Brava Energia S A S/Adr

Good day and thank you for waiting. Welcome to 3R Petroleum Third Quarter 2020 Earnings Conference Call. Today we have here with us Mr. Ricardo Savini, CEO of the company, Mr. Rodrigo Pizarro, CFO and Investor Relations Officer, and other members of the management team. We inform you that at this time all participants are in listen-only mode. After the company's remarks are over, there will be a question and answer session when further instructions to participate will be provided. Should you need assistance during this conference call, please press star zero to reach the operator. I also inform that this conference call will be held in Portuguese with simultaneous translation into English. asked simultaneously over the web via webcast. Before proceeding, let me mention that forward-looking statements that might be made during this conference call relative to the company's business perspectives, projections, and operating and financial goals are based on the beliefs and assumptions of the management of 3R Petroleum, as well as on information currently available to the company. Such forward-looking statements are not a guarantee of performance. They involve risks, uncertainties and assumptions as they relate to future events that may or may not occur in the future. Investors should understand that general economic conditions, industry conditions and other operating factors may also affect the future results of the company and may lead results to differ materially from those expressed in such forward-looking statements. Now, I'll turn the conference over to Mr. Ricardo Savini, who will start the presentation. Mr. Savini, you may begin. Good afternoon, everyone. My name is Ricardo Savini, and I'm the CEO of 3R Petroleum. I'd like to thank all of you for joining us today. It is with great pleasure that we start our very first earnings conference call with 3R, as a company listed in the stock exchange. I will speak a little about the highlights of the third quarter and mention other relevant points about the company. The big highlight is the conclusion of our IPO. It is the first IPO of a company in the oil and gas industry with a focus on mature fields. and it is the first IPO after nine years since an oil and gas company went public in the Brazilian Stock Exchange. I'd like to highlight that our thesis is different from that of other companies listed in the Brazilian Stock Exchange. Our thesis is to have a portfolio based on producing assets with proved high volume reserves with no exploratory effort. We have a portfolio anchored on production and reserves. So this IPO that we concluded just now on November the 12th brought us a primary inflow of 690 million reals to enable the growth of the company through acquisitions. taking part in the Petrobras divestment program, in which 3R has already been a relevant player. And with these proceeds, we will continue to be so on a path of growth. And also to support the redevelopment, the revitalization of the assets we already have in our portfolio. And we'll speak more about these assets along this presentation. We have been acquiring these assets at extremely opportunistic multiples and reserves. We have an average entry multiple that we will explain later on of around 2.8 times 2P plus 2C certified volumes. And I will explain these volumes as well. And with this portfolio, with the acquisition of Another highlight to be mentioned in this quarter is that With these acquisitions and with the operation of the Macau cluster or hub, we can show great resilience, great financial resilience driven by the load lifting cost that we have in these assets, particularly Macau, which is the one that And we have an adjusted epidex of practically 50 million BRLs with an adjusted epidex margin of 61%. It is always important to mention, and we will stress this in this presentation and in the coming quarterly conference calls with you, that ESG guidelines are very important for 3R. I like to say that we have those guidelines in our name, in our own logo. This idea of recycling, of revitalizing fields, of using hydrocarbons, particularly gas, and taking into account the social context and governance that we will also mention along this presentation. All of that is also part of our investment thesis and of our own essence. To end the highlights of this third quarter, with this IPO, we consolidated the company's market cap. Ours is a young company, but with a market cap of 2.3 billion reals. We have certified volumes of 2P plus 2C reserves, proved and probable reserves of around 100 million barrels of oil equivalent. And we will give you more detail on that. We have a lifting cost of $5.7 per barrel, which places us as a benchmark in the Brazilian market. It is undoubtedly a very low lifting cost. And as we are operating already at Macau, it is absolutely consolidated with our own contracts, with our own operations. So this is no longer an estimate. Net revenue in this quarter amounted to around 82 million BRLs and very important with our IPO in the novo mercado it confirms our high standards of corporate governance which we already had but now this becomes very transparent to the market Now speaking a little about our corporate restructuring, it happened under the scope of the IPO. Firstly, we are consolidating a portfolio that came partly from 3R Petroleum and partly from Ouro Preto, which is now one single company called 3R Petroleum. and 100% of our assets all of our assets belong to 3R and I think that this is quite relevant and in our new ownership structure post IPO we still have a relevant share of FIPS, Shares