your <unk> alone.

Christian Ferra: So I was wondering that in case, you sell D O D L pipeline your stake.

Speaker Change: Will you need to repay this loan or are you interested in doing so thanks.

Rene Burgos: Look, firstly, I would really like to thank the team at Macquarie and our other lenders. They have been very supportive of us, also providing us with capital to build the NETICAR connection. So, we're very thankful, and we built a very strong relationship with them. So, we appreciate their support. As part of a potential transaction and monetizing some of our assets, the clearest path would be for us to repay that loan. And I think there are some covenants associated with that. And also, it is an expensive loan for what we believe is the value of the underlying assets. So, our running assumption in the event of a potential monetization is that that facility gets repaid.

Speaker Change: Look I, firstly I would like to really thank the team at Macquarie and our other lenders.

Speaker Change: There have been very supportive of US also probably capital to build.

Speaker Change: To build that and I think our connection so we're very very thankful and we built a very strong relationship with them. So we appreciate their support as part of a potential transaction.

Speaker Change: Monetizing tomorrow asset the most clear path would be forced to repay that loan.

Speaker Change: And I think there are some covenants associated with that.

Speaker Change: And also it is look at it is an expensive loan for what we believe is the value of the underlying assets.

Speaker Change: I'm running assumption is in the event of any potential monetization in that facility gets repaid.

Operator: Okay, that's great. Thank you so much. Thank you. Ladies and gentlemen, as a reminder, should you have any questions, please press star 1.

Christian Ferra: Okay. That's great. Thank you so much.

Operator: Thank you, ladies and gentlemen. As a reminder, should you have any questions, please press star 1. Your next question comes from Juan Cruz at Morgan Stanley. Please go ahead.

Speaker Change: Thank you, ladies and gentlemen, as a reminder, should you have any questions. Please press star one.

Chris <unk>: Your next question comes from Chris <unk> at Morgan Stanley. Please go ahead.

Juan Cruz: Good morning, team Frontera, and congrats on the nice results. Thank you. Bye. Bye.

Juan Cruz: Good morning, Tim Frontera, and congrats on the nice results.

Operator:

Operator: Perhaps you can help us understand a little bit more what's happening with the Guyana operation. With the Guyana operation, there was some confusion in the marketplace last week because there was a statement made by the government about some licenses that CDX and Frontera own in some of the blocks. There was some noise, some noise about whether or not they would be extended, and that caused some sort of confusion in the marketplace. Maybe you can help us explain what that means for you and what that means if it's, in fact, valid or if not at all.

Juan Cruz: Perhaps you can you can help us understand a little bit more what's happening with the. That's all.

Juan Cruz: Perhaps you can you can help us understand a little bit more what's happening with the.

Speaker Change: Well the Guyana operation there was some confusion in the marketplace last week because.

Speaker Change: It was a statement made by the government about.

Speaker Change: Some licenses that CTX and from there our own.

Speaker Change: And some of the blocks that there was a noise some some noise about whether or not there will be <unk>.

Speaker Change: Extend that.

Juan Cruz: And that cost some some sort of confusion in the marketplace, maybe you can help us.

Juan Cruz: Explain what what that means for you and what that means.

Speaker Change: If it's in fact violate our or if not are all.

Operator: You know, what that means for the different blocks, either the quarantine or if this affects, in any way, shape, or form, your efforts to farm down or to find partners for your operation in Guyana. That's all.

Juan Cruz: You know what that means for the different blocks say that our current INR or if this FX in any way shape or form.

Speaker Change: Your efforts to to farm down or to find partners.

Speaker Change: For your operation in Guyana.

Juan Cruz: That's all.

Juan Cruz: Okay.

Orlando Cabrales: Thank you. Thank you.

Speaker Change: Thank you. Thank you. Thank you for the for your question.

Juan Cruz: Thank you, Juan, for the question. As I mentioned earlier, the JPE and the Government of Guyana are continuing, I mean, we are continuing with regular, very constructive, constructive, and collaborative conversations throughout the JV tenure in the current team's office, including discussions regarding conditions under which the activities could be performed by the JV in the block. So we will continue with those conversations. We will continue with our purpose.

