Dno Asa Ord

Good morning, and welcome to DNO's first quarter 2026 earnings call. My name is Jostein Lerbos, and I am the communications manager here at DNO. Present with me here today in Oslo are, as usual, Executive Chairman William Mosavar-Money, Managing Director Chris Spencer, and CFO Birgitte Lindelbo-Johansson. In addition, we have a surprise guest, Morten Greeney, who is Senior Vice President, responsible for assets and project development in the North Sea Business Unit. And then we'll wrap up the presentation with the North Sea Deep Dive. After the presentation, we will open up for questions in the Q&A session, and press questions will be dealt with afterwards. With that, I give the word to Bijan.

Please. Good morning, and welcome to our first quarter of the and operational updates, again, with a focus on the North Sea. This is a beautiful spring, sunny day in Oslo, clear blue skies. You won't have a chance to see it because we're an indoor room. My colleagues typically put me in an indoor room away from a window, away from the seagulls, but fly over Oslo Fjord. Those of you in Norway, some of you in Norway may understand the reference. But trust me, it's a beautiful day, and our results are similarly sunny and blue skies for the first quarter, and this has continued into the first part of the second quarter. Much of this has to do with higher oil and gas prices, principally in the month of March, but the impact has been significant on our results and those of many other international or national oil and gas companies. The strong performance of our North Sea operations, which we will review more extensively, Morton will, and others will touch on it. Our strong North Sea performance has been able to capture high prices. We are, as you know, not producing currently in our courtesan sector, but the acquisition of small energy last year, and our much larger presence in the North Sea now has proven the important de-risking that acquisition and diversification has brought to the company, and now we are a far more resilient company in terms of capturing in Kurdistan, but also in the North Sea, principally on the Norwegian continental shelf. The higher oil prices, of course, and higher gas prices are a result of the geopolitical turmoil and the war in the Middle East based on You may be seeing a light at the end of that tunnel and the peace and stability brought back to the Persian Gulf region and Iran in particular and the other countries that have been impacted by this crisis. The higher oil and gas prices resulted from it. that they have not been because of any action by our industry. Our industry has benefited, but, of course, we all recognize that tragedy and devastation and suffering of people that are affected by these tripolar crises are not something we welcome. financial results for us and other companies, and these are only reflected in our first quarter results. They will be importantly reflected in our second quarter results, but they give us the financial means with which to continue to grow our business. There are many opportunities in the DNO portfolio, and the additional resources will allow us to capture those. So that also points to a stronger stronger weeks and months and years ahead. With that, I'll turn to our manager director, Chris Spencer, to give a more color to the problems during the three-quarter facts and figures about the first quarter. Please, Chris.

Thank you, Peter, and good morning from me. As introduced by William, we've had a good quarter. with the strong performance again in the North Sea, lifting our profits on the back of those higher prices that we've seen, particularly in March. So the operating profit level results increased by a full 60% quarter on quarter, and happily we have black ink on the bottom line, which pretty good, so our CFO will take you into a bit more details shortly. The production, of course, as you see on the chart on the right-hand side of the graph, we, again, have very strong levels of production in the North Sea. A new record by just 400 barrels a day, or barrels equivalent to that, I should say. But we'd still love to talk about that because, first of all, it re-emphasizes the importance of the soil acquisition we made last year, which quadrupled our North Sea production. And of course, at a time like this, the strategic importance of that acquisition is self-evident to everyone who follows our company. Also, that is a higher level of production than we expected to have when we made the acquisition, which is a great, one of the many areas where that acquisition so far has been very successful for the company. And as we say on this slide, we're not resting on our laurels. We are challenging, we put forward, we've been very open about our target to get to 100,000 from what we have within our portfolio in the North Sea by 2030. And I'm very pleased that my colleague is joining us this morning to give you a bit more insight into some of the key projects that will underpin that ambition. Another element that we've been very active on and I hope you will continue to see is the new business development. Not giant deals like the trial one, but very much building on that through smaller and frequent transactions as we refocus that large North Sea portfolio into core areas. and seek to accelerate production through business development as well as project development. And the top deal we did with Equinor in Q1 is a fantastic example of that. I'm very pleased to say that we found a win-win deal. Equinor are very happy with the deal, we understand, and VNO is very happy from our side. and it's accelerating the production from some of our discoveries in an unusual way, because we're swapped out of those discoveries into Proveri Atlantis, which we expect to come on sooner than the discoveries we left. A smaller deal, but another nice bolt-on is the Vega transaction, which we announced today. It was just inked yesterday, so thanks to Inpex, And of course, our team, a small deal, but once again showing the way we are building a strengthening position in our core areas. Last on the slide, but very much not least, the dividend was maintained by our board of directors in their meeting yesterday. Not a difficult decision on the back of these results, and that's maintaining a strong Next slide. So I'm just going to quickly touch on Kyrgyzstan because we have a new number of slides on the North Sea which Gordon will present shortly. In Kyrgyzstan we started the quarter optimistically and strongly. We had recommenced drilling just before the end of last year and had really great results from the first two wells we drilled until of course we got to the middle of February and the world changed for us as it did for everyone. Of course we had to shut down as a precautionary measure. We are ramping up what we call passive protection, in other words concrete walls. So in case we do get targeted, we do. whatever we can to protect, of course, our people, but also our critical facilities and particularly those that have long leave times to repair. Following the declaration of ceasefire, we have started tentatively to get back to work, bring back people to site and so forth. We resumed work over existing wells and we started drilling. And that means that when we are ready to start, we are optimistic that we'll be able to bring back tablet and petiole beer at higher rates than we left off at. So obviously we're not quite sure now where the production levels from Kyrgyzstan will be. So the final point saying at the moment, of course, 26 production will be lower than we thought when we addressed you a quarter ago. Similarly, investments are going to be lower, but when we do restart, we're expecting strong levels of production. With that, I will pass over to Birgitta to take you through the financials.

