Panoro Energy ASA

Good morning, everyone. This is John Hamilton. Welcome to our first quarter results of Panora Energy. We have a presentation which we intend to go through. Just wait for that to fire up.

Next slide, please.

I won't read our disclaimer, but just to note our disclaimer regarding forward-looking statements. As usual, we'll be making certain statements, and this disclaimer is meant to cover off on some of those things. Next slide, please. As a reminder, this system that we use allows participation both by voice and by text. If you have any questions, we will endeavor to try and answer as many as we can. You can either raise your hand, as you see on the right side of the panel, and that will then allow us to open up your microphone. Or you can enter into a text, as you see on the left side, and we will try to answer those questions as well. There'll be a reminder of how to do this as the final slide as well. Next slide, please. Right, so here are our quarterly results and a few of the key things that we wanted to point out. I think this is more or less in line. We've guided on the production and on the lifting side. So I think that these are more or less in line with our guidance with the revenue of about $60 million in EBITDA and about $35 million. We ended the quarter with a net debt position of $25 million. I'll come back to that one when we talk about the balance sheet in one of the future slides because we had a rather large principal debt repayment in the period as well of about $13 million. I'll come back to that one as well. Next slide, please. We recently announced our annual statement of reserves, and we made a press release talking about our organic reserve replacement of 92% this year, which is quite formidable, we believe. And here's a reconciliation of that. I won't go through all the details, but I would like to just point out a few things, which again is that we replaced 92% of our reserves during the course of 2022. We only announced this recently. And if you look at our 2P and our 2C resources there on the right of 65 million barrels, And you look at the breakdown of where those reserves and resources are, you can see that we're a very well-diversified business, which is really what we've set out to do as Panora, is to create a diversified business with multiple production hubs. Next slide, please. So just a standard slide for us, just kind of showing where we've been and where we're going. Quarter one production was impacted as guided due to a rather extended shutdown of the FPSO in Gabon. in preparation for the tie-in of the Mabomo, the production facility of Abiscus. That was a planned shutdown. It was a little longer than expected, which resulted in probably lower production in the quarter than originally anticipated, but everything is up and running now, and we're maintaining our guidance between 9,500 and 11,500 barrels a day for the year. The range there is highly dependent really on the timing of when the new Ducevue wells come online. If they're quick, they'll be at the upper end of the range. If they're a little slower, it might then be towards the lower end of the range. At the moment, we're more or less on target. And we hope to get to about 13,000 barrels a day, in excess of 13,000 barrels a day, once all the six wells are online in Gabon, which is guided as around the year end. It could be into early January, but right around the year end, we should be targeting about 13,000 barrels a day. Current production has been quite strong, up to about 8,500 barrels a day, sometimes a little bit higher than that. We're just waiting now for the next well in Gabon to come up, and I think that during the course of June you're going to see another step change in that production from that 8,500 number up to quite a bit higher number as the new well comes online and a couple of other activities in Tunisia come back online as well. Next slide, please. So here's our lifting. This guidance on the lifting is more or less as we've had it before. I think we did have a slightly higher lifting in Q3 and some of that's moved down to Q4. But as you can see, we're again heavily weighted towards the second half of the year in terms of our lifting volumes with something like 75% of our volumes being lifted there in the third and fourth quarter. We're talking about 3 million barrels of sales this year. So, you know, comfortable number and very much in line with guidance. The second quarter, as previously guided, is going to be a very, very slow quarter for us in terms of sales with just some domestic sales in Tunisia really coming through. The big international liftings, the ones that really move the needle, are going to be in the third and fourth quarter. Next slide, please. I won't go through a great deal of detail here, but we do try every quarter to update the market in terms of our debt profile. Nothing really has majorly changed here, but I would like to point out one thing, which is the RBL facility, our gross debt at the time of the balance sheet close 31st of March was $68.4 million. You can see it there kind of in the top left. um what happened there we we we ended up uh acquiring the tunisian business uh and that closed in the um first part of april so effectively in the second quarter where we drew down 15 million dollars of rbl so what we actually ended up doing was we increased our debt by about nine million dollars but we repaid some debt uh to affect that transaction in the first quarter we'll see that come back a little bit so you would expect in the second quarter our gross debt number to go up to $83 million. So I just do want to point that out a little bit. It's a little bit of an anomaly. But, you know, entirely within what we had announced before, it's just the way that the quarter ended, it kind of fell between the two quarters. CapEx is still being guided around $75 million this year. We've spent some of that so far. So there's still quite a bit to go on the CapEx side. Next slide, please. Again, I won't go through this in great detail, but we do try every quarter to reconcile cash flow. You can see the net cash from operations, the capex, loan repayments, dividends paid, and the cash at the end of the period. We'll do this waterfall every quarter.