Panoro Energy ASA

The broadcast is now starting. All attendees are in family mode. Good morning, everyone.

Thank you for joining us. This is John Hamilton. I'm joined today with some colleagues and certain board members as well from Sunny Oslo today. Welcome, everybody. As a reminder, today's conference call contains certain statements that are or may be deemed to be forward-looking statements, which include all statements other than statements of historical fact. Forward-looking statements involve making certain assumptions based on the company's experience and perception of historical trends, current conditions, expected future developments, and other factors we believe are appropriate under the circumstances. Although we believe that expectations reflected in these forward-looking statements are reasonable, Actual events or results may differ materially from those projected or implied in such forward-looking statements, given known or unknown risks, uncertainties, and other factors. And for reference, we've made a series of announcements this morning, which are available on our website, www.penuroenergy.com. Next slide, please. So for those of you who know our system here, this is how, if you'd like to ask a question at the end, we will take questions at the end. You can either type in questions. You can see on the left-hand side of this pane here, and we will endeavor to answer that question as long as it hasn't already been answered through a previous question. Or if you'd like to actually have your microphone unmuted, you can raise your hand, and we will try to answer your question as well. That would then be on the microphone verbally. I'll remind you of this mechanism as well at the end. Next slide, please. So today we've announced our first quarter results. I think most of the numbers are sort of within guidance and as expected and as recently announced through our trading update. So it was a good quarter for us in terms of liftings, revenue. EBITDA, cash flow, our balance sheet numbers are there as well. So I think this is largely as guided and it's good to see the production coming through, the liftings coming through, which look like, and we'll touch on the liftings a little bit more on an even pattern. I think most importantly this morning, we've also announced two things in line with our shareholder distribution framework, which is a launch of a up to 100 million kroner share buyback, which will be valid until the end of September, and also a cash distribution paid in the form of a return of paid-in capital of 50 million kroner. So continuing our strong trend of cash distribution, that we've started a little over a year ago now with a cumulative cash payout to date, including today's announcement of 240 million per owner. Next slide, please. So here is our quarterly production bar chart, which we show every time. You can see we had a quarter sort of within guidance, around 9,600 barrels a day. Second quarter will be a little lighter. We have three-week shutdown. That's a little bit longer than originally planned. It was two-week. Now it's a three-week shutdown, which is annual planned maintenance in Dusafu, which will affect quarterly production. Up until that time, we were producing in excess of 10,000 barrels a day, so everything seems to be going quite well. We do have a group target of 13,000 barrels a day when the current wells in the current campaign, which we'll touch on, are online. So that's unchanged. We're still targeting for greater than 13,000 barrels a day during the course of the year, with a range of between 10,000 barrels a day in terms of the group average. Next slide, please. We recently announced on our annual statement of reserves a 70% reserve replacement in 2023. This is an important part of our business. An important thing for us to continue where we can is to organically replace our reserves that we've produced during the course of the year through reserve revisions, which we do through a third-party auditor every year, another one, Sewell. And 70% is a good number. And the important point to note here is we've obviously made some recent announcements, some positive drilling results in Gabon. Obviously, those happened after the year end. So this is as of the 31st of December, 2023. So we can expect some further upward revisions, particularly in the case of Dusafu, this additional oil we found, which we will touch on. Next slide, please. So here's our lifting plan for the year. If we look back at last year, we lifted about 2.6 million barrels, averaged about $83 a barrel. This year, we're hoping to have a roughly 40% increase on that, 3.7 million barrels, with about 800,000 lifted in the first quarter already. Second quarter, around 900,000 barrels, slightly weaker. Third quarter, and then a strong fourth