Q1 2025 VAALCO Energy Inc Earnings Call
Speaker Change: [music].
Good morning, and welcome to VAALCO Energy's first quarter 2025 conference call all participants will be in listen only mode.
Should you need assistance. Please signal a conference specialist by pressing the Star Key then zero on your telephone keypad.
After today's presentation there'll be an opportunity to ask questions to ask a question you May Press Star then one on your telephone keypad to withdraw your question. Please press Star then two during.
During the question and answer session. We ask that you limit yourself to one question and one follow up.
Please note. This event is being recorded I would now like to turn the conference over to Crystal age Investor Relations coordinator. Please go ahead. Thank you operator welcome to VAALCO Energy's first quarter 2025 conference call. After I cover the forward looking statements George Maxwell, Our CEO will review operational and financial highlights.
Discuss our updated operational plans for 2025 and add some closing comments before we take your questions. During a question and answer session. We ask you to limit your questions to one and a follow up you can always reenter the queue with additional questions.
I'd like to point out that we posted a supplemental investor deck on our website that has additional financial analysis comparisons and guidance that should be helpful. With that let me proceed with our forward looking statement comments.
During the course of this conference call. The company will be making forward looking statements investors are cautioned that forward looking statements are not guarantees of future performance and those actual results or developments may differ materially from those projected in the forward looking statements.
VAALCO disclaims any intention or obligation to update or revise any forward looking statements, whether as a result of new information future events or otherwise.
Accordingly, you should not place undue reliance on forward looking statements.
These and other risks are described in our earnings release, the presentation posted on our website and in the reports we filed with the SEC, including our Form 10-K.
George: Please note that this conference call is being recorded let me turn the call over to George.
George: Thank you, Chris and good morning, everyone and welcome to our first quarter 2025 earnings Conference call.
George: In Q1, 2025, we delivered net income of $7 7 million or 0.7 cents per share and adjusted EBITDA of $57 million.
George: This was driven by NRI production of 17764 barrels of oil equivalent per day, which was above the high end of guidance working interest production of 22402.
George: Barrels of oil equivalent without the high end of guidance and NRI sales of 19074 barrels of oil equivalent per day, which was also at the high end of guidance.
George: Prices in Q1, 2025 with nearly flat with Q4 2024, but we have seen a decline in pricing thus far in Q2.
George: We also entered into a new reserve based revolving credit facility in the first quarter to complement our internally generated cash flow and cash on hand from time to time as needed to fund our growth initiatives.
George: As Ron discussed in our last call. We have an initial commitment of $119 million with the ability to grow to $300 million.
George: To fund projects across our diverse portfolio.
George: Over the past two years, we have delivered record breaking operational and financial result, while meeting or exceeding our quarterly guidance targets.
George: Maintaining operational excellence and consistent production across the portfolio is essential to expanding adjusted EBITDAX.
George: This has allowed us to grow Inorganically and also to fund organic growth initiatives better positioning well for the future.
George: We had a strong start to 2025, but I want to remind everyone that this would be a conditional year. Once we have production come offline in Q1, our Cote d'ivoire as planned for the F. P. S O project and we're not expecting you're kicking off the drilling campaign in Gabon until Q3.
George: Which means meaningful production uplift should begin at the end of 2025 and into 2026.
George: Before I go into more detail regarding our assets I would like to discuss the current macroeconomic environment and discuss our roku is reacting to the uncertainty in the commodity pricing.
George: Given the softening of commodity prices in particular oil, we're looking at ways to reduce our discretionary capital spending and delete some smaller projects.
George: We have decided to cut about 10% from our capital budget in 2025, which includes the drilling program in Canada due to pricing and some smaller projects that can be delayed until we see better commodity pricing stability.
George: Given the strong production performance in Gabon in Egypt, thus far in 2025, we believe that the 10% Capex reduction will not impact our production or sales for the year.
