Q2 2025 Meren Energy Earnings Call

All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session. If you would like to ask a question. During this time. Please press Star then number one on your telephone keypad. If you would like to withdraw your question. Please press star two please note that at anytime participants on the webcast can submit their questions using the questions about them.

At the webcast interface. Please note that this event is being recorded the recording will be available for playback on the company's website I will now pass the meeting over to Mr. Shaheen IBD.

Medicines head of Investor Relations. Please go ahead.

Good morning, and thank you for joining us for <unk> second quarter 2025 results presentation.

Thanks to Dave <unk>, our president.

President and Chief Executive Officer, Dr. Kristi.

Sergey: Hello, everyone. My name is Sergey, and I will be your conference operator today. At this time, I would like to welcome everyone to MEREN's second quarter 2025 results presentation. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, please press star, the number one on your telephone keypad. If you would like to withdraw your question, please press star two. Please note that at any time, participants on the webcast can submit their questions using the questions button at the webcast interface. Please note that this event is being recorded. The recording will be available for the playback of the company's website. I will now pass the meeting over to Mr. Shahin Amini, MEREN's Head of Investor Relations. Please go ahead, Mr. Amini.

<unk>, our chief financial Officer, and all of it Quinn, our chief commercial officer.

Speaker #2: Hello, everyone. My name is Sergey, and I will be your conference operator today. At this time, I would like to welcome everyone to Madison's second quarter 2025 results presentation.

We begin with prepared remarks, and then open the floor for questions.

Before we start I would like to remind everyone that this presentation contains forward looking statements.

Speaker #2: Our lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session. If you would like to ask a question during this time, please press star, then number one on your telephone keypad.

These are based on conscious functions and expectations and involve risks and uncertainties that may cause actual results to differ materially.

Speaker #2: If you would like to withdraw your question, please press star two. Please note that at any time, participants on the webcast can submit their questions using the questions button at the webcast interface.

Can't find a full discussion of these risks in our regulatory filings available on SEDAR plus and on our website.

With that I will now hand, you over to Roger Roger. Please go ahead.

Speaker #2: Please note that this event is being recorded. The recording will be available for playback of the company's website. I will now pass the meeting over to Mr. Shahin Amine.

Thank you shaheen before going into the quarterly performance. So I wanted to take a step back and reflect on the first half of the year and the <unk>.

Speaker #2: Madison's head of investor relations. Please go ahead, Mr. Amine.

Progress we've made as a business we've operated in a dynamic environment over the last six months from fluctuations in oil prices to ongoing macroeconomic uncertainty despite.

Shahin Amini: Good morning, and thank you for joining us for MEREN's second quarter 2025 results presentation. I am joined today by Roger Tucker, our President and Chief Executive Officer; Aldo Perracini, our Chief Financial Officer; and Oliver Quinn, our Chief Commercial Officer. We will begin with prepared remarks and then open the floor for questions. Before we start, I would like to remind everyone that this presentation contains forward-looking statements. These are based on current assumptions and expectations and involve risks and uncertainties that may cause actual results to differ materially. You can find a full discussion of these risks in our regulatory filings available on SEDAR+ and on our website. With that, I will now hand you over to Roger. Roger, please go ahead.

Speaker #3: Good morning, and thank you for joining us for Madison's second quarter 2025 results presentation. I'm joined today by Roger Tucker, our President and Chief Executive Officer; Aldo Perracini, our Chief Financial Officer; and Oliver Quinn, our Chief Commercial Officer.

Despite this our focus has remained clear executing against our strategy and delivering long term value for shareholders.

This brings me to our capital allocation priority is something we've been very deliberate about over the last two quarters since the prime amalgamation. We've made strong strides in aligning the business behind these priorities starting with shareholder returns we are firmly on track to deliver our $100 million annually.

Speaker #3: We will begin with prepared remarks and then open the floor for questions. Before we start, I would like to remind everyone that this presentation contains forward-looking statements.

Speaker #3: These are based on current assumptions and expectations and involve risks and uncertainties. That may cause actual results to differ materially. You can find a full discussion of these risks in our regulatory filings available on c.plus and on our website.

Distribution.

So far we've returned $50 million and I'm pleased to confirm our third quarterly dividend of $25 million, taking total distributions to $75 million by the end of Q3.

Speaker #3: With that, I will now hand you over to Roger. Roger, please go ahead.

Roger Tucker: Thank you, Shahin. Before going into the quarterly performance, I want to take a step back and reflect on the first half of the year and the progress we've made as a business. We've operated in a dynamic environment over the last six months, from fluctuations in oil prices to ongoing macroeconomic uncertainty. Despite this, our focus has remained clear, executing against our strategy and delivering long-term value for shareholders. This brings me to our capital allocation priorities, something we've been very deliberate about over the last two quarters. Since the Prime amalgamation, we've made strong strides in aligning the business behind these priorities. Starting with shareholder returns, we are firmly on track to deliver our $100 million annual dividend distribution. So far, we've returned $50 million, and I'm pleased to confirm a third quarterly dividend of $25 million, taking total distributions to $75 million by the end of Q3.

Speaker #4: Thank you, Shahin. Before going into the quarterly performance, I want to take a step back and reflect on the first half of the year, and the progress we've made as a business.

This is a clear signal of our ongoing commitment to shareholder value and shareholder capital returns. We also remain fully committed to maintaining a strong balance sheet with appropriate liquidity headroom.

Speaker #4: We've operated in a dynamic environment over the last six months, from fluctuations in oil prices to ongoing macroeconomic uncertainty. Despite this, our focus has remained clear: executing against our strategy and delivering long-term value for shareholders.

Following the prime amalgamation, we have taken a proactive.

Approach to deleveraging repaying some $270 million of BR BL through disciplined cash management with the aim of minimizing interest expenses if.

Speaker #4: This brings me to our capital allocation priorities. Something we've been very deliberate about over the last two quarters. Since the prime amalgamation, we've made strong strides in aligning the business behind these priorities.

If necessary, we have the option of drawing down and draw revolving facility.

Facility.

With an end of Q2 cash position of $266 million.

Speaker #4: Starting with shareholder returns, we are firmly on track to deliver our $100 million annual dividend distribution. So far, we've returned $50 million, and I am pleased to confirm a third quarterly dividend of $25 million taking total distributions to $75 million by the end of Q3.

And the headroom under our ABL facility, we have substantial liquidity and the Optionality to act quickly and decisively to changing business environment towards our goals of value creation and shareholder returns overall, we are delivering on what we said we would do maintaining financial.

Roger Tucker: This is a clear signal of our ongoing commitment to shareholder value and shareholder capital returns. We also remain fully committed to maintaining a strong balance sheet with appropriate liquidity headroom. Following the Prime amalgamation, we have taken a proactive approach to deleveraging, repaying some $270 million of the RBL through disciplined cash management with the aim of minimizing interest expenses. If necessary, we have the option of drawing down under our evolving RBL facility. With an end-of-Q2 cash position of $266 million and the headroom under our RBL facility, we have substantial liquidity and the optionality to act quickly and decisively to changing business environments towards our goals of value creation and shareholder returns. Overall, we are delivering on what we said we would do, maintaining financial discipline, focusing and delivering on our shareholder returns, and ensuring the business remains robust and well-positioned for the future.

Disciplined focusing and delivering on our shareholder returns and ensuring the business remains robust and well positioned for the future.

Speaker #4: This is a clear signal of our ongoing commitment to shareholder value and shareholder capital returns. We also remain fully committed to maintaining a strong balance sheet, with appropriate liquidity headroom.

Looking to the future. It is important to highlight our funded organic growth opportunity set.

Speaker #4: Following the prime amalgamation, we have taken a proactive approach to deleveraging repaying some $270 million of BRBL through disciplined cash management. With the aim of minimizing interest expenses, if necessary, we have the option of drawing down under our evolving RBL facility.

This slide outlines the catalysts that we see as potential near term growth drivers for our business.

Starting with the Venus development project in Namibia.

Courage by the recent positive uptake some public statements by the operator total energies.

Speaker #4: With an end of Q2 cash position of $266 million, and the headroom under our RBL facility, we have substantially liquidated, providing us the optionality to act quickly and decisively to changing business environments.

We are looking towards the final investment decision, possibly during the first half of 2026 with first oil by the end of 2029. This is a world class projects that will provide us with a long life production profile and importantly, it is funded through to first commercial production.

Speaker #4: Towards our goals of value creation and shareholder returns. Overall, we are delivering on what we said we would do, maintaining financial discipline, focusing and delivering on our shareholder returns, and ensuring the business remains robust and well-positioned for the future.

We have captured the resource space and bridge the exploration to production gap without stretching our balance sheets.

Another important theme as catalysts for Marin as it as we get closer to the final investment decision there will be scope for us to report contingent resources and ultimately reserves as part of our annual.

Roger Tucker: In looking to the future, it is important to highlight our funded organic growth opportunities. This slide outlines the catalysts that we see as potential near-term growth drivers for our business. Starting with the Venus development project in Namibia, I am encouraged by the recent positive updates and public statements by the operator, TotalEnergies. We are looking towards the Final Investment Decision, possibly during the first half of 2026, with first order by the end of 2029. This is a world-class project that will provide us with a long-life production profile, and importantly, it is funded through to first commercial production. We have captured the resource base and bridged the exploration-to-production gap without stretching our balance sheet.

Speaker #4: And looking to the future, it is important to highlight our funded organic growth opportunities. This slide outlines the catalysts that we see as potential near-term growth drivers for our business.

<unk> 50, 1101 reporting process.

Moving to pray away, we are working closely with the operator and other partners to deliver a more economically robust project.

Speaker #4: Starting with the Venus development project in Namibia, I am encouraged by the recent positive updates and public statements by the operator, Total Energies. We are looking towards the final investment decision, possibly during the first half of 2026.

The cost and subsurface optimization work for the project continues and there are encouraging signs that the project can potentially capture more volumes with enhanced economics.

Our Nigerian asset base also provides us with attractive near field exploration opportunities such as the ACA Poe far east prospect. This is expected to be drilled during the next the Gina <unk> drilling campaign to start during 2026.

Speaker #4: With first order by the end of 2029, this is a world-class project that will provide us with a long-life production profile and, importantly, it is funded through to first commercial production.

Speaker #4: We have captured the resource base and bridged the exploration to production gap without stretching our balance sheets. Another important Venus catalyst for Marin is that as we get closer to the final investment decision, there will be scope for us to report contingent resources and ultimately reserves, as part of our annual NI 51-101 reporting process.

In case of exploration success at both far East will provide us with an attractive short cycle project investment, but can utilize the existing infrastructure.

Roger Tucker: Another important Venus catalyst for MEREN is that as we get closer to the Final Investment Decision, there will be scope for us to report contingent resources and ultimately reserves as part of our annual NI51 101 reporting process. Moving to Prairie, we are working closely with the operator and other partners to deliver a more economically robust project. The cost and subsurface optimization work for the project continues, and there are encouraging signs that the project can potentially capture more volumes with enhanced economics. Our Nigerian asset base also provides us with attractive near-field exploration opportunities, such as the Akpo Far East prospect. This is expected to be drilled during the next Egina Akpo drilling campaign to start during 2026. In case of exploration success, Akpo Far East will provide us with an attractive short-cycle project investment that can utilize the existing Akpo infrastructure.

And of course, I must reiterate our leading position in the Orange basin off.

Sure.

Namibia, and South Africa, where as well as some of our interest in the Venus development. We also have exposure to follow on high impact exploration opportunities again visa funded and provide us with potentially transformational catalysts without stretching our balance sheet in South Africa.

Speaker #4: Moving to pray away, we are working closely with the operator and other partners to deliver a more economically robust project. The cost and subsurface optimization work for the project continues, and they're encouraging signs that the project can potentially capture more volumes with enhanced economics.