Investment Funds, FIPS controlled by Starboard, FIP3R and FIP Esmeralda as the biggest shareholder of the company. But also, and very proudly, we consolidated RWE, a gigantic player in the German energy industry, through their oil and gas arm, DBO Energy, as one of our shareholders. They originally had a working interest in Macau and they had a roll-up and are now 3R shareholders. And we have the free float of 30% of our shares. So we are listed under Novo Mercado with a ticker RRRP3, our 3Rs and P3. In the summary of this offering, which was completely primary, showing to what extent the original shareholders believe in the future of 3R and on the resilience of our thesis, we consolidated our share price at 21 BRL per share, totaling 690 million BRLs, which includes supplementary shares. In the market cap that I mentioned of 2.3 billion, we intend to use these proceeds as we mentioned during the whole roadshow with our investors for three clear pillars. Number one, to pay for the deals that are underway to consolidate our portfolio, in particular for the acquisitions of Rioventura and Fazenda Belém clusters. We also have capital for new acquisition opportunities of assets belonging to Petrobras. We also mentioned in our offering documentation that we do have some initiatives underway. Negotiations with Petrobras and now we have the resources to move forward with those and also to invest in the redevelopment of our biggest asset, the Macau cluster with capex to accelerate our investments in our biggest cluster. Now to give you three R's at a glance. I always like to highlight, particularly in the beginning of our life together with our new shareholders that joined us through the IPO and with our future shareholders. Well, I always like to mention what the three R's mean. I'm going to say it in this first meeting and I'm probably not going to mention it again in the future, but the three R's mean to redevelop, to revitalize, to rethink oil fields. This is what 3R set out to do and it is what 3R has already been doing in the assets that we are operating. I'd like to remind you that in the Macau cluster, we are talking about seven oil and gas fields onshore and offshore. So our focus, looking at the value chain of the oil and gas industry, our focus is on producing assets. Fields located onshore and in shallow waters with no No exploration activity whatsoever involved. We are not interested in the exploration process. This is the focus of other companies. The focus of 3R is to have a portfolio anchored on production and on reserves and on the redevelopment of these reserves. We are not interested in investing in midstream or in downstream either. But yes, we are keen to have a balanced portfolio with a balance between oil and gas projects. We do not want to be an exclusively gas company, neither do we want to be an exclusively oil company. As I mentioned, we have secured a portfolio with four assets, four Sets of fields, or four clusters, which right now total 19 fields, both onshore and offshore, as we can see on the map. We have three assets very close together with a lot of synergies among them, located in the Potiguar Basin. They are the Macau hub that we are already operating, The Pescada Arabaiana Hub, where we already had a 35% working interest and we're not the operator. Petrobras is the operator. But in this quarter, we signed the agreement to acquire the remaining 65% stake of the Pescada Arabaiana Hub. These are offshore gas platforms. And also the Fazenda Belém Hub, A heavy oil hub in the state of Ceará, in the border with Rio Grande do Norte state, but in the same geological context of the Potiguar Basin. And the latest hub that we signed a sales and purchase agreement for with Petrobras, also in this quarter, was the Rio Ventura hub in Bahia. So we are opening a new production front in the Reconcavo Basin. where we can eventually and potentially grow through the redevelopment and revitalization of these eight fields located in the Rioventura hub. Now, moving to the next slide, we see the timeline with the history of 3R acquisitions. We mentioned the Macau cluster, We have the closing of the acquisition with Petrobras. We have paid Petrobras and we have been operating the cluster since the end of May. So we now have a full quarter, which we will present here. A full quarter operated by 3R Petroleum. The Pescada Hub, like I mentioned, we signed the acquisition of the remaining 65% working interest totaling 100% ownership. So we will take over the operations most likely next year towards the middle of the year. And Fazenda Belém and Rioventura Hubs or clusters in the beginning of August, we signed the acquisition of 100% working interest of these fields in these two hubs. And we also expect the closing of the deal by the first half of 2021. I'd like to remind you that this depends on approval by ANP, the Brazilian Oil and Gas Regulatory Agency. We are submitting all the documentation to take over as operator of these fields. To detail a little further our acquisitions, these were very opportunistic acquisitions. We were able to close these acquisitions with entry multiples that were very interesting, as we can see here in the table. For proved volumes, 1P plus 1C, we're saying we have a multiple of 4.7 times these volumes. for 2P reserves 3.2 times. And when we do not consider contingent payments that we have negotiated with Petrobras for the Rio Ventura hub, if we don't have to make these payments and it really depends on the Brent oil prices. So if these payments never occur, the acquisition will have been made at 2.8 times Let's speak a little about recovery