George: Our guidance for the full year 2025 funds remained unchanged with the exception of a 10% reduction in capital.
George: Our long term projects like the F. P. S O project in Cote d'ivoire under drilling campaign in Gabon are continuing as planned given that these are long term projects extending economic field life by adding production and reserves.
George: These projects take multiple years of planning on their economics are evaluated on a longer term basis.
George: I would also like to point out that our fiscal benefits in our African PSC related to lower commodity prices. The offer some protection from lower pricing on a like for additional cost pool recovery to encourage continue investment at lower pricing.
George: Let me now get into the details of some of our assets starting with Cote d'ivoire.
George: I would like to remind you that a year ago, we had no production of interest in Cote d'ivoire, and then in April 2024, we swiftly and efficiently completed the twin Scott acquisition, securing a valuable asset.
George: In line with the project timeline the F. P. S O hydrocarbons production us scheduled on January 31st 2025.
George: With the final lifting of crude oil from the vessel occurring in early February.
George: The vessel is currently onto to the shipyard in Dubai for refurbishment.
George: Significant development drilling is expected to begin in 2026 after the F. P. S O returns to service with potential meaningful additions to production from the main baobab field.
George: The Council of Ministers recently approved a 10 year extension of the license on CH 40, extending it to 2038.
We are making a very sizable investment in this project, but given the license extension under 125% coastal return on the capital spend.
George: This investment will provide solid economic feature growth.
George: In March 2025, we announced the farm in agreement for the Ci 75 block offshore Cote d'ivoire.
George: Where we will operate with a 70% working interest in a 100% paying interest under the commercial cardio arrangement through the seismic reprocessing and interpretation stages and at potentially drilling up to two exploration wells.
Speaker Change: We invested $3 million to acquire their interest in the new block and we're partnering with Ivory coast exploration of oil and gas S. Yes, I'm sad to see.
Speaker Change: We plan to conduct a detailed integrated geological analysis to assess and mature our understanding of the block overall productivity.
Speaker Change: We believe the block is favorably located in a proven hydrocarbon system.
Speaker Change: The prolific tunnel basin and is approximately 70 kilometers to the west of OCI 40 blocks.
Speaker Change: We have demonstrated our ability to acquire develop and enhance value through accretive acquisitions.
Speaker Change: We are excited about the prospects in Cote d'ivoire.
Speaker Change: In Egypt, and the fourth quarter of 2024, we contracted a rig and drill two wells starting your drilling campaign has carried into the first half of 2025.
Speaker Change: In the first quarter of 2025, we do before the five wells uncompleted four of them with an average 30 day initial production rates of.
120 barrels of oil per day.
Speaker Change: We are continuing to drill and expect a further three to four wells to be drilled in the second quarter of 2025 with strong results from the first well talk too.
Speaker Change: With the drilling program on the work over program in Egypt, a solid production and are economic even in lower price environments.
Speaker Change: I'm also very proud of our continued performance from a safety standpoint in Egypt, we have not had any lost time incident in 2024 and thus for in 2025, we have not had a lost time incident, which means we have now gone over $4 3 million man hours without an incident.
Speaker Change: Which is a testament to our ongoing commitment to safety.
Speaker Change: Moving to Gabon.
Speaker Change: Given that we haven't drilled a well in Gabon for over two years. We are pleased with the positive overall production results with strong production uptime unimproved decline curves on the wells.
Speaker Change: We secured a drilling rig in December 2024 for 2025, 2026 drilling program, which is planned to begin in Q3 2025.
Speaker Change: But the timing of when we start the drilling program is dependent on when the rig will become available from its current commitments.
Speaker Change: The contract we signed for the rig is for a firm commitment to five wells with an auction for five additional wells.
Speaker Change: We are targeting two wells to be drilled on one completed in 2025 with the remainder of the program to occur in 2026.
Speaker Change: We have options to drill additional wells, it's information gathered during the program's results in high grading and de risking of already identified well locations.