We hold an 18% interest in <unk> before big were carried for two exploration wells and we are working with the operator to develop a drilling program.

Speaker #4: Our Nigerian asset base also provides us with attractive near-field exploration opportunities, such as the Akpofar East prospect. This is expected to be drilled during the next Ajina-Akpo drilling campaign, which is set to start in 2026.

Oliver will shortly speak about our position in Equatorial Guinea, where we continue farmed down efforts for blocks <unk> and EG 31, with the aim of replicating our commercial dealmaking success in Namibia, and South Africa taken together this set of opportunities gives us clear.

Speaker #4: In case of exploration success, Akpofar East will provide us with an attractive short-cycle project investment that can utilize the existing Akpo infrastructure. And of course, I must reiterate our leading position in the Orange Basin offshore Namibia and South Africa, where as well as our interest in the Venus development, we also have exposure to follow-on high-impact exploration opportunities.

We have visibility on future reserves and production growth I will now hand, you over to al to take you through the second quarter highlights.

Roger Tucker: Of course, I must reiterate our leading position in the Orange Basin offshore Namibia and South Africa, where as well as our interest in the Venus development, we also have exposure to follow-on high-impact exploration opportunities. Again, these are funded and provide us with potentially transformational catalysts without stretching our balance sheet. In South Africa, we hold an 18% interest in 3B4B. We are carried for two exploration wells, and we are working with the operator to develop a drilling program. Oliver Quinn will shortly speak about our position in Equatorial Guinea, where we continue our farm-down efforts for blocks EG18 and EG31, with the aim of replicating our commercial dealmaking success in Namibia and South Africa. Taken together, this set of opportunities gives us clear visibility on future reserves and production growth. I will now hand you over to Aldo Perracini to take you through the second quarter highlights.

Thanks, Roger during the second quarter, we produced close to 31000 barrels of oil equivalent per day on a working interest basis, and 35 7000 barrels of oil even into per day on an entitlement pages.

Speaker #4: Again, these are funded and provide us with potentially transformational catalysts without stretching our balance sheet. In South Africa, we hold an 18% interest in 3v4b.

<unk> volumes were slightly softer than the quarter on quarter trends due to the temporary adjustments at <unk>.

Driven by gas export restrictions and schedule maintain its early in the quarter, which form part of our broader strategy to ensure the long term reliability of these assets.

Speaker #4: We are carried for two exploration wells, and we are working with the operator to develop a drilling program. Oliver will shortly speak about our position in equatorial Guinea, where we continue our farm down efforts for blocks EG18 and EG31, with the aim of replicating our commercial dealmaking success in Namibia and South Africa.

Overall first half of 2025 prediction performance is in line with our expectations and support the mid points of our regional prediction guidance.

Bonnie prediction was also modestly adjusted to support flow management and maintain and succeed.

And some of it is our two newly Gino wells came on stream during the quarter performing in line with expectations and helping mitigate natural decline and prediction I just sense complemented by strong well performance at alcohol.

Speaker #4: Taken together, this set of opportunities gives us clear visibility on future reserves and production growth. I will now hand you over to Aldo to take you through the second quarter highlights.

Looking ahead, we will continue to optimizing field development of wells over the reminder of 2005 and the joint venture are progressing well intervention program aimed at enhancing reservoir prediction levels.

Aldo Perracini: Thanks, Roger. During the second quarter, we produced close to 31,000 barrels of oil equivalent per day on a working interest basis and 35,700 barrels of oil equivalent per day on an entitlement basis. Q2 volumes were slightly softer than the quarter-on-quarter trend due to the temporary adjustments at Akpo and Egina. These were driven by gas export restrictions and scheduled maintenance early in the quarter, which formed part of our broader strategy to ensure the long-term reliability of these assets. Overall, first half 2025 production performance is in line with our expectations and supports the midpoint of our original production guidance. At Akbami, production was also modestly adjusted to support flare management and maintenance activity.

Speaker #5: Thanks, Roger. During the second quarter, we produced close to $31,000 barrels of oil equivalent per day on a working interest basis and $35.7 thousand barrels of oil equivalent per day on an entitlement basis.

Also ensuring asset integrity, and maximizing prediction reliability remains central to our operating strategy.

Speaker #5: Q2 volumes were slightly softer than the quarter-on-quarter trend due to the temporary adjustments at Akpo and Ajina. These were driven by gas export restrictions and schedule maintenance early in the quarter, which formed part of our broader strategy to ensure the long-term reliability of these assets.

<unk> stable cash flow generation and long term value delivery.

Moving on slide seven.

This quarter Marin completed one lifting up approximately 1 million barrels at a realized price of 64.2 dollars per barrel.

Speaker #5: Overall, first half 2025 production performance is in line with our expectations and support the midpoint of our original production guidance. At Akbami, production was also modestly adjusted to support flare management and maintenance activities.

To date, we have completed six lifting stockpiling around 6 million barrels at an average realized price of $77 per barrel, which compares favorably against the data ranked at $78 per barrel.

Looking ahead, we have six cargos scheduled for the remainder of the year.

Aldo Perracini: Offsetting some of this, our two new Egina wells came on string during the quarter, performing in line with expectations and helping mitigate natural fuel decline and production adjustments, complemented by strong well performance at Akpo. Looking ahead, we will continue to optimize the infield development wells over the remainder of 2025 and the joint venture of progressing a well intervention program aimed at enhancing reservoir production levels. Also, ensuring asset integrity and maximizing production reliability remain central to our operating strategy, underpinning stable cash flow generation and long-term value delivery. Moving on to slide seven. This quarter, MEREN completed one oil lifting of approximately 1 million barrels at a realized price of $64.2 per barrel. Year to date, we have completed six liftings totaling around 6 million barrels at an average realized price of $77 per barrel, which compares favorably against the dated rent at $71.8 per barrel.

Speaker #5: Offsetting some of this, our two new Ajina wells came on string during the quarter, performing in line with expectations and helping mitigate natural fuel decline and production adjustments complemented by strong well performance at Akpo.

Three of these <unk> branch fixed at an average price of $64 $5 per barrel. While the remaining three are currently unhedged with no pricing mechanism in place.

This approach combined with the senior secured in the first half of the year provides a prudent balance between risk management and market exposure, allowing us to mitigate oil price volatility risk and to capture potential upside.

Speaker #5: Looking ahead, we will continue to optimize the infield development wells over the remainder of 2025 and the joint venture of progressing a well intervention program aimed at enhancing reservoir production levels.

Speaker #5: Also, ensuring asset integrity and maximizing production reliability remains central to our operating strategy. Underpinning stable cash flow generation and long-term value delivery. Moving on to slide seven.

You gave us a solid and stable framework, our cash flow performance into the second half of the year, despite ongoing volatility in the oil market.

Moving onto the next slide for the financials.

To start please note that our Q2 financials are presented on a fully consolidated basis. The hybrid reporting news last quarter following them automation no longer applies.

Speaker #5: This quarter, Marin completed one oil lifting of approximately $1 million barrels at a realized price of $64.2 per barrel. Year to date, we have completed six liftings, totaling around $6 million barrels at an average realized price of $77 per barrel.

Our Q2 2025, we delivered EBITDAX of approximately $107 million, bringing total EBITDA year to date to around $248 million cash flow from operations before working capital gaming at $78 million for the quarter with reported capex of $30 million.

Speaker #5: Which compares favorably against the data grant at $71.8 per barrel. Looking ahead, we have six cargoes scheduled for the remainder of the year. Three of these have their data grant fixed at an average price of $64.5 per barrel, while the remaining three are currently unhatched with no pricing mechanism in place.

Aldo Perracini: Looking ahead, we have six cargo scheduled for the remainder of the year. Three of these have their dated rent fixed at an average price of $64.5 per barrel, while the remaining three are currently unhedged with no pricing mechanism in place. This approach, combined with the sales secured in the first half of the year, provides a prudent balance between risk management and market exposure, allowing us to mitigate oil price volatility risk and still capture potential upside. This gives us a solid and stable framework for cash flow performance into the second half of the year, despite ongoing volatility in the oil market. Moving on to the next slide for the financials. To start, please note that our Q2 financials are presented on a fully consolidated basis. The hybrid reporting used last quarter following the amalgamation no longer applies.

For the first half that equates to approximately 178 million in operating cash flow and $59 million in Capex free cash flow before debt service and shareholder distributions was approximately negative $19 million for the quarter.

Speaker #5: This approach, combined with the sales securing the first half of the year, provides a prudent balance between risk management and market exposure, allowing us to mitigate oil price volatility risk and still capture potential upside.

For the first half overall free cash flow before debt service and shareholder return a substantial at approximately $103 million.

With that let's turn to cash management.

Speaker #5: This gives us a solid and stable framework for cash flow performance into the second half of the year, despite ongoing volatility in the oil market.

We closed the quarter with a cash balance of 267 million compared to the opening balance of $428 million at the end of Q1.

Speaker #5: Moving on to the next slide for the financials. To start, please note that our Q2 financials are presented on a fully consolidated basis. The hybrid reporting used last quarter following the amalgamation no longer applies.

As mentioned previously this.

This is primarily driven by RPI repayments made during the quarter Eden distributions as well as movement in working capital.

Given our strong liquidity position following the primary completion in Q1, we see the opportunity to use our cash position to deleverage the business.

Aldo Perracini: For Q2 2025, we delivered EBITDA of approximately $107 million, bringing total EBITDA year to date to around $248 million. Cash flow from operations before working capital came in at $78 million for the quarter, with reported CAPEX of $30 million. For the first half, that equates to approximately $178 million in operating cash flow and $69 million in CAPEX. Free cash flow before debt service and shareholder distributions was approximately negative $19 million for the quarter. For the first half overall, free cash flow before debt service and shareholder returns stands at approximately $103 million. With that, let's turn to cash management. We closed the quarter with a cash balance of $267 million, compared to the opening balance of $428 million at the end of Q1. As mentioned previously, this is primarily driven by RBL repayments made during the quarter, dividend distributions, as well as movement in working capital.

Speaker #5: For Q2 2025, we delivered EBITDAX of approximately $107 million, bringing total EBITDAX year-to-date to around $248 million. Cash flow from operations before working capital came in at $78 million for the quarter, with reported capex of $30 million.

Proactively pay down our ABL balance by $80 million during the second part.

This brought our total debt balance at the end of the first half to $540 million and significantly reduce interest expenses.

Speaker #5: For the first half, that equates to approximately $178 million in operating cash flow and $59 million in capex. Free cash flow before debt service and shareholder distributions was approximately negative $19 million for the quarter.

We have paid it down even further after the end of the second part.

We also paid out our first two dividend of the year.

In line with our new payout policy, we distributed $50 million year to date in dividends.

As a reminder, under the new policy, we have committed to distributing a base dividend of $100 million per year subject to customary consent and board approval.

Speaker #5: For the first half overall, free cash flow before debt service and shareholder returns stands at approximately $103 million. With that, let's turn to cash management.

Roger had mentioned earlier, we're pleased to have announced our third quarterly dividend, which will be paid next month.

Speaker #5: We closed the quarter with a cash balance of $267 million, compared to the opening balance of $428 million at the end of Q1. As mentioned previously, this is primarily driven by RBI repayments made during the quarter, dividend distributions, as well as movement in working capital.

We also had a large working capital movement of approximately $84 million, which comprised largely of movement in our underneath and receivables position.

Overall, our approach towards cash management this quarter has been focus and discipline deleveraging the business and bolstering our financial strength.