factors. Our thesis is very much based on improving recovery factors compared to what Petrobras has done so far in the development of all of these assets. As we can see on the slide, the average recovery factor, in other words, the volume which is technically and economically retrievable, the volume of oil in place in the reservoir, the worldwide average fluctuates above 30%. On average, around 35%. And in Brazil, the average is around 21%. In the basins where we are working, Look at the onshore fields of the Potiguar Basin. We are talking about very low recovery factors of 15% and this upside of this delta in the recovery factor is what 3R Petroleum is pursuing and we already pursuing particularly in the Macau cluster. In order to capture and increase these recovery factors we have strategies and along the coming quarters we will give you examples of that. But basically, these strategies involve drilling more, conducting in-fill drilling campaigns. It involves changing the lifting systems that Petrobras normally uses for more powerful systems and finally increasing water injection volumes or gas or even steam injection volumes. Steam Injection Volumes in the case of Fazenda Belém and the increased fluid injection when it is there and when it isn't implementing secondary recovery projects. So these would be the pillars to increase recovery factors which underpin our redevelopment plans. Speaking about our portfolio in terms of certified volumes of reserves and contingent reserves, as we will explain now, if you look On the table, we have 1P plus 1C, 2P plus 2C, 3P plus 3C, 2P plus 2C volumes. In other words, probable volumes and reserves. We have a portfolio of around 101 million barrels of oil equivalent in the four clusters. And please note that 70% of that Basically, 70% of that are proved volumes, i.e., a very, very low risk. And this is the thesis. This is the focus of 3R to anchor our portfolio in reserves, mainly proved reserves.

The largest cluster is the one of Macau, where we have approximately 48 million in 2B reserves. And we already explained during our offer that all of that is certified by de Gaulier McNaughton for Macau and Gaffney Klein for Fazenda Belém, Pescada Arabaiana and Rio Ventura. In the case of these three last clusters, as we have not yet concluded the acquisition from Petrobras, the certifier has added a contingency note, meaning that the The risk category of the proved probable and possible volumes are contingent to the conclusion of the deal with Petrobras. And then when we become the actual operators, these volumes will automatically turn into 1P, 2P and 3P. This was just to explain these contingent reserves. Now, once you add up the four assets we already have in our portfolio, this last quarter we produced 8,500 barrels on average, just putting all four clusters together. we already operate, which is the largest one, the Macau cluster, already posted an improvement in production despite the shutdown of a few gas fields and also the shutdown of the platforms of the Aratum field, which I will elaborate further later on. And even with some drop in production associated with these events, we were able to grow the production of the hub. production is consistently higher than that of Petrobras when they managed the cluster in early 2020 and you see that even with the COVID 19 pandemic there was no loss in production unlike other assets in Brazil but in our case we did not experience any major impact in our production caused by the pandemic. Almost 60% of our production in September was attributed to the Macau hub. And now looking at the next slide, we look at the Macau hub and you see that in May production was around 3,795 barrels. There was a decline when we took over the operation, which happened In the end of May, we took over on May 30th. So due to these two events together with Petrobras, we decided to shut down the Aritum field because the transfer of the asset requires an operation license issued by IBAMA and this transfer may take a few months. So in order to prevent any further delays regarding three hours ownership of the asset, we decided to shut down these platforms and with that we lost around 140 barrels of oil equivalent and also we shut down some gas fields therefore we are basically waiting for improvements in commercial conditions in the months ahead therefore we shut down some gas fields while we wait for these future events And with that, by the end of June, we had approximately 3,600 barrels. And by September, we anticipate production to reach 4,000 BOEs. With that, we surpassed the production record of 2020. And even though we've only started operating the assets just a few months ago, we were able to enhance production by over 10% when compared to what it was prior to the takeover. Therefore, we find ourselves in a very good position, even considering that this quarter we have not yet made any investments. We are preparing, you know, in September, we are preparing the work over rigs to boost production in the next quarter. I mean, the rig has been operational since the end of September. Now, in terms of the previous quarter, the second quarter of 20, we also managed to increase production by 5%. So now let's follow up and see how this will evolve looking forward. It is also important to highlight that our operation begins to show its early results with increased production safety efficiencies with zero incidents or accidents and our teams are working diligently and with great operating efficiency even though you know they came They came over in this first operation, despite the fact that everything happened in the