Speaker Change: Since our last call. We have continued to review the well sequencing of the program and the testing of the Aboody shutting wells.
Speaker Change: We are pleased that the extended flu test on the ability for each well has continued into the second quarter with a well producing at a rate of around about one times and Baltimore oil per day.
Speaker Change: We originally wanted to gather information on the east to ask concentrations dislocation to aid in equipment design and to evaluate our chemical crude sweetening process.
Speaker Change: The well has no fluid for over four months with the east to have concentration within our modeling expectations, demonstrating our assessment to chemically treat the oil.
Speaker Change: The wells production has also helped us to exceed guidance in Q1 2025.
Speaker Change: Some additional production cost for chemicals.
Speaker Change: This well will be walked over to the and the program should provide a further boost to oil production.
Speaker Change: Regarding our exploration blocks in Gabon, the naval Sea Marine and they could do my Marine we are working with our partners and the operator BW energy on plans for the two blocks moving forward.
Speaker Change: The seismic survey to fulfilling work commitment on AUC is being planned for acquisition and lease of 2025 or early 2026.
Speaker Change: Given the proximity of these blocks the prolific producing fields with Tommy and disciplined we're excited about the future possibilities for these blocks.
Speaker Change: Turning to Canada, we successfully drilled four wells with lateral lengths of $2 75 miles in early 2024.
Speaker Change: These will help to improve the liquid mix of our production in Canada, adding to the financial performance.
As I mentioned in last call. We also drilled a well in the southern acreage in Q4 2024.
Speaker Change: Because we have minimum horizontal subsurface information across the southern acreage. This well was drilled to help us better understand the acreage and potentially add reserves.
Speaker Change: The well flowed at around 200 barrels of oil per day in its initial testing phase and we have shut the well in how we evaluate options to tie in the well into production.
Speaker Change: This positive result could lead to future reserves and resources for our southern acreage.
While we remain optimistic about the billable inventory in Canada, we did decide not to drill wells. This year due to the current commodity price uncertainty.
Speaker Change: We will continue to monitor the performance of our wells and plan for future drilling opportunities.
Speaker Change: Turning to Equatorial Guinea, we are currently conducting our front end engineering and design or feed study.
Speaker Change: We continue to anticipate the completion of the feed study will lead to an economic final investment decision on F. D. In 2025, which will enable the development of the feet are Venus discovery.
Speaker Change: We remain excited to proceed with our plans to develop operate and begin producing from the discovery in block P offshore Equatorial Guinea over the next few years.
Speaker Change: I would now like to discuss some of our financial results.
Speaker Change: In the first quarter, we spent $58 million in capital expenditures on a cash basis, which was below our guidance range.
Speaker Change: Our unrestricted cash balance at March 31, 2025 was $14 9 million, which is down about $40 million from year end 2024.
Speaker Change: This was driven by the elevated capital spending and the state lifting bone to settle our income taxes of about $50 million.
Speaker Change: We believe that this will likely be our only state lifting in 2025 and Gabon.
Speaker Change: As we have previously stated our foreign income taxes are settled by the government the order listings in Gabon and corporate one.
Speaker Change: The government taking this year in Egypt.
Speaker Change: The state lifting in Gabon in Q1 also drove our outflow in working capital.
Speaker Change: Well, we had an outflow in working capital. The good news is that we did reduce our Egyptian receivables balance with marginally offset the state lifting impact.
Speaker Change: We completed the first quarter bank debt free with an undrawn $190 million credit facility available to fund our capital projects.
Speaker Change: Let me now come to guidance.
Speaker Change: I would like to point out that our full guidance breakout is in the earnings release and in our supplemental slide deck on our website with production breakout of both working interest and net revenue interest by asset area.
Speaker Change: As I stated earlier, we are reducing our full year capital budget from $270 million to $330 million down to $250 million to $300 million under full year production and sales guidance will remain unchanged.
