Panoro Energy ASA

Good morning and welcome, everybody. Thank you for joining us. This is our second quarter, first half year trading and results update. We have this morning released a press release and an accompanying presentation, which we'll go through now, which shows the progress we've made during the course of the year. Joining me today on the call, our CFO, Kazi Qadir, and our head of engineering, Kim Hansen. As a reminder, today's conference call contains certain statements. I just want to check if the presentation is live. I don't see it myself. There we go. Thank you. 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 that we believe are appropriate under the circumstances. Although we believe the 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 due to known or unknown risks, uncertainties, and other factors. And for your reference, our press release is available on our website, www.anualenergy.com. Next slide, please. We go through the slides and afterwards we can, as usual, answer some questions. You can either raise your hand and we will unmute you so you can ask a question live or you can type a question in. and we'll endeavor to answer those questions to the extent that they have not already been answered or are indeed relevant for the larger audience today. Any questions that we don't get to, we will endeavor to get back to via email in due course. Next slide, please. So the results highlights today, we're showing a first half of $86 million reported revenue, EBTA of just under $51 million. and CapEx of 26 million. A few comments around those numbers. Our lifting schedule is weighted towards the second half, so we will expect to see both on the revenue and EBDA side skewing towards the second half. Capital expenditure is the inverse. Capital expenditure is heavier in the first half than it will be in the second half, so we expect that number to be within guidance as well. On the balance sheet, we ended the quarter with a half year, June 30th, of $55 million of cash, $146 million of gross debt, and a net debt to trailing 12 months EBITDA of less than one time. So very, very strong and good balance sheet. On the right, today we've announced cash distribution of 80 million kroner. which will be paid as a return of paid-in capital. Again, there's a slight distinction between that and the dividend for those who follow these things. And that would bring us then to not 580 million of cash distributions and including the share buybacks at 120 million. That takes us to about $700 million of shareholder distributions and buybacks. approximately just under 30% of our market capitalization. So I think we've demonstrated a very good track record for turning cash to shareholders through this past couple of years. Next slide, please. So on the production side, we break it down by quarters so everybody can see what's going on. We've got first half production of 11,500 barrels a day, around guidance of 11,000 to 12,000 barrels a day, Our OPEX per barrel, around $21 a barrel, so as guided. And another $3 we'll call non-recurring project costs. These are operating costs dealing with the long-term maintenance of the facilities we have. So around $24 operating cost. And the CAPEX still at $40 million, which is as previously guided. You can see that DUSIFU has continued to be strong. Tunisia in the orange has been quite steady, actually. And the drop in production in the second quarter in Equatorial Guinea we touched on, but you can see that that is lower than it was in the first quarter or indeed in the fourth quarter of last year. Next slide, please. So shareholder returns, these are in line with our 2025 policy. Today, we've declared another 80 million kroners. That brings 240 million kroners, including today's announcement. Year to date, we've also done $69 million of share buybacks through the 20th of August. Yesterday, we've been out of the market buying shares for the past couple of weeks because of the closed periods. And then if you look to the right, we have the limit of 500 million kroner approximately. It's $45 million is the key number. It's a dollar number that we distribute in kroner. And if all things go to plan, we expect, of course, another 80 million cash distribution in November, December when we come up with our third quarter results, leaving still some ample headroom there. So we're well on track here as guided, and today's announcement hopefully underlines that commitment to shareholder distributions. Next slide, please. Crude liftings, we just try and show what's happened last year and some of the seasonality of the crude liftings. We've lifted, year to date, 1.1, 1.2 million barrels with the weighting, sort of a one to two relationship between the first half and the second half. So you will see additional liftings in the second half of this year. We've already pre-announced a lifting in Equatorial Guinea in July, which achieved around $70 a barrel. Now it's lifting 650,000 barrels. We announced that in the trading update recently. Next slide, please. Here we have a lot of information. I'll go through it all because it's a useful slide for the records showing the first half cash flow reconciliation, our cash at the end of last year and the cash now. On the lower left, we show our senior security bond amortization schedule. We have no repayments to make this year other than interest payments. the first amortization due in the end of 2026. And on the right, our capital expenditure guidance. As everybody knows, we had a very, very heavy year last year. This year is more around 40 million. We've spent 26 to date. That's principally been in and around the end of the DUSIFU drilling program and Bordon discovery in itself has taken up about half of that capex, with the balance being in Equatorial Guinea, a little bit in Tunisia, and our exploration portfolio as well. We've had some activity with the award of the new license, EG23, which I'll touch on. So this is all going to plan. Next slide, please. So Dusafu, this is really our flagship asset. We've had really good, strong production. The reservoir performance has been excellent. We've had very, very good uptime on the FPSO. For those who follow it in detail, BW Energy took over the O&M contract on the FPSO. They took that over from BW Offshore, and they're doing a fantastic job, and that's really reflected in that uptime that we've had on that asset. During the first half of the year as well, we made the Bordone discovery, which initially looks like over 50 million in place and 25 million barrels recoverable. There are additional drilling targets that have been identified through the remapping of that drilling campaign, and there could be some further upside indeed in and around that Bordone concept. The next big thing to happen Uh, at, uh, at the license is for new development wells and the business and the business South fields. These are 2 distinct fields, but we will be, uh, uh, approving together with partners, a plan to do 4 more development wells into this area. Again, the reservoir. supports easily four more wells in this area, with first oil targeted for the second half of next year. So we just need to finalize the rig contract and figure out exactly when it's going to get there. But I think that that's going to be the next big activity on Dusafu, which will start next summer sometime. Again, first new oil targeted 2026. What that will do is that will bring the production you know, back up, you know, up around the PSO capacity. We have four available slots on the mobile platforms. Everything's set up for that. Next slide, please. So we've talked about this before, but this is starting to get real and exciting. The award of these two new blocks, which has been pending for a while, has been fully ratified now by the government. You can see DUSIFU there in the orange. Niyoshi and Kaduma are the new blocks. We've joint ventured together with Falco, who operate the Etan field there to the northeast of Dusafu, and with BW Energy, who are obviously the operator of the Dusafu area. And we've effectively got this large contiguous area here, which is full of existing oil production, existing oil discoveries, and historical work with 3D seismic. It's a great partnership because between the three of us, we probably understand this area better than anybody else. The next big planning underway is to acquire seismic on this. It's possible we may also see an early well into one of the blocks in due course. That's yet to be decided. But this is a prolific area where the Gamba Reservoir and the Gentile are to be found with existing discoveries on these blocks. So in terms of the long term, continuation of the success story that we've had at DUSIFU and D&B Balco have had at ATAM. This really, I think, provides a runway for many, many years to come of continued success here in this area. Next slide, please. In Equatorial Guinea, we have two fields here, the SEBA field and the Akume complex. The Akume complex has been producing more or less in line with expectation. At Saba, we've had, as announced back in the first quarter results and indeed in the most recent trading updates, since April, we've had some unplanned downtime issues. which have impacted production. By my estimates, we're probably about, on a gross basis, about 5,000 barrels a day less than, say, we should be producing. There are plans in place. It's not a reservoir issue. It's a subsea equipment issue. The operator is working extremely hard and diligently to turn this around. We expect to have that turnaround starting during the fourth quarter, so actually in the next couple of months. So it's a temporary issue, but it has given us unplanned downtime on this asset, which again, we anticipate to fully recover that production during the fourth quarter into early next year. The next plans on this asset are considering an infield drilling campaign, perhaps at the jack up. on the shallower end of the Kume side of things, which may include looking at something in EG01, which is the Panoro-operated, we're in that with Cosmos, Panoro-operated exploration block, which is south of the Kume. So I would expect more news on that campaign to be forthcoming during 2026. Next slide, please. One of the interesting things that we have, the most interesting thing, I think, in our portfolio that we have right now is this new block, EG23. It's early stage. We're at the point now where we just awarded a seismic reprocessing contract. So the geoscientists are busy working on it. But as you can see there in the blue, that's our block. And you don't, I think, have to be a geologist to see that we are in an extremely prolific fairway here. got the Niger Delta there so it's a southern part of the Niger Delta in Nigeria with multi-billion barrel discovered reserves and resources lots of production in there we've got the Zafiro field which has already produced over a billion barrels we've got the Alba field just to the south of us which has already produced in excess of a billion barrels and then in Cameroon which is just above us there are multiple oil and gas fields historically So we feel like we're in a very, very exciting area. We have 80% of this block, so we have lots of room to eventually bring in some partners. There are discoveries on this block. The commercialization of any production, though, is reasonably straightforward, as there is a large LNG plant there in Punta Europa. I think you can see that maybe just on the island there. That is an LNG facility operated by ConocoPhillips. And so this is an area that is full of oil, gas, and condensate. And we think we've got one of the most exciting blocks in the country. So this is going to be one to watch for us. Next slide, please. Tunisia, gross production was 3,100 barrels a day. We've had some good success on recent workovers. We've had some volatility, obviously, in production and operations in Tunisia over the past couple of years, as you followers will know. But at the moment, touch wood things are pretty steady. going reasonably well. We have some activities planned for early next year as well which could see production increase further and that predominantly is around the remora field where we're awaiting the final ratification of the license renewal. So that's one to watch early next year. Next slide please. So a slide showing the portfolio that we built here. We've shown versions of the slide before, but I think it's an important one to note. With our reserve position, strong 2p reserve position at 42, that doesn't include the Bordeaux and Discovery, which initially looks like it's around, to Netopinara, around 4 million barrels. Our contingent resource base currently around 26 million barrels. EG23, which I've touched on in Equatorial Guinea. We don't have a competent person's report on that yet, but there have been over 100 million barrels of contingent resource identified there through previous owners. We still have lots of infrastructure-led exploration at DUSUFU itself, all the remaining prospects there. And then we have a portfolio of other assets in the EOSI Kaduma, EG01, and some other projects as well. So we think that we've set up a company that has a very, very strong organic upside to exploit over the coming years on top of our existing production and 2P reserves. Next slide, please. So just some key messages for the half year and then corporately on the production side, First half production is in line, up 26% year on year. We announced earlier this year a greater than 300% reserve replacement ratio. That's very high in our industry. If you can get 100%, you're doing really well, but we had a particularly good year. That was before the Bordon calculation as well, so hopefully we will be able to report some good reserve replacement next year as well. And that gives us, based on current production rates, around a 10 year 2P reserve life, 16 years on a 2P plus 2C basis. So again, getting back to the point that we have a very long term business on our hands. On the exploration and appraisal side, we've made the Bordeaux discovery. We have the new blocks. We've basically secured this entire southern part of Gabon, chasing this Gamboa, this prolific Granby Reservoir. We know that there's going to be additional discoveries there in due course. And I've touched on EG23 already, which is, I think, one of the most exciting things we have in the portfolio right now. On the financial side, but we think that we're in line with the guidance there so far. Our bond issue, which was a big success, has really strengthened our liquidity position, gives us strength visibly in the market as well. Our CapEx guidance is materially lower than last year in line with guidance. And finally, on the shareholder returns, You know, we think the shareholder returns, we've shown that through our exploration drilling and our reserve and production growth, these are very, very creative things we've used shareholder funds to grow our net asset value. but we've also had a quarterly cash distribution and share buybacks. This is also all of these things together have given us a really enhanced ability, we believe, to capitalize on new venture, both opportunistic, but we're also very focused on value and making sure that anything new that we would do would be creative to the current business that we have. So with that, I'm going to finish and open up the line for questions. As a reminder, you can raise your hand by pressing the hand icon there, or you can type in a question. Again, we will endeavor to answer questions, written questions, to the extent they haven't already been asked and ensuring they're relevant for the wider group. And so my colleague, Andy, is going to take over from here and see if we have any questions.

Thank you, John. We'll start the Q&A with Stéphane Foucault. Stéphane, you're unmuted. If you could please go ahead and ask your question.

Good morning, gents. Thanks for taking my question. I've got three. The first one is around Rimura and Geviba. So during program, you're starting to define a journey program. Could you... me give us an idea of timing materiality and so forth is it 26 i guess event 27. Then similar question for EG 23. So as you said, this is an extremely material block for panel. You talk about a competent person to report and maybe as a potential development and exploiting dream. Likewise, any sense of timing of this competent person to report for event later and then first dream. And lastly, on the financial on the capex in 26 so expect it to be more than 25 but it was i think much higher thank you sure um so on um the drilling um plans for ramur and gubiba um these these are i wouldn't say um

necessarily new wells. These are principally work-overs at this point. So it's not new drilling. It's kind of low-cost interventions. On Remora, we have one well, which is currently shut in pending work-over, but it's also pending the ratification of the extension, which we're working on from the Tunisian authorities. As soon as we receive that, we can see us go in as quickly as possible. I anticipate probably the first quarter. Yes. to re-enter that well. The materiality of that well is probably three to 500 barrels a day range on a gross basis. We have half of that. And in Gubiba, there are a number of, there's always things going on there. At the current moment, we don't have plans for actually new material, new drills. That will come principally in Remora in due course. In Remora, we have a beautiful looking a new target to drill, but that's going to require a fresh well rather than a workover. But that's an activity that's a little bit off in the future. So I think you're going to expect some smaller incremental workovers, which could move the needle in aggregate. But obviously Tunisia being our smallest production asset at the moment in the wider group, they are not hugely material, but very important nonetheless to get right. Nietzsche 23, you know, I think the plan now is we've just awarded the reprocessing contract. So there's been a lot of historical 2D and 3D. Marathon used to operate this block and previous operators. There's lots and lots of good data on this. Indeed, there are a number of discoveries already on the block. And it's our task now to kind of throw the best of the new technology at that. Nobody's really done anything on that asset for quite a long time. So we've just awarded a contract to an external party to reprocess the seismic there. And I think once we've reprocessed that seismic and the geoscientists have had a chance to kind of interpret that, look at the drilling prospects, I think you would probably see us at that point looking to maybe validate some of that through an external CPR, as we call it. And we might also seek to identify relevant partners to bring in at that point. It's not Panora's intention to run with super high equity levels in exploration blocks, particularly when it comes to the heavier spend. So this is a light spend at the moment. But in due course, this is the kind of thing that we believe larger oil companies would be quite interested in. So I think that's a 2026. I think the onion will start getting peeled back in 2026 on that one. And your last question on CapEx 26, it's a little too early to give you anything definitive, Stefan, as we haven't had our joint venture meetings. Budgets, as you know, usually get set September, October, November. So those are all coming up. Might be able to give you a better and clearer answer by in third quarter results in November. However, when asked that question by analysts, what we typically have said is, look, why don't you earmark something around 2025 levels if you need to put something in your model for now? I don't think it's going to be wildly off. So I hope that answers your question, at least as an interim answer.

Thank you very much. Great.

Thank you. The next question is from . You're unmuted. Could you please go ahead and ask your question? Thank you.

Thank you so much. Morning, everyone. Just, I think, two questions for me. I mean, if I look at your EBITDA from a segmental level, the biggest downside comes from the territorial Gini side, where EBITDA has gone down from 30 million to 6 million. Outside of just sales being the impact, how much, from a cost perspective, did the EBITDA get impacted by? And then I think the other question is, could you please just break down the OPEX per barrel cost? What are your consolidated first? And then also a cost each asset for me. Thank you.

Gareth J. suggest if you don't mind for the purposes efficiency is a little bit let's let's get after your idea question. Gareth J. In terms of getting into the segmentals maybe maybe we can take that one together with Andy offline and try and get you so granular I don't want to get too caught up in. in going back through the back pages of the report, if you don't mind. Kasi, on the EBITDA on the segmental.

So the EBITDA on the segmental, I think what would happen is that it's largely driven by liftings. And if you think about it, there is no lifting in the current border for equatorial greenies. As we announced, there is going to be a lifting, or there was a lifting in July in the third quarter, which is going to be included in our reserves for the third quarter. And that is when all the cost that is accumulated in the inventory is going to show up as a cost of sales. So I think it would be a better description of the EBITDA contribution of EG at that point of time.

Great. And Andy, do you mind following up on the remaining questions? And I'm happy to have a conversation separately on that one.

Absolutely. Thank you. And the next questions have been submitted online, John. We are substantially unhedged. There are views in the market with risk skewed to the downside in regards to oil price looking forward. Can you please comment on the basis for our hedging strategy? what you what you see and how you may see that evolving looking forward and secondly is obviously the share is trading as is much of the sector at a significant discount to nav what do you see the company can be doing to um address that discount enough and narrow it thank you questions um

So hedging is both a very technical subject and a philosophical one. Many investors don't like oil companies to be hedged because one of the reasons they invest in them is to enjoy the upside that they, in that particular investment thesis, believe that oil is too low and will go up and the shares should re-rate off the back of that. Obviously, in times of lower oil prices, I think everybody loves hedges and hopes that companies had put them in place. So we at Benora, what we try and do is we try and find a balance there, because we do recognize that the vast majority of shareholders, people investing in shares in the E&P market, invest in for the oil price upside as well as each company's individual prospects. But we do try to make sure that when we have our liftings, and that's really the key here, is that we don't get a nasty surprise. So what we tend to do is we operationally hedge. So we look at our lifting schedules, and we try and identify months in which we believe we have significant liftings. Now, those liftings can shift by a month or two, as everybody knows. So it is a little tricky sometimes to nail down the month. And what we tend to do is we put in costless colors. So as an example, year to date, you'll see some little noise through the P&L on hedging gains or losses. We've had good hedging outcome, I think, so far this year. um we like everybody got quite scared when oil dropped down to 60 i think uh through liberation day and all these things um i think what we've seen there is the market kind of tested 60 and uh and it bounced back obviously uh we're sitting in around what 66 at the moment something like that um you know these levels are okay for panora we you know we have a very profitable business um at current levels but obviously we'd like higher oil prices So a year to date, we've done a bunch of hedging that protected $60, that protected $70 on a portfolio basis. Those hedges have worked well for us. Our realizations to date are around $66, $67 a barrel. And when you see those numbers, you have to remember that there's also discounts usually to the crude, so we don't trade necessarily, our crude doesn't always trade at Brent, sometimes it trades above it, sometimes below it. And the other thing is that the Brent prices you see on the screen are different from the dated Brent prices that we realize, and usually dated Brent's a little bit higher. So in our hedging, that's what we really try and address, is that when we lift in, say, November, we already know we're going to lift in November, for instance, this year, we think that's the date for a very big lifting for us in Gabon. We'll start to be looking at that and building up protections on that cargo to make sure that if, for whatever reason, there's a few days in November where the oil price drops, that we don't get left hanging. So there's that. The discounted NAV, yes. The sector trades have discounted NAV. We traded discounted NAV. Sometimes we traded a bigger discounted NAV than our peers. Sometimes we traded a better discount to NAV. And that discount to NAV is kind of always, always there, unfortunately. And over the past years, we've had a lot of ESG that's been keeping a lot of big institutional investors out of oil and gas. We're seeing that change. So we're seeing institutional investors recognizing, again, the energy transition is a process, not an event. It will take a long time. So we're all seeing a better influx of institutional capital into EMP shares. Panoro itself has obviously managed to attract a number of very large institutional shareholders in the past couple of years. But it is a valid question. How do we continue to close that gap? At Panoro, obviously, we were trying to do as we said we were going to do in terms of the distributions and keeping those going. We believe we have an attractive profile in that respect. We also believe that size is important, that when you're a small to mid-sized company, you're getting less institutional attention than you are if you're a bigger company. So that's why we've had a track record of doing accretive deals. We continue to look at finding accretive deals. And the prize in finding those accretive deals is obviously A, doing a smart deal, but B, getting bigger. So I think one of the principal ways that we can close that discount in NAV is to continue to try and find the right deals for the company going forward. And I think starting to bring forward some of the excitement around our exploration portfolio, which doesn't get any value in the market. And that's just the way the market is at the moment. Sometimes the market values exploration, sometimes it doesn't. But we are putting the tools in place as we bring these exploration blocks forward and mature them for drilling and for competent persons reports and contingent resources and eventually reserves that will continue to fill that hopper. And then we just have to continue to get out there and find additional investors. That's always something we do and try to do and we'll keep doing it. So I think that probably deals with that one, Andy.

Yes, thank you very much, John. The next question is from David Mercer. David, you're unmuted. If you could please go ahead and ask a question. Thank you.

Thank you, Andy. Thank you, John. Two questions for me. First, John, just on the disavow permit. I mean, if I look at the numbers quarter on quarter, you seem to have peaked production in Q1. There seems to be somewhat of a 5% decline or doubt in Q2. Is that operational or is that reservoir based? Do you expect that to continue until you drill the new wells in early 2026? And just secondly on Exel Guinea and the license there, obviously the obvious outlet for any discovery would be the Bjorka Island LNG facility. But there's a number of other explorers looking for new gas resources in and around that area. How competitive do you feel that any new discovery that you made would place you above those other companies and any discoveries they would make? Thank you.

Thanks, David. Yeah, Ducifu, yeah, it's, you know, as we all know, Wells decline. The decline you note is just natural decline. BW Energy is the operator. That profile is more or less as guided by BW to the market, therefore by us as well. So I think that you'll continue to kind of see a natural decline there in DUSU until such time as we come with the new campaign, which will be about a year from now, let's call it, where four new wells will come on. So I think the The bigger picture for me, the way I like to look at it with Doosafu is I think Doosafu is a 30,000 to 40,000 barrel a day production asset for the next as many years as you can really count on looking at E&B, let's call it the next five years or so, with the ability to manage that decline by introducing new wells. And every time we put one of these new wells in, they're very, very cheap. I mean, they are less than $10 a barrel to bring on and extremely good operating costs in those areas. So it's really a matter of continuing to replace that natural reservoir decline by adding the new wells to it. But I think what you'll see there is that natural decline. I think that's, as I think we've said in BW, it's, you know, in line with expectation and guidance on that one. The issue there, for those of you who don't know, there's an LNG plant there which is managed by ConocoPhillips. It's owned by Chevron as well, as well as the government of Equatorial Guinea. And that has been a very, very profitable LNG plant for ConocoPhillips and Chevron over the years. Chevron has some gas fields, oil fields to the southeast. with ConocoPhillips just directly to the north and the Alba field. But both of those assets are in, you know, they've been producing for a long time and are in decline. There is some infill drilling on the Chevron side of things. There are currently two other EMP companies, some Marin Energy, the old Africa Oil, and another small private company that have assets in in the area that are also looking for things that might be able to go into that LNG plant. But the LNG plant has lots and lots of knowledge on it. It can handle lots more gas. It's producing at way below its capacity. So I would say that there's room uh for everybody i would say that we might have a slight advantage in the sense that our field uh on commercialization of any any discovery drilling there can just tie straight into the alba system and come straight on shore other blocks may not quite have that same advantage there have to be some infrastructure considerations there that might be slightly more complicated but i think all of all those companies are chasing very interesting blocks uh you know i'm not going to So anything bad about those, I think we think we've got the best one, though. And again, we can cooperate with ConocoPhillips, who are sitting just to the south of us with their ALBA infrastructure there. So I don't personally see at this point that competition is a bad thing in terms of that gas.

Yeah. And just one last question for you, Doug. You've obviously improved your catalyst production dramatically over the last 12 months. I'm sorry, could you say that again? Sorry, you've been able to improve your capital structure at Panora quite significantly following high production levels, being able to improve your cash flow, issue a bond, start paying out regular dividend and do the share buyback. If we're looking for the next stage of growth, as you say, larger companies tend to get a smaller discount or smaller discount rate than smaller companies. What would be the next stage in your capital structure evolution? Do you think that, for example, if you're able to double your production, new avenues of debt would be made available to you? Or what's the real picker from getting larger in terms of capital structure? Thank you.

Well, I think I think the 1st part of it is getting back to that original question that came in online around discounts. And now I think just being bigger, having more assets that diversification of assets. We've really kind of benefited from that when sometimes, you know, in doing gas business, you know, there can often be. issues associated with one asset or another, and having that diversification matters. So I think us adding additional assets to the portfolio, I think, is a way of addressing some of that discounting. The size being bigger attracts more funds. And in terms of the ability to tap the debt markets, yes, I think the bigger you get, the more competitive those rates are and the better avenues that you can find into the fixed income market. We had a very successful, we believe, bond issue. It was well received. It's trading well. I think the credit in the market is strong. But we think that we now have that platform through that bond issue, as you say, through our capital structure, through the diversification we have to continue to grow the company, both inorganically. If we can find something that makes sense for shareholders, we'll do it. And we think we've got the platform to do that. And obviously, to the extent we can't find the right deals and those are not attractive from a capital allocation perspective, we'll continue to grow our organic portfolio. But certainly, I'd agree with you that being bigger is going to help us close that discount to NAV.

Brilliant.

Thanks, guys.

Thank you. The next question is from Christopher Back. Christopher, I believe you're self muted. If you could please unmute yourself and go ahead with your question. Thank you. Okay, we can come back to that one. Christopher, let us know if you're about. Otherwise, John, final question to wrap up today. It comes in online. Obviously, it doesn't feature prominently in our materials, but could you please elaborate a little bit on activity at the Helium Play exploration right onshore South Africa?