Thank you, Chris. Thank you, Peter. Good morning, everyone, from Jatla. I'm very glad to present right here by presenting very strong results from DNO. The revenue in the quarter was $627 million, compared to $482 million in Q4-25. Please note that if you look at year-on-year, the large movement from Q1-25 is mainly related to the acquisition of Sval, included in our accounts as of June-25, and that's why I see the large movement from Q2 to Q3. If we look at the movements from Q4-25 to Q1-26, the main drivers are, of course, the increased prices in the North Sea and also the increased sales volumes. In Q1-26, we have 93% of the revenue stemming from the North Sea and about 7% remaining from Chelysop. Because the operating profit, as Chris mentioned, is a solid improvement from Q4. And also, again, we don't compare with Q1, since that is not including the numbers from the North Sea, now SWAL, or previous SWAL, now DNO, and North Sea Business Unit. There are two one-off effects I would like to mention. One is the change of the shared tax assets, having a positive effect of about 30 million on our numbers. And the other one is an increased SG&A in the first quarter. of about 20 million, which is related to the reorganization in the North Sea. That is also a one-off effect. That brings us, as Chris said, to solid black ink for the first quarter of 51 million in net profit in 2026. Thank you. I'm sorry for the cash flow. First, we ended 2025 with $454 million in cash positions, and the result after Q1 was $531 million, and solar improvements there as well. If you look at the cash flow from operations, stronger than previous quarters, high prices in March is yet to be reflected on cash flow, and you can see this in the cash flow statement through an increase in trade receivables of $125 million. Tax, we have two tax installments in Q1, totaling 64 million. That means we will have three tax installments in Q2, around 95 million, collecting the 2025 tax. Then we have the investing activities of 153 million, consisting of 107 million in asset investments and 48 million in decommissioning, partly offset by 3 million in net cash. from equity accounts in West Africa, as we said on the slide. If you look at financing activities, that includes net interest payments and also FX. The net cost was $88 million, leading us to the cash at the quarter end of $531 million. And balance sheet, please. We have a very strong, solid balance sheet still. The total balance sheet is about $6.2 billion. of which half is PP&E, and that has been quite in line the last four quarters after the occasional fall in Q2-25, as I mentioned. If we look at the net debt, an improvement there as well, about 12% reduction in net debt from $886 million by the end of Q4 to $790 million in Q1-26. We have an equity percent, equity share of a balance sheet of about 21%. The equity is 1.3 billion, so that is really within the confidence in our funds. On the back of this strong balance sheet, as Chris said, the board has decided to pay a dividend of 0.375 not per share. 16 consecutive quarters in a row with dividends to our shareholders. totaling 497 million in dividend and 62 million in share buyback. That is quite strong. On the back of that, very good quarter, very good position for DLO. I have the word, obviously, Boston, for a deep dive into our North Sea business.