Speaker Change: As I mentioned earlier.

Speaker Change: The JV on the on the Gordon of Diana <unk>.

Speaker Change: We are continuing.

Speaker Change: We are competing with you Sir.

Speaker Change: Redwood are very constructive constructs different collaboration conversations.

Speaker Change: Throughout the JV staying on the <unk> block.

Unnamed: including discussions regarding conditions and weight.

Speaker Change: Including including discussions regarding the conditions under which.

Speaker Change: Further Florida is could be could be performed.

Speaker Change: By the by the JV in the in the block.

Speaker Change: So so we will compete we will continue with those conversations will continue with our payables were fully on the lucky.

Juan Cruz: We are fully unlocking value in the block, and we will provide an update to the market as soon as possible. So that's the only thing that I can say at this point in time.

Speaker Change: No problem.

Speaker Change: In the block.

Speaker Change: We will provide certainly an update to the market as soon as soon as practical. So that's that's the only thing that I.

Speaker Change: I can say at this point in time.

Unnamed: Okay, so as far as we're concerned, the process continues normally. All right, so no changes to your licenses. No potential, you know, return of any blocks.

Orlando Cabrales: Okay, so as far as we're concerned, the process continues normally. Scotty Correia.

Speaker Change: Okay. So as far as we're concerned the process continues normally.

Speaker Change: That is correct yes.

Unnamed: Okay.

Juan Cruz: Yes. All right, so no changes to your licenses. No potential, you know, return of any blocks.

Unnamed: Alright, so no changes for your licenses.

Unnamed: Now potential return of any blocks.

Unnamed: So the timing.

Orlando Cabrales: No, no changes, and as I said, we will provide the upgrade as soon as possible.

Unnamed: No no no change there and as I said, we will provide the update us when there's a cyclical.

Operator: Okay, fair enough. Thank you.

Unnamed: Okay, fair enough. Thank you.

Speaker Change: Okay fair enough. Thank you.

Speaker Change: Thank you everyone.

Daria Lima: Thank you. Next question from Daria Lima at Bloomberg Intelligence: please go ahead.

Operator: Thank you. Next question from Daria Lima at Bloomberg Intelligence: please go ahead.

Unnamed: Thank you next question from Jerry Lima at Bloomberg Intelligence. Please go ahead.

Operator: Hi, thank you. My question was just asked by Juan. So everything is OK here. Thank you.

Daria Lima: Hi. Thank you. My question was just asked by Juan. So, all good here. Thank you.

Daria Lima: Hi. Thank you. My question was just asked by colon. So all good here. Thank you.

Operator: Thank you. Next question from Christine Guerrero at Octane Investment. Pardon me, but this does conclude our Q&A session. I will turn the call back over to you for closing comments.

Speaker Change: Thank you next question is from Christian Gebara at octane investments.

Speaker Change: This does conclude our Q&A session I will turn the call back over for closing comments.

Operator: But I think you said that Christine was going to ask something?

Speaker Change: And I think you set up the athene was willing to Washington.

Operator: Christine is no longer in queue. I apologize.

Speaker Change: Christine has no longer in Q I apologize.

Operator: Sorry.

Speaker Change: One moment please.

Operator: I think you mentioned that Christine was going to ask something, but...

Speaker Change: I think you mentioned that we came in was wanting to ask something about.

Operator: Sure.

Operator: Yes, Christine, please go ahead; your line is open. Uh, yeah.

Operator: Yes, Christine, please go ahead; your line is open.

Speaker Change: Yes, Christine. Please go ahead your line is open.

Christine Guerrero: Yes, thank you. Thank you for taking my question. I was wondering why I was bumped out of the queue, but I'm I've still been here.

Christine Guerrero: Yes, thank you. Thank you for taking the time to answer my question. I was wondering why I was bumped out of the queue, but I'm I've still been here. So, kind of cycling back to the statements being made by the vice president of Guyana in his weekly press conferences. So, what I'm wondering is if, for some reason, the extension does not get granted, is there going to be any legal recourse in order to recover the sunk costs from the government of Guyana since they appear to be acting in bad faith?

Christine: Yes. Thank you. Thank you for taking my question I was I was wondering why I was bumped out of the queue, but I'm.

Christine Guerrero: So, kind of cycling back to the statements being made from the vice president of Guyana in his weekly press conferences. He recently stated that, you know, right now, the quarantine license appears to be in limbo because the extension hasn't been granted as CGX did not supply the government sufficient information about their financial capabilities. But really, if you look at the state of CGX and Frontera, I mean, nothing has really changed with these two companies since they acquired the license.

Christine Guerrero: <unk> been here.

Christine Guerrero: So kind of cycling back to the statements being made from the Vice President of Guyana in his weekly press conferences.

Speaker Change: He's he's recently stated that right now the <unk> license appears to be in limbo, because the extension hasn't been granted as C. G X did not.

Speaker Change: By the government citation.

Speaker Change: Your information of their financial capabilities, but that really if you look at the state of CTX and from Tara I mean, nothing has really changed with these two companies since they acquired the licenses. So what I'm wondering is this is it for some reason the extension does not get granted is.

Christine Guerrero: So, what I'm wondering is if, for some reason, the extension does not get granted, is there going to be any legal recourse in order to recover the sunk costs from the government of Guyana since they appear to be acting in bad faith?

Christine Guerrero: Theyre going to be any legal recourse in order to recover the sunk cost from the government of Guyana.

Christine Guerrero: They appear to be acting in bad faith.

Unnamed: Christine, thank you for your question, and to be honest, I don't have anything else to add to what I previously said in responding to one's question.

Orlando Cabrales: Christine, thank you. Thank you for your question. And to be honest, I don't have anything else to add to what I previously said in responding to Juan's question. The conversations are regular, we believe they are very constructive, and we will continue to have those conversations. So, to be honest, there's nothing else to add.

Christine Guerrero: Hey, Christine. Thank you. Thank you for your question on.

Speaker Change: To be honest I don't have anything else to add to what I. Previously said it was only one question.

Speaker Change: And the other conversations on a regular we believe are very constructive.

Speaker Change: We will continue to have those conversations.

Speaker Change: To be honest, helping multinationals.

Christine Guerrero: Okay, yeah, like I said, I was wondering about the legal aspects of it. But I, I think I think getting that made public is probably good enough.

Christine Guerrero: Okay. Yeah. I just, like I said, I was wondering about the legal point of it, but I think, I think getting that made public is, is probably good enough. Because, like I said, it appears to be a bad faith issue on the part of the government if the JV has been fulfilling its requirements and yet the license extension isn't forthcoming because, You know, traditionally speaking within the industry, that would have been a rubber stamp situation.

Speaker Change: Okay. Yeah, I, just like I said I was I was wondering about the legal point of it but I think I think getting that are made public is probably good enough.

Speaker Change: Because like I said this it appears to be a bad state issue on the part of the government. If the JV has been fulfilling its requirements.

Speaker Change: And yet the license extension isn't forthcoming because that that.

Speaker Change: Traditionally speaking within the industry that would've been a rubber stamp situation.

Orlando Cabrales: Thank you, Christine. Thank you for your question.

Unnamed: Thank you, Christine. Thank you for your question.

Speaker Change: Thank you Christine and thank you for your question.

Unnamed: Thanks.

Operator: Thank you. We don't have any further questions. You may proceed with your closing comments.

Speaker Change: Thank you we don't have any further questions. You may proceed with closing comments.

Orlando Cabrales: Thank you, thank you, thank you, thank you, thank you everyone for attending today's call. Thank you, Gabriella, and Rene.

Speaker Change: Thank you. Thank you. Thank you very good. Thank you everyone for attending various cool. Thank.

Paul: Thank you Paul.

Operator: Ladies and gentlemen, this concludes your conference for today. We thank you for participating, and we ask that you please disconnect your lines.

Speaker Change: Ladies and gentlemen. This concludes your conference for today, we thank you for participating and we ask that you. Please disconnect your lines.

David Brown: Here in the Radcliffe building, and by the way, your company name. The company calling from is Aira, that is A-I-E-R-A.

Q2 2024 Frontera Energy Corp Earnings Call

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