midst of the pandemic period. We just took over on May 30th, but as I said earlier, everybody is in good health and posting relevant operating efficiencies. It's also important to highlight, even if we compare ourselves to other offshore projects, we have hundreds of wells in these clusters and therefore, production is spread around and with that we can mitigate risks if we lose a well because one pump is down this has no relevant impact in our production curve despite all that with our operating efficiency we are able to resume well operations very quickly something that could take petrobras days or sometimes week to do our challenge is to resume operations in a matter of hours With Onshore, this is very feasible and this is what we've been doing. Another important thing we did in our first quarter of operation was the automation of about 50% of Macau's wells, the Macau cluster. And this will certainly allow us to be more agile in the quarters ahead. Well, we already talked about synergies, especially when we start operating the new clusters in the Potiguar Basin. We will start using the control room that we have at Macal to operate all of the other clusters in the Potiguar Basin. And this will be translated into fixed cost reductions once we grow our portfolio in the Potiguar Basin. As I said earlier, we are prepared to grow. We already anticipate some production increase because of the work over rig is already operational. And this is a landmark of this third quarter. And it represents the beginning of our investments in the Macau cluster. And with that, I turn the floor over to Rodrigo Pizarro, our CFO, who will talk about the financial performance of the assets currently in operation. Thank you, Savini. Good afternoon and thank you all for joining us today. Our quarterly results demonstrates the resilience of our thesis and our assets. Our net revenue in the period was close to 82 million BRLs considering Macau alone and 35% of the Piscata hub. It is worth mentioning that cash generation related to 65% of Pescada as of January 1, 2020 and 100% of cash generation from Fazenda Belém as of April 1, 2019 will be deducted from the payments to Petrobras at closing dates of these deals. I would also like to highlight our adjusted EBITDAX of almost 50 million BRLs with a margin of 61%. Adjustments to EBITDA to arrive at the adjusted EBITDAX basically reflect four factors. Firstly, the reversal of the effect caused by the return of exploratory fields to ANP from the former administration that has no cash effect. Secondly, the allocation of 4 million BRLs in GNA related to the assets that are being transferred from Petrobras. Thirdly, the effects of competencies and costs and expenses from Q2 that are allocated in the third quarter. And finally, costs related to the corporate restructuring and also the IPO. Also, our lifting costs is highly competitive and this is three hours competitive edge as we posted 5.3 US dollars per BOE at Macau and 9.6 dollars per barrel of oil equivalent at Piscata considering the adjusted adjustments aforementioned weighing that out with production our average lifting cost is only 5.8 dollars per BOE which is something rarely found in any other company in the industry. And finally, I would like to highlight that a significant portion of our financial result reflects the exchange rate depreciation. Having said that, we can now move to the next slide where we'll show our capital structure in some aspects related to the company's obligations and debt position. In the third quarter of 2020, Our gross debt was 692 million BRLs and our cash position was 163 million BRLs. Our net debt, therefore, was approximately 528 million BRLs. With the proceeds from the IPO in the amount of 690 million BRLs, including also the green shoe, our cash position is very net. Therefore, we are perfectly capable and comfortable to meet all of our payment commitments. Our CapEx expenditure was very lean during that period. It was only 2.3 million BRLs in the period and this capex was mainly earmarked for the purchase of equipment and systems. Some of them related to the operation and others related to the automation of the Macau cluster. Also, in terms of our decommissioning obligations throughout the acquisition process of the assets, being the four clusters we mentioned above, we signed agreements with Petrobras to share expenses, which we named decommissioning cost sharing agreement in the amount of 152 million US dollars, which represents more than 55% of all of our decommissioning obligations foreseen in the reserve certifications. And finally, I would also like to mention some information related to the clusters that are still in the process of being acquired. We have a total of 75 million U.S. dollars in obligations related to the assets of Juventura, Fazenda Belém and Pescada Arabaiana. Also, we have 43 million U.S. dollars, as mentioned by Savini, linked to contingent payments that will only be paid to Petrobras if rent prices in the last 12 months reaches an average of $48. And this applies to 50% of this contingent payment and the other half if Brent reaches $58, considering the average for the last 12 months. With that, our obligations come to a total of $130 million plus $75 million to be paid to Petrobras with a payment schedule as shown on the slide. Moving to the next slide, I would like to highlight that our business plan is fully supported by the highest ESG standards. In relation to the environment, we are currently in the process of reconnecting three wind turbines that were acquired with the Macau hub that were not operational due to lack of maintenance when we acquired the asset. And with that, we will be able to supply 30% of the energy demanded by Macau. And this is 100% clean energy. The remaining 70% of the necessary energy will be supplied via gas that Used to be ventilated to the atmosphere or burned in the flare, but we are also involved in an engineering process to build a system to collect this gas to use it in thermal electric generation in small units adjacent to our clusters. As for the social aspects, our investments in the oil and gas productive chain are mature assets that have been abandoned by the former operator. This has been seen as something very positive by all the communities surrounding our assets. Since the beginning of the Macau operation, we did not have any type of accident or any type of incident. And finally, when it comes to governance, we are voluntarily listed in Novo Mercado in compliance with the highest governance standards of B3. We have a multidisciplinary, experienced and multicultural team at 3R. And ethics and compliance are the pillars of our organization and our structure. And to conclude, moving to the last slide, I would like to highlight three aspects. The first has been extensively mentioned, and it relates to our resilience, our thesis, our assets, and our lifting cost of 5.8 US dollars per barrel of oil equivalent at Macau and 35% of Pescada, which is a great differential for our company. In the past quarter, we saw the consolidation of our portfolio with the acquisition of two assets in the Potiguar Basin, which were very much in sync with the Macau cluster that we acquired earlier. And the beginning of the transition process at the Reconcavo Basin, a very important basin that Petrobras is divesting from as part of a two asset package that they are selling and that we are also participating. And the third aspect is related to the second one, and that is that in the last weeks and months, Petrobras has finalized the conclusion of all their onshore assets, which are 3R's main pillars. and also our focus for redevelopment and revitalization. We are taking an active part in this divestment process and we are certain that with the company's capitalization and the new corporate structure, we will be perfectly capable of maintaining our pace of asset acquisition at extremely favorable multiples. Thank you very much and now we open

for Q and A. Ladies and gentlemen, we will now begin the question and answer session. If you have a question, please press star one on your touch tone phone now. If at any time you would like to remove yourself from the question in queue, press star two. Questions will be answered in the order in which they are received. We kindly ask you to take your phone off the hook when asking a question. so as to improve sound quality. Our first question comes from Pedro Soares with BTG Pactual. Good afternoon, Savini and Pizarro. Good afternoon, everyone. I'd like to clarify a few points. You conveyed a very positive Tone in outlook in terms of what you're delivering, production, costs, and the whole potential you have. So if possible, could you make this a little bit more accurate, more tangible in the short term? Because for us and for the rest of the market, I think it's kind of difficult to imagine what you can deliver. We saw a 5% growth quarter on quarter. And the September production compared to June production had an increment that is even stronger. So could you give us some more color on this? What do you expect with the investments you will begin making now with the workovers that you intend to do? It seems that in the fourth quarter we could expect a substantial increase in production. would appreciate it. And my second question, how would this impact the lifting cost of $5.8 per barrel? As Pizarro mentioned, it is already very low, but I imagine that with a sharing fixed costs, you could have an operational lever to lower the lifting cost even further. That would be interesting. And my third question, Pizarro, talking about M&As. You mentioned you were considering and you're at final stages of some M&A opportunities in the Reconcavo Basin. So is there any expectation that you would announce M&A deals this year? Can we imagine that recovery factors of these assets, once announced, will be close to the average that you explained in this presentation in the Reconcavo Basin? Or would the recovery factor of these assets be lower? Thank you. Good afternoon. Thank you for the question. Well, basically, when asking the question, you kind of answered it yourself. In this first quarter, we as operator of the Macau hub, which is our first hub, we haven't had any capex. We haven't made any investments. So we were able to increase production basically with our operating efficiency. Working with a lot of determination in the field so that the downtime of each well would be the minimum possible. And this is the secret, the big secret of an old mature field. And this is what we have been doing. We have an O and M contract. We're a company that supports us with the six fields at Macau Hub. And indeed, the downtime of the wells has been shrinking a lot. And this is why we're able to have this production increment even without making a lot of investments. But as a highlight, and you mentioned it yourself, we started investing now in the past month of September with a work over rig that started operating and it will be able to rehabilitate some wells that have some mechanical issues, but where they developed proved reserve. But now as of October and particularly starting in November, The work-over rig will start opening up new reservoirs in existing wells, and