Thank you, Birgitta, and good morning, everyone. Today, it's my pleasure to talk to you about some highlights about the project portfolio in the North Sea. And if you look at Q1 results, production results of close to 90,000 barrels, you for sure see a line in sight of reaching 100,000 barrels per day production in the North Sea by 2030. The scribbles you see on this white board is some schematics identifying development opportunities for one or more discoveries. green session together with Alkabipi. I'll get back to that later. Starting off with our sanctioned projects that are coming on stream between now and 2029, representing about 200 million barrels gross reserves. Starting off with Simra, that's a four-well subset tied back to the Ivar Åsen platform, and here we have two wells already on production as of April 2026. That's about nine months ahead of the PDO plan, so well done by Akibiti and the license to make that happen. We're still drilling, and we have two more wells to finish off. Expect to put these two on production in Q3 and Q4 2026. And then over to Dalin North. which is a 3-well subsea tarmac to the existing Valdling subsea template. Here the subsea infrastructure is in place, and we are currently drilling this 3-well campaign. Two wells have been drilled to TD with the results as expected, and here we hope to get to production in Q3, also well ahead of the PDO plan of January 2027. Beslan X. Two wells subsit are back to the Brage platform. Both wells have been drilled, and restore came in as expected. We have some subsea campaign going on this year, and also some work to be done on the Brage platform. But here, OKEA is on good ride to get to production start in Q1 2027, and potentially late 2026. Last but not least, the Banling project, which is a three-world subsidy product to Oscorp B. Subsidy infrastructure is mainly in place, and we're getting ready to start drilling operations late this year, or sometime during first half next year. Your production start is in Q1 2029, and the critical path is the work to be done on Oscorp B. And hopefully we can also accelerate production here from Q1 2029 to late 2028. And now next here is the discoveries we have made where we have finished appraisal scope. And here you see it's nine different projects that is being matured for final investment decision between now and 2028. Look at the first four, Serissa, Kuvert, Kjøttkake and Ophelia. They have all final investment decisions in 2026. production start plan in 2027 and 2028. I plan to come back in some more details here on Skjødskakke, Kvarige and Atlantis, but first I also want to highlight the focus that DNO has on accelerating first oil on all of the projects, and with the ambition of getting all this on stream before 2030. We have a fast track mindset, or a get-off-your-assets-developed mindset, which basically means, hey, what does it take to bring a first oil sooner? And if it makes sense to make it happen, we go after it. So if you look at the two columns to the far right, you see the scheduled production start for these, and you also see the DNO ambition. If accelerated, then... with the goal of getting all this, as mentioned, on production before 2030. The success of that, of course, remains to be seen. We're working hard to make it happen. Next. I also wanted to mention a couple of examples on our fast-track mindset. First of all, Kjødskaket Development. That was a discovery in Q1 2025. We have a final investment decision coming up in September this year, but we're on a good path here to be able to deliver first oil in Q1 2028. And that is three years from discovery to first oil, which is no other project of this kind has been delivered that quickly in the North Sea. If you look on the schematics to the right, you see Kjødkakke mentioned there. That's a four-slot template. tie back into the NOVA subsea feed. Parbar is the operator, and then further tie back to EUA where Vård is the operator. Critical for this success for us, was to immediately appraise the discovery we had back in 2025, and there shortly thereafter, team up with Alkeby Ippit to do a sprint, to a mature development concept, which we identified. And then shortly thereafter, we put the team together. If we had a team just coming off another project, it made sense to hand the operatorship over to them. And we also have second lease in from VNO into that team and started the planning of this project. with early pre-FID investments of the long lead and vessels was also critical to maintain the opportunity for Q1 2028 production start. Of course, also important to have a close dialogue and early involvement with vendors on this, obviously, but also hosts and regulators is also important, and that is progressing very well. Over to Kveikia. And Kveiche is the base plan there was to bring Kveiche into the ring by less development and down to Troll for a 2031-2032 production start. Here in Q1 this year, the license at Equinor as the operator, I'll send DNO and AKVP to go ahead and perform an assessment. Kveiche to Kjøstkake and up to Jua as an alternative to be able to accelerate per soil with a couple of years. We had a sprint together with AKBP, and we identified a development concept, as you can see on this schematic, with a 4.3 kilometer time from Kveiche into Kjøstkake. There's a team working on this, you know, to mature this development concept, simultaneously as they're maturing the development concept to take place down to Limavest and to Troll. Concept Selective is coming up this summer, and then we'll see what alternative will be chosen. So still to be confirmed what alternative we will go for. Chris mentioned, of course, happy with the BD deals, accelerating production for us. In this case here, it's Atlantis, where we had a swap end in Breckenwood. We get 90% in that discovery. The plan is a tieback to Kvitebjørn, where we also have a 19% work interest. FID here, investment decision is coming up early next year, and a production start in 2029 or 2030. Expect to be at around 8,000 barrels net DNA when they get to plateau in 2030. Also on the mention on this slide here, we have the appraisal program on Loring, and also Dietland-Karmen is in the same area. If in discovery, could be developed back to three Which takes me to my last slide, this upcoming North Sea 2026 exploration program. We have six wealth plans, three appraisal and three exploration wealth. The change from previous report out. with the deal with Equinor, and they handed Mistral North and Sjøgården over to them. Sjøgården was also moved from previously planned drilling in 2026 to 2027 because of big schedule. But still, a good program coming up here now in 2026, and they've already started to drill on Karman, where they expect to be in the reservoir shortly. DNO, we remain among the most active explorers on the NCS. And it's an exciting portfolio to do it also now in 2026, as you see. And some of them may be some good opportunities for a fast-track development. Thank you. Thanks a lot, Morten, for the excellent presentation.