Speaker Change: For the second quarter, we expect to spend between 65 and $85 million and capital expenditures.
Speaker Change: And alright production is expected to be between 15000, and 416800 barrels of oil equivalent per day and sales are expected to be from 17800 to 19300 barrels of oil equivalent per day.
Speaker Change: In Q2, we expect three lifting to occur in Gabon, which is why our sales guidance is higher than our production guidance.
Speaker Change: As a reminder, the EF peso progestin Courtois began in Q1 and the production and sales for the Baobab field are not expected until the F. P. S will return in 2026.
Speaker Change: Production expenses for Q2 expected to be in line with Q1 2025, when normalized for onetime expenses.
Speaker Change: Given the current commodity price uncertainty, we're continuing towards every dollar we spend on just like with our capital spending we're looking to defer discretionary spending and operating and G&A expenses as well.
Speaker Change: Turning to hedging we have added some additional hedges and we now have 70000 barrels of oil per month hedged in Q2 with a floor of $65.
Speaker Change: In July we have 160000 barrels of oil per month hedged with a floor of about $65.
Speaker Change: And in August and September we have 60000 barrels of oil per month with a floor of $65.
Speaker Change: In addition, we have gas hedges amounting to 75% of our anticipated gas production in place for me to October of this year.
Speaker Change: Our hedging program was always look to help mitigate risk and protect our commitment to shareholder returns.
Speaker Change: As you have heard this morning, we have a track record over the past several years of not only delivering strong operational and financial results at or above expectations every quarter.
Speaker Change: But also making highly accretive acquisitions that have materially grown Vulcan.
Speaker Change: We have an exciting array of organic projects that we are executing over the next few years and that we expect will double our size and scale and enhance our ability to generate even more cash flow in the future for growth.
Speaker Change: Next week, we have our capital markets day, where we will go into additional details about the upside capabilities across our diversified asset portfolio.
Speaker Change: And I want everyone to come away from our capital markets day is the bulk was on the right trajectory with multiple high quality upside opportunities across our portfolio.
Speaker Change: Additionally, we have an outstanding team, whose operational technical and financial acumen will be on full display during the presentation.
Speaker Change: This coupled with a track record of meeting or exceeding expectation.
It is still the investment community with confidence that we can deliver on our commitments that will drive our valuation to a level more in line with the cash flows and MPV potential VAALCO can deliver in the future.
Speaker Change: Our strategy remains unchanged to operate efficiently invest prudently maximize our asset base and look for accretive opportunities.
Speaker Change: We are in an enviable financial position with a much stronger and diverse portfolio of producing assets with significant future upside potential.
Speaker Change: Our entire organization is actively working to deliver sustainable growth and strong results to continue funding our capital programs cost also returning value to our shareholders through a top quartile dividend yield.
Speaker Change: In Q1 2025.
Speaker Change: <unk> quarterly cash dividend of $6, two five cents per common share or around $6.
Speaker Change: $5 million.
Speaker Change: We also announced the second dividend payment of 2025, which will be paid later in June and we remain on pace to deliver another 25 cents per share annual dividend for 2025.
Speaker Change: Under our current share price as a dividend yield of over seven 5%.
Speaker Change: After paying the second quarter of 2025 dividend Vulcan will have returned over $100 million.
Speaker Change: To our shareholders through dividends and share buybacks since 2022, when the first dividend payment was made.
Speaker Change: We are truly excited about the future and Vulcan now has multiple producing areas and future prospects have a diversified our risk profile and our sources of income for many years to come.
Speaker Change: Our disciplined approach to maximizing value for our shareholders by delivering growth in production reserves and cash flow has not been reflected in our stock price, but we believe that we will see the market begin to properly value VAALCO as we execute.
Speaker Change: On our organic opportunities.
Speaker Change: Thank you and with that operator, we are ready to take questions.