Aldo Perracini: Given our strong liquidity position following the Prime amalgamation Q1, we see the opportunity to use our cash position to deleverage the business and proactively pay down our RBL balance by $80 million during the second quarter. This brought our total debt balance at the end of the first half to $540 million and significantly reduced interest expenses. We have paid this down even further after the end of the second quarter. We also paid out our first two dividends of the year. In line with our new payout policy, we distributed $50 million year to date in dividends. As a reminder, under the new policy, we have committed to distributing a base dividend of $100 million per year, subject to customary consent and board approval. As Roger Tucker had mentioned earlier, we are pleased to have announced our third quarterly dividend, which will be paid next month.

Speaker #5: Given our strong liquidity position following the prime amalgamation in Q1, we seize the opportunity to use our cash position to deleverage the business and proactively pay down our RBL balance by $80 million during the second quarter.

Coupled with a strong liquidity position remain grounded and well positioned to deliver long term value to our shareholders.

Speaker #5: This brought our total debt balance at the end of the first half to $540 million and significantly reduced interest expenses. We have paid this down even further after the end of the second quarter.

Now turning to liquidity management.

As we highlighted last quarter following them automation of prime marrying assume primes are BL facility with an outstanding balance of 750 at the deal completion.

Speaker #5: We also paid out our first two dividends of the year. In line with our new payout policy, we distributed $50 million year to date in dividends.

We remain confident in bearings ultimate and maintaining disciplined cash management continues to be a key strategic focus.

Speaker #5: As a reminder, under the new policy, we have committed to distributing a base dividend of $100 million per year, subject to customary consents and board approval.

Leveraging is a priority for us and it has taken a proactive approach to reduce debt and interest costs.

At the end of Q2, our Rps balances stood at $540 million, reflecting a $210 million paydown since the deal completion.

Speaker #5: As Roger had mentioned earlier, we are pleased to announce our third quarterly dividend, which will be paid next month. We also had a large working capital movement of approximately $84 million, which comprised largely of movement in our underlift and receivables position.

Aldo Perracini: We also had a large working capital movement of approximately $84 million, which comprised largely of movement in our underlift and receivables position. Overall, our approach towards cash management this quarter has been focused and disciplined, deleveraging the business and bolstering our financial strength. Coupled with a strong liquidity position, we remain grounded and well-positioned to deliver long-term value to our shareholders. Now turning to liquidity management. As we highlighted last quarter, following the amalgamation of Prime Oil & Gas Cooperatief U.A., MEREN assumed Prime Oil & Gas Cooperatief U.A.'s RBL facility with an outstanding balance of $750 million at the deal completion. We remain confident in MEREN's outlook, and maintaining disciplined cash management continues to be a key strategic focus. Deleveraging is a priority for us, and we have taken a proactive approach to reduce debt and interest costs.

Post Q2, we reduced these further by $60 million, bringing the balance down to $418 million and delivering a meaningful reduction in interest costs.

Speaker #5: Overall, our approach towards cash management this quarter has been focused and disciplined, deleveraging the business and bolstering our financial strength. Coupled with a strong liquidity position, we remain grounded and well-positioned to deliver long-term value to our shareholders.

We also canceled merit $65 million standby corporate facility.

This facility had remained undrawn and by canceling it we will save approximately $2 million in annual commitment fees.

At the end of the quarter, we had net debt of $273 million with a net debt to EBITDA ratio of 0.6 times well below our one times ceiling, demonstrating our strong credit profile.

Speaker #5: Now, turning to liquidity management. As we highlighted last quarter, following the amalgamation of Prime, Marin assumed Prime's RBL facility, with an outstanding balance of $750,000 at the deal completion.

Going forward, we will remain disciplined considering how best to strengthen <unk> financial profile and ultimately continue to deliver to our shareholders next slide please.

Speaker #5: We remain confident in Marin's outlook, and maintaining disciplined cash management continues to be a key strategic focus. Deleveraging is a priority for us, and we have taken a proactive approach to reduce debt and interest costs.

We have revised our 2025 management guidance based on the actual results from the first half.

Aldo Perracini: At the end of Q2, our RBL balance stood at $514 million, reflecting a $210 million paydown since the deal completion. Post-Q2, we reduced this further by $60 million, bringing the balance down to $418 million and delivering a meaningful reduction in interest costs. We also canceled MEREN's $65 million standby corporate facility. This facility had remained undrawn, and by canceling it, we will save approximately $2 million in annual committed fees. At the end of the quarter, we had a net debt of $273 million, with a net debt-to-EBITDA ratio of 0.6 times, well below our one-time ceiling, demonstrating our strong credit profile. Going forward, we will remain disciplined, considering how best to strengthen MEREN's financial profile and ultimately continue to deliver to our shareholders. Next slide, please. We have revised our 2025 management guidance based on the actual results from the first half.

Speaker #5: At the end of Q2, our RBL balance stood at $540 million, reflecting a $210 million paydown since the deal completion. Post-Q2, we reduced this further by $60 million, bringing the balance down to $418 million and delivering a meaningful reduction in interest costs.

The changes are summarized in the table on this slide.

Working interest any title production ranges have narrowed with mid points for both ranges increasing <unk>.

EBITDAX and cash flow from operations guidance ranges, our revised lower based on a lower full year average dated Brent oil price estimated at $68 $5 per barrel.

Speaker #5: We also canceled Marin's $65 million standby corporate facility. This facility had remained undrawn, and by canceling it, we will save approximately $2 million in annual commitment fees.

This compares to the assumption of $75 per barrel used for regional management guidance.

The revised full year oil price estimate of $68 $5 per barrel accounts for average dated Brent price of $71 $8 per barrel for the first half of 2025, and an average dated Brent price of $65 per barrel for the second half 'twenty to 'twenty five.

Speaker #5: At the end of the quarter, we had a net debt of $273 million, with a net debt to EBITDA ratio of 0.6 times, well below our one-time ceiling, demonstrating our strong credit profile.

Speaker #5: Going forward, we will remain disciplined, considering how best to strengthen Marin's financial profile and, ultimately, continue to deliver for our shareholders. Next slide, please.

We also expect a lower capital expenditure profile, primarily due to the phasing of drilling operations offshore Nigeria with the restart of drilling operations in 2026.

Speaker #5: We have revised our 2025 management guidance based on the actual results from the first half. The changes are summarized in the table on this slide.

I'll now hand over to Oliver to discuss the outlook for the rest of our portfolio.

Aldo Perracini: The changes are summarized in the table on this slide. Working interest and entitlement production ranges have narrowed, with midpoints for both ranges increasing marginally. EBITDA and cash flow from operations guidance ranges are revised lower, based on a lower full-year average dated Brent oil price estimated at $68.5 per barrel. This compares to the assumption of $75 per barrel used for the original management guidance. The revised full-year oil price estimate of $68.5 per barrel accounts for an average dated Brent price of $71.8 per barrel for the first half of 2025 and an average dated Brent price of $65 per barrel for the second half of 2025. We also expect a lower CAPEX profile, primarily due to the phasing of drilling operations offshore in Nigeria, with the restart of drilling operations in 2026.

Thank you Aldo, let's now move to slide 12, and an update on Libya.

Speaker #5: Working interest and entitlement production ranges have narrowed, with midpoints for both ranges increasing marginally. EBITDAX and cash flow for operations guidance ranges are revised lower, based on a lower full year average data grant oil price estimated at $68.5 per barrel.

And the last quarter. The joint venture has continued to work on two fronts on.

On the first front work continues to progress the Venus development project towards final investment decision.

As expected in the first half of 2026 with potential first oil in 2029.

Project Engineering is mature and the operation has guided to a development scheme with up to 40, subsea wells tied back to an spss or with a plateau production of 160000 barrels of oil per day.

Speaker #5: This compares to the assumption of $75 per barrel used for the original management guidance. The revised full year oil price estimate of $68.5 per barrel accounts for average data grant price of $71.8 per barrel for the first half of 2025, and an average data grant price of $65 per barrel for the second half of 2025.

Once online the expected production life of Venus is greater than 20 years and as such it will deliver a long term sustainable cash flow to the company.

The second front and then maybe as follow on exploration drilling to fully unlock the potential results within the licenses.

Speaker #5: We also expect a lower capital expenditure profile, primarily due to the phasing of drilling operations offshore Nigeria, with the restart of drilling operations in 2026.

Results from the last drilling campaign are being studied and integrated with the recent seismic data to high grade targets for the commencement of drilling but as expected in 2026.

Aldo Perracini: I will now hand over to Oliver Quinn to discuss the outlook for the rest of our portfolio.

Speaker #5: I will now hand over to Oliver to discuss the outlook for the rest of our portfolio.

The current drilling break will allow time to incorporate the recent well results and allow the next well targets to be further optimized.

Oliver Quinn: Thank you, Aldo. Let's now move to slide 12 and an update on Namibia. In the last quarter, the joint venture has continued to work on two fronts. On the first front, work continues to progress the Venus development project towards Final Investment Decision, which is expected in the first half of 2026, with potential first oil in 2029. The project engineering is mature, and the operator has guided to a development scheme with up to 40 subsea wells tied back to an FPSO with a plateau production of 160,000 barrels of oil per day. Once online, the expected production life of Venus is greater than 20 years, and as such, it will deliver a long-term, sustainable cash flow to the company. The second front in Namibia is follow-on exploration drilling to fully unlock the potential resource within the licenses.

Speaker #2: Thank you, Aldo. Let's now move to slide 12 and an update on Namibia. In the last quarter, the joint venture has continued to work on two fronts.

We currently expect the campaign to commence so the well on the Limpeh prospect.

It is worth noting that this will test a slightly different geological concept with a full way structural closure and as such presents a different prospect to the stratigraphic traps and venous and Marina.

Speaker #2: On the first front, work continues to progress the Venus development project towards final investment decision, which is expected in the first half of 2026, with potential first oil in 2029.

Of course, and as a reminder, we have the benefits of retaining exposure to these high impact wells at no upfront cost and no pressure on our balance sheet as all costs exploration and development will be carried through to first commercial production from the two blocks.

Speaker #2: The project engineering is mature, and the operator has guided to a development scheme with up to 40 subsea wells tied back to an FPSO, with a plateau production of 160,000 barrels of oil per day.

Moving to slide 13, and staying in the Orange Basin will now move to South Africa in blocks <unk> Colby.

Speaker #2: Once online, the expected production life of Venus is greater than 20 years, and as such, it will deliver a long-term, sustainable cash flow to the company.

Last September we were granted an environmental authorization for the drilling of up to five exploration wells and the remaining regulatory process is continuing to move forward at pace.

Speaker #2: The second front in Namibia is follow-on exploration drilling to fully unlock the potential resource within the licenses. Results from the last drilling campaign are being studied and integrated with recent seismic data to high-grade targets for the commencement of drilling with its expected in 2026.

Oliver Quinn: Results from the last drilling campaign are being studied and integrated with recent seismic data to high-grade targets for the commencement of drilling, that is expected in 2026. The current drilling break will allow time to incorporate the recent well results and allow the next well targets to be further optimized. We currently expect the campaign to commence with a well on the Olympay prospect, and it is worth noting that this will test a slightly different geological concept with a four-way structural closure, and as such, presents a different prospect to the stratigraphic traps in Venus and Maroula. As a reminder, we have the benefit of retaining exposure to these high-impact wells at no upfront cost and no pressure on our balance sheet, as all costs, exploration, and development will be carried through to first commercial production from the two blocks.

With that the joint venture is planning for the first exploration well in 2026 and currently the leading prospect for the first well is located in the northwest of the license area and this is a prospect with sufficient resource in a success case to underpin a standalone future development.

Speaker #2: The current drilling break will allow time to incorporate the recent well results and optimize the next well targets further. We currently expect the campaign to commence with a well on the Olimpe prospect. It is worth noting that this will test a slightly different geological concept with a four-way structural closure and, as such, presents a different prospect to the stratigraphic traps in Venus and Marula.

In terms of capital spend the transaction, we concluded with total energies in Qatar LNG last year will cover <unk> costs for one to two exploration wells.

So in summary across the Orange basin, we retain a leading independent E&P position with near term exposure to multiple projects across both development and exploration and of course without the requirement for any near term capital funding.

Speaker #2: Of course, and as a reminder, we have the benefit of retaining exposure to these high-impact wells at no upfront cost and no pressure on our balance sheet, as all costs, exploration, and development will be carried through to first commercial production from the two blocks.

Now turning to Equatorial Guinea on slide 14.

<unk> holds two licensees offering differing opportunities.

Oliver Quinn: Moving to slide 13 and staying in the Orange Basin, we'll now move to South Africa and block 3B4B. Last September, we were granted an environmental authorization for the drilling of up to five exploration wells, and the remaining regulatory process is continuing to move forward at pace. With that, the joint venture is planning for the first exploration well in 2026, and currently, the leading prospect for the first well is Nyla, located in the northwest of the licensed area, and this is a prospect with sufficient resource in the success case to underpin a standalone future development. In terms of CAPEX, the transaction we concluded with TotalEnergies and Qatar Energy last year will cover MEREN's costs for one to two exploration wells.

In Board block EG 31 offers a compelling low risk appraisal opportunity that could unlock a low capex short cycle brownfield LNG project the blue.

Speaker #2: Moving to slide 13, and staying in the orange basin, we'll now move to South Africa and block 3b/4b. Last September, we were granted an environmental authorization for the drilling of up to five exploration wells and the remaining regulatory process is continuing to move forward at pace.

Localize in shallow water close to the existing onshore EG LNG facility and contained several gas prone prospects in areas, where historic wells have proven the presence of gas.

Speaker #2: With that, the joint venture is planning for the first exploration well in 2026. And currently, the leading prospect for the first well is Nyla, located in the northwest of the license area, and this is a prospect with sufficient resource and a success case to underpin a standalone future development.

The second position block <unk> is a deepwater exploration opportunity with material scale oil potential.

Recent seismic reprocessing and technical evaluation has unlocked a large cretaceous aged basin floor fan system with several material prospects identified that sit within the same play that is being actively pursued by several majors across the border in sarcoma.

Speaker #2: In terms of capital spend, the transaction we concluded with Total Energies and Qatar Energy last year will cover Marin's costs for one to two exploration wells.

Oliver Quinn: So, in summary, across the Orange Basin, we retain a leading independent EMP position with near-term exposure to multiple projects across both development and exploration, and of course, without the requirement for any near-term capital funding. Turning to Equatorial Guinea on slide 14, MEREN holds two licenses offering differing opportunities. Block EG31 offers a compelling low-risk appraisal opportunity that could unlock a low CAPEX short-cycle brownfield LNG project. The block lies in shallow water close to the existing onshore EG LNG facility and contains several gas-prone prospects in areas where historic wells have proven the presence of gas. The second position, block EG18, is a deep-water exploration opportunity with material-scale oil potential.

Speaker #2: So, in summary, across the Orange Basin, we retain a leading independent EMP position with near-term exposure to multiple projects across both development and exploration, and, of course, without the requirement for any near-term capital funding.

Whilst we see significant value in both positions our commercial approach and capital allocation remained disciplined and as such we are running data rooms for both blocks to introduce partners to both risk share and support capital funding.

Speaker #2: Now turning to equatorial Guinea on slide 14, Marin holds two licenses offering differing opportunities. Inboard, block EG31 offers a compelling low-risk appraisal opportunity that could unlock a low capex short-cycle brownfield LNG project.

The farm down process has attracted strong interest and we are actively engaged in discussions with potential partners on both blocks with the aim of reaching a conclusion on the former process by the end of this year.

With the right partnerships in place drilling activity could take place in late 2026 or 2020.

Speaker #2: The block lies in shallow water, close to the existing onshore EG LNG facility, and contains several gas-prone prospects in areas where historic wells have proven the presence of gas.

I will now pass you back to Roger for his concluding comments.

Thank you Oliver.

And sustain a strong and resilient first half of the year for the company we.

Speaker #2: The second position, block EG18, is a deep-water exploration opportunity with material scale oil potential. Recent seismic reprocessing and technical evaluation have unlocked a large, Cretaceous-aged basin floor fan system with several material prospects identified that sit within the same play that is being actively pursued by several majors across the border in São Tomé.

We ended Q2 with about $267 million in cash and a net debt to EBITDA ratio.

Oliver Quinn: Recent seismic reprocessing and technical evaluation has unlocked a large Cretaceous-aged basin floor fan system, with several material prospects identified that fit within the same play that is being actively pursued by several majors across the border in South Tomé. While we see significant value in both positions, our commercial approach and capital allocation remain disciplined. As such, we are running data rooms for both blocks to introduce partners to both risk share and support capital funding. The farm-down process has attracted strong interest, and we are actively engaged in discussions with potential partners on both blocks, with the aim of reaching a conclusion on the farm-out process by the end of this year. With the right partnerships in place, drilling activity could take place in late 2026 or 2027. I will now pass you back to Roger for his concluding comment.

Six times.

Which underscores the strength of our balance sheet and our disciplined approach to managing leverage we will continue to build on this guided by our capital allocation framework to further strengthen <unk> financial profile.

Speaker #2: Whilst we see significant value in both positions, our commercial approach and capital allocation remain disciplined, and as such, we are running data rooms for both blocks to introduce partners to both risk share and support capital funding.

With our new payout policy now firmly in place I'm pleased that we have already distribute half of our $100 million base dividend commitment with a further 25 million to be paid next month.

Speaker #2: The farm-down process has attracted strong interest, and we are actively engaged in discussions with potential partners on both blocks, with the aim of reaching a conclusion on the farm-out process by the end of this year.

This reflects both our confidence in the quality of our cash flows and our commitment to delivering meaningful shareholder returns Marin today has all the key elements of our balanced business the ability to consistently return capital a robust financial profile high quality producing.

Speaker #2: With the right partnerships in place, drilling activity could take place in late 2026 or 2027. I will now pass you back to Roger for his concluding comment.

Roger Tucker: Thank you, Oliver. It has been a strong and resilient first half of the year for the company. We ended Q2 with about $267 million in cash and a net debt-to-EBITDA ratio of 0.6 times, which underscores the strength of our balance sheet and our disciplined approach to managing leverage. We will continue to build on this, guided by our capital allocation framework to further strengthen MEREN's financial profile. With our new payout policy now firmly in place, I'm pleased that we have already distributed half of our $100 million base dividend commitment, with a further $25 million to be paid next month. This reflects both our confidence in the quality of our cash flows and our commitment to delivering meaningful shareholder returns.

Speaker #4: Thank you, Oliver. It has been a strong and resilient first half of the year for the company. We ended Q2 with about $267 million in cash and a net debt to EBITDA ratio of 0.6 times.

Assets and a fully funded growth pipeline.

These are the foundation that position us to grow the business in a disciplined way, while continuing to create long term value for our shareholders. Thank you very much for your attention and with that let's move to the Q and a.

Speaker #4: Which underscores the strength of our balance sheet and our discipline approach to managing leverage. We will continue to build on this, guided by our capital allocation framework to further strengthen Marin's financial profile.

First question is from Jeff Robertson from water Tower Research. Please go ahead.

Thank you good morning.

Roger dividend Marin position with development activity and expert in exploration portfolio, that's pretty robust can you talk about the type of acquisition.

Speaker #4: With our new payout policy now firmly in place, I'm pleased that we have already distributed half of our $100 million base dividend commitment with a further $25 million to be paid next month.

What best fits the portfolio in terms of future capital and timing commitments.

Speaker #4: This reflects both our confidence in the quality of our cash flows and our commitment to delivering meaningful shareholder returns. Marin today has all the key elements of a balanced business, the ability to consistently return capital, a robust financial profile, high-quality producing assets, and a fully funded growth pipeline.

Yes. This is Roger.

The type of thing that we would.

Would consider.

Roger Tucker: MEREN today has all the key elements of a balanced business, the ability to consistently return capital, a robust financial profile, high-quality producing assets, and a fully funded growth pipeline. These are the foundations that position us to grow the business in a disciplined way while continuing to create long-term value for our shareholders. Thank you very much for your attention, and with that, let's move to the Q&A.

It has to be.

Within the scope.

At the same sort of scope of the assets that we've got.

We're looking at significant.

Fields, if you if you'd like.

The production phase or not.

Requiring significant development capex.

Speaker #4: These are the foundation that position us to grow the business in a disciplined way while continuing to create long-term value for our shareholders. Thank you very much for your attention, and with that, let's move to the Q&A.

Tie back opportunities.

Small additional additional capex.

Would be we would be interested but at the moment, we are not of a sufficient size to take a moment to development opportunities.

Sergey: Thank you, Dr. Tucker. We will now begin the question and answer session. If you would like to ask a question, please press star, followed by the number one on your telephone keypad. If you change your mind and wish to withdraw your question, you may press star two. We will pause for a moment to allow questions to queue. Our first question is from Jeff Robertson from Water Tower Research. Please go ahead.

Speaker #2: Thank you, Dr. Tucker. We will now begin the question and answer session. If you would like to ask a question, please press star followed by the number one on your telephone keypad.

It's the.

What type of assets that are out there are pretty difficult to find there is not a great big long list, but we will maintain our capital allocation priorities as we as we look forward does that answer your question.

Speaker #2: If you change your mind and wish to withdraw your question, you may press star two. We will pause for a moment till all questions to queue.

Speaker #2: Now, we now have our first question is from Jeff Robertson from Water Tower Research. Please go ahead.

Yes. It does have a question on the tactical far East you mentioned Thats a short cycled.

Jeff Robertson: Thank you. Good morning. Roger, given MEREN's position with development activity and an exploration portfolio that is pretty robust, can you talk about the type of acquisition that would best fit the portfolio in terms of future capital and timing commitments?

Speaker #6: Thank you. Good morning. Roger, given Marin's position with development activity and the exploration portfolio that's pretty robust, can you talk about the type of acquisition that would best fit the portfolio in terms of future capital and timing commitments?

Exploration project that supported by current infrastructure.

Is that a project it gets drilled in 2026 as a part of your campaign it could be on in 2027.

But we can only make that sort of call. After we see what we've what we've acquired.

Or found ultimate.

So.

Roger Tucker: Roger, are you?

In all likelihood it would be a little longer than the.

Speaker #4: Roger? Are you?

Longer than that but depending on the flow rates et cetera, et cetera, we would look to make it as short cycle as absolutely possible.

Shahin Amini: Hey, Shahin, it's Oliver here.

Speaker #2: Hey, Shahin, it's Oliver here.

Speaker #4: Oh, one moment.

Roger Tucker: Sorry, I think we couldn't quite hear the question at this end. Could it be repeated?

Speaker #2: Sorry, we couldn't quite hear the question at this end. Could it be repeated?

But we need to wait and see what the result of the.

Jeff Robertson: Yes. With respect to the notion of being a consolidator in Africa, given MEREN's current development and exploration portfolio, can you talk a little bit about what type of acquisition best fits the portfolio with respect to capital outlays or capital obligations, rather, and timing considerations?

Speaker #4: Hi, Roger. Yes. With respect to the notion of being a consolidator in Africa, given Marin's current development and exploration portfolio, can you talk a little bit about what type of acquisition best fits the portfolio with respect to capital outlays or capital obligations, rather, and timing considerations?

Well all commissions are at opposite.

Thank you.

Our next question is from total <unk> spend Nelson from Brooklyn, Europe Investor. Please go ahead.

Good afternoon, and thanks for taking my questions.

Three questions, probably first of all my cash flow.

Roger Tucker: This is Roger. The type of thing that we would consider, it has to be within the same sort of scope of the assets that we have got. So we are looking at significant fields, if you like, in the production phase and not requiring significant development CAPEX. If they have got tieback opportunities and small additional CAPEX, we would be interested. But at the moment, we are not at the sufficient size to take on major development opportunities. So it is a type of assets that are out there that are pretty difficult to find. It is not a great big long list, but we will maintain our capital allocation priorities as we look forward. Does that answer your question?

You said that.

Speaker #4: Yeah, this is Roger. The type of thing that we would consider has to be within the scope of the same sort of assets that we've got.

I doubt that that strong capital year to date.

Okay.

Just wondering.

Or when in time would you expect it to be.

Okay.

Speaker #4: So we're looking at significant fields, if you like, in the production phase and not requiring significant development capex. If they've got tie-back opportunities and small additional capex, we would be interested.

Assuming flat oil prices.

So that's the first question second question that is on data.

You guide for $100 million for 2020.

Already enrolled after youre, probably authentication for providing guidance.

And around that.

The average.

The amount of consensus already plans or programs or stock or cash for orad yet.

Speaker #4: But at the moment, we are not at a sufficient size to take on major development opportunities. So the types of assets that are out there are pretty difficult to find.

Mr.

Third question that is on the pro rate developments can you just remind mill Khartoum April 1st oil from the current resource.

Speaker #4: It's not a great big long list, but we will maintain our capital allocation priorities as we look forward. Does that answer your question?

Thanks.

Thank you Thiago I think we will go to al Dor to answer those questions. So first on the cash flows.

And when do you expect to be in the three assuming flat oil price outlook.

Jeff Robertson: Yes, it does. A question on Akpo Far East. You mentioned it is a short-cycle term exploration project that is supported by current infrastructure. Is that a project that if it gets drilled in 2026 as a part of your campaign, it could be on in 2027?

Speaker #2: Yes, it does. A question on Akpofar East. You mentioned it's a short-cycle term exploration project that's supported by current infrastructure. Is that a project that, if it gets drilled in 2026, is a part of your campaign that could be ongoing in 2027?

Yes so.

Our current facility will mature at June 2029, So that's the current RVO of course between now and.

Until June of 2000, and I will always be.

With some gross debt.

Roger Tucker: We could only make that sort of call after we see what we've acquired or found, obviously. So in all likelihood, it would be a little longer than that. But depending on the flow rates, etc., etc., we would look to make it as a short cycle as absolutely possible. But we need to wait and see what the results of the well are before committing to it, obviously.

They were paying down the line I think the important part is that from the beginning of the year until now.

Speaker #4: We could only make that sort of call after we see what we've acquired or found, obviously. So, in all likelihood, it would be a little longer than that.

We have reduced the IPL by $217 million right Thats the base of.

The cash flow that we generate.

Speaker #4: But depending on the flow rates, etc., etc., we would look to make it as short-cycle as absolutely possible. But we need to wait and see what the results of the well are before committing to it, obviously.

It wasn't to pay down debt.

Keeping the company liquid so in terms of being fully debt free of course, it will take time.

But actually our idea.

Is it some point in the near future to refinance existing facility.

Jeff Robertson: Thank you.

Speaker #2: Thank you. Now, our next question is from Theodore Sven Nilsson from Fuglimura Investor. Please go ahead.

And Keith firepower and liquidity to pursue our.

Sergey: Our next question is from Theodore Sven Nielsen from Pugliamura Investor. Please go ahead.

Our M&A and our growth strategy, So I think thats on the.

On the cash flow in terms of dividend expectation for next year I mean, we have committed to the $100 million base dividend.

Theodore Sven Nielsen: Good afternoon, and thanks for taking my question. Three questions from me. First on cash flow. You said that, or you highlighted that you had a strong cash flow year to date, which definitely is good. I just wonder, at which or when in time do you expect to be net debt-free, assuming flat oil prices? That is the first question. The second question is on dividend. This year, you guide for $100 million. For 2026, I am aware that you probably do not have a position to provide a guide yet, but how should you think around the 2026 dividend? Should that be a fixed amount, a percentage of EPS, or a percentage of cash flow, or any other measure? Third question is on the Prairie project development. Could you just remind me of timing for first oil and also the current resource potential? Thanks.

Speaker #6: Good afternoon and thanks for taking my question. Three questions for me. First, on cash flow. You said that you highlighted you had strong cash flow year to date, which is definitely true.

Which is respective of what we get in terms of cash flow for next year of course.

Make any dividend distributions is always subject to the board approval, right, which will be evaluated at any single time, but considering 2026.

Speaker #6: So I just wonder, at which or when in time do you expect to be a net debt-free assuming flat oil prices? So that's the first question.

Base dividend and looking at oil prices and everything that we see at the moment, we are pretty confident with the.

Speaker #6: Second question that is on dividends. We are your guide for $100 million for 2026. I'm aware that you're probably not in a position to provide any guidance yet, but how do you think about the 2026 dividend?

The continuance of the base dividend policy.

And the first question and put out we could go over to Roger on all of US, which is the pro wave lockman expectations on final investment decision and first oil date.

Speaker #6: Should that be a fixed amount, a percentage, or EPS, or a percentage, or cash flow, or any other measure? Third question that is on the pro-way developments.

Yes. Thanks.

Yes.

As mentioned on the call.

Great work.

Speaker #6: Curious to remind me of the timing for first oil and also the current resource potential. Thanks.

By the operator, which is which is very active this year in terms of the front end engineering and optimization, particularly around the resource size and whether.

Roger Tucker: Thank you, Theodore. I think we will go to Aldo to answer those questions. First on the cash flows, when do you expect to be net debt-free, assuming flat oil price, Aldo?

Speaker #4: Thank you, Theodore. I think we'll go to Aldo to answer those questions. So first, on the cash flows. What do you expect to be a net debt-free amount, assuming flat oil prices, Aldo?

There's potential for a relative increase in resource size so ensure.

In short we expect about work to conclude through this year and not words.

Presenting the project for a potential final investment decision next year.

Aldo Perracini: Yes. Our current facility will mature in June 2029. That is the current RBL. Of course, between now and June of 2029, we will always be with some gross debt and repaying down the line. I think the important part is that from the beginning of the year until now, we have reduced the RBL by $270 million. That is the phase of the cash flow that we generate that we are using to pay down debt while keeping the company liquid. In terms of being fully debt-free, of course, it will take time. But actually, our idea is at some point in the near future to refinance the existing facility and keep firepower and liquidity to pursue our M&A and our growth strategy. I think that is on the cash flow.

Speaker #5: Yes. So, our current facility will mature.

We rolled forward from there I think we project a two to three years.

Speaker #4: at June 2029. So that's the current RBL. Of course, between now and June 29, we'll always be with some gross debt. And we're paying down the line.

Development cycle. It seems about a 40 kilometer tieback from priority cities Gina peso so.

Oil somewhere in 2029 first oil on that basis.

Speaker #4: I think the important part is that from the beginning of the year until now, you know we have reduced the RBL by $270 million.

Thank you Peter I will just remind us.

Two resource potential to Adam.

Speaker #4: Right? That's the pace of the cash flow that we generate, which we are using to pay down debt while keeping the company liquid.

Yes.

Rough numbers.

In our public disclosure.

Speaker #4: So in terms of being you know fully debt-free, of course, it will take time. But actually, our idea is at some point in the near future to refinance the existing facility and keep firepower and liquidity to pursue our M&A and our growth strategy.

Priority for Matt.

Project level was over 160 million barrels and then we can carry on 16.

16% of that through about 2000 25 million barrels of JP Morgan.

Okay. Thank you that's all for me.

Thank you as a reminder to ask a question. Please signal by pressing star one.

Speaker #4: So I think that's on the cash flow. In terms of dividends expectations for next year, I mean, we have committed to the $100 million base dividend.

Aldo Perracini: In terms of dividends expectations for next year, we have committed to the $100 million base dividend, which is respective of what we get in terms of cash flow for next year. Of course, to make any dividend distributions is always subject to the board approval, which will be evaluated at this single time. But considering 2026, the base dividend and looking at oil prices and everything that we see at the moment, we are pretty confident with the continuance of the base dividend policy.

Two questions via the webcast.

Our next question is from David round from Stifel. Please go ahead.

Alright. Thanks.

Speaker #4: Which is respective of what we get in terms of cash flow for next year. Of course, to make any dividend distributions, it's always subject to the board approval.

Firstly can you please talk through the thinking around taking an early break from the drilling campaign in Nigeria.

I can appreciate it obviously it gives me more time to look at seismic.

Speaker #4: Right? Which will be evaluated at each single time. But considering 2026, the base dividend and looking at oil prices and everything that we see at the moment, we are pretty confident with the continuance of the base dividend policy.

Well performance.

Are there any specific things you are looking out there because the lead time between making a decision on what would've been the net 12 feels fairly tight.

And then second one again on Nigeria, I mean, you mentioned the wells <unk> and <unk> are you able to give us a sense of the kind of production mix could keep UNH too. Please.

Roger Tucker: The third question, for that, we could go over to Roger and Oliver, which is the Prairie project development expectations on Final Investment Decision and first oil.

Speaker #2: And the third question, and for that, we could go over to Roger and Oliver, which is the pro-way development expectations on final investment decision and first oil date.

Shahin Amini: Thanks, Shahin. So I think, as mentioned on the call, there is ongoing work by the operator, which is very active this year in terms of the front-end engineering and optimization, particularly around the resource size and whether there is potential for a relative increase in resource size there. So in short, we expect that work to conclude through this year, and that would present the project for a potential Final Investment Decision next year. You roll forward from there. I think we project a two to three-year development cycle. It is about a 40-kilometer tieback from Prairie to the Egina FPSO. So let us say that would put oil somewhere in 2029, first oil on that basis.

Speaker #4: Yeah, thanks, Shahin. So I think, as mentioned on the call, there's ongoing work by the operator, which is very active this year in terms of the front-end engineering and optimization.

Roger again.

The reason for the.

Effectively the accelerated.

Speaker #4: Particularly around the resource size and whether there's potential for a relative increase in resource size there. So in short, we expect that work to conclude through this year, and that would present the project for a potential final investment decision next year.

The release of the rig.

We think with the operators.

And it was the operator's decision that they wanted to further study the 40 seismic.

Better optimize mature future locations.

Speaker #4: You're all forward from there. I think we project a two- to three-year development cycle. It's about a 40-kilometer tie-back from priority to the Ajina FPSO.

In agreement with that if you've got a quality seismic.

I think it is important to note.

Ensure that it is.

Speaker #4: So let's say that would put oil somewhere in 2029, first oil on that basis.

Interpreted correctly to optimize your drilling drilling locations.

Theodore Sven Nielsen: Could you also just remind us of the net resource potential to MEREN?

Speaker #6: Thank you. Curious to just remind us of the net resource potential to Marin.

Sorry, what was the second part of the question again.

As far as maybe just a follow up to that is just really youre pushing it by let's say three months or something like that does that.

Shahin Amini: The last numbers in our public disclosure, Prairie from a gross project level was over 116 million barrels, and then we carry our 16% of that. We are about 20, 25 million barrels of 2P for MEREN.

Speaker #4: Yeah. So the last numbers in our public disclosure priority from a gross project level were over $116 million barrels, and then we carry our 16% of that.

Give you enough time.

<unk> analyzed before day, yes.

Well I think David it's it's all over here.

We're saying we'd come back probably in 2006, so I think it does give us enough time on the operator to go through the <unk> seismic there.

Speaker #4: So, we have about 20 to 25 million barrels of 2P reserves for Marin.

Theodore Sven Nielsen: Okay, thank you. That's all for me.

Speaker #6: Okay. Thank you. That's all for me.

I think I will say in the early kind of view of the <unk> in particular, where a lot of daily work is focused it looks like that some.