And then we'll open up for questions in the Q&A session. I guess I should give a couple of technical... remarks there. If you want to pose a question, please raise the tiny virtual hand on top of your screen. When you are chosen by the organizer, you will be notified on your screen that you are allowed to unmute, after which you will have to remember to unmute yourself too. And with that, it looks like Theodore is ready to ask a question. Please, Theodore. Thank you. Good morning. Thanks for taking my question. Can you hear me? Yes, we can. Perfect. Thanks. So a few questions from my side.

First, on summer maintenance for NCF, given the strong oil and gas prices we see now, is it tempting to postpone some of the summer maintenance, or is it possible at all? Second question, that is on Kurdistan. Impressive to see that you already have started drilling after the potential peace plan. I just wonder, what do we need to see specifically to see you resuming production and not only drilling? And third and last question, that is on... On guidance, in the report, you provided some guidance on production and operational spend. I didn't see an update on that in the Q1 report. Could you just confirm that the guidance given in the Q4 report is still valid? Thanks. Morten, do you want to do the summer? Yeah, for sure. Summer maintenance. Some of this scope here is important for clients. We have an important scope on Brage, which is important for to tie in Bessla. And we also have an important scope on Ivar Olsen and Edvard Grieg for the Simra production. We also have some critical maintenance that we have to do on the Nordene field because of backlog there. So some of it is difficult to push out in time. But I'm sure there will be some optimization opportunities there to maximize some production.