this will allow us to produce undeveloped proved reserves. And with this, we do expect an increased production in the coming quarter, particularly starting in November. And this will definitely be very visible in December. So basically, these are the two effects. Number one, operating efficiency. We are able to reduce the downtime of the existing wells. And in the coming quarters, the effect of our CapEx by using the work over rig. And Pedro, good afternoon. Thank you for the questions. Regarding your question about the lifting cost for the coming quarters, We expect to reduce operating fixed costs and GNA costs due to the dilution, due to the incremental production. and when we were meeting with prospect investors we were stressing that that a good part of our costs are fixed and thus they can be diluted as we increase production and with these two effects mentioned by Savini both a more efficient operation and i should add that our more efficient operation also derives from the automation of wells we don't have to do visual monitoring all of that starts or a relevant part of our production and we intend to increase automation even more, starts being monitored remotely. Any downtime in production, we can immediately mobilize the team to do troubleshooting and to repair the problem. As Savini mentioned, we'll start with CapEx initiatives with a faster payback. We are reactivating wells that were inoperant due to lack of maintenance. Maintenance that Petrobras was not providing. And in September, we started mobilizing the workovers rig to start this process of workovers in existing wells to access new reservoirs. So regarding the lifting costs, In our review, operating synergies among hubs and internally, for example, in the Potiguar Basin with all three clusters, we will have similar crews. Our third party contractors will be able to expand their scope and that will reduce some costs. So all of that will have a positive impact. Regarding M&A opportunities, I think we spoke a little about opportunities, in particular in Bahia, in the Reconcavo Basin. Currently, Petrobras put up for sale all of their assets in Bahia, all assets that are relevant in terms of production. There are three hubs. One they called Bahia Hub, which was recently put for sale. The other is the Reconcavo Hub and the other the Mirana Hub. We are participating in three out of these three processes, the most recent and the reconquerable hub, and we're waiting potentially for one of them to be completed by year end. Petrobras is in an accelerated process to put assets for sale and also to conclude the signing and the closing of the deals. And Pedro, this is Savini again answering your questions regarding recovery factors in the new clusters, particularly in this new cluster. What I can tell you is conceptual. The Reconcavo Basin or in the Reconcavo Basin, Pedro Braz has reached recovery factors on average that are higher than in the Potiguar Basin. So here we don't see the same size of an upside that we see in the Potiguar Basin, simply because the Reconcavo Basin is 20-30 years older than the Potiguar Basin in terms of discoveries. So it has a longer track record of production. In the Reconcavo, we have the oldest Oil in Brazil has been producing for 80 years, 80 years of production will be celebrated in 2021. So the recovery factors are higher, but the delta of the recovery factor will be lower than in the Potiguar Basin. But here there is another effect. The volumes of oil in place are substantially higher in the assets located in the Potiguar Basin and the Reconcavo Basin. the area of Ventura and the Reconcavo hubs. And any increment in recovery factor, even if lower in percentage terms than what we can do in the particular basin, as regards volumes, we are talking about comparable things. So when we look in the future of the reserves, you will see that our reserves in the Reconcavo basin will be very and comparable to the reserves we have in the Potiguar Basin because, like I said, a small increment in recovery factor in the Reconcavo Basin in terms of volume of reserves represents a lot. It's substantial. And one last point. There are some operating upsides in the Reconcavo Basin that we stressed a lot. in the meetings and in the data rooms with Petrobras. Although the fields are old, many of them never had secondary recovery projects. In other words, water or gas injection processes. So here again, we have an opportunity to increase the recovery factor by implementing secondary recovery programs. And in the new cluster, you will see this will be one of the pillars of redevelopment. Very clear, Savini and Pissarro. Thank you very much. Ladies and gentlemen, as a reminder, if you want to ask a question, just press star one. Please hold as we collect the questions via webcast.

Once again, for questions, just press star one. Now I would like to turn the floor to Mr. Ricardo Savini for his final remarks. Mr. Savini, you may proceed. I would like to thank you all very much for joining us today. This is a very historical moment for us. This is our first earnings results call. We know we still have a lot to do. We are working very diligently with a lot of determination. We are anticipating a very strong fourth quarter and we work hard to make it a reality. So our team, our IR team at 3R is available to clarify any further questions you may have regarding operating or financial results. We are at your disposal. Thank you very much. Three hours petroleum conference call is now concluded. I would like to thank you very much for participating and have a very nice afternoon. You may disconnect now. Thank you.