Sergey: Thank you. As a reminder, to ask a question, please signal by pressing star one. You may also submit your questions via the webcast. Our next question is from David Round from CIFO. Please go ahead.

Speaker #2: Thank you. As a reminder to ask a question, please signal by pressing star one. You may also submit your questions via the webcast. Our next question is from David Round from Civil.

Strong potential there that's coming out of that data right. So again on that basis better to take a short break go through the data propane optimize the wells.

Speaker #2: Please go ahead.

David Round: Thanks so much. Firstly, can you please just talk through the thinking around taking an early break from the drilling campaign in Nigeria? I can appreciate, obviously, giving yourself more time to look at seismic, look at well performance, but are there any specific things you are looking at there? Because I suppose the lead time between making that decision and what would have been the next well feels fairly tight. The second one, again on Nigeria, you mentioned the wells at Egina and the work over at Akpo. Are you able to give us a sense of the kind of production lift that that could give you in H2, please?

Speaker #6: Sorry. Thanks, guys. Firstly, can you please just talk through the thinking around taking an early break from the drilling campaign in Nigeria? I can appreciate obviously giving yourself more time to look at seismic.

I think the next.

Things to look out for us is contracting a rig to come back in 'twenty six.

And then drilling out pro forma <unk> potentially and then other infill wells the gene or not.

Speaker #6: Look at well-performance. But are there any specific things you're looking at there? Because I suppose the lead time between making that decision and what would have been the next well feels fairly tight.

So it gave it.

Give us a break through the end of the year effectively on the work front that makes sense, yes, I did not expect that any big difference between rig rates.

Speaker #6: And then the second one again on Nigeria. I mean, you mentioned the wells at Ajina and the work over at Akpo. Are you able to give us a sense of the kind of production list that that could give you in H2, please?

Okay.

No. That's a good question I mean, hopefully come down, but that's an internal aspiration, but no I think I think.

Thing to watch for there is in Nigeria.

There's not many deepwater drilling rigs in the country. So I think there is an optimization around rigs being inventory are available on rates. So it's going to be a timing versus rate question in terms of getting after the activity with an available rig.

Roger Tucker: This is Roger again. The reason for the effectively accelerated release of the rig is obviously it was the operator's decision, and it was the operator's decision that they wanted to further study the 4D seismic to better optimize future locations. We are in agreement with that. If you have a 4D seismic, it is important to ensure that it is interpreted correctly to optimize your drilling locations. What was the second part of the question again?

Speaker #4: Roger, again. So yeah, the reason for the effectively the accelerated release of the rig is obviously it was the operator's decision, and it was the operator's decision that they wanted to further study the 4D seismic to better optimize future locations.

Okay.

I'm sorry, the second question Roger.

Is there anything to replace it was just in.

In terms of the world.

And the work of our occupier, if youre able to give us some sort of context about sort of how material or whether we could see a production uplift from those activities a nice day.

Speaker #4: And actually, we are in agreement with that. If you've got a 4D seismic, it is 4D seismic, it is important to make the ensure that it is interpreted correctly.

Okay.

The wells are wrong.

No.

We say.

All I can say is that we are players.

Speaker #4: To optimize your drilling locations. And sorry, what was the second part of the question again?

With the results, particularly the velocity.

The last well.

Which has resulted in.

David Round: I suppose maybe just a follow-up to that is really, you know, you're pushing this by, let's say, three months or something like that. Does that give you enough time to analyze the 4D?

Speaker #2: No, I suppose maybe just a follow-up to that is just really, you know you're pushing this by, let's say, three months or something like that.

An increase if you like on what we actually than initially anticipated, but it won't materially materially effect.

Speaker #2: Does that give you enough time to analyze the 4D?

<unk> out.

Roger Tucker: I think, David, it's Oliver here. The rig we're saying would come back probably in 2026. So I think it does give us enough time and the operator to go through the 4D seismic there. I think I will say in the early kind of view of that, Akpo in particular, where a lot of the early workers focused, it looks like there's some strong potential there that's coming out of that data. So again, on that basis, better to take a short break, go through the data properly, and optimize the wells. So I think the next thing to look out for is contracting a rig to come back in 2026 and then drill the Akpo Far East potentially, and then other infill wells, Egina and Akpo. So it'll give that break through the end of the year effectively on the work front. That makes sense, actually.

For the year.

Speaker #4: Yeah.

We've guided to a very tight.

Speaker #2: Well, I think, David, it's Oliver here. The rig we're saying would come back probably in '26. So I think it does give us enough time and the operator to go through the 4D seismic there.

<unk> production.

Ill turn range, we've tightened tons ended up.

We expect that work to conclude towards the end of the calendar year. The end of 2025. So I think there is potential for that.

Speaker #2: I think I will say in the early kind of view of that, Akpo in particular, where a lot of the early work is focused, you know it looks like there's some strong potential there that's coming out of that data.

To be in 2025, and I think as we said on the call. The planning cases is in early 2026.

Speaker #2: Right? So again, on that basis, better to take a short break, go through the data properly, and optimize the wells. So I think the next thing to look out for is contracting a rig to come back in '26.

Either way it doesn't it doesn't change the prognosis, particularly too.

Our first starting around 2029 30, plus your cycle time.

Thank you Oliver the second part of that question I'll put up the ALDA could you. Please comment on your hedging position for the second half of this year.

Speaker #2: And then drilling Akpo Far East potentially, and then other infill wells, Ajina, and Akpo. So it'll give that break through the end of the year effectively on the work front.

Yes so.

As we also noted during the current throughout their financial statements and the MD&A for the reminder of this year, we expect to lift.

David Round: Yeah. You are not expecting any big difference between rig rates?

Speaker #2: That makes sense, actually.

Speaker #4: Yeah. And you're not expecting any big difference between rig rates?

Midland barrels of oil.

Roger Tucker: That is a good question. Hopefully, they will come down, but that is an eternal aspiration. I think the thing to watch for there is in Nigeria, there are not many deep water drilling rigs in the country. So, I think there is an optimization around rigs being in country or available and rate. It is going to be a timing versus rate question in terms of getting after the activity with an available rig.

Speaker #2: No, that's a good question. I mean, hopefully it'll come down, but you know that's an internal aspiration. But no, I think the thing to watch for there is in Nigeria; you know there's not many deep-water drilling rigs in the country.

Red throughout six lifting.

Of those we have already lifted at the beginning of July.

And all of those six cargoes three of them we have.

Hedging a floor price of $64 $5 per barrel on average.

Speaker #2: So I think there's an optimization around rigs being in country or available and rate. So it's going to be a timing versus rate question in terms of getting after the activity with an available rig.

And then we have two other cargos.

Also already fixed for the first quarter of 2026 at an average price of close to 63.

David Round: Okay. Sorry, the second question, Roger, if you need me to repeat it, was just in terms of the wells at Egina and the workover at Akpo, if you are able to give us some context about how material or whether we could see a production uplift from those activities in H2.

Speaker #4: Okay.

Speaker #2: And sorry, the second question, Roger, if you need me to repeat it, was just the in terms of the wells that Ajina and the work over at Akpo, if you're able to give us some sort of context about sort of how material or whether we could see a production uplift from those activities in H2.

Per barrel. So we are in the next nine months, we have quite a.

A good part of our production.

But the other part of it around a little bit more than 50% in steam exposed to.

Oil price upside.

Thank you Aldo on the first part of the question and I'll open up to all three of you.

Roger Tucker: The wells are on now. What should we say? All I can say is that we are pleased with the results, particularly with the last well, which has resulted in an increase, if you like, on what we actually initially anticipated. But it will not materially affect the outturn for the year. As you note, we have guided to a very tight production outturn range. We tightened it up because we do have confidence post the results of those two wells.

Speaker #4: And the wells are on now. Should we say all I can say is that we are players are pleased with the results. Particularly with the last well.

Obviously, we've talked about the prior way, but if you could elaborate more on the project optimization work that's been carried on the projects so far.

Any other hurdles towards the final investment decision.

Speaker #4: Which is resulted in an increase, if you like, on what we actually initially anticipated. But it won't materially affect the outturn for the year.

So Oliver do you want to tackle that.

First.

Yeah. Thanks, James So I think.

Again, as we touched on I think on a prior question.

Speaker #4: And as you will note, we've guided to a very tight production outturn range. We tightened it up because we do have confidence post the results of those two wells.

Let's start with the subsurface I think there's work going on.

Around the recoverable resource and I think not.

And it's early days, but that looks like there may be an increase to a degree in the recoverable resource, which will obviously help the economics of the project.

David Round: Okay, great. I appreciate it. Thanks, guys.

Speaker #2: Okay. Great. I appreciate it. Thanks, guys. Thank you. It appears there are currently no further questions in the phone queue. With this, I'd like to hand the call back over to Mr. Shahin Amini for any webcast questions.

And I think on the back of that then you follow the flow.

Sergey: Thank you. It appears there are currently no other questions in the phone queue. With this, I would like to hand the call back over to Mr. Shahin Amini for any webcast questions. Over to you, sir.

There is an optimization and through the feed process. The front end engineering design of associated tie back so a number of wells and scope about tie back. So I think it's incremental work through significant work done on this project.

Speaker #2: Over to you, sir.

Roger Tucker: Thank you. We do have a question with three parts from one of our institutional investors. I will start off with that. First part is, has the timeline for the Namibia FID, so this is the Venus development project FID, changed previously early 2026, now end 2025? I am actually going to put that to Oliver Quinn to answer.

Speaker #4: Thank you. We do have a question with three parts from one of our institutional investors. I'll start off with that. The first part is: Has the timeline for the Namibia FID, so this is the Venus project FID, changed? Previously, it was early 2026 and 2025.

Previously, so it's incremental and adding to that and optimizing.

The current development scenario.

And again, we think that work will play out through the end of this this year.

To potentially find a decision next year.

Speaker #4: So I'm actually going to put that to Oliver to answer.

Thank you very much Oliver and Alta and Roger So next question I'm going to put all day.

Shahin Amini: Yeah, thanks, Shahin. I think the short answer is it hasn't changed. I think what's important to note is that a significant degree of front-end engineering work that's ongoing this year. We expect that work to conclude towards the end of the calendar year, the end of 2025. So I think there's potential for that FID to be in 2025. But I think, as we said on the call, the planning case is in early 2026. But I think either way, it doesn't change the prognosis, particularly to a first oil around 2029. It's a three-plus year cycle time.

Speaker #2: Yeah, thanks, Shahin. So I think the short answer is it hasn't changed. So I think what's important to note is that the significant degree of front-end engineering work that's ongoing this year we expect that work to conclude towards the end of the calendar year, the end of 2025.

It has to do with.

Financing and.

Are there any plans to do a refinancing of the RBS facility and ECS what are the plans on what is the outlook for that.

<unk>.

Speaker #2: So I think there's potential for that FID to be in 2025. But I think, as we said on the call, the planning case is in early 2026.

Yes, thanks Shane.

As I briefly mentioned, yes, I think the idea and we have been doing that for a decade now and it's quite usual kind of structuring that every two to three years you start looking at potential refinancing opportunities for NR B L.

Speaker #2: But I think either way, it doesn't change the prognosis, particularly to a first oil around 2029. It's a three-plus-year cycle time.

Roger Tucker: Thank you, Oliver. The second part of that question, I will put that to Aldo. Could you please comment on your hedging position for the second half of this year?

As we get closer to the low life.

Speaker #4: Thank you, Oliver. The second part of that question, I'll put that to Aldo. Could you please comment on your hedging position for the second half of this year?

Maturity of the facility, we our boring base starts to be comprised by our constrained by the.

Aldo Perracini: Yes. So as we also noted during the comment throughout the financial statements and the NDNA, for the remainder of this year, we expect to lift 6 million barrels of oil spread throughout six liftings. Two of those we have already lifted at the beginning of July. Out of those six cargoes, three of them, we have hedging a floor price of $64.5 per barrel on average. Then we have two other cargoes also already fixed for the first quarter of 2026 at an average price close to $63 per barrel. In the next nine months, we have quite a good part of our production hedged, but the other part of it, around a little bit more than 50%, is still exposed to oil price upside.

And then Laura Life Corporation so.

Speaker #5: Yes. As we noted during the call and throughout the financial statements and the MD&A, for the remainder of this year, we expect to lift six million barrels of oil spread throughout six liftings. Two of those we have already lifted at the beginning of July.

The idea would be to evaluate several options we are not.

Fully focus on only one single alternatives we are exploring.

And our portfolio of alternatives and trying to identify.

Which one or a combination of alternatives that would fit in our.

Speaker #5: And out of those six, carry those three of them we have hedging a floor price of $64.5 per barrel on average. And then we have two other cargoes also already fixed for the first quarter of 2026 at an average price close to $63 per barrel.

In our company business plan and our company strategy. So we will go through these options.

In the near term.

And then decide which one is more appropriate for the business in the company as a whole going forward I think a good thing on that side.

That we are not.

Speaker #5: So we are in the next nine months, we have quite a good part of our production hedged. But the other part of it around a little bit more than 50% is still exposed to oil price upside.

Due to our.

Our strong liquidity, we're not in a rush.

To take any of these refinance opportunities and we're able to evaluate the appropriate and the best strategy for the company, we have time to do it.

So not compressed by by any liquidity in the near future.

Roger Tucker: Thank you, Aldo. The third part of the question, and I will open up to all three of you, is obviously we have talked about the Prairie project, but if you could elaborate more on the project optimization work that has been carried on on the project so far and any other hurdles towards the Final Investment Decision. Oliver, do you want to tackle that first?

Speaker #2: Thank you, Aldo. And the third part of the question, and I'll open up to all three of you, is obviously we've talked about the pro-way, but if you could elaborate more on the project optimization work that's been carried on on the project so far.

Associates are all related questions to do with the OBL facility, the existing albeit facility and we have talked about this liquidity headroom on the OBL can you elaborate what does that actually mean.

Yes, so when we talk about liquidity headroom under the IPL is just the difference between the borrowing base that we currently have available under our facility and the amount of <unk> that we have currently drawdown. So to give you. An example at the end of the first quarter.

Speaker #2: And any other hurdles towards the final investment decision? So, Oliver, do you want to tackle that first?

Shahin Amini: Yeah, thanks, Shahin. I think, again, as we touched on, and I think in the prior question, you start with the subsurface. I think there's work going on around a recoverable resource. I think, it's early days, but that looks like there may be an increase to a degree in the recoverable resource, which will obviously help the economics of the project. I think on the back of that, then you follow the flow. There's an optimization then through the feed process, the front-end engineering and design of a subsea tieback, a number of wells and scope of that tieback. I think it's incremental work. There was significant work done on this project previously. So it's incremental and adding to that and optimizing the current development scenario. Again, we think that work will play out through the end of this year to lead to a potential FID decision next year.

Speaker #4: Yeah, thanks, Shahin. So I think you know again, as we touched on, and I think on a prior question, start with the subsurface. I think there's work going on around a recoverable resource.

Our second quarter apologies, our borrowing base was $634 million.

Speaker #4: And I think you know not it's early days, but that looks like there may be an increase to a degree in the recoverable resource, which will obviously help the economics of the project.

Why are we had thrown down at that point only $540 million out of that so we had undrawn part of the facility of $94 million, which is what we're calling the new facility headroom.

Speaker #4: And I think, on the back of that, then you follow the flow. You know there's an optimization through the feed process, the front-end engineering design of the subsea tie-back.

My name is fully available to the company, if we wish to draw it down again up to the constrains of the borrowing base.

Speaker #4: So a number of wells and scope of that tie-back. So I think it's incremental work. There was significant work done on this project previously.

Thank you all doing.

A number of technical questions here.

Speaker #4: So it's incremental and adding to that and optimizing the current development scenario. And again, we think that work will play out through the end of this year to lead to a potential FID decision next year.

Actually one with pro rata is you want to tackle what is the expected share of production from <unk>.

Quickly tackled that.

The presentation slides, we have indicated a peak production rate of 65000.

Roger Tucker: Thank you very much, Oliver, Aldo, and Roger. Next question, I am going to put to Aldo. It is to do with financing. Are there any plans to do a refinancing of the RBL facility? If yes, what are the plans and what is the outlook for that? Aldo?

Speaker #2: Thank you very much. Oliver, and Aldo, and Roger. So next question, I'm going to put to Aldo. It is to do with financing and are there any plans to do a refinancing of the RBL facility?

Hours of oil per day gross field basis of Netsuite, Maryland that would be around 10000 barrels of oil per day.

Next question is on <unk> pay one X. This is in Namibia blocked 290 <unk>.

Speaker #2: And if yes, what are the plans and what is the outlook for that? Aldo?

Oliver any thoughts on when that could potentially be drilled.

Aldo Perracini: Thanks, Shahin. As I have briefly mentioned, yes, I think the idea, and we have been doing that for a decade now, and it is quite usual with this kind of structure, is that every two to three years, you start looking at potential refinancing opportunities for an RBL. As we get closer to the long life and the maturity of the facility, our borrowing days start to be comprised or constrained by the long life corporation. The idea would be to evaluate several options. We are not fully focused on only one single alternative. We are exploring a portfolio of alternatives and trying to identify which one or a combination of alternatives that would fit in our company business plan and our company strategy.

Speaker #5: Yep. Thanks, Shahin. So as I've briefly mentioned, yes, I think the idea and we have been doing that for a decade now, and it's quite usual with this kind of structure is that every two to three years, you start looking at potential refinancing opportunities for an RBL.

Yes, so I think as we said we've taken a drilling.

Drilling break on the exploration front and maybe again.

Important to put that in context.

In 2024 with two new <unk> service.

Speaker #5: As we get closer to the low life or the maturity of the facility, our boring base starts to be comprised by our constrained by the low life cooperation.

<unk> large portions of the block.

Because I'm trying to interpret those and optimize the next thanks prospects to drill.

<unk>.

<unk> is a leading prospect as we said for that and again it's.

Speaker #5: So the idea would be to evaluate several options; we are not fully focused on only one single alternative. We are exploring a portfolio of alternatives and trying to identify which one, or a combination of alternatives, would fit in our company business plan and our company strategy.

Slightly different and it's the same reservoir play if you like but it's a fluid way structural closure. So it offers a different kind of tested if you like in the book.

Certainly beyond that.

Is that work progressing the recall several other prospects maturing in there with significant potential as well. So I think we'd look to restart the drilling campaign in 2026, and then I think the next question to answer is the work, which is just how many wells is not because I think.

Aldo Perracini: We will go through these options in the near term and then decide which one is more appropriate for the business and the company as a whole going forward. I think the good thing on that side is that we are not, due to our strong liquidity, in a rush to take any of these refinance opportunities, and we are able to evaluate the appropriate and the best strategy for the company. We have time to do that, so not compressed by any liquidity in the near future.

Speaker #5: So, we'll go through these options in the near term and then decide which one is more appropriate for the business and the company as a whole.

There is an alignment across the joint venture to fully explore the block to fully characterize everything thats in that in parallel with the Venus development. So I think.

Speaker #5: Going forward, I think the good thing on that side is that we are not due to our strong liquidity, we are not in a rush to take any of these refinance opportunities.

Exact timing confirmed on rig schedules, but for 2026 and it could be pretty exciting year in terms of the drill bit.

Speaker #5: And we are able to evaluate the appropriate and the best strategy for the company. We have time to do that, so we are not compressed by any liquidity issues in the near future.

Very good and I'll have a follow up one for you on Equatorial Guinea.

Can you give any more color on the former process is currently underway.

Roger Tucker: Associated, well, related question to do with the RBL facility, existing RBL facility. We have talked about this liquidity headroom of the RBL. Can you elaborate? What does that actually mean?

Speaker #2: Associates, well, related question to do with the RBL facility, the existing RBL facility. We have talked about this liquidity headroom of the RBL. Can you elaborate?

And also the aspirations for the company.

In relation to that.

Speaker #2: What does that actually mean?

Effort.

Aldo Perracini: When we talk about liquidity headroom on the RBL, it is just the difference between the boring base that we currently have available under our facility and the amount of the RBL that we have currently drawn down. To give you an example, at the end of the second quarter, apologies, our boring base was $634 million, while we had drawn down at that point only $540 million out of that. We had an undrawn part of the facility of $94 million, which is what we are calling the facility headroom. This money is fully available to the company if we wish to draw it down again up to the constraints of the boring base.

Speaker #5: So, when we talk about liquidity headroom under the RBL, it's just the difference between the borrowing base that we currently have available under our facility and the amount of the RBL that we have currently drawn down.

Yes, so we have two positions that for a couple of years nothing is important too to again for context from where we are.

We've done a lot of work reprocessing seismic data there are a lot of technical subsurface work to unlock both the box nothing that has matured to a very advanced stage. Both would be described as drill ready. If you like we know what we would want to drill a well not with test.

Speaker #5: So, to give you an example, at the end of the first quarter, on the second quarter, apologies, our borrowing base was $634 million. While we had drawn down at that point only $540 million out of debt.

Having gotten that far over a couple of years, it's been a pretty extensive farm out process.

Speaker #5: So we had an undrawn part of the facility of $94 million, which is what we're calling the facility headroom. And this money is fully available to the company if we wish to draw it down again up to the constraints of the boring base.

In the sense of lots of companies have shown interest I think the timing is good and the kind of bigger picture a lot of people are back, particularly in this space and in the Santo <unk> size.

Looking for significant volumes.

So with that we hold.

Roger Tucker: Thank you, Aldo. A number of technical questions here. Actually, one with Prairie project, that is an easy one to tackle. What is the expected share of production from Prairie project? I can quickly tackle that. On the presentation slides, we have indicated a peak production rate of 65,000 barrels of oil per day, gross field basis, and net to MEREN, that would be around 10,000 barrels of oil per day. Next question is on Venus development project. This is in Namibia, block 2912. Oliver, any thoughts on when that could potentially be drilled?

Speaker #2: Thank you, Aldo. I have a number of technical questions here. Actually, I have one with Pro-Way. That's an easy one to tackle. What is the expected share of production from Pro-Way?

Effectively 80% in each of the blocks. So again you go back to our capital discipline, and we will look to drill those reduced equity just from a risk sharing perspective.

Speaker #2: I can quickly tackle that. I know presentation slides we have indicated a peak production rate of 65,000 barrels of oil per day, gross field basis and net to Marin.

And also as we have been successful in the last couple of years in attracting kind of premium if you like.

On these opportunities whereby our capital exposure has been reduced in most cases to zero or at least a very very small amount for the early phase of exploration and appraisal. So I didn't hear those operations are the same.

Speaker #2: That would be around 10,000 barrels of oil per day. Next question is on Olympic 1X. This is in Namibia Block 2912. Oliver, any thoughts on when that could potentially be drilled?

As we said, we're mid process, where a positively engaged with with several companies and I think we will come back later in the year with clarity on both the farm down.

Shahin Amini: Yeah. So I think, as we said, we've taken a drilling break on the exploration front in Namibia. Again, it is important to put that in context that in 2024, there were two new 3D surveys covering large portions of the block, and workers are going to interpret those and optimize the next prospects to drill. Olympay is a leading prospect, as we said, for that. And again, it's slightly different in that it's the same reservoir play, if you like, but it's a four-way structural closure. So it offers a different kind of test, if you like, in the block. And importantly, beyond that, as that work's progressing, there are, of course, several other prospects maturing in there with significant potential as well. So I think, we'd look to restart the drilling campaign in 2026.

Speaker #4: Yeah. So I think, as we said, we've taken a drilling break on the exploration front in Namibia. Again, it's important to put that in context that in 2024, there were two new 3D surveys covering large portions of the block.

Physician outcome and therefore, the forward plan for the blocks in terms of drilling and capital allocation.

Thank you Oliver.

Harris.

<unk>.

The usual question on capital allocation and shareholder returns buybacks versus dividends <unk> got many many questions.

Speaker #4: And work is ongoing to interpret those and optimize the next prospects to drill. Olympic is a leading prospect, as we said, for that. And again, it's slightly different in that it's the same reservoir play, if you like, but it's a four-way structural closure.

Well clearly from those in the camp of Hu <unk>.

Buybacks.

Why aren't you doing buybacks do you plan to do buybacks. So there's quite a few of those but obviously we have to put up within the broader context of total shareholder return program. We have so I'm going to hand, it over to Oliver first.

Speaker #4: So it offers a different kind of test, if you like, in the block. And importantly, beyond that, you know as that work's progressing, there are, of course, several other prospects maturing in there with significant potential as well.

I'll go first and then we can go to Roger for his views on this as well.

Speaker #4: So, I think you know we'd look to restart the drilling campaign in 2026, and then I think the next question to answer is, as the work matures, just how many wells is that?

Yes, it's helpful for you.

Yes, no I think I think it's a fair question and we are always evaluating the portfolio of opportunities in terms of.

Shahin Amini: And then I think the next question to answer as the work matures is just how many wells is that? Because I think there's an alignment across the joint venture to fully explore the block, to fully characterize everything that's in there in parallel with the Venus development project. So I think, exact timing confirmed on rig schedules, but it's a 2026, and it could be a pretty exciting year in terms of the drill bit there.

Speaker #4: Because I think there's a there's an alignment across the joint venture to fully explore the block, to fully characterize everything that's in there in parallel with the Venus development.

Returning.

Cash to shareholders and also while at the same time keeping in mind the strategy of the business.

The growth aspirations.

Speaker #4: So, I think you know the exact timing confirmed on rig schedules, but it's in 2026. And you know it could be pretty exciting here in terms of the drill bit there.

We have for the group. So we always discussed share buyback I think if you look throughout this year, we have already distributed $50 million in dividends and around $8 5 million.

Roger Tucker: Very good. Oliver, a follow-up for you on Equatorial Guinea. Can you give any more color on the farm-down process that is currently underway? What are the aspirations for the company in relation to that effort?

Speaker #2: Very good. And Oliver, a follow-up for you on Equatorial Guinea. Can you give any more color on the farm-out process that's currently underway?

Share buybacks towards the beginning of this year.

And we are on track and firm on delivering the other $50 million.

As of May the dividend.

Speaker #2: And what sort of aspirations for the company in relation to that effort?

Now if we go on top of that that's something we need to continue to evaluate on a quarterly basis.

And again, it's a it's an evaluation that we do not only from a capital allocation perspective, not only in terms of distributions, but also as well with regards to the to the company growth strategy.

Shahin Amini: We have had the two positions there for a couple of years, and I think it is important to, again, put context on where we are. We have done a lot of work reprocessing seismic data, a lot of technical and subsurface work to unlock both the blocks, and I think that has matured to a very advanced stage. Both would be described as drill-ready, if you like. We know what we would want to drill and what that would test. Having got that far over a couple of years, it has been a pretty extensive farm-out process in the sense of lots of companies have shown interest. I think the timing is good in the kind of bigger picture. A lot of people are back, particularly in this space and in the Saitome side, looking for significant volumes. With that, we hold effectively 80% in each of the blocks.

Speaker #4: Yeah. So we've had the two positions there for a couple of years, and I think it's important to, again, put context on where we are.

Speaker #4: We've done a lot of work reprocessing seismic data, a lot of technical and subsurface work to unlock both the blocks. And I think that has matured to a very advanced stage, both would be described as drill ready, if you like.

Roger any views on this.

Hot debate dividends versus share buybacks.

Speaker #4: We know what we'd want to drill and what that would test. So, having gotten that far over a couple of years, it's been a pretty extensive farm-out process.

Thanks, Jamie.

What I will say it.

The day before yesterday rehab, our second board meeting.

The amalgamation.

Speaker #4: In the sense that lots of companies have shown interest, I think the timing is good in the kind of bigger picture. A lot of people are back, particularly in the space and in the Saotome side.

I can tell you that it is a rich topic of debate.

The board.

And it is.

A topic that comes up when we have.

Speaker #4: You know, we're looking for significant volumes. So, with that, you know we hold effectively 80% in each of the blocks. So again, you go back to our capital discipline, and you know we would look to drill those at a reduced equity just from a risk-sharing perspective.

Investor meetings.

Currently we are going to continue as we've announced today.

Shahin Amini: Again, you go back to our capital discipline, and we would look to drill those at a reduced equity just from a risk-sharing perspective. Also, as we have been successful in the last couple of years in attracting kind of a premium, if you like, on these opportunities whereby our capital exposure has been reduced in most cases to zero or at least a very, very small amount for the early phase of exploration and appraisal. I think here those aspirations are the same. As we said, we are mid-process. We are positively engaged with several companies, and I think we will come back later in the year with clarity on both the farm-down position and outcome, and therefore the forward plan for the blocks in terms of drilling and capital allocation.

Yes.

Dividends.

Stream that we've gotten as all of you are aware should we distribute it.

The excess free cash flow, we do have.

Speaker #4: And also, as we've been successful in the last couple of years in attracting, kind of a premium, if you like, on these opportunities, whereby our capital exposure has been reduced in most cases to zero or at least a very, very small amount for the early phase of exploration and appraisal.

<unk> two.

The issue.

Do a buyback program.

As I say this this issue, which is which is the best for the company in terms of returns policy is.

Speaker #4: So I think here, the aspirations are the same. You know, as we said, we're mid-process. We're positively engaged with several companies, and I think we'll come back later in the year with clarity on both the farm-down position and outcome, and therefore the forward plan for the blocks in terms of drilling and capital allocation.

Data is at the board.

Virtually every single board meeting so it is Brian.

We are continuing with the dividend at the moment.

But we will again review it.

Later in the year. The next the next board meeting, but we continue with the dividend as we.

Roger Tucker: Thank you, Oliver. Here is the usual question on capital allocation and shareholder returns. Buybacks versus dividends. I have many, many questions, clearly from those in the camp who favor buybacks. Why are you not doing buybacks? Do you plan to do buybacks? There are quite a few of those. We have to put that within the broader context of the total shareholder return program we have. I am going to hand it over to Aldo first, and then we can go to Roger for his views on this as well. Aldo, top one for you.

But we recognize there is a.

Speaker #2: Thank you, Oliver. And here is the usual question on capital allocation and shareholder returns buybacks versus dividends. I've got many, many questions. Well, clearly from those in the camp of who favor buybacks.

Continual debate on this issue.

Thank you Roger.

Just a question has just come in on the deleveraging I'll do that we've done year to date, obviously, we have.

Have substantial cash on hand.

Speaker #2: Why aren't you doing buybacks? Do you plan to do buybacks? So there's quite a few of those. But obviously, we have to put that within the broader context of total shareholder return program we have.

Visitors paying back more of the all bill in the near future.

Yes, so after the end of the second quarter, we made.

Another repayment, which we have already mentioned in the presentation of $60 million. So now our drawdown portion of <unk>, it's around $4 18.

Speaker #2: So I'm going to hand it over to Oliver first. Sorry, to Aldo first, and then we can go to Roger for his views on this as well.

Speaker #2: But Aldo.

Speaker #5: Yeah.

Speaker #2: Top one for you.

Aldo Perracini: Yeah, I think it's a fair question. We are always evaluating the portfolio of opportunities in terms of returning cash to shareholders, while at the same time keeping in mind the strategy of the business and the growth aspirations that we have for the group. We always discuss share buybacks. I think if you look throughout this year, we have already distributed $50 million in dividends and around $8.5 million in share buybacks towards the beginning of this year. We are on track and firm on delivering the other $50 million in terms of base dividend. Now, if we go on top of that, that's something we need to continue to evaluate on a quarterly basis. Again, it's an evaluation that we do not only from a capital allocation perspective, not only in terms of distribution, but also as well with regards to the company growth strategy.

We see scope to reduce debt portion even further.

Speaker #5: Yeah. No, I think it's a fair question. And we are always evaluating the portfolio of opportunities in terms of returning cash to shareholders and also while at the same time keeping in mind the strategy of the business and the growth aspirations.

Including in the third quarter, but also more towards the end of the day. So we will continue with that strategy.

Out of cash we saved.

In reducing interest expense is quite material. So we will continue with that strategy towards the end of the year.

Speaker #5: That we have for the group. So we always discuss share buybacks. I think if you look throughout this year, we have already distributed $50 million in dividends and around $8.5 million in share buybacks towards the beginning of this year.

Thank you. This concludes today's conference call. Thank you for your participation you may now disconnect.

Speaker #5: And we are on track and firm on delivering the other $50 million in terms of base dividend. Now, if we go on top of that, that's something we need to continue to evaluate on a quarterly basis.

Speaker #5: And again, it's an evaluation that we do not only from a capital allocation perspective, not only in terms of distribution, but also as well with regards to the company's growth strategy.

Roger Tucker: Roger, any views on this hot debate, dividends versus share buybacks?

Speaker #2: And Roger, any views on this hot debate? Dividends versus share buybacks?

David Round: Thanks, Shahin Amini. What I will say is we've been.

Speaker #4: Thanks, Shahin. Yeah. Well, what I will say is the day before yesterday, we had our second board meeting post the amalgamation. And I can tell you that it is a rich topic of debate at the board.

Speaker 1: Day before yesterday, we had our second board meeting post the amalgamation. I can tell you that it is a rich topic of debate at the board. It is a topic that comes up when we have investor meetings. Currently, we are going to continue, as we have announced today, with the dividend stream that we have got. As all of you are aware, should we distribute any of the excess free cash flow, we do have the ability to issue a, do a share buyback program. As I say, this issue, which is the best for the company in terms of returns policy, is debated at the board virtually every single board meeting. So it is right up there. We are continuing with the dividend at the moment. We will again review it later in the year at the next board meeting.

Speaker #4: And it's a topic that comes up when we have investor meetings. But currently, we are going to continue, as we've announced today, with the dividend stream that we've got.

Speaker #4: And as all of you are aware, should we distribute any of the excess free cash flow, we do have the ability to issue a buyback program.

Speaker 1: We are continuing with the dividend as we speak. We recognize that there is a continual debate on this issue.

Sergey: Thank you, Roger. A question has just come in on the deleveraging, Aldo, that we have done year to date. Obviously, we still have substantial cash on hand. Do you envisage paying back more of the RBL in the near future?

Shahin Amini: After the end of the second quarter, we made another repayment, which we have already mentioned in the presentation, of $60 million. So now our drawdown portion of the RBL is around $480 million. We see scope to reduce that portion even further, including in the third quarter, but also more towards the end of the year. We will continue with that strategy. The amount of cash we saved in reducing interest expense is quite material. We will continue with that strategy towards the end of the year.

Sergey: Thank you very much, Aldo. There are no further questions from the webcast, so I will hand back to the operator and Roger.

Roger Tucker: Thank you. As there are no further questions on the webcast, with this, I would like to hand the call back over to our speakers for any additional or closing remarks.

Sergey: Okay. Well.

Aldo Perracini: Thank you.

Roger Tucker: Thank you. This concludes today's conference call. Thank you for your participation. You may now disconnect.