Yes, and apologies for not putting it in our report. It is a very, very interesting project for those of you who followed our entry into the helium and methane gas plane in South Africa. South Africa is a country that is very reliant on coal. for its electricity generation. And in our commitment towards transition, we've always been looking for ways that we can use our subsurface skills to try to show that commitment to the transition. It was never meant to be a big capital outlay for us, but more to demonstrate that we're doing things in Africa assist with the transition the project is a very interesting one it sits in in the sweet spot of this basin which has got proven helium and very shallow methane gas so the there is one project there which is up and running which basically produces gas they strip out the helium which sells for a crazy amount Crazy rates, $1,000 in MCF, that kind of thing. And then the gas is then used either for local CNG or small scale LNG going into the transportation sector, again, displacing fuel, displacing eventually coal into the power sector. The process in South Africa is long, the sort of environmental approvals. So we're in the middle of the environmental approvals for that. So we've submitted everything to do with that, and we're basically waiting on what is a little bit of a lengthy process in South Africa. It's a very competent process, but it's a lengthy process in South Africa to get the full environmental approvals. But for the next stage of the project, the next stage of the project would involve probably getting some gravity data over the area. So that's FTG. It doesn't cost much money, but it would give you a really good indication the underlying subsurface and where best to focus any initial exploratory drilling. I think it's a project that we feel strategically probably could form part of another company. Maybe we can create a separate business around it. It's not going to be something that chews up a lot of capital in Panora, but it's something we feel very strongly about. And so we'll continue to try and nurture it along and incubate it. and hopefully put it in a good place in due course that the project really can flourish and that Panora and its shareholders can benefit directly or indirectly from that.

Thank you very much, John. And there's a further question from Stefan Foucault. Stefan, you are muted if you could please ask a question. Thank you.

Yes, thank you for taking my question. I'm back on Gabon and in light of what you said, John, about board on. The potential expressions upside around it. I was wondering how current is this 25 million about overall prospective resources net to panel or induce a full. Sorry, how how current did you say? I mean, yes, by this, I mean, so I think the 25 million prospective resources was, I think, some time ago. Then, of course, we had the boredom discovery, but you were talking about further upside around the boredom discovery. And I was wondering whether it was in the 25 million prospective resources or whether that number could now have become larger since it was first estimated.

I see, I see. No, I think for the moment we're sticking together with BW around that range. We talked about in the DUSAFU slide the four-well development grilling campaign in Hibiscus, Hibiscus Southfield. What's going to happen most likely, again, it needs to be agreed between joint venture, but what will happen most likely is we will come and drill those four development wells, which will increase production again. And when the rig is there, we may do some more exploratory drilling in that Bordeaux area. Having drilled the well on a couple of side tracks, we now have three now different bits of well control there. That's given the geoscientists a chance to kind of remap that whole area. It was different than expected, but we found a lot of oil. And what we're seeing there is there are two or three other areas satellites if I can call them that to this board on discovery we've made that look very interesting we believe 25 million barrels to commercial itself and justifies a small platform development they're tied back into the pipeline however it's always nice to find more and I think the debate the joint venture will be You know, what do we do when the rig comes back? Should we poke around a little bit more and just see whether some of those satellites might hold additional oil? Some of them are smallish, some of them are quite big. So it's a little early.

I think we can stick with the number we've got at the moment, though. I was not so much talking about what has been discovered at Bordeaux, but about the remaining prospectivity on the license, which I think you're carrying currently. It's the same figure as Bordeaux, 23 million barrels of prospective resources outside of what has been discovered. And I was wondering whether that has grown following particularly the discovery of Bordeaux and finding new play, remapping and so forth.

No, I think it's too early to say that, Stéphane. That prospect inventory needs to be entirely refreshed following the Bordon discovery. So we've been really focusing on the Bordon area. But with the new seismic coming in on the new blocks, we're going to also have a quick look at what that seismic tells us about Dusafu. So still to come. Those numbers are still valid and have not been updated as yet. Thank you. But, you know, we do have, what is it, something like 88% drilling success in this area. You know, that post-salt, so the pre-salt gamma prospects we see, we kind of can now, not with 100% certainty, but with a high degree of certainty, really identify where the traps are here. So, you know, we've got a good track record there of finding more oil. There's going to be a lot more oil to be found here. It's just we don't have a new number for you other than the historical one that's there. Thank you.

Thank you, John. And that will conclude today's Q&A.

Thank you. Thanks, everybody. And I look forward to keeping you updated. Thank you.