quarter, which should take us to approximately 3.7 million barrels. for the year, which again is reflecting the growth in production of the assets. Our average realized price to date is a little over $81 a barrel. What's very nice about the lifting program is that we are joint lifting in Gabon together with BW Energy, so the smoothness of the liftings It's quite different than last year. As you can see, we had almost no liftings in the second quarter last year. So hopefully we have now created a platform by which we can have smoother quarterly lifting patterns. And liftings equate to revenue recognition and they equate to cash flow. So these are important. This is an important development for the company. Next slide, please. We have a slide on debt. I won't dwell on it too much. We have our amortization program. I think the important point to make here is that we went through our annual determination process, which is a process where the bank lenders coordinate with the company and, using third-party reservoir consultants, determine the overall health of the business. Result of that is our RBL has been redetermined. We have substantial headroom within our banking facilities. It has allowed us to actually increase our bank facility by $10 million, which we used during the quarter. Post-period, we will have repaid during the second quarter $10 million. So this number will come right back down when you see our second quarter results. Our capital guidance remains at $75 million for the moment. We're obviously in a very heavy CapEx year. The CapEx is also very much weighted towards the first half of the year. And so for the moment, that number is still valid. We think that still is a strong number in terms of guidance. Next slide, please. Our cash flow reconciliation, again, we show this slide every time. Two things to note would be the investment in assets, $27 million. That's our CapEx. So, again, getting back to the point of our CapEx being weighted towards the first half of the year, this demonstrates it. I'll point out a couple other things here. One is that we had some liftings at the back end of March, so reflected in revenue, but cash not received yet. So there would be cash receipts having been received in April, but not reflected, obviously, in the cash flow. reconciliation. And post-period end, so in April, we announced that the operator BWG had entered into a sale and lease back of our Bobomo production facility, and that has resulted in an inflow post-period of $26 million, not reflected in this current waterfall here. And again, those funds will be used to repay some debt and to facilitate shareholder distributions and our ongoing business development activities, working capital Next slide, please. So Gabon's been quite active recently. We've had a series of very good updates. I'll first touch on production. Production in the quarter averaged 29,000 barrels a day, almost 30,000 barrels a day. as we were able to bring some new wells online and replace a couple of ESPs in there. We still have the same status. We have three of the four wells in the main production hibiscus field on ESP 100 natural flow, and the fourth well will be worked over in the current campaign. We have drilled the Rouge well, and that will be put on stream with a conventional ESP rather than the retrievable ESPs that we've used in the past. The Tortue field continues very strongly, and we do have this three-week maintenance period currently where we are shut in. This is planned maintenance in May. Now, what's happened more recently is we first drilled what we call the Hibiscus South extension. You can see it on the left side of the screen there, the kind of shaded area. This was an area that had some 3P reserves in it, no 2P reserves, but 3P reserves in it. and we decided together with BW to drill into this structure that we could easily see on the seismic and found a 25-meter net oil column of gamba, so good quality gamba sands. Initial estimates around 14 million barrels in place. That translates to let's call it 6 million barrels recoverable, and we will be putting a production well into this structure as the very next operation. We also used a little bit of time prior to getting into the workovers and the development wells to put a well into where the star is there, the viscous northern flank, where we encountered, again, 24 meters net oil pay, a bigger column than that, 37-meter column, both gamba and dental sands. It looks like very good reservoir quality. It's a little bit early days to talk about volumes there, and the reason why is something that we can touch on perhaps a little later, and there perhaps will be some questions around it. But this opens up the area to the north here on the flank, and so there's quite a bit of more technical work done prior to determining volumes on it, but nonetheless a very, very positive result. So what's happening next in Gabon is we're going to be drilling the production well there in the Abiscus South extension area. That operation is now underway. We'll be performing a number of well workovers. And what well workovers means is we'll be replacing the retrievable ESPs with more conventional ESPs. It means we'll be putting conventional ESPs in place into the wells that we currently do not have a pump on. And so you're going to see a mixing and matching of development drilling, use of the rig time for development drilling, hibiscus south, the hibiscus northern flank where we found this new oil zone, together with well workovers to maximize production is the intention here. So we're sort of juggling logistics with maximizing production and using our rig time as we think most efficient to maximize production, give ourselves the best chance of of getting back to that 40,000 barrels a day that we very much believe is in sites through this activity. So in the end, we will have eight production wells on this asset, which is a very nice place to be. It's greater than the original six, which allows us to think about maintaining production plateaus for higher for longer over time. So really a fantastic set of results. I think this hibiscus area just keeps getting bigger, which is wonderful. The reservoir quality seems excellent. Lastly, there's the Bordeaux prospect, which is a prospect that both ourselves and BW Energy would very much like to drill as part of this campaign. So as long as we have some rig time left after the core production activities that we have with the rig, We'll put a well down. It's the last activity on this block before releasing the rig. So hopefully the stars and the moon align and we're able to get in and drill Bordeaux as part of this activity as well, which is a very, very nice looking structure with, you know, an estimated up to, you know, 29 million barrels of recoverable in the gamble, the dental. So that's something we'd very much like to drill as part of this campaign. Next slide, please. So we had a little bit of a delayed start in Equatorial Guinea. People who followed us, we had a rig that didn't work out and the rig left. We're very happy to announce that as we had hoped on our fourth quarter results call in February that we'd identified a rig that would be available, that would be suitable in the time period that we needed it to arrive. That has now happened. We have a rig contract award with Noble for the Venturers, a drill ship. currently active in Ghana, will be on its way to our fields shortly, and that is to recommence the development drilling campaign that we previously announced, so we're a few months behind on this one, but nonetheless it is back on track now, which is wonderful news from our perspective. And this rig will drill two development wells, so this is where the red circles are, that's one at Ceiba, and one in Ikume. These wells are targeting strong production wells where we can see that we have strong reserves that are developable. And once the rig is finished with the development wells, we'll move then to the star there, which is the Akan Deep Prospect, which I'll touch on in the next slide. This is a very exciting prospect. This is a Cosmos-operated exploration well that we believe is quite interesting. We also in Equatorial Guinea have the Panoro operated block EG01, which is the inboard block there in the light shaded blue, which is busy with seismic reprocessing. Cosmos have joined us on that block. And together we are reprocessing and interpreting that seismic, which could yield some very interesting drillable prospects, both in the sort of Akume complex type of target, but also the deeper Albion, which is what Akeng Deep is targeting. So it's a very prospective block that we're in the early stages of getting to know a little bit better. Next slide, please. So we've got two panels here. The left panel is the recent announcement. We signed a memorandum of understanding with the Ministry in Equatorial Guinea, together with G-Patrol, the state-owned oil company, to go after Block EG23. We do not yet have this production sharing contract. It's in negotiation with government, but we have a period of exclusivity into which to complete that production sharing contract. The reason we like this asset is that it's in a very, very good neighborhood to the Southwest, you have the Zephyro field, which is today Exxon operated, over a billion barrels already recovered. And just to the south of us, we have the Marathon operated Alba field, which has produced in excess of 1.2 billion barrels equivalent. So these are giant world-class fields. And we have a block that sits right in that same neighborhood and benefits from both petroleum systems that both Zephyro and Alba have. Again, if there are any questions in the Q&A, we'd be glad to have them. And Richard, I think, can give you a little bit more detail on that. But what we feel is this is a very, very good neighborhood. There are existing discoveries on the block. And we look forward to updating people as we get into the PSC negotiations there. The panel on the right is the acting deep prospect that I touched on earlier, just outboard of the SEBA, the FPSO. It's quite near the existing infrastructure. The play here is to go for a deeper objective, the Albion, which is not drilled in this area. But the seismic suggests that there is an interesting structure there. We know a lot of oil has been generated in this area. The source rock here, the Sabin Akume, have already produced almost half a billion barrels of oil. So we know there's a lot of oil generated in this area. And the question then is whether it's accumulated and whether we have good quality reservoir here. So this is about a 25% chance of success. So it is pure exploration. But if it is successful, it opens up a new play fairway in the area. and it's quite close to infrastructure. So this would be a very, very nice outcome. And the plan is to drill this well as soon as the two development wells have been completed on Block G. So think about late third quarter, early fourth quarter probably in terms of the spot of that well. Next slide, please. Tunisia is not as catalyst rich as the other two assets in terms of drilling activity, in terms of exploration activity. but continues to provide us with very strong reserves, good production, plenty of long-life activity here on the block. At the moment, it doesn't have very much newsworthiness to it, but continues to be a very important asset for the company. We're also busy there with some field extension processes. So in Remora and Susina, we have applications to extend out the field lives of these assets, and those processes are going very well. This is a normal process, but a very positive momentum in terms of those activities. And the final slide, please. So just as a summary, we are still on the production growth ladder here, going from, you know, the 9,000s and 10,000s, hopefully up to the 11,000 to 13,000s during the course of the year. Very strong growth. reserve and resource positions, so this business will be around for a long time, 63 million barrels at 2p and 2c, which gives a very, very long reserve life to the company. We have continued development activity in all three of our core assets, so we have a very, very strong organic development pipeline within all three of our assets. We also, in the middle section, we have something we're quite proud of is continuing to organically have interesting exploration activity in the company. Further exploration is a very important lifeblood for the company. It replaces, hopefully, reserves and resources that we're producing and replaces them. We've had some very good success, as people have seen, both in Hibiscus South and in Hibiscus Northern flank. These are discoveries that can be brought back into production quite quickly, easily monetizable, high-value barrels coming across an existing fixed-cost infrastructure. So we're very, very happy with those kind of developments. And then we also have the high-impact wells, both in Equatorial Guinea and Gabon, second deep in Bordeaux. Maybe not all of these will work. Hopefully, most of them will. And this is a very important pillar to our company's success going forward, we believe. And on the final column, we believe this is all set up in a company that has what we believe to be a very sustainable shareholder return base, well-governed company, strong board, good governance practices, sustainability report, and with a real focus on targeted distribution of shareholders through quarterly sustainable dividend and topped up through shareholder distributions. We've announced the share buyback this morning and opportunistically, obviously looking always at business development. How do we grow this business in a creative way to continue to be able to deliver this platform for many years to come? So that concludes my slide presentation. Next slide, please. As a reminder on how to ask questions. You can type a question into the panel, which we'll endeavor to answer, or you can raise your hand. My only caution is that we have our annual general meeting of shareholders starting shortly, so depending on how many and how long the questions go, we may need to cut it off. And if your question has not been answered, please do send us an email, and we will hopefully be able to get back to you. Time is just a little bit short this morning with the annual general meeting. Right, so my colleague Andy will survey for questions.

Thank you, John. The first question is from Alex Smith. Alex, you're self-muted. If you could please unmute yourself, we'll go ahead with your question. Okay, we will move on to a question from Christopher Batt. Christopher, you're self-muted also. If you could unmute yourself and go ahead, please.

Hello, Christopher from Clarkson's here. First of all, congrats on this long quarter, and thanks for taking my questions. I have three questions today. The first question is, can you elaborate a little bit on the exact timing of finalizing the production while programming a bond? Additionally, when do you expect to put the rouge well on stream and at what gross rate do you expect? The second question, can you please provide additional insight into the expected split between buybacks and dividends going forward? As you have now declared buybacks and distribution of roughly 115 million Norwegian kroners of the initial 500 million, what can we expect in terms of additional buybacks going forward? And the third question is regarding the discovery at the northern flank of the Ibiscus field. Can you say anything about your expectation to the recoverable oil estimate? And can we assume anything close to the Ibiscus south discovery last year? Thanks.

Great. Okay. Well, I'll take the first two, Christopher, and ask Richard, my colleague, our technical director, to talk to you a little bit about the northern flank. We probably have a few questions on that, Richard. So what we're finding in Gabon in terms of your timing of all the well activity and when Roosh is coming online and, you know, exactly. I think what we're finding is that BW Energy are doing an excellent job of obviously we've come through a sort of difficult period with these retrievable ESPs. All eyes are focused on maximizing production. And there are many, many logistical, technical considerations constantly being weighed against each other in terms of what to do next. And it's quite dynamic, actually. And that dynamism has actually yielded some interesting opportunities, like drilling this northern flank where we had a little bit of a big time where we're waiting for something to happen. in terms of some of the other development activity. And we decided to go and drill over there and look what we found. So that dynamism I think will continue. So it's kind of hard to really tie me down to exactly what the exact sequence of operations here is. But I can go through what the priorities are. The priorities are to drill two more development wells. So that would be the Subiscus South extension that we found. and to put a well into the northern flank where we've found this additional column. So those would be two new wells. On top of that, we have existing six wells in this Hibiscus-Rouche area, and we have some pumps that need installation, and we probably have some pumps that need replacing. The feeling in the joint venture is that we will go a little bit old school now. I think we've had our fun with the retrievables, and we'll probably be migrating towards using conventional ESPs. So there will be a program of mixing that development activity I talked about together with replacing those ESPs. And, again, there are a number of logistical considerations that come in in terms of the exact order, sequence order, if that happens. But the punchline is that the joint venture is fully focused on getting production as high as possible, as quick as possible. And so I think we'll continue to try and update the market together with BW Energy in terms of how that sequence even comes. But the real target is your get back to that 40,000 barrels a day that we came close to hitting prior to some of our issues in the back end of last year. Get there in the best and the most responsible way as quickly as we can. So I know that's not entirely answering your question, but hopefully you get a feeling for the sort of dynamic situation over there, which is, you know, frankly, is going quite well at the moment. But nonetheless, we, you know, constantly have to kind of keep on our toes and try to maximize that production. The split of the buyback and the dividends, you know, again, we're trying to stay a little dynamic here. I think we've Hopefully surprised the market a little bit this morning with a share buyback a little earlier than the most expected it. You know, we are shareholder distributions where that's very much clearly signaled to be second half weighted. We're very happy to have brought forward some of that activity. And I think we just need to see how the year plays out in terms of what that mix might look like as we get further developments in oil price production activity and also looking at the share price development and the macro as well. So I think we need to stay a little bit flexible, but we've, again, reiterated the shareholder distribution framework that the board has approved. We've reiterated that this morning. So hopefully that gives people some confidence in and around our desire to achieve that. Richard, do you want to try and talk a little bit about the northern flank and maybe answer – Christopher's question, but also maybe just talk a little bit about what you've seen there, because I'm sure there'll be some other questions on it.

Yeah, thanks, John. So, Christopher, yeah, good question. We're very excited about the results of this as well. So just for a bit of background, we had this kind of gap in the drilling program and the operator suggested to drill this well. We agreed it was a good idea. The reason for doing that is we have the 6H well producing hibiscus, which is on natural flow. And that's one of the best wells in the field. So there was some evidence that there was a bit more oil in that area. And this area we targeted is just north of the 6H well. So we took the opportunity to drill out there about 800 metres north of the 6H location and we found a good column of gamber about 37 meter column with 24 meters of net pay. There is an interesting aspect which we didn't mention in our press release, but VW did, that the oil extends down into the dentile as well. So we haven't seen that in other worlds in the field. So we think we need a little bit of time to work out what's going on here. So we're gathering data, we'll have some discussions in the joint venture, and then we'll come to an estimate for the recoverable resources in due course. You know, suffice to say that we've mentioned that, you know, there'll be another well in that area. So we think there's enough certainly to justify an initial production well in that flank of the field.

Very helpful, thank you very much.

Sure, thank you for the questions.

Thank you, the next question is from Stefan Foucault. Stefan, you're self-muted also, if you could unmute and proceed, please.

Yes, hi guys, thanks for taking my question. I've got really two. The first one is, well, brilliant success in Gabon Bourdon's coming up could be quite large. Is there a scenario where you discover so much resources with Bourdon and Hibiscus and South Hibiscus that you justify an expansion of the infrastructure and therefore the overall production plateau could go up? That's my first question. My second question is around CapEx. So what's your view of the remaining CapEx in Gabon for the rest of the year? The reason I'm asking is because I was looking at the Q1 CapEx in Gabon, which is I think you said it's most of the CapEx in Q1, so $25 million. The budget is 35% of $75 million, which already is very close to this $25 million. So I was wondering whether the capex into one in Gabon was because a lot of stuff has been forecloded or otherwise. So any color would be great. Thank you. Sure.

So, yes, I mean, we keep finding more oil in this general hibiscus area. If we're fortunate enough to find – oil in Bordeaux in due course, that would trigger an additional development phase. So that would require its own production facility there. The FPSO has a nameplate capacity of 40,000 barrels a day. I think it's generally assumed that that can be exceeded by 10% or perhaps a little bit more than that. So I think there would be a luxury situation we need to consider is exactly how and when we would serve to develop that. But certainly, you know, it's all very, very positive. It's extending out the reserve life of the fields and allows us to potentially sit at plateau for longer. There is and always has been the potential to expand the topside facilities of the FPSO to get to a higher throughput, That would require, obviously, some capital expenditure, which has not been prioritized at the moment. But certainly the vessel could, through modifications, handle more liquids than the nameplate capacity. The CAPEX in Gabon, so, you know, we've retained the rig for longer. We've had to undertake the work over activity that we're doing. So CapEx is, I would say, running, is going to be more than the budget we set out at the beginning of the year. However, there are other moving parts in the wider portfolio, some ups and some downs. So we're just not sort of, I wouldn't read too much into the percentages there. You know, we've maintained the $75 million guidance program. uh in today's report um you know how that gets built up as we get through the year between eg and tunisia and gabon is still a moving feast so i wouldn't read too much into that but there's still definitely some remaining capex in gabon thank you that's great

Thank you. The next question is from Theodore Sven Nielsen. Theodore, you're unmuted. Please go ahead. Thank you.

Good morning, guys, and thanks for setting my questions. First, on the 13,000 miles per day rate you're talking about looks like there's some upside to that given the hibiscus south discovery and the north flank discovery so just only if you could discuss the potential to that target second question is on q2 cash flow given the fact that you have proceeds from the sales back and also probably that the capex is front and loaded and also third third point is maybe working capital uh releasing computer should you expect much stronger free cash flow in second quarter than in first quarter uh and then uh third question is uh on the bottom prospect could just remind us of the pre-drill estimate thanks yeah there's certainly upside to the 13 000 barrels a day i mean um again we've been through uh a tricky time with the zsps um

So we simply don't want to get ahead of ourselves by trying to point to bigger numbers. But there's clearly some upside there. I think the only caveat to that, Theodore, is that obviously in Equatorial Guinea, we recommenced, thankfully, the drilling program that got delayed. But we have dropped one well from that program. Now, we are drilling two really, really good wells there. So I'd say, yes, there's certainly upside to 13. We just don't feel the need to stick our neck out much further than that at the moment. But absolutely, I mean, we're seeing such positive results. Some of these wells in Gabon are doing better than models. We're seeing very, very good, strong reservoir quality and good pressure support. So, you know, we do have some upside there. But, you know, again, the vessel is constrained as well in terms of its overall capacity. Let's call it 45,000 barrels a day for a gross for an example. But your point is noted and clearly the positive drilling results do provide some upside potential. Second quarter cash flow, you know, still probably a heavy CapEx quarter for us. But you're right, the release of working capital from the first quarter, plus the proceeds of the sale and leaseback, we'll see, you know, probably a stronger free cash flow number in Q2. Definitely a stronger free cash flow number in Q2. Bordone, Richard, do you want to remind people what this is all about?

Yes. Yeah, thanks, Theodore. Good question, very exciting. Well, this one we've had in a prospect inventory for some time and it's changed in nature during that period. um it's a uh separate structure to the southeast of uh where we're doing all our hibiscus work uh it's quite a large structure that we see on the cycling data set um we have a closure at gamba and underlying that we have a large dental structure so it's a little bit different to what we've been um drilling in the past at roosh and um at hibiscus um we are carrying uh about uh 30 million barrels um for that prospect, split between the Gamber and Dental. There's potential for more, I think, but it's very uncertain. There's a whole large range of uncertainty on that resource at the moment. um so this is quite a way from um the hibiscus facilities so if we find something it will probably require a separate uh facility there and there's a way to tie back into the pipeline that goes from hibiscus to to adolo So we've kind of set ourselves up in the case of success to get very quickly on it. It will probably require a couple more wells to delineate it correctly in the case of success. As we're doing at Hibiscus, we're drilling around and finding a bit more and refining the reserves. But, yeah, we're looking at about 30 million barrels for that one.

Okay, thank you. Just since you will need some more facilities, could you also indicate what the commercial threshold will be in terms of volumes? I assume it will be below 30 million.

Yes. Yes, it will.

Yeah. Are you asking what the commercial threshold is? We have a number there. I mean, we sanctioned sort of viscous rouge with what? About... 50, but probably in total at the time, maybe a little less.

Yeah, a little less. So this one, you wouldn't be such a big facility as at Hibiscus, likely, and we've already got a tie-in point on the line back to Adolo. So a small unmanned platform or something like that to get going, and then we'll drill out and see how big it is. Okay, thank you.

Andy, I think we can probably take another question or a couple of quick ones, but we probably need to sign off the next few minutes here to get ready for the annual general meeting.

Are there remaining questions? Yeah, sure. We'll take two more questions. The next question is from Tom Eric Christensen. Tom, you're unmuted. Please go ahead. Okay, we can leave that one. The next question is from Chris Aristidou. Chris, you are self-muted. If you could unmute and please go ahead.

Hi, can you hear me now? Yes, yes.

Sorry for that. So I've got two questions and I'll be quick. So my first question is... How many conventional ESPs do you currently have? And maybe you can clarify how many you need, because you need two for the two wells that are on the retrievable lines. You need one that's on the natural flow. I guess you need one for the well that will be worked over. Do you need two more, basically, for the two development wells, or do you plan to... uh basically put those new development wells in natural flow first uh from day one um or do you need any sp from day one and then my second question is whether you got to the bottom of what happened with the for the retrievable line ESPs and whether you're entitled to any compensation from data use. So those would be my two questions, please.

Thank you, Chris. So the idea here is that the current thinking in the JV is that we will end up with these eight wells and those eight wells will have conventional ESPs in them. We have a number of those with us in Gabon and a number on their way and a couple more sort of still being manufactured for us. So the way we see it is that we will have a full supply of conventional ESPs as we need them. Again, I think from a risk management perspective, for lack of a better term, I think that we've decided to go old school on the ESPs and go back to something that's tried and tested rather than the newer technology. So I think you'll see us eventually migrating to full conventional ESPs, and we have working very strongly with Baker, the supplier, making sure we have them just in time for our activities. So that work over activity that we talked about in the Gabon slide, it's principally either putting a pump in where there isn't one or replacing. We have two wells, three wells actually with the retrievable ESPs in them right now. So those would need to be replaced. That process takes time. period of two to three weeks per well to replace. So they're quite quick little operations to do that. The new wells, gosh, I think going into these new areas, I think these wells probably can free flow. We've got really good strong reservoir, good pressure on them. They can be brought online without an ESP. I think we just need to figure out exactly, you know, as we're sitting there completing the wells, whether we free flow them or whether we go ahead and take the time to put the conventional ESP in or whether we prioritize putting conventional ESP into one of the other wells and let the well free flow for a while and then eventually put the pump in. But yes, I think we believe that these two new well areas will probably free flow on their own. Richard talked a little bit about a viscous six well, which is the one that's free flowing on its own now. And it's been doing so for a while now. And still extremely strong. In terms of the ESPs and compensation and all that, there are still a number of sort of investigations going on. I think we've previously touched on the fact that we believe that it's probably a combination of factors that have led to the issues that we've had with these ESPs. It'd be premature for me to say anything definitive about it, but I think you can tell from our decision on moving to conventional that we have decided that solution is probably not the one for us going forward on this asset. In terms of compensation, again, that's an ongoing discussion between the operator and the supplier, and I'm confident we'll come to a good landing on that one, but it would be inappropriate for me to discuss that here on this call.

I understand. I'll let you go to the AGM and I will follow up with later. Thank you for taking my questions.

Well, as a reminder, if anybody else feels that they haven't had a question answered, please do send us an email. I think Andy may also be able to track if there are any written questions that we haven't answered. So we'll endeavor to try and get back to you. But we're going to sign off now to attend the AGM. So I thank everybody very much for attending and continue to follow the story. Thank you very much.