Speaker Change: We will now begin the question and answer session.
Speaker Change: To ask a question you May press Star then one on your telephone keypad.
Speaker Change: Using a speakerphone please pick up your handset before pressing the keys.
Speaker Change: If at any time. Your question has been addressed and you would like to withdraw your question. Please press Star then two.
Speaker Change: During our question and answer session. We ask you to limit your questions to one and a follow up you said always reenter the queue with additional questions.
Speaker Change: At this time, we will pause momentarily to assemble our roster.
Speaker Change: Okay.
Speaker Change: And the first question comes from Jeff Robertson with water Tower Research. Please go ahead.
Jeff Robertson: Thank you and good morning, George can you comment on the production profile at Gabon over the back half of 2025 and how it fits in your guidance and I'm wondering if you have.
Speaker Change: Any gas.
Jeff Robertson: Downtime and the numbers that would be.
Just by the drilling campaign in Europe, they'll start in the third quarter.
Jeff Robertson: Yes, we can.
Jeff Robertson: First quick answer to that is no. We don't have any significant planned downtime related to the drilling program for 2025. However, we do have planned preventative maintenance downtime in July.
Jeff Robertson: We have in relation to the drilling program, we do see a slight uptick in production towards the end of Q4, which is the delivery of the of the first well, but should be back on it should be drilled and on production in Q4, but there's not and within our guidance, there's not a significant amount of production include.
Jeff Robertson: From the drilling campaign.
Jeff Robertson: So with the third quarter, then would you expect that to be the lowest quarter of the year of production given the maintenance schedule.
Jeff Robertson: Yes, we would we're going to be I think between seven and 10 days.
Jeff Robertson: And NCI can you talk at all yet about.
Jeff Robertson: How you how the drilling the development drilling campaign starts to look in.
Jeff Robertson: In 2026 and are you looking for.
Jeff Robertson: Are you and the partner looking for a rig there or.
Jeff Robertson: When might you expect to start that I know, you'll probably talk about that in much more detail next week.
Jeff Robertson: Yeah, we have some more detail on that next week over say the phase five billing is scheduled to start midyear 2026.
Jeff Robertson: The operator is actively.
Jeff Robertson: Working on securing the rig.
Jeff Robertson: Wait for the operator to make that announcement when that concluded but right now everything is on schedule for midyear 2026 for that campaign.
Jeff Robertson: Thank you.
Jeff Robertson: Okay.
Jeff Robertson: And your next question comes from Stefan facade with artists Advisors. Please go ahead.
Stefan Facade: Good afternoon, guys all good morning.
Speaker Change: I guess in the context of price being lower.
Speaker Change: There's often a TPG coming starting 2006 was in 2017.
Speaker Change: We got all of them.
Speaker Change: In Cote d'ivoire.
Speaker Change: <unk>.
Speaker Change: He holds.
Speaker Change: No I was wondering how you rank the project would you prioritize this project.
Speaker Change: Okay, well it depends obviously, what you classify as a low oil price almost that we've always been sensitizing between around $65. When it comes to dividend when it comes to a capital project and as you are aware Stephane, particularly in Africa. The PSC are extremely forgiving on lube oil.
Speaker Change: Prices in many cases remain very economic of low oil prices is your coastal entitlement increases. So when you look at the priority of projects, obviously anything that can be an enhancement of production through existing facilities.
Speaker Change: Facilities in Gabon already CDI is much more economic than a blue Walker development. So.
Speaker Change: That being said the biggest blue water development, we have would be in Equatorial Guinea.
Speaker Change: And.
Speaker Change: We've already.
Speaker Change: Is it tomorrow.
Speaker Change: Particular project given the short tenure of up to 60 months of production and the terms of that PSC do make it very attractive so.
Speaker Change: The bolt on opportunities overseas.
Speaker Change: We would look at.
Speaker Change: If oil prices fell below the $60 level.
Speaker Change: A longer term basis, but when we did do the analysis of the only blue water development. We have on the G. We did sensitize that 10% to $50, but when we did at that time.
Speaker Change: The other thing we haven't seen quite yet in a lower oil price environment.
Speaker Change: As the service and the equipment market moving towards lower prices to enable both developments to be far more economic so is the way our sustained low oil price environment, we would expect to see on the service side, a corresponding reduction in the costs that would support further economic development, even though.
Speaker Change: The lower prices.
Okay interesting.
Speaker Change: To add onto that we we are starting to see some softening.
Speaker Change: Supplier costs as well in the industry.
Speaker Change: Yes.
Speaker Change: Okay. Thank you and my football so a buoy and seems to be going very well and one fold in <unk> continued in Q2.
So does that expectation.
Speaker Change: I assume that each line and what does that mean.
Speaker Change: Hey, Jamul economics, okay. It it doesn't mean anything I mean, we really Aboody 48 was we took a online in order to get further information on the reservoir performance further information on the east to ask concentrations.
Speaker Change: One of the things we've always cautioned by about four days. This well was shut in for about eight eight years nine years and and it's still running on the older versions of the ESP. So we've taken advantage of the resilience of that well to continue to produce beyond.
Speaker Change: Testing expectations.
Speaker Change: When we look at what impact does it have on the redevelopment of Aboody. It just gives us further information and a greater degree of confidence that the solution that we've established on downhole chemical scavenging is going to be more than sufficient to AR to continue that.
Speaker Change: Developments in the movie so it's a it's a great boost to Q1 it.
Speaker Change: It was unplanned.
Speaker Change: And for our guidance.
Speaker Change: <unk> continues to produce but it's also something we've taken out of our guidance because it really is just a test well.
Speaker Change: Okay.
Speaker Change: Again, if you have a question. Please press Star then one.
Chris Wheaton: Your next question comes from Chris Wheaton with Stifel. Please go ahead.
Speaker Change: Thank you gentlemen, good morning.
Chris Wheaton: A couple of questions from me really around working capital if I may firstly on.
Chris Wheaton: Paul are you able to give an indication of how.
Speaker Change: The working capital swing later in the year will be as the government lifting is absorbed by looking at the difference.
Speaker Change: Between your sales and your production numbers looks to be about $20 million or so.
Speaker Change: <unk>.
Speaker Change: <unk> oil prices.
Speaker Change: Secondly.
Yeah I know.
Speaker Change: Broader question on working capital.
Speaker Change: We've seen reasonably meaningful outflow after the last two years now I think cumulatively since beginning of 'twenty. Three is total of $49 million of working capital. So I'm interested in again going back to coming back to my first question how much of that is the Gabon lifting.
Speaker Change: But also if the base.
Speaker Change: Is there a chance that some of these working capital the structural that he won't actually come back into the business into next.
Speaker Change: Over the next nine to 12 months or so.
Speaker Change: So I was kind of my key questions, let's for now thank you.
Ron: Hi, it's Ron Thanks for that.
Speaker Change: Let me take in Gabon as you can see in Q1, we had the state less in February and you can see on the earnings release that.
Speaker Change: The cash equivalent value for that oil left for US was just just over $30 million. There was also a cool lists both partner less sudden state less obviously CDI in Q1, two and I think that's about another $1 million. So we actually paid cash taxes.
Speaker Change: Mm three through those oil less of about $31 million in the quarter and not really yes. The the outflow are driving the outflow in working capital in Q1, we had some receivables collections, which obviously helps minimize the overall impact.
Speaker Change: Now what that will do is effectively done.
Speaker Change: Really represents our taxes for the year, we believe in Gabon, and there'll be nothing in CDI cause production in 2025.
Speaker Change: So what you will see a just in your foreign tax payable in the balance sheet start to grow over the next.