Thank you. On Kurdistan, yes, we resumed drilling, and we did that following the first ceasefire that was announced. Our concerns in Kurdistan in terms of operations broadly, including drilling and workovers and other investments and activities, our concern is safety and security. In the time that we've been, we have stopped operations, start of the war, the Israel-U.S. war, strikes on Iran, we started putting into place as best as we could passive security measures that have because we've been in the form of concrete walls around critical infrastructure, and even more importantly, around residences and areas in which our staff either live or work. We have now put in something over two kilometers of these concrete walls in the Pesky River field and also in the Tauke field, so we're more comfortable. in Kurdistan since last summer where we had those drought attacks that we reported on. So with that, we resumed drilling and other activities so that we can hit the button when the time comes with respect to, again, safety and the viability, commercial viability of our operations and Once we hit the button, as Chris said, we expect we will have even higher production levels than we did when we stopped production. And that's a result in part of not having produced these seals for some time, and then suddenly flush production could also result, again, as Chris mentioned, of our drilling in the interim period. viability because if you recall, as we widely reported, our average sale price prior to shutdown was around $30 a barrel, just a bit over $30 a barrel. That price was that we were receiving and we indicated that we received that the thereafter. But that was in a global price environment of, I don't know, $60 Brent, give or take a few dollars. We're in a very different environment now. There are wild gyrations in prices every time there's a report of a piece or new strikes. Prices can move $5, $10, sometimes $16 a barrel in a day. But a barrel more than it was before. So we are obviously not prepared to sell our oil for any period of time at the same price today, a much higher price environment globally than we did previously. But how do we get there? There are, again, there's a lot going on that affects pricing and affects how we sell our oil, to whom, and to where, or from where. The government of Iraq has only just been announced that there is a prime minister who has been elected, subject to confirmation by the parliament in Iraq, and it's expected to take place. It will take some time, and it's taken many, many months to get to this point. Baghdad and the Iraqi State Oil Marketing Organization. We are having those discussions. We'll take a bit of time. Those of you who follow Kurdistan also know that the contract between the government of Turkey and Iraq for the use of the pipeline that takes Iraqi and Kurdistan oil to Mediterranean, the port of Chehan, The contract expires at the end of July. And what will replace it, we don't know. It's still a work in progress. And what the implications of that are in terms of the access of Kurdistan companies to that pipeline and Iraqi companies to that pipeline, under what terms and conditions, that remains to be seen. And how that is resolved, after you resolve by summer, by the end of July, will impact how we can market our oil and what terms and conditions. So there are a number of moving parts out of our control, but there are eminence. There will be a government in place in Baghdad, hopefully not too different distant future in a matter of weeks, and in a matter of a couple more months, there will be a new potential There's a situation in Syria that's a lot more stable today. There's still work to be done there. Turkey. As you well know, and others, shareholders and analysts know as well, we were getting, again, much higher prices, but there was still a deep discount because we were moving across a large territory geographically, and this is complicated, but my expectation is that we will approach those sorts of prices or those sorts of discounts to Brent and global prices that were in place previously. So we're very optimistic we'll achieve that. Once we do that, that will make a very significant difference in terms of our production, our sales, our pricing, our revenues, our operating profits, our net profits. So that's our target, and that's achievable once some of these complexities are addressed and hopefully resolved, and hopefully supersigned. Chris, would you like to add something to that?

Sure. No, I think that's a comprehensive answer. I can just touch on the final question on guidance. So the only guidance we updated this quarter, I tell you, was on the CoStar business. I touched on that on the slide I presented and obviously with what's happened since the 28th of February, we're not really in a position to offer new guidance. I think you can make it your own judgment on that, just as well as we can, given the current situation. And the fact that we haven't updated the other guidance means that we stand by what we said last quarter, as simple as that, basically.

Okay. Thank you. All right. Next question comes from Claudia Carpenter. You might have to introduce yourself.

Hi. I'm a reporter. Is that okay?

There's no one else on the list, so I guess we can take questions from the report.

Thank you very much. It's really interesting what you're saying about Iraq. So, couldn't you give, since you say that the production and investment that you planned in Kurdistan is going to be lower than previously, can't you say what you're expecting now? You must have some expectation if you say that there's an expectation.

You're based on the on politically and what we're able to do. We have resumed now our investment plans that we had previously announced, which included the drilling of eight wells in Kurdistan this year. We're back on track. We have a rig zone. We're the only international oil company in Curtis on drilling and with such ambitious drilling plants and such ambitious but also expensive. So we're back on track drilling. The fact that we've had such a great quarter and that our revenues are higher because of higher prices in March and now in April and going into May. There's a lot more cash coming in, so we have the corporate resources with which to execute our plans, investment plans. So that we're doing. What happens in terms of actual production and price, those are out of our control. Price, of course, depends on perhaps the global prices, but also, importantly, what happens to the price that we can achieve at other international companies. operating in Curtis. They have a different price plan and export plan than ours. They reached an agreement last year, and we chose not to participate in those arrangements at that time, in part because we were able to receive payment from our buyers in advance of our actual sales. We called it cash and carry. Of course, it wasn't really cash. and we delivered the truckloads of oil to them. But now, of course, it's a different arrangement where we still use some cash and carry.

You can't just give me a number what you think the net production is going to be in Kurdistan in 2026?

If you can, you're a reporter, I assume you follow Iraq and the region. If you tell me what's going to happen in Iraq and when the government formation will take place and what will happen to the Turkey pipelines, If you give me those inputs, I can give you the outputs that you're looking for.

Okay. