Q2 2024 Alvopetro Energy Ltd Earnings Call

August 8, 2024

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Enter your participant ID, followed by, you have joined the meeting as an attendee and will be muted throughout the meeting. Presentation, so you can use the Q&A button on your screen to submit any questions, and we'll get to those at the end of the presentation.

Unknown Executive: presentation. So you can use the Q&A button on your screen to submit any questions, and we'll get to those at the end of the presentation. Alternatively, if you're dialing in, you can send any questions you have to socialmedia at alvopetro.com, and we will also get to those questions. And lastly, just a friendly reminder that we do go through various non-GAAP measures throughout this presentation, as well as make various forward-looking statements. So please review all of the cautionary statements and other disclosures that you can find at the end of our presentation that's posted on our website.

Unknown Executive: Presentation. So you can use the Q&A button on your screen to submit any questions. And we'll get to those at the end of the presentation. Alternatively, if you're dialing in, you can send any questions you have to social media at Alvopetro.com. And we will also get to those questions.

Unknown Executive: Alternatively, if you're dialing in, you can send any questions you have to social media at alvopetro.com and you'll also get to those questions.

Unknown Executive: And lastly, just a friendly reminder that we do go through various non-GAAP measures throughout this presentation, as well as make various forward-looking statements.

Unknown Executive: And lastly, just a friendly reminder that we do go through various non-GAAP measures throughout this presentation, as well as make various forward-looking statements, so please review all of the cautionary statements and other disclosures that you can find at the end of our presentation.

Unknown Executive: And lastly, just a friendly reminder that we do go through various non-gap measures throughout this presentation, as well as make various forward looking statements. So please review all of the cautionary statements and other disclosures that you can find at the end of our presentation that's posted on our website.

Unknown Executive: So please review all of the cautionary statements and other disclosures that you can find at the end of our presentation that's posted on our website.

Unknown Executive: that's posted on our website.

Adrian Audet: Thank you, Alison. So just to start with production here. So, since we came on production from our cap-array project on July 5th of 2020, I think we've posted some pretty good results here. Just a reminder, our first couple of quarters we came on production roughly at our pre-commercialization expectation levels, which were equal to our firm volumes within our BEA gas contract and also equal to our share of unit, our working interest share of unit production. For several quarters after that, our partner wasn't nominating for gas, and we were able to sell all that access to the BEA gas on a flexible or interruptible basis.

Unknown Executive: Thank you, Alison. So, we just start with production here. So, since we came on production from our Cabaret project on July 5th, 2020, I think we've posted some pretty good results here. Just a reminder, in our first couple of quarters, we came on production roughly at our pre-commercialization expectation levels, which were equal to our firm volumes within our VEA gas contract and also equal to our share of unit, our working interest share of unit production.

Alison: Thank you, Alison.

Unknown Executive: So, just to start with production here. So, since we came on production from our cabaret project on July 5th of 2020,

Alison Howard: Thank you, Alison.

Adrian Audet: So just to start with production here. So since we came on production from our cap-array project on July 5th of 2020, I think we've posted some pretty good results here. Just a reminder, our first couple of quarters we came on production roughly at our pre-commercialization expectation levels, which were equal to our firm volumes within our BEA gas contract and also equal to our share of unit, our working interest share of unit production.

Speaker Change: I think we've posted some pretty good results here. Just a reminder, our first couple of quarters, we came on production roughly

Unknown Executive: at our pre-commercialization expectation levels, which were equal to our firm volumes within our BEA gas contract and also equal to our share of unit, our working interest share of unit production.

Unknown Executive: For several quarters after that, our partner wasn't nominating for gas, and we were able to sell all that excess to Bahia Gas on a flexible or interruptible basis. So, you saw some pretty significant production increases through this period of time. We also expanded our gas plant, our gas processing facility, in the 3rd quarter of 2022 and had an increase there as well. And then, in the 2nd quarter of last year, our partner started nominating for more gas, and we also saw some demand impacts in the state of Bahia that resulted in lower nominations from Bahia Gas than what we had seen previously.

Unknown Executive: For several quarters after that, our partner wasn't nominating for gas, and we were able to sell all that excess to Bahia Gas on a flexible or interruptible basis. So you saw some pretty significant production increases through this period of time. We also expanded our gas plant, our gas processing facility, in the 3rd quarter of 2022 and had an increase there as well. And then, in the 2nd quarter of last year, our partner started nominating for more gas, and we also saw some demand impacts in the state of Bahia that resulted in lower nominations from Bahia Gas than what we had seen previously.

Unknown Executive: for several quarters after that.

Adrian Audet: For several quarters after that, our partner wasn't nominating for gas and we were able to sell all that access to the BEA gas on a flexible or interruptible basis. So you saw some pretty significant production increases through this period of time. And we also expanded our gas plant gas processing facility in the third quarter of 2022 and had an increase there as well. And then in the second quarter of last year, our partner started nominating for more gas. And we also saw some demand impacts in the state of the BEA that resulted in lower nominations from the BEA gas than what we had seen previously. So we went through this period of time.

Unknown Executive: Our partner wasn't nominating for gas, and we were able to sell all that access to the heat of gas on a flexible or interruptible basis. So you saw.

Adrian Audet: So you saw some pretty significant production increases through this period of time. And we also expanded our gas plant gas processing facility in the third quarter of 2022 and had an increase there as well. And then in the second quarter of last year, our partner started nominating for more gas. And we also saw some demand impacts in the state of the BEA that resulted in lower nominations from the BEA gas than what we had seen previously. So we went through this period of time.

Unknown Executive: some pretty significant production increases through this period of time.

Unknown Executive: We also expanded our gas plant, our gas processing facility in the third quarter of 2022.

Unknown Executive: and had an increase there as well.

Unknown Executive: And then in the second quarter of last year, our partners started nominating for more gas, and we also saw

Unknown Executive: some demand impacts in the state of Bahia that resulted in lower nominations from Bahia Gas than what we had seen previously. So we went through this period of time and then last month as we announced yesterday we had a nice increase in in the month of July.

Unknown Executive: So, we went through this period of time, and then last month, as we announced yesterday, we had a nice increase in the month of July. We agreed to review the pricing on just our flexible volumes within our contract on a monthly basis, and the result was a 49% increase when you compare that to the 1,629 barrels of oil equivalent that we produced in the 2nd quarter to the 2,432 barrels of oil equivalent that we produced and sold in the month of July.

Adrian Audet: And then last month, as we announced yesterday, we had a nice increase in the month of July. We agreed to review the pricing on just our flexible volumes within our contract on a monthly basis. And the result was a 49% increase when you compare that to the 1,629 barrels of oil equivalent that we produced in the second quarter to the 2,432 barrels of oil equivalent that we produced. And sold in the month of July. So our strategy continues to be adding more 100% working interest production from our market to project.

Adrian Audet: And then last month as we announced yesterday, we had a nice increase in the month of July. We agreed to review the pricing on just our flexible volumes within our contract on a monthly basis. And the result was a 49% increase when you compare that to the 1629 barrels of oil equivalent that we produced in the second quarter to the 2432 barrels of oil equivalent that we produced. And sold in the month of July. So our strategy continues to be adding more 100% working interest production from our market to to project.

Unknown Executive: We agreed to review the pricing on just our flexible volumes within our contract on a monthly basis.

Unknown Executive: And the result was a 49% increase when you compare that to the 1,629 barrels of oil equivalent that we produced in the second quarter to the 2,432 barrels of oil equivalent that we produced and sold in the month of July .

Unknown Executive: So, our strategy continues to be adding more 100% working interest production from our Merica 2-2 project. I think we've got some exciting results that we should be announcing here over the coming month, and then Adrian will walk through that with you later in the presentation. But our objective is to be at, with the addition of some of those volumes, approaching our near-term 3,000 barrels of oil equivalent per day goal.

Unknown Executive: so

Unknown Executive: Our strategy continues to be adding more 100% working interest production from our Merica 2-2 project. I think we've got some exciting results.

Adrian Audet: I think we've got some exciting results that we should be announcing here over the coming month, and then Adrian will walk through that with you later in the presentation. But our objective is to be at our with the addition of some of those volumes to be approaching our near term 3000 barrel of oil equivalent per day.

Unknown Executive: that we should be announcing here over the coming month and then ivor will walk through through that with you later in the presentation by our objective

Adrian Audet: I think we've got some exciting results that we should be announcing here over the coming month and then Adrian will walk through that with you later in the presentation. But our objective is to be at our with the addition of some of those volumes to be approaching our near term 3000 barrel of oil equivalent per day. We talked about the re-determination in our last call. I think one or two days after that, we announced up the result of our emergency arbitration proceeding as well.

Unknown Executive: is to be with the addition of some of those volumes.

Unknown Executive: to be approaching our near-term 3,000 barrel of oil equivalent per day goal.

Unknown Executive: We talked about the redetermination in our last call, and I think 1 or 2 days after that, we announced the result of our emergency arbitration proceeding as well. So, just to recap for people, though, we did have a positive result as a result of the redetermination process. It became effective on June 1st, with our interest and working interest in the unit increasing to just over 56%. And that the transition of unit operatorship to Alvopetro is also underway.

Adrian Audet: We talked about the re-determination in our last call. I think one or two days after that, we announced up the result of our emergency arbitration proceeding as well. So just a recap for people, though, we did have a positive result as a result of the re-determination process. It became effective on June 1st, with our interest, working interest in the unit increasing to just over 56 percent. And that transition of unit operation to Alvopetro is also under way. We have previously advised that our partners disputing that, like I said, right after our last call, we announced that we got an emergency arbitration order that grants the interim effectiveness of the expert decision until a long form of arbitration can be completed.

Unknown Executive: We talked about the redetermination in our last call. I think one or two days after that, we announced the result of our emergency arbitration proceeding as well. So just to recap for people, though, we did have a positive result as a result of the redetermination process.

Adrian Audet: So just a recap for people though, we did have a positive result as a result of the re-determination process. It became effective on June 1st with our interest, working interest in the unit increasing to just over 56 percent. And that transition of unit operation to Alvopetro is also under way. We have previously advised that our partners disputing that, like I said, right after our last call, we announced that we got an emergency arbitration order that grants the interim effectiveness of the expert decision until a long form of arbitration can be completed.

Unknown Executive: It became effective on June 1st, with our interest, working interest in the unit increasing to just over 56%.

Unknown Executive: and the transition of unit operatorship to Alvopetro is also underway.

Unknown Executive: We have previously advised our partners disputing that, like I said, right after our last call, we announced that we got an emergency arbitration order that grants the interim effectiveness of the expert decision until a long form arbitration can be completed. So, to be clear, our UA does dictate that expert decisions and this redetermination process, such as this redetermination process, are to be binding.

Unknown Executive: We have previously advised that our partners disputing that, like I said, right after our last call, we announced that we got an emergency arbitration order that grants the interim effectiveness of the expert decision until a long form arbitration can be completed. So.

Adrian Audet: And to be clear, our U-8 does dictate that expert decisions and this re-determination process, such as this re-determination process, is to be binding.

Unknown Executive: And to be clear, our UA does dictate that expert decisions and this redetermination process, such as this redetermination process, is to be binding.

Adrian Audet: And to be clear, our U-8 does dictate that expert decisions and this re-determination process, such as this re-determination process, is to be binding. So we also in our release yesterday announced our latest semi-annual price update under our gas sales agreement just to remind her how this works. We've got a long-term gas sales agreement with the heat gas. The prices are calculated based on three international benchmark prices. So you can see them in the various gray dash lines.

Adrian Audet: So we also, in our release yesterday, announced our latest semi-annual price update under our gas sales agreement. Just to remind her how this works. We've got a long-term gas sales agreement with the heat gas. The prices are calculated based on three international benchmark prices. So you can see them in the various gray dash lines. This low one is US Henry Huff gas prices. This upper one is UK NBP gas prices. And the middle one that you see here is Brent oil equivalent prices. So you blend those together, averts them over a period of time, and it calculates Alvopetro's price in the block.

Unknown Executive: Unknown Speaker, So we also, in our release yesterday, announced our latest semiannual price update under our gas sales agreement. Just a reminder how this works. We've got a long-term gas sales agreement with Bahia Gas. The prices are calculated based on three international benchmark prices. So you can see them in the various gray dashed lines. This lower one is U.S. Henry Hub gas prices. This upper one is U.K.

Unknown Speaker: Unknown Speaker, So we also, in our release yesterday, announced our latest semiannual price update under our gas sales agreement. Just a reminder how this works. We've got a long-term gas sales agreement with Bahia Gas. The prices are calculated based on three international benchmark prices, so you can see them in the various gray dashed lines.

Unknown Executive: So we also, in our release yesterday, announced our latest semi-annual price update under our gas sales agreement.

Adrian Audet: This low one is US Henry Huff gas prices. This upper one is UK NBP gas prices. And the middle one that you see here is Brent Oil equivalent prices. So you blend those together averts them over a period of time and it calculates Alvopetro's price in the block. You can see we've been roughly at the ceiling. We do have a ceiling out floor within the contract, which is the green and the red, both of those escalate based on US inflation.

Unknown Executive: This lower one is U.S. Henry Hub gas prices. This upper one is U.K. NBP gas prices, and the middle one that you see here is Brent oil equivalent prices. So you blend those together, average them over a period of time, and it calculates Alvopetro's price in the black. You can see we've been roughly at the ceiling. We do have a ceiling and a floor within the contract, which is green and red.

Unknown Executive: just to reminder how this works we've got a long term gas sales agreement with the h gas the prices are calculated based on three international benchmark prices so you can see them in the various grade dashlines

Speaker Change: this low one is is u s henry ho gas prices this upper one is is u k and bp gas prices

Unknown Executive: And the middle one that you see here is Brent oil equivalent prices. So you blend those together, average them over a period of time and it calculates Alvopetro's price in the block.

Adrian Audet: You can see we've been roughly at the ceiling. We do have a ceiling out floor within the contract, which is the green and the red. Both of those escalate based on US inflation. So we just announced our latest reset here on a Brazilian REI basis. The price was virtually unchanged from the last price that we saw, but because we have had some devaluation of the Brazilian currency, we did see a US dollar denominated slight decrease in our price to just under US $11 per MCF. And you can see we're just slightly below the ceiling price within our contract.

Unknown Executive: You can see we've been roughly at the ceiling. We do have a ceiling and a floor within the contract, which is the green and the red. Both of those escalate based on US inflation.

Unknown Executive: Both of those are escalated based on US inflation. So we just announced our latest reset here on a Brazilian REI basis. The price was virtually unchanged from the last price that we saw, but because we had some devaluation of the Brazilian currency, we did see a slight decrease in our price to just under US $11 per MCF. And you can see we're just slightly below the ceiling price within our contract.

Speaker Change: So we just announced our latest reset here. On a Brazilian REI basis, the price was virtually unchanged from the last price that we saw.

Adrian Audet: So we just announced our latest reset here on a Brazilian REI basis. The price was virtually unchanged from the last price that we saw but because we have had some devaluation of the Brazilian currency, we did see a US dollar denominated slight decrease in our price to just under US $11 per MCF. And you can see we're just slightly below the ceiling price within our contract. And then if we use the forward curve in the market as of yesterday, which is to the right of this line, free to those three different benchmark prices, you see the calculated price. That's just slightly below our ceiling here for the duration of this chart that you see.

Speaker Change: but because we have had some devaluation of the brazilian currency we did see a u s dollar denominated slight decrease in our price to just under a u s eleven dollars per mc

Unknown Executive: And you can see we're just slightly below the ceiling price within our contract.

Unknown Executive: And then if we use the forward curves in the market as of yesterday, which is to the right of this line for each of those three different benchmark prices, you see the calculated price that's just slightly below our ceiling here for the duration of this chart that you see.

Adrian Audet: And then, if we use the forward curve in the market as of yesterday, which is to the right of this line, free to those three different benchmark prices, you see the calculated price. That's just slightly below our ceiling here for the duration of this chart that you see.

Unknown Executive: And then if we use the forward strip or forward curves in the market as of yesterday, which is to the right of this line for each of those three different benchmark prices, you see the calculated price. That's just slightly below our ceiling here for the duration of this chart that you see. So.

Adrian Audet: So just jumping into the results that we released yesterday, starting off with our operating netback. That is one of the non-GAAP measures that we look to; that is, it's our operating profitability per re-expression barrel oil equivalent. And just as a reminder, we compute that it's the realized sales price. Those are the numbers at the very top of the stacking bar chart, and we deduct off the royalties in orange and production expenses in the gray bar. And that gets us the operating netback, which is the green bar there. So, in the second quarter, we did see a reduction in our realized sales price down to just below $72 per VOE.

Unknown Executive: So just jumping into the results that we released yesterday, starting off with our operating net back. That is one of the non-GAAP measures that we look at that is basically our operating profitability per re-expressed barrel of oil equivalent. And just as a reminder, we compute that. It's the realized sales price. Those are the numbers at the very top of the stacking bar chart, and we deduct the royalties in orange and production expenses in the gray bar. And that gets us the operating net back, which is the green bar here.

Unknown Executive: So just jumping into the results that we released yesterday, starting off with our operating net back, that is one of the non-GAAP measures that we look at, that is basically our operating profitability per re-expressed barrel of oil equivalent. And just as a reminder, we compute that; it's the realized sales price, those are the numbers at the very top of the stacking bar chart, and we deduct the royalties in orange and production expenses in the gray bar, and that gets us the operating net back, which is the green bar there.

Unknown Executive: so just jumping into the results but we release yesterday's turn off with our operating net back that is one of the non-gaap measures that

Adrian Audet: So just jumping into the results that we released yesterday, starting off with our operating netback, that is one of the non-gap measures that we look to that is it's we are operating profitability per re-expression barrel oil equivalent. And just as a reminder, we compute that it's the realized sales price. Those are the numbers at the very top of the stacking bar chart and we deduct off the royalties in orange and production expenses in the gray bar.

Unknown Executive: that we look to that is if we are operating profitability per re-expressed in barrel of oil equivalent.

Unknown Executive: and just as a reminder we compute that it's the real ized sales price are the numbers of the very top of the stackking bar chart and we deduct off the royalties in orange and production expenses in the grave bar and that gets up the operating that back which is the green bar there so in the second quarter we just see a reduction in our real ized sales price down to just below seventy two dollars per cur p e

Adrian Audet: And that gets us the operating netback, which is the green bar there. So in the second quarter, we did see a reduction in our realized sales price down to just below $72 per VOE. That was mainly due to reduction in our effective US dollar realized price on our natural gas sales. That went from 1257 for MCF in the first quarter to 1183 in the second quarter. Royalties were relatively consistent in this quarter.

Unknown Executive: So in the second quarter, we did see a reduction in our realized sales price down to just below $72 per VOE. That was mainly due to a reduction in our effective US dollar realized price on our natural gas sales. That went from $12.57 for MCF in the first quarter to $11.83 in the second quarter. However, royalties were relatively consistent this quarter. With the last quarter, an effective royalty rate of about 2.7% on our realized price.

Unknown Executive: So in the second quarter, we did see a reduction in our realized sales price down to just below $72 per BOE. That was mainly due to a reduction in our effective US dollar realized price on our natural gas sales. That went from $12.57 per MCF in the first quarter to $11.83 in the second quarter.

Adrian Audet: That was mainly due to reduction in our effective US dollar realized price on our natural gas sales. That went from 1257 for MCF in the first quarter to 1183 in the second quarter. Royalties were relatively consistent in this quarter. With last quarter, effective royalties rate up about 2.7% on our realized price. Just as a reminder, our statutory royalties rate in Brazil is between five and a half and 11%, but with royalties on natural gas, it's based on more of our raw and processed value of that natural gas. So it's closer to a Henry Hub equivalent that the royalties get paid on, so that results in a lower effective rate.

Unknown Executive: That was mainly due to a reduction in our expected U.S. dollar realized price on our natural gas sales. That went from 1257 for MCF in the 1st quarter to 1183 in the 2nd quarter.

Unknown Executive: Royalties were relatively consistent this quarter, with last quarter's effective royalty rate of about 2.7% on our realized price. Just as a reminder, our statutory royalty rate in Brazil is between 5.5% and 11%. But with royalties on natural gas, it's based on more of a raw, unprocessed value of that natural gas, so it's closer to a Henry Hub equivalent that the royalties get paid on.

Unknown Executive: Royalties were relatively consistent this quarter with last quarter effective royalty rate of about 2.7% on our realized price.

Unknown Executive: Just as a reminder, our statutory royalty rate in Brazil is between 5.5% and 11%. But with royalties on natural gas, it's based on more of the raw, unprocessed value of that natural gas. So it's closer to a Henry Hub equivalent that the royalties get paid on, so that results in a lower effective rate.

Adrian Audet: With last quarter, effective royalties rate up about 2.7% on our realized price. Just as a reminder, our statutory royalties rate in Brazil is between five and a half and 11%, but with royalties on natural gas, it's based on more of our raw and processed value of that natural gas. So it's closer to a Henry hub equivalent that the royalties get paid on so that results in a lower effective rate, and then on the production expenses side, we did have a reduction in volumes of this quarter and a lot of our operating expenses are fixed in nature, but despite that we did have a reduction of over $2 per BOE compared to last quarter, it was about $351,000 lower than Q1 and that was mainly due to some historical tax credits that we were able to get this in Q2 to recognize in Q2, so overall that reduced our operating expenses this quarter and results in a lower cost per BOE.

Unknown Executive: Just as a reminder, our statutory royalty rate in Brazil is between 5.5% and 11%, but

Unknown Executive: With royalties on natural gas, it's based on more of a raw, unprocessed value of that natural gas. So it's closer to a Henry Hub equivalent that the royalties get paid on, so that results in a lower effective rate.

Adrian Audet: and then on the production expenses side, we did have a reduction in volumes of this quarter and a lot of our operating expenses are fixed in nature, but despite that we did have a reduction of over $2 per BOE compared to last quarter. It was about $351,000 lower than Q1, and that was mainly due to some historical tax credits that we were able to get this in Q2 to recognize in Q2. So overall, that reduced our operating expenses this quarter and results in a lower cost per BOE. And that gave us a netback of $64.30 for the quarter, down about 186 from last quarter. Again, that's mostly due to the pricing.

Unknown Executive: And then on the production expenses side, we did have a reduction in volumes this quarter, and a lot of our operating expenses are fixed in nature. But despite that, we did have a reduction of over $2 per BOE compared to last quarter; it was about $351,000 lower than Q1. And that was mainly due to some historical tax credits that we were able to get in Q2 to recognize in Q2. So overall, that reduced our operating expenses this quarter and resulted in a lower cost per BOE. And that gave us a net return of $64.30 for the quarter. It's down about $186 from last quarter. Again, that's mostly due to the pricing.

Unknown Executive: And then on the production expenses side, we did have a reduction in volumes this quarter, and a lot of our operating expenses are fixed in nature, but despite that, we did have a reduction of

Speaker Change: over two dollars perbowe compared to last quarter it was about three hundred and fifty-one thousand

Speaker Change: lower than q one and that was mainly due to some historical tax credits that we were able to get this in q two two recognize q two so overall that reduced our operating expenses this quarter and results in the lower cost of oe

Unknown Executive: And that gave us a net back of $64.30 for the quarter. It's down about $186 from last quarter. Again, that's mostly due to the pricing. Still, relative to our realized price, we're looking at a margin of 89%.

Adrian Audet: And that gave us a netback of $64.30 for the quarter, down about 186 from last quarter, again, that's mostly due to the pricing. Still relative to our realized price, we're looking at a margin of 89%, and we went through this in past quarters, that's really top-tier operating netbacks when you compare it to other self-american companies or companies operating in Canada and the US, and when we layer into that, we have a nice tax incentive in Brazil that really reduces our tax rate to about 15%, so that helps to generate significant funds.

Unknown Executive: Still, relative to our realized price, we're looking at a margin of 89%. And you know, we went through this in previous quarters. That's really, you know, top tier operating net box when you compare it to other South American companies or companies operating in Canada and the US. And when we layer into that, you know, we have a nice tax incentive in Brazil that really reduces our tax rate to about 15%.

Adrian Audet: Still relative to our realized price, we're looking at a margin of 89%, and we went through this in past quarters. That's really top-tier operating netbacks when you compare it to other self-American companies or companies operating in Canada and the US. And when we layer into that, we have a nice tax incentive in Brazil that really reduces our tax rate to about 15%, so that helps to generate significant funds.

Unknown Executive: and we went through this in past quarters, that's really top tier operating net box when you compare it to other South American companies or companies operating in Canada and the US.

Unknown Executive: And when we layer into that, you know, we have a nice tax incentive in Brazil that really reduces our tax rate to

Unknown Executive: about 15%. So our that helps us generate significant funds. So even in periods like this quarter, where our production was down about 4% from last quarter, so moving on to fund flow.

Unknown Executive: So our that helps us generate significant funds. So even in periods like this quarter, where our production was down about 4% from last quarter. So moving on to the funds flow.

Adrian Audet: But even in periods like this quarter where our production was down about 4% from last quarter, so using onto funds flow, so again, this is one of the non-GAAP measures that we look at and it's basically cash flow from operating activities before changes in working capital. So we did see about a $600,000 decrease in our funds flow compared to Q1. Most of that was due to the lower sales volumes and lower realized prices. Jeannie was a little bit higher, and then offsetting that was that lower production expenses that I referred to and lower current tax, and so we ended the quarter with funds flow at $7.9 million.

Adrian Audet: But even in periods like this quarter where our production was down about 4% from last quarter, so using onto funds flow, so again, this is one of the non-gap measures that we look at and it's basically cash flow from operating activities before changes in working capital. So we did see about a $600,000 decrease in our funds flow compared to Q1. Most of that was due to the lower sales volumes and lower realized prices.

Unknown Executive: So again, this is one of the non-GAAP measures that we look at, and it's basically cash flow from operating activities before changes in working capital. So we did see about a $600,000 decrease in our funds flow compared to Q1. Most of that was due to lower sales volumes and lower realized prices. G&A was a little bit higher, and then offsetting that was the lower production expenses that I referred to and lower current tax, and so we ended the quarter with a funds flow of $7.9 million on the net income side.

Unknown Executive: So again, this is one of the non-GAAP measures that we look at, and it's basically cash flow from operating activities, but before changes in working capital. So we did see about a $600,000 decrease in our funds flow compared to Q1.

Unknown Executive: Similarly, that was impacted as well by lower operating net back with lower pricing and lower sales volumes in the period. But the biggest significant adjustment here on net income was foreign exchange losses. So any of the US dollar denominated liabilities of our Brazilian subsidiary result in a foreign exchange on court exchange loss on the local books that get picked up on our US dollar statement. So we did see with the devaluation of the Brazilian rail in from March 31 to June 30, increased losses in our Brazilian subsidiary on that.

Unknown Executive: compared to Q1. Most of that was due to the lower sales volumes and lower realized prices.

Speaker Change: G&A was a little bit higher, and then offsetting that was that lower production expenses that I referred to, and lower current tax. And so we ended the quarter with a fund flow of 7.9 million.

Adrian Audet: Jeannie was a little bit higher, and then offsetting that was that lower production expenses that I referred to and lower current tax, and so we ended the quarter with funds flow at $7.9 million. On the net income side, similarly, that was impacted as well by lower operating netback with the lower pricing and lower sales volumes in the period, but the biggest significant adjustments here on net income was foreign exchange losses. So any of the U.S, dollars denominated liabilities of our resilience subsidiary, those results in a foreign exchange on current exchange loss on the local books that get picked up on our U.S, dollar statement.

Adrian Audet: On the net income side, similarly, that was impacted as well by lower operating netback with the lower pricing and lower sales volumes in the period, but the biggest significant adjustments here on net income were foreign exchange losses. So any of the U.S. dollars denominated liabilities of our resilience subsidiary; those results in a foreign exchange on current exchange loss on the local books that get picked up on our U.S. Dollar statement. So we did see with the devaluation of the Brazilian rail in from March 31 to June 30, increased losses in our Brazilian subsidiary on that.

Unknown Executive: On the net income side, similarly, that was impacted as well by lower operating net back with the lower pricing and lower sales volumes in the period.

Unknown Executive: But the biggest significant adjustment here on net income was foreign exchange losses. So any of the US dollar denominated liabilities of our Brazilian subsidiary, those result in a foreign exchange on court exchange loss on the local books that gets picked up.

Speaker Change: on our u s dollar statements so we did see with the devaluation of the brazilian rail in

Adrian Audet: So we did see with the devaluation of the Brazilian rail in from March 31 to June 30, increased losses in our Brazilian subsidiary on that. So foreign exchange losses were the biggest contributor there in that 2.2 million reduction in net income. Partially offsetting that was lower current tax, which I already mentioned, and then also lower deferred tax and the completion and depreciation. On the balance sheet slide, we continue to have a very strong balance sheet.

Unknown Executive: from march thirty first to june thirtieth

Speaker Change: increased losses in in our azilian subsidiary on that so fore ign exchange losses were the biggest contributor there in that two point two million reduction in net income partially offseting at was lower current tax which i ready mentioned and then also lowweer deferred tax and depletion and depreciation

Adrian Audet: So foreign exchange losses were the biggest contributor there in that 2.2 million reduction in net income. Partially offsetting that was lower current tax, which I already mentioned, and then also lower deferred tax and the completion and depreciation.

Adrian Audet: On the balance sheet slide, we continue to have a very strong balance sheet. Just as a reminder, we are debt-free. Repator credit facility back in September of 2022, it was fully repaid. And so we ended the quarter with $14.7 million of working capital, and I think of that as about $19.7 million of cash.

Unknown Executive: So foreign exchange losses were the biggest contributor to that 2.2 million reduction in net income. Partially offsetting that was lower current tax, which I already mentioned, and then also lower deferred tax and depletion and depreciation. On the balance sheet side, we continue to have a very strong balance sheet. As a reminder, we are debt free; we repaid our credit facility back in September of 2022. It was fully repaid.

Unknown Executive: on the balance sheet slide we continue to have a very strong balance sheet

Unknown Executive: We, just as a reminder, we are debt free. We repaid our credit facility back in September of 2022. It was fully repaid. And so we ended the quarter with $14.7 million of working capital, and I think of that, it's about $19.7 million of cash.

Adrian Audet: Just as a reminder, we are debt-free repator credit facility back in September of 2022, it was fully repaid. And so we ended the quarter with $14.7 million of working capital, and I think of that is about $19.7 million of cash. So just going through our dividend history, we have been paying dividends since the 3rd quarter of 2021. We've paid every quarter at these varying amounts. This is just part of our longstanding balance stakeholder return and reinvestment model.

Unknown Executive: And so we ended the quarter with $14.7 million of working capital. And I think that is about $19.7 million of cash. So just going through our dividend history, we have been paying dividends since the third quarter of 2021. We've paid every quarter at these varying amounts. This is just part of our longstanding balanced stakeholder return and reinvestment model. So to date, we've paid over $1.22 per share in dividends.

Adrian Audet: So just going through our dividend history, we have been paying dividends since the 3rd quarter of 2021. We've paid every quarter at these varying amounts. This is just part of our longstanding balance stakeholder return and reinvestment model. So to date, we've paid a $22 US per share in dividend, and that has amounted to just sender $44 million US dollars. The Q2 dividend, we announced that in June, it was paid already in July; it was consistent with our Q1 dividend of 9 cents per share. And that was reduced relative to 2023, just with the lower production volumes we've seen to date or seen up to the end of Q2 anyway, and then lower cash flows.

Alison Howard: So that results in a lower effective rate. So just going through our dividend history, we have been paying dividends since the third quarter of 2021. We've paid every quarter in these varying amounts. This is just part of our longstanding balanced stakeholder return and reinvestment model. So to date, we've paid over $1.22 per share in dividends, and that has amounted to just under $44M USD. The Q2 dividend We announced that in June.

Alison Howard: So just going through our dividend history, we have been paying dividends since the third quarter of 2021.

Alison Howard: We've paid every quarter at these varying amounts. This is just part of our long-standing balanced stakeholder return and reinvestment model. So to date we've paid $1.22 per share in dividends.

Adrian Audet: So to date, we've paid a $22 US per share in dividend and that has amounted to just sender $44 million US dollars. The Q2 dividend, we announced that in June, it was paid paid already in July, it was consistent with our Q1 dividend of 9 cents per share. And that was reduced relative to 2023, just with the lower production volumes we've seen to date or seen up to the end of Q2 anyway, and then lower cash flows. But overall that dividend yield of just over 10% at these current prices.

Unknown Executive: And that has amounted to just under $44 million US dollars. The Q2 dividend, we announced that in June. It was paid already in July. It was consistent with our Q1 dividend of $0.09 per share, and that was reduced relative to 2023 just with the lower production volumes we've seen to date, or seen up to the end of Q2 anyway. And then lower cash flows. But overall, that's a dividend yield of just over 10% at these current prices. All right.

Alison Howard: And that has amounted to just under $44 million US dollars. The Q2 dividend, we announced that in June . It was paid already in July . It was consistent with our Q1 dividend of $0.09.

Alison Howard: It was paid already in July. It was consistent with our Q1 dividend of $0.09 per share, and that was reduced relative to 2023 just with the lower production volumes we've seen to date, or seen up to the end of Q2 anyway. And then lower cash flows, but overall, that's a dividend yield of just over 10% at these current prices.

Alison Howard: per share and that was reduced relative totwo thousand and twenty three just with the lower

Alison Howard: production volumes we've seen to date, or seen up to the end of Q2 anyway, and then lower cash flows. But overall, that's a dividend yield of just over 10% at these current prices.

Adrian Audet: But overall, that dividend yield of just over 10% at these current prices.

Adrian Audet: All right, thank you, Alison. So yes, this balanced capital allocation model that we talked about. This is something we introduced quite some time ago. The model is to basically take half of our cash flows and reinvest that in organic growth and take the other half and return it to stakeholders. So if you look at the chart on the left-hand side, this is since we came on production, all the different funds flow that we've generated by a quarter or the block dots, and the green line that you see here most recently, the $7.9 million, the funds flow that else and referred to.

Unknown Executive: All right. Thank you, Alison.

Speaker Change: all right thank you el and so yes this balanced capital allocation model that we talked about this is something we introduced quite some time ago

Adrian Audet: All right, thank you, Alison. So yes, this balanced capital allocation model that we talked about. This is something we introduced quite some time ago. The model is to basically take half of our cash flows and reinvest that in organic growth and take the other half and return it to stakeholders. So if you look at the chart on the left hand side, this is since we came on production, all the different funds flow that we've generated by a quarter or the block dots and the green line that you see here most recently, the $7.9 million, the funds flow that else and referred to.

Unknown Executive: So, yes, this balanced capital allocation model that we talked about is something we introduced quite some time ago. The model is to basically take half of our cash flows and reinvest that in organic growth, and take the other half and return it to stakeholders. So, if you look at the chart on the left-hand side, this is since we came on production, all the different funds flow that we've generated by quarter, or the black dots in the green line that you see here.

Unknown Executive: the model is to basically take half of our cash flows and reinvest that in organic growth

Unknown Executive: and take the other half and return it to stakeholders so if you look at the chart on the left hand side this is since we came on production

Unknown Executive: All the different funds flow that we've generated by quarter are the black dots and the green line that you see here. Most recently, the $7.9 million of funds flow that Alison referred to.

Unknown Executive: Most recently, the $7.9M of funds flow that Alison referred to. And then each of the stacking bars, so that's the cash inflows per quarter, and then all the stacking bars are the cash outflows on a quarterly basis. Broken down by type, so you can see early on, virtually all the cash either went to building cash and working capital or repaying on an accelerated basis. The initial credit facility that we had, which is in the green cross hatching that you see here, we did do a share buyback in the 3rd quarter of 2021, and we also introduced dividends, as Alison mentioned at that time. So those are the solid green bars.

Unknown Executive: Most recently, the $7.9M of funds flow that Alison referred to, and then each of the stacking bars, so that's the cash inflows per quarter, and then all the stacking bars are the cash outflows on a quarterly basis. Broken down by type, so you can see early on, virtually all the cash either went to building cash and working capital or repaying on an accelerated basis the initial credit facility that we had, which is in the green cross hatching that you see here.

Adrian Audet: And then each of the stacking, so that's the cash inflows per quarter, and they're all the stacking bars or the cash outflows on a quarterly basis broken down by types. So you can see early on, virtually all the cash either went to building cash and working capital and/or repaying on an accelerated basis our initial credit facility that we had, which is in the green cross hatching that you see here. We did do a share buyback in the third quarter of 2021, and we also introduced the dividend, as Alison mentioned at that time, so those are the solid green bars.

Adrian Audet: And then each of the stacking, so that's the cash inflows per quarter and they're all the stacking bars or the cash outflows on a quarterly basis broken down by types. So you can see early on virtually all the cash either went to building cash and working capital and or repaying on an accelerated basis are our initial credit facility that we had, which is in the green cross hatching that you see here.

Unknown Executive: broken down by types so you can see early on

Unknown Executive: virtually all the cash either went to building cash and working capital and or repaying on an accelerated basis our initial credit facility that we had which is in the the green cross hatching that you see here

Unknown Executive: We did do a share buyback in the 3rd quarter of 2021, and then we also introduced the dividend, as Alison mentioned at that time. So those are the solid green bars, and then more recently you've seen that initially, because we had pre-funded all of our capillary projects, we didn't really have to be investing a lot of capital near the beginning. You have seen more of that recently, and you'll see us ramp that up a little bit here in the second half of this year as well.

Unknown Executive: we did do a share buyback in the third quarter of two thousand and twenty one and we also introduced the dividend as else son mentioned at that time so those the solid green bars

Adrian Audet: We did do a share by back in the third quarter of 2021 and we also introduced the dividend, as Alison mentioned at that time, so those are the solid green bars. And then more recently, you've seen, you know, initially because we had pre funded all of our cap or a project, we didn't really have to be investing a lot of capital near the beginning. You have seen more of that recently and you'll see us ramp that up a little bit here in the second half of this year as well.

Unknown Executive: And then more recently, you've seen initially because we had pre-funded all of our Cabaret project, we didn't really have to be investing a lot of capital near the beginning. You have seen more of that recently, and you'll see us ramp that up a little bit here in the 2nd half of this year as well. If you look at it in total since July, so this is now,

Adrian Audet: And then more recently, you've seen, you know, initially because we had pre-funded all of our cap or a project, we didn't really have to be investing a lot of capital near the beginning. You have seen more of that recently, and you'll see us ramp that up a little bit here in the second half of this year as well.

Unknown Executive: And then more recently, you've seen, you know, initially, because we had pre funded all of our capillary project, we didn't really have to be investing a lot of capital near the beginning. You have seen more of that recently.

Adrian Audet: If you look at it in total since July, so this is now from July 5, 2020, all the way through to the end of the second quarter of 2024. You can see we've spent of the $147 million of cash flow or funds flow from operations that we've generated. 43% of that went to capital expenditures. 9% of it's gone towards building that cash and working capital position that Alison referred to, and then around 48% of it's went out to stakeholders.

Adrian Audet: If you look at it in total since July, so this is now from July 5, 2020 all the way through to the end of the second quarter of 2024. You can see we've spent of the $147 million of cash flow or funds flow from operations that we've generated 43% of that went to capital expenditures. 9% of it's gone towards building that cash and working capital position that Alison referred to and then around 48% of it's went out to stakeholders.

Unknown Executive: If you look at it in total since July, so this is now, from July 5, 2020, all the way through to the end of the second quarter of 2024, you can see we've spent 43% of that on capital expenditures, 9% of it's gone towards building that cash and working capital position that Alison referred to, and then around 48% of it has gone out to stakeholders. We did announce yesterday a plan to complement our stakeholder return portion of the pie here with a share purchase and repurchase program.

Unknown Executive: from the july fifth two thousand and twenty all theway through to the end of the second quarter of two thousandand twenty four you can see we've spent of the one hundred and forty seven million dollars of cash flower funds flow from operations that we've generated

Unknown Executive: 43% of that went to capital expenditures, 9% of it's gone towards building that cash and working capital position that Alison referred to, and then around 48% of it's went out to stakeholders.

Adrian Audet: We did announce yesterday a plan to complement our stakeholder return portion of the pie here with a share purchase repurchase program. And our intent is to basically take any excess. If we take a fund flow from operations, multiply that by 50%, and then deduct off our dividends and our capital lease payments. And if there's an excess amount, there are intent to allocate that to share repurchases. So if you do that for the first half of this year, we have excess available cash flow from that of half a million dollars. That's the initial allocation, and our expectation is that we can grow that based on results moving forward over the coming year here.

Unknown Executive: we didn announce yesterday a plan to complement our stakeholder return portion of the pie here with a share purchase repurchase program and our intent is to basically

Unknown Executive: And our intent is to basically take any excess, if we take a fund flow from operations, multiply that by 50%, and then deduct our dividends and our capital lease payments. And if there's an excess amount there, our intent is to allocate that to share repurchases. So if you do that for the first half of this year, we have excess available cash flow from that of half a million dollars. That's the initial allocation. And our expectation is that we can grow that based on results moving forward over the coming year here.

Speaker Change: take any excess if we take at funds from operations multiply that by fifty percent and then deduct dog

Unknown Executive: our dividends and our capital lease payments. And if there's an excess amount there, our intent is to allocate that to share repurchases. So if you do that for the first half of this year, we have excess available cash flow from that of half a million dollars. That's the initial allocation.

Adrian Audet: So if you do that for the first half of this year, we have excess available cash flow from that of half a million dollars. That's the initial allocation and our expectation is that we can grow that based on results moving forward over the coming year here.

Unknown Executive: and our expectation is that we can grow that based on results moving forward over there over the coming year here

Adrian Audet: I'll just update you guys on the our organic growth line here. So just a reminder, we have an existing midstream infrastructure to sell up to 18 million standard cubic feet of gas with our existing transfer pipeline or existing UVGN or gas processing facility and the connection to the local gas distribution company, which is speaking of gas. As Corey mentioned earlier in the presentation, we had to pause the redetermination results, increasing our working interest production from this cabaret or unit, increasing our production entitlement from 49% to 56.2% of the production capacity of that field. Currently, this year we're going through the capital development program at the inventory cabaret with additional wells and unit compression or field compression of that facility, and that will enable us to continue our production levels to the gas from the from the asset here.

Adrian Audet: I'll just update you guys on the organic growth plan here. So just a reminder, we have an existing midstream infrastructure to sell up to 18 million standard cubic feet of gas with our existing transfer pipeline, our existing UPGN, our gas processing facility, and the connection to the local gas distribution company, which is Bahia Gas. As Corey mentioned earlier in the presentation, we had positive redetermination results, increasing our working interest production from this cabaret or unit, increasing our production entitlement from 49% to 56.2% of the production capacity of that field.

Speaker Change: i'll just up to you guys on the organic growth line here so just a reminder we have an existing themmidstream infrastructure to sell up to eighteen million end to keep a feat of gas with our existing transfer pipeline our existing

Speaker Change: UPGN, or Gas Processing Facility, and the connection to the local gas distribution company, which is Bahia Gas.

Unknown Executive: As Corey mentioned earlier in the presentation, we had positive redetermination results, increasing our working interest production from this cabaret or unit.

Unknown Executive: increasing our production entitlement from 49% to 56.2% of the production capacity of that field.

Adrian Audet: Currently, this year, we're going through the capital development program at the unit or cabaret with additional wells and unit compression or field compression at that facility, and that'll enable us to continue our production levels of Bahi gas from the asset here. The other main asset that we're focused on here in 2024 is their Merge 22 set, our 100% working interest asset just north of Cabaret. We've got existing infrastructure built to produce up to 7 million standard cubic feet of gas for sale from that asset with the transfer pipeline and to have our central processing facility at the 183.1 location.

Unknown Executive: currently this year we're going through the capital development program at the unit or catorate with additional wells and

Adrian Audet: Currently this year we're going through the capital development program at the inventory cabaret with additional wells and unit compression or field compression of that facility and that will enable us to continue our production levels to the gas from the from the asset here. The other main asset that we're focused on here in 2024 is our market 2.2 sets are 100% working interest asset just north of cabaret. We've got the existing infrastructure built to produce up to 7 million standard cubic feet of gas to to sales from that from that asset with the transfer pipeline and a and a hub or central processing processing facility at the at the 183-1 location.

Speaker Change: Unit Compression or Field Compression at that facility and that will enable us to continue our production levels 2.8 gas probably from the asset here.

Unknown Executive: The other main asset that we're focused on here in 2024 is our Merca 2.2, so that's our 100% working interest asset just north of Cabaret. We've got the existing infrastructure built to produce up to 7 million standard cubic feet of gas per day for sale from that asset with the transfer pipeline and to have our central processing facility at the 183.1 location. That location also has the 183A3 wellbore, and currently, we're going through re-completion operations at that location to re-complete the Kurisu zones in both the 183A1 and the 183A3 wellbores, and that work is currently ongoing.

Adrian Audet: The other main asset that we're focused on here in 2024 is our market 2.2 sets are 100% working interest asset just north of Cabaret. We've got the existing infrastructure built to produce up to 7 million standard cubic feet of gas to sales from that from that asset with the transfer pipeline and a hub or central processing facility at the 183-1 location. The that location also has the 183-A3 well-bore and currently we're going through recoupleation operations at that at that location to recoupleate the crew-assue zones in both the 183-1 and the 183-A3 well-bores, and that work is currently ongoing.

Unknown Executive: the other main asset that we're focused on gar two thousand andtwenty four is there mer two two sets are one hundred percent working interest asset just north the caabora we've got existing infrastructurered built

Unknown Executive: to produce up to 7 million standard cubic feet of gas to to sales from that from that asset with the transfer pipeline and a and a hopper central processing processing facility at the at the 183.1 location

Adrian Audet: The That location also has the 183A3 wellbore, and currently, we're going through re-completion operations at that location to re-complete the Kurisu zones in both the 183A1 and the 183A3 wellbores, and that work is currently ongoing. The benefit of that is both those wells are currently tied into our infrastructure, so as soon as we're done with the completion operations, they'll be immediately put on production and sales, and we expect to see the results of our capital investments in the next quarter here.

Unknown Executive: the

Unknown Executive: That location also has the 183A3 wellbore, and currently we're going through re-completion operations at that location to re-complete the Kurisu zones in both the 183A1 and the 183A3 wellbores.

Adrian Audet: The that location also has the 183-A3 well-bore and currently we're going through recoupleation operations at that at that location to recoupleate the crew-assue zones in both the 183-1 and the 183-A3 well-bores and that work is currently ongoing. The benefit of that is both those wells are currently tied into our infrastructure. So as soon as we're done, the completion operations will be immediately put on to production and sales.

Unknown Executive: The benefit of that is both those wells are currently tied into our infrastructure, so as soon as we're done with the completion operations, they'll be immediately put on production and sales, and we expect to see the results of capital investments in the next quarter here, with existing locations constructed for follow-up wells pending on the work we're doing here on this border. And, as highlighted in the Reserve and the Contingent and Prospective Resource Report, we have a lot of growth and running room for the Merck T2 asset. So let's look forward to that.

Adrian Audet: The benefit of that is both those wells are currently tied into our infrastructure. So, as soon as we're done, the completion operations will be immediately put on to production and sales. And we expect to see the results of these capital investments in the next quarter here. Following this, you know, we have a multi-year development opportunity in Merck 2.2 with existing locations constructed for follow-up wells pending on the work we're doing here in this quarter. And as highlighted in the reserve reserve and the contingent perspective resource report, we have a lot of growth and running room for the Merck 2.2 asset.

Unknown Executive: That work is currently ongoing. The benefit of that is both those wells are currently tied into our infrastructure. So, as soon as we're done the completion operations, they'll be immediately put on to production and sales. And we expect to see the results of these.

Unknown Executive: Capital Investments in the next quarter here.

Adrian Audet: And we expect to see the results of these capital investments in the next quarter here. Following this, you know, we have a multi-year development opportunity in Merck 2.2 with existing locations constructed for follow-up wells pending on the work we're doing here in this quarter. And as highlighted in the reserve reserve and the contingent perspective resource report, we have a lot of growth and running room for the Merck 2.2 asset.

Adrian Audet: Following this, you know, we have a multi-year development opportunity in MERC 2.2, with existing locations constructed for follow-up wells pending on the work we're doing here on this border. And as highlighted in the Reserve and the Contingent and Prospective Resource Report, we have a lot of growth and running room for the Merck 2-2 asset. So let's look forward to that.

Unknown Executive: following this we have a multi-year development opportunity and inbur to two

Unknown Executive: So let's look forward to that.

Unknown Executive: with existing locations constructed for follow-up wells pending on the work we're doing here in this border.

Unknown Executive: And as highlighted in the Reserve and the Contingent and Prospective Resource Report, we have a lot of growth and running room for the Merck G2 assets, so lots to look forward to there.

Unknown Executive: All right.

Adrian Audet: So let's look forward to that. All right.

Unknown Executive: Alright, thank you, Adrian. So, just in summary, I still strongly believe that Alvopetro offers an attractive investment proposition, no matter what your focus is. I think you can see from the results. They speak for themselves. You know, we benefit from very attractive gas prices, industry-leading operating netbacks, we've got a clean balance sheet, and a very strong free cash flow generation capacity, and all that together helps support our balanced stakeholder return model for value investors.

Adrian Audet: Thank you, Adrian. So just in summary, I do strongly still believe that Albo Petra offers an attractive investment proposition no matter what your focus is. I think you can see from the results; they speak for themselves. You know, we've benefited from very attractive gas prices, industry-leading operating netbacks.

Speaker Change: allright thank you waoring so just in summary i do strongly still believe that albwill petrooffers that attractive investment proposition no matter what your focus is

Alison Howard: Thank you, Adrian.

Adrian Audet: So just in summary, I do strongly still believe that Albo Petra offers an attractive investment proposition no matter what your focus is. I think you can see from the results they speak for themselves, you know, we've benefit from very attractive gas prices, industry leading operating netbacks. We've got a clean balance sheet and very strong free cash flow generation capacity and all that together helps support our balance stakeholder return model. For value investors, we're trading in about a third of our two P and AB for yield investors.

Speaker Change: I think you can see from the results, they speak for themselves.

Speaker Change: we' benefit from very attractive gas prices industry-leading operating net thatx

Adrian Audet: We've got a clean balance sheet and very strong free cash flow generation capacity, and all that together helps support our balance stakeholder return model. For value investors, we're trading in about a third of our two P and AB for yield investors. Our dividend translates into over a 10% dividend yield at current prices, with dividends paid quarterly in US dollars. And then for growth investors, you know, we've got an exciting, organically funded capital program and certainly a significant amount of potential when you compare it to our existing market cap or enterprise value.

Speaker Change: We've got a clean balance sheet and very strong free cash flow generation capacity and all that together helps support.

Speaker Change: our balanced stakeholder return model. For value investors, we're trading at about a third of our 2P NAV. For yield investors, our dividend translates into over a 10% dividend yield at current prices with dividends paid quarterly in U.S. dollars.

Unknown Executive: We're trading at about a third of our 2P NAV. For yield investors, our dividend translates into over a 10% dividend yield at current prices, with dividends paid quarterly in US dollars. And then for growth investors, you know, we've got an exciting organically funded capital program and certainly a significant amount of potential when you compare it to our existing market cap or enterprise value. And we've got, I think, some exciting results coming out over the next literally 30 days here. So with that, we'll turn it over to the question and answer period. I'll just quickly stop sharing the screen.

Adrian Audet: Our dividend translates into over a 10% dividend yield at current prices with dividends paid quarterly in US dollars. And then for growth investors, you know, we've got an exciting, organically funded capital program and certainly a significant amount of potential when you compare it to our existing market cap or enterprise value. And we've got, I think, some exciting results coming out over the next literally 30 days here.

Unknown Executive: and then for growth investors we've got it exciting organically funded capital program and certainly a significant amount of potential when you compare it to our existing market capital enterprise value and we've got i think some exciting results coming out over the next literally thirty days here

Unknown Executive: And we've got, I think, some exciting results coming out over the next literally 30 days here. So, with that, we'll turn over to the question and answer, Perry, and I'll just quickly stop sharing the screen.

Speaker Change: so with that we'll turn over the question answer period s to quickly stop sharing screen

Unknown Executive: So, with that, we'll turn over to the question and answer, Perry, and I'll just quickly stop sharing the screen.

Unknown Executive: Yeah, so we have a few questions that have come in both through Zoom and on social media. For the gas price for July and for the rest of the year, for the volumes that are sold incremental to the firm volumes under the contract, what gas price do you expect to achieve, and how much price-sensitive demand are you seeing from Bahia Gas?

Unknown Executive: Yeah, so we have a few questions that come in both through Zoom and on social media.

Speaker Change: yes so we have a few questions that it commin both to resume and on social media

Unknown Executive: Yeah, so we have a few questions that come in both through Zoom and on social media. For the gas price for July and for the rest of the year, for the volumes that are sold incremental to the firm volumes under the contract, what gas price do you expect to achieve? And how much price sensitive demand are you seeing from the heat gas?

Adrian Audet: For the gas price for July and for the rest of the year, for the volumes that are sold incremental to the firm volumes under the contract, what gas price do you expect to achieve? And how much price-sensitive demand are you seeing from the heat gas? Well, that's the whole reason why we went through a phase where some of the demand impacts that the heat gas were seeing were temporary, and then it became clear that some of them were actually more permanent. So that was kind of an evolution. And, you know, I think some of the market is responding to that similar lead to how we are responding, but overall, you know, the price adjustments we're talking about aren't overly material, but the production increase that we have seen is quite material.

Unknown Executive: For the gas price for July and for the rest of the year, for the volumes that are sold incremental to the firm volumes under the contract, what gas price do you expect to achieve and how much price-sensitive demand are you seeing from Bahia Gas?

Unknown Executive: Well, you know, that's the whole reason why we went through a phase where, you know, some of the demand impacts of the heat gas we're seeing were temporary. And then it became clear that some of them were actually more permanent. So that was kind of an evolution.

Speaker Change: Well, you know, that's the whole reason why, you know,

Adrian Audet: Well, that's the whole reason why we went through a phase where some of the demand impacts that the heat gas were seeing were temporary and then it became clear that some of them were actually more permanent, so that was kind of an evolution. And, you know, I think some of the market is responding to that similar lead to how we are responding, but overall, you know, the price adjustments we're talking about aren't overly material, but the production increase that we have seen is quite material. So, you know, we'll continue to review the situation monthly.

Speaker Change: We went through a phase where, you know, some of the demand impacts of the heat gas we're seeing were temporary and then it became clear that some of them were actually more permanent. So that was kind of an evolution.

Unknown Executive: and

Speaker Change: I think some of the market is responding to that similarly to how we are responding. But overall, the price adjustments we're talking about aren't overly material, but the production increase that we have seen is quite material. So...

Unknown Executive: And, you know, I think some of the market is responding to that similarly to how we are responding. But overall, you know, the price adjustments we're talking about aren't overly material, but the production increase that we have seen is quite material. So, you know, we'll continue to review the situation monthly. But, more importantly, we've talked about this before, but basically, what happened was Bahia Gas projected a demand forecast out for two years and filled up their gas supply as well as their transportation commitments for basically all of 2023 and 2024.

Adrian Audet: So, you know, we'll continue to review the situation monthly. I think, more importantly, we talked about this before, but basically what happened was the heat gas projected at demand forecast out for two years and filled up their gas supply as well as their transportation commitments for basically all of 2023 and 2024. So, as we exit 2024, our expectation is that the heat gas is going to adjust their overall portfolio so that it recalibrates things down to this new demand reality. And as a result, we wouldn't see the type of fluctuation that we've seen in the past.

Speaker Change: We'll continue to review the situation monthly. I think more importantly.

Adrian Audet: I think more importantly, we talked about this before, but basically what happened was the heat gas projected at demand forecast out for two years and filled up their gas supply as well as their transportation commitments for basically all of 2023 and 2024. So, as we exit 2024, our expectation is that the heat gas is going to adjust their overall portfolio so that it recalibrates things down to this new demand reality. And as a result, we wouldn't see the type of fluctuation that we've seen in the past.

Speaker Change: we talked about this before but basically what happened was be he a gas

Speaker Change: projected a demand forecast out for two years and filled up their gas supply as well as their transportation commitments for basically all of 2023 and 2024. So as we exit 2024, our expectation is that Bahia Gas is going to adjust their overall portfolio.

Unknown Executive: So as we exit 2024, our expectation is that Bahia Gas is going to adjust its overall portfolio so that it recalibrates things down to this new demand reality, and as a result, we won't see the type of fluctuation that we've seen in the past.

Speaker Change: So that it recalibrates things down to this new demand reality. And as a result, we wouldn't see the type of fluctuation that we've seen in the past.

Adrian Audet: Where is production capacity at the moment, and when do you expect to reach the near-term goal of 18 million cubic feet a day? Yeah, the production capacity I would say is limited by our UPGN, which is roughly 18 million Senate cubic feet a day or 500 E3M 3 a day. So, we can easily sell up to that. If we have the product capacity at the fields and you know, part of our capital program right now is to increase the rates from work to, so we try and achieve that also. Yeah, it's a little bit of a function of the amount of production that we're taking from the unit, as well as the results on this upcoming activity.

Unknown Executive: Where is production capacity at the moment, and when do you expect to reach the near-term goal of 18 million cubic feet a day?

Unknown Executive: Where is production capacity at at the moment and when do you expect to reach the near-term goal of 18 million cubic feet a day?

Adrian Audet: Where is production capacity at the moment and when do you expect to reach the near term goal of 18 million cubic feet a day? Yeah, the production capacity I would say is limited by our UPGN, which is roughly 18 million Senate cubic feet a day or 500 E3M 3 a day. So, we can easily sell up to that. If we have the product capacity at the fields and you know, part of our capital program right now is to increase the rates from work to so we try and achieve that also. Yeah, it's a little bit of a function of the amount of production that we're taking from the unit as well as the results on this upcoming activity.

Unknown Executive: Yeah, the production capacity, I would say is limited by our UPGN, which is roughly 18 million centimeters of water a day or 500 E3M3 a day. So we can easily sell up to that if we have the correct capacity at the fields. And, you know, part of our capital program right now is to increase the rates for Merck due to, so we try and achieve that goal, yeah.

Speaker Change: Yeah, the production capacity I would say is limited by our UPTN, which is roughly 18 million centi-cubic feet a day, or 500 E3M3 a day, so we can easily sell up to that.

Unknown Executive: If we have the correct capacity at the fields. And, you know, part of our capital program right now is to increase the rates for Merck 2.2, so we try and achieve that goal. Yeah.

Unknown Executive: if we have to correct capacity at the fields and part of our capital program it right now is to increase the rates from mer q two so we try and achieve that goal so

Unknown Executive: Yeah, it's a little bit of a function of the amount of production that we're taking from the unit as well as the results of this upcoming activity. So I think we'll be in a better position to answer that in a month's time, hopefully.

Speaker Change: Yeah, it's a little bit of a function of the amount of production that we're taking from the unit as well as the results on this upcoming activity. So I think we'll be in a better position to answer that in a month's time, hopefully.

Adrian Audet: So, I think we'll be in a better position to answer that in a month's time, hopefully.

Adrian Audet: So, I think we'll be in a better position answer that in a month's time hopefully.

Adrian Audet: So, we do have a few questions on the Q2. Is the aim still to reach over 5 million cubic feet a day from Merck, Q2 in 2025? Yeah, so we're sorry to say you're not just so the plan really is to take what we're doing with these recompletions and then apply the learnings from that to our capital program going forward. So, we want to get those results in and then position ourselves to start executing our long-term development program. So, certainly, directionally, we think that asset can still deliver on our longer term objectives. You know, the timing of that may shift a little bit based on when we start the drilling program.

Unknown Executive: So we still, we do have a few questions on MERV 2.2. Is the aim still to reach over 5 million cubic feet a day for MERV 2.2 in 2025?

Unknown Executive: So we do have a few questions on MERV 2.2. For example, is the aim still to reach over 5 million cubic feet a day from MERV 2.2 in 2025?

Speaker Change: So we do have a few questions on MERV 2.2. Is the aim still to reach over 5 million cubic feet a day from MERV 2.2 in 2025?

Unknown Executive: Yeah, so we're sorry, Adrian, just so the plan really is to take what we're doing with these recompletions and then apply the learnings from that to our capital program going forward. So we want to get those results in and then position ourselves to start executing our long-term development program. So certainly, directionally, we think that asset can still deliver on our longer-term objectives.

Unknown Executive: Yeah, so we're, sorry Adrian, I'll just...

Speaker Change: So the plan really is to take what we're doing with these recompletions and then apply the learnings from that to our capital program going forward. So we want to get those results in and then position ourselves to start executing our long-term development program.

Speaker Change: Certainly, directionally, we think that asset can still deliver on our longer-term objectives.

Adrian Audet: So, certainly, directionally, we think that asset can still deliver on our longer term objectives. You know, the timing of that may shift a little bit based on when we start the drilling program. But I think we're really well positioned because we've got three drilling pads to drill multiple development wells from that are all pipeline connected. So, we're uniquely positioned to quickly convert natural gas drilling successes into production cash flow. And then as we develop that resource in the southern portion of our Merck, Q2 project, we can get out in front of that and start to build with well pads and additional field pipelines to connect back to our 1831 facility, which has an initial capacity.

Unknown Executive: You know, the timing of that may shift a little bit based on when we start the drilling program, but I think we're really well positioned.

Adrian Audet: But I think we're really well positioned because we've got three drilling pads to drill multiple development wells from that are all pipeline connected. So, we're uniquely positioned to quickly convert natural gas drilling successes into production cash flow. And then, as we develop that resource in the southern portion of our Merck, Q2 project, we can get out in front of that and start to build with well pads and additional field pipelines to connect back to our 1831 facility, which has an initial capacity. But it is, as they've been mentioned, up about seven, nine cubic feet a day, but based on results that can be easily experienced.

Adrian Audet: But it is, as they've been mentioned, up about seven, nine cubic feet a day, but based on results that can be easily experienced. So there was a follow up question to that. You've already answered most of it, but around the timing of drilling the new weld on Merck 22 and the expected CAPEX in the second half of this year in 2025. I think you've already answered that the new wells are dependent on the results of this program that we're undertaking right now.

Unknown Executive: You know, the timing of that may shift a little bit based on when we start the drilling program. But I think we're really well positioned because we've got three drilling pads to drill multiple development wells from that are all pipeline connected. So we're uniquely positioned to quickly convert natural gas drilling successes into production cash flow. And then as we develop that resource in the southern portion of our America 2-2 project, we can get out in front of that and start to build with well pads and additional field pipelines to connect back to our 183-1 facility, which has an initial capacity of about 7 million cubic feet a day, but, as Adrian mentioned, it can be easily expanded.

Speaker Change: because we've got three drilling pads to drill multiple development wells from that are all pipeline connected. So we're uniquely positioned to quickly convert natural gas drilling successes into production cash flow. And then as we develop that resource in the southern portion of our America 2-2 project.

Speaker Change: We can get out in front of that and start to build with well pads and additional field pipelines to connect back to our 183.1 facility.

Unknown Executive: which has an initial capacity, but it, as Adrian mentioned, up about 7 million cubic feet a day, but based on results, that can be easily expanded.

Unknown Executive: So there was a follow-up question to that. You've already answered most of it, but around the timing of drilling the new wells on Merica 2-2 and the expected CapEx in the second half of this year in 2025, I think you've already answered that the new wells are dependent on the results of this program that we're undertaking right now, as will the CapEx for that be dependent on that as well and the timing for that.

Adrian Audet: So there was a follow-up question to that. You've already answered most of it, but around the timing of drilling the new weld on Merck 22 and the expected CAPEX in the second half of this year in 2025. I think you've already answered that the new wells are dependent on the results of this program that we're undertaking right now. It will be the CAPEX for that would be dependent on that as well, and the timing for that. For the second half of this year, the reconpletions that we have planned here on 1831 and 18383, that's at an estimated cost of roughly 3 million, and that should mostly be in the third quarter.

Unknown Executive: So there it was.

Speaker Change: So there was a follow-up question to that, you've already answered most of it, but around the timing of drilling the new wells on Merica 2-2 and the expected CapEx in the second half of this year in 2025.

Speaker Change: I think you've already answered that the new wells are dependent on the results of this program that we're undertaking right now, as will be the CapEx for that would be dependent on that as well, and the timing for that.

Adrian Audet: It will be the CAPEX for that would be dependent on that as well and the timing for that. For the second half of this year, the reconpletions that we have planned here on 1831 and 18383 that's at an estimated cost of roughly 3 million and that should mostly be in the third quarter. So just to round out that question.

Unknown Executive: For the second half of this year, the recompletions that we have planned here on 183-1 and 183-A-3, that's at an estimated cost of roughly $3 million, and that should mostly be in the third quarter. So just to round out that question. Another question on Merck Q2, how are you developing, and are you permitted to craft?

Speaker Change: For the second half of this year, the recompletions that we have planned here on 183.1 and 183.83, that's at an estimated cost of roughly $3 million, and that should mostly be in the third quarter.

Adrian Audet: So just to round out that question.

Unknown Executive: he

Adrian Audet: Another question on Merck Q2, how are you developing and are you permitted to crack? Yes, so we're in the phase of actually getting a development permit for the field license. There's a natural transition period out of the exploration phase and into the development phase. And our expectation and plan will be to use stimulation technology; at least that's our current plan as we develop the field. If the results of the three existing welds and the programs we have planned there on Merck Q2 are meaningful, will Alvopetro do a reserve update? Yeah, I think practically speaking, you know, by the time we get, we'll get some initial results here, hopefully by the end of August. You know, we'll see a couple of months of that.

Speaker Change: Another question on MARC-Q2, how are you developing and are you permitted to BRAC?

Adrian Audet: Another question on Merck Q2, how are you developing and are you permitted to crack? Yes, so we're in the phase of actually getting a development permit for the field license. There's a natural transition period out of the exploration phase and into the development phase. And our expectation and plan will be to use stimulation technology, at least that's our current plan as we develop the field. If the results of the three existing welds and the programs we have planned there on Merck Q2 are meaningful will Alvopetro do a reserve update?

Unknown Executive: and

Unknown Executive: Yes, so yeah, we're in the phase of actually getting a development permit for the field license. There's a natural transition period out of the exploration phase and into the development phase. And our expectation and plan will be to use stimulation technology, at least that's our current plan as we develop the field.

Unknown Executive: Yes, so yeah, we're in the phase of actually getting a development permit for the field license. There's a natural transition period out of the exploration phase and into the development phase, and our expectation and plan will be to use stimulation technology. At least that's our current plan as we develop the field.

Unknown Executive: yes so yeah we're in the

Unknown Executive: we're in the phase of actually getting a development permit for for the field license there's a natural transition period out of the exploration phase into the development phase

Unknown Executive: And our expectation and plan will be to use stimulation technology. At least that's our current plan as we develop the field.

Unknown Executive: If the results of the three existing wells and the programs we have planned there on MERC-22 are meaningful, will Alvopetro do a reserve uptake?

Speaker Change: If the results of the three existing wells and the programs we have planned there on MERC-22 are meaningful, will Alvo Petro do a reserve update?

Unknown Executive: I can, I can. Yeah, I think practically speaking, you know, by the time we get, we'll get some initial results here, hopefully by the end of August, you know, we'll want to see a couple months of that. We'll be pretty close to our normal reserve update season anyway, so my guess is we would probably wait, but

Unknown Executive: I can, I can add this. Yeah, I think practically speaking, you know, by the time we get, we'll get some initial results here, hopefully by the end of August .

Adrian Audet: Yeah, I think practically speaking, you know, by the time we get we'll get some initial results here, hopefully by the end of August, you know, we'll see a couple of months of that. That will be pretty close to our normal reserve update season anyway. So my guess is we would probably wait, but yeah, exactly.

Speaker Change: we'll onewant we'll see a cou months of that we will be ty close to our normal reserve update season anyway so my guess is we would probably wait but

Adrian Audet: That will be pretty close to our normal reserve update season anyway.

Adrian Audet: So my guess is we would probably wait, but yeah, exactly.

Unknown Executive: Yeah, exactly.

Unknown Executive: Okay, a little bit more on the production side. Thoughts on why there was a jump in sales in July and if it is a trend? Any specific reason why Bahia Gas nominated more?

Adrian Audet: Okay, a little bit more on the production side. Thoughts on why there was a jump in sales in July and is it a trend? Any specific reason why the heat gas nominated more? Yeah, I touched on this through the presentation. It's pretty much entirely due to, you know, reviewing our flexible pricing on a monthly basis. So we did the same for August. We expect production to be similar in August. And our hope is our expectation is that we can continue that through the rest of this year. And then with the annual contract renewal, you know, we're evaluating, you know, new firm production levels that will help secure at least a nice higher base of production and then complement that as we add Merck Q2 production over the next 18 months.

Speaker Change: Okay, a little bit more on the production side. Thoughts on why there was a jump in sales in July and is it a trend? Any specific reason why Bahia Gas nominated more?

Adrian Audet: Okay, a little bit more on the production side. Thoughts on why there was a jump in sales in July and is it a trend? Any specific reason why the heat gas nominated more?

Unknown Executive: Yeah, I touched on this in the presentation. It's pretty much entirely due to, you know, reviewing our flexible pricing on a monthly basis. We did the same for August, and we expect production to be similar in August. And our hope is or expectation is that we can continue that through the rest of this year. And then, with the annual contract renewal, we're evaluating new firm production levels that will help secure at least a nice higher base of production and then complement that as we add mercanticity to production over the next 18 months.

Speaker Change: Yeah, I touched on this through the presentation. It's pretty much entirely due to, you know, reviewing our flexible pricing on a monthly basis. We did the same for August . We expect production to be similar in August .

Adrian Audet: Yeah, I touched on this through the presentation. It's pretty much entirely due to, you know, reviewing our flexible pricing on a monthly basis. So we did the same for August. We expect production to be similar in August. And our hope is our expectation is that we can continue that through the rest of this year. And then with the annual contract renewal, you know, we're evaluating, you know, new firm production levels that will help secure at least a nice higher base of production and then complement that as we add Merck Q2 production over the next 18 months.

Unknown Executive: And our hope is, or expectation is that we can continue that through the rest of this year. And then with the annual contract renewal, you know, we're evaluating, you know,

Unknown Executive: new firm production levels that that will help secure at least a nice higher base of production and then complement that as we add mar a to two production over the next eighteen months

Adrian Audet: And are you providing specific production specific production guidance for the second half of 2024? Can we expect it to remain at July levels? Well, again, so we're kind of unique in that our production guidance is mostly a result of what's happening with our offtake or the heat gas. So, you know, our current expectation is to this to stay at similar levels, but no, we don't typically provide to poorly production guide. There is another question.

Speaker Change: And are you providing specific production guidance for the second half of 2024? Can we expect it to remain at July level?

Unknown Executive: and Are You Providing Specific Production Specific production guidance for the second half of 2024. Can we expect it to remain at July levels?

Unknown Executive: Well, again, we're kind of unique in that our production guidance is mostly a result of what's happening with our off-taker, Bahia Gas. So our current expectation is to stay at similar levels. But no, we don't typically provide quarterly production guidance.

Speaker Change: Well, again, so we're kind of unique in that our production guidance is mostly a result of what's happening with our offtaker, Bahia Gas. So, you know, our current expectation is to stay at similar levels, but no, we don't typically provide quarterly production guidance.

Unknown Executive: There's another question: where are you focusing your development program?

Adrian Audet: Where are you focusing your development program? As I noted on the organic growth slide earlier, we've got a development program at the unit where we're drilling five wells. I think I mentioned we're going to start to drill those in Q4 this year, and it's going to go into 2025. We're developing that field compression that will be installed in commissions in the fourth quarter. So that's one chance of our development program, and then the other aspect is Merck 2 2, which we've been talking about, where we're focusing our efforts on these resumpletions that we're doing right now, putting those wells online and taking the resumpletion learnings that we're doing to incorporate into the future development and drilling programs in 2025.

Speaker Change: There's another question, where are you focusing your development program?

Adrian Audet: There is another question. Where are you focusing your development program? As I noted on the organic growth slide earlier, we've got a development program at the unit where we're drilling five wells. I think I mentioned we're going to start to drill those in Q4 this year and it's going to go into 2025. We're developing that field compression that will be installed in commissions in the fourth quarter. So that's one chance of our development program and then the other aspect is Merck 2 2, which we've been talking about where we're focusing our efforts on these resumpletions that we're doing right now, putting those wells online and taking the resumpletion learnings that we're doing that to incorporate into the future development and drilling programs in 2025.

Unknown Executive: Yeah, I can comment on that. As I noted on the organic growth slide earlier, we've got a development program at the unit where we're drilling five wells. I think I mentioned we're going to start to drill those in Q4 of this year, and it's going to go into 2025. We're developing that field compression that will be installed and commissioned in the fourth quarter. So that's one chunk of our development program.

Unknown Executive: I can comment on that. As I noted on the organic growth slide earlier, we've got a development program at the unit where we're drilling five wells. I think I mentioned we're going to start to drill those in Q4 of this year, and it's going to go into 2025. We're developing that field compression that will be installed and commissioned in the fourth quarter. So that's one chunk of our development program. And then the other aspect is MERC 2,2, which we've been talking about, where we're focusing our efforts on these recompletions that we're doing right now, putting those wells online, and taking the recompletion learnings that we're doing that to incorporate into the future development and drilling programs in 2025.

Unknown Executive: Yeah, I can comment on that. As I noted on the organic growth slide earlier, you know, we've got a development program at the unit where we're drilling five wells. I think I mentioned we're going to start to drill those in Q4 of this year, and it's going to go into 2025. We're developing that field with

Unknown Executive: Field Compression that will be installed and commissioned in the fourth quarter.

Unknown Executive: And then the other aspect is MERC 2, which we've been talking about, where we're focusing our efforts on these recompletions that we're doing right now, putting those wells online, and taking the recompletion learnings that we're doing that to incorporate into future development and drilling programs in 2025.

Unknown Executive: So that's one chunk of our development program. And then the other aspect is MERC 2, to which we've been talking about, where we're focusing our efforts on these recompletions that we're doing right now.

Unknown Executive: Putting those wells online and taking the recompletion learnings that we're doing that to incorporate into the future development and drilling programs in 2025.

Unknown Executive: Moving to some corporate questions, how long do you expect the ICC full review to take?

Adrian Audet: Moving to some corporate questions, how long do you expect the ICC full review to take? These are hard questions to answer because every process is different, but I think this is sufficiently complex. The base on the advice that we're getting is potentially a multi-year process.

Speaker Change: Moving to some corporate questions. How long do you expect the ICC full review to take?

Unknown Executive: These are hard questions to answer because every process is different, but I think this is sufficiently complex, based on the advice that we're getting. It's potentially a multi-year process.

Speaker Change: these are hard questions to answer because every every process is different but i think this is sufficiently complex are the based on the advice that we're getting as it's it's potentially a multiyear process

Unknown Executive: On the NCIB, there's a question if we expect to actually use the NCIB this time, especially to reward longer-term shareholders, long-term.

Adrian Audet: On the NCIB, there's a question if we expect to actually use the NCIB this time, especially to reward longer time shareholders, long-term shareholders. Yes, our intention is to be using this. We expect to get approval, so hopefully within the next couple of weeks. We've put set an initial budget and our expectation that we can certainly continue the results that the production levels like we've seen in July, which generate. I think will certainly be able to complement that the budget related to share our purchases moving forward.

Speaker Change: On the NCIB, there's a question if we expect to actually use the NCIB this time, especially to reward longer-time shareholders, long-term shareholders.

Adrian Audet: On the NCIB, there's a question if we expect to actually use the NCIB this time, especially to reward longer time shareholders, long-term shareholders. Yes, our intention is to be using this. We expect to get approval so hopefully within the next couple of weeks and we've put set an initial budget and our expectation that we can certainly continue the results that the production levels like we've seen in July, which generate I think will certainly be able to complement that the budget related to share our purchases moving forward.

Unknown Executive: Yes, our intention is to use this. We expect to get approvals hopefully within the next couple of weeks, and we've set an initial budget and our expectation that we can certainly continue the results that production levels, like we saw in July, would generate. I think we'll certainly be able to complement the budget related to share repurchases moving forward.

Speaker Change: Yes, our intention is to be using this. We expect to get approvals hopefully within the next couple of weeks.

Speaker Change: and we've put set an initial budget and and you know our expectation if we can certainly continue the results that production levels like we've seen in July would generate I think we'll certainly be able to complement that the budget related to share repurchases moving forward.

Unknown Executive: Will there be a priority to continue to grow the dividend where it was prior to the cut? Can we expect consistent annual dividend growth as earnings grow?

Adrian Audet: Will there be a priority to continue to grow the dividend where it was prior to the cut? Can we expect consistent annual dividend growth as earnings growth? Yeah, no, that's a good question. It's something that we talk about at the board level at Recorder. I think I would say, and obviously this is subject to the board decision at recorder, but certainly in the near term, the plan is to take the excess above that base dividend and allocate it to share repurchases. And then, based on results, we'll evaluate that mix between additional dividends or additional share repurchases on a really on a quarterly basis.

Speaker Change: Will there be a priority to continue to grow the dividend where it was prior to the cut? Can we expect consistent annual dividend growth as earnings grow?

Adrian Audet: Will there be a priority to continue to grow the dividend where it was prior to the cut? Can we expect consistent annual dividend growth as earnings growth? Yeah, no, that's a good question. It's something that we talk about at the board level at recorder. I think I would say and obviously this is subject to the board decision at recorder, but certainly in the near term, the plan is to take the excess above that base dividend and allocate it to share repurchases. And then based on results, we'll evaluate that mix between additional dividends or additional share repurchases on a really on a quarterly basis.

Unknown Executive: Yeah, no, that's a good question. It's something that we talk about at the board level every quarter. I think, you know, I would say, and obviously this is subject to board decision every quarter, but certainly in the near term, the plan is to take the excess above that base dividend and allocate it to share repurchases. And then, based on results, we'll evaluate that mix between additional dividends or additional share repurchases on a really quarterly basis.

Speaker Change: Yeah, no, that's a good question. It's something that we talk about at the board level every quarter.

Speaker Change: I think, you know, I would say, and obviously this is subject to the board decision every quarter, but certainly in the near term, the plan is to, you know, take the excess above that base and allocated to share repurchases.

Speaker Change: And then based on results, we'll evaluate that mix between additional dividends or additional share repurchases on a really on a quarterly basis.

Unknown Executive: And we have no further questions at this time.

Speaker Change: And we have no further questions at this time.

Unknown Executive: Alright, well, I want to thank everyone for joining again today. We look forward to updating you over the next month and certainly seeing you again on the next quarterly call. If you have any questions, feel free to reach out to any one of us, and thank you for all the support.

Unknown Executive: All right, well, I want to thank everyone for joining again today. We look forward to updating you over the next month and certainly see you again on the next quarterly call. If you have any questions, feel free to reach out to any one of us, and thank you for all the support. Thanks everyone.

Unknown Executive: And we have no further questions at this time.

Unknown Executive: All right, well, I want to thank everyone for joining again today. We look forward to updating you over the next month and certainly see you again on the next quarterly call. If you have any questions, feel free to reach out to any one of us and thank you for all the support. Thanks everyone.

Unknown Executive: Goodbye.

Q2 2024 Alvopetro Energy Ltd Earnings Call

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