Chris Wheaton: Coming months six to nine months, so if anything it's going to be a working capital improvement Chris because we won't have a state left until winter 2026, and Gabon, and we certainly one of our state less until 2026 and CDI.
Speaker Change: Hopefully that helps helps answer that question.
Speaker Change: No that's great. Thank you very much and let me just a follow up on Egypt. Please you've got your 30, such 2 million back in the quarter from Egypt, which you have to think very well done.
Speaker Change: Does that represent all of this of the aged receivable that was outstanding that you'd manage to get.
Speaker Change: Classified I think it was in the third quarter of last year reclassified as a payable.
Speaker Change: So it looks like you've got most of that receivable issue in Egypt resolved now I guess the question is.
Speaker Change: If that's been resolved does that mean, the Egyptian government is expecting you to put some of that back into more capex in Egypt, because obviously.
Speaker Change: That will get a quid pro quo, but it feels like it come into our pricing strategy, probably what you want to be doing.
Chris Wheaton: Again, great question, Chris Yeah.
Speaker Change: Situation in relation to Egypt, first and foremost let me, let me just make sure and clarify.
Speaker Change: The movement of $32 million that you believe you see in the cash flow is in relation to the contractual backdated entitlement, which at one point in time was over $60 million, which manage to we've managed to collect the bulk up in fact lay all of that over over the last year and a bit.
Speaker Change: No what.
Speaker Change: What I would say is we haven't seen a $50 million reduction in ejection receivables in the quarter.
Speaker Change: The overall position on receivables improved by.
Speaker Change: $809 million, because although there is payments and offsets going against not contractual but data because it's the oldest youre current receivables irrationally.
Chris Wheaton: Theres a detrimental issue there so net net Chris I just wanted to make sure that people understand the receivables did not claimed by 30 million that came in by closer to 10 million Bucks.
Chris Wheaton: Now what that also means is we as you know we started drilling in the end of 2024 I think we completed two wells.
Chris Wheaton: In Q4, 2024, and we'll be drilling in Q1, I don't think we've completed about five wells in.
Chris Wheaton: In Q1.
Chris Wheaton: Our current campaign I think is somewhere between 12 and 15 wells should be completed by the end of Q2. So we won't be in a situation, where we've met our contractual requirements and indeed or what program that we agreed with the GPC.
Chris Wheaton: Again, I'd like to thank our local team who have done a great job with the GPC and making sure that everyone at the end of the day.
Chris Wheaton: Are aligned to the variable agreements that we have with one another.
Ron: That's great on that plant and that's really really helpful answer Ron Thank you very much indeed.
Chris Wheaton: Sure.
Speaker Change: Seeing no further questions. This concludes our question and answer session I would like to turn the conference back over to George Maxwell for any closing remarks.
George Maxwell: Thank you very much.
George Maxwell: I think we've had a as I mentioned in the in the call earlier, we felt a very strong Q1 that rolled right off of a strong Q4 in 2020 for.
George Maxwell: The company has obviously good at capital markets day.
George Maxwell: On Wednesday next week and the details of that are available on our website, where it will be giving a nightline.
George Maxwell: More like towards 2028, and 2029 I'm one of the key messages, obviously with the growth in our organic portfolio, we've created a number of opportunities and developments for the company to grow over.
George Maxwell: Over the coming years and that position you know we're also very confident with the resources that are available within the company, both human and financial but we currently have water disposal sufficient resources to execute the plans that you're going to see on Wednesday.
George Maxwell: The key message that we're not looking to add to secure any further resources in order to deliver the plans that you're going to see a Wednesday.
George Maxwell: And with that said I'd like to thank everyone for for attending the conference and clearly thank all my colleagues in VAALCO for the efforts of BNET clearly put in for Q1 and look forward to talking to you again in the Q2 results. Thank you.
George Maxwell: The conference has now concluded. Thank you for attending today's presentation you may now disconnect.
George Maxwell: Yeah.
George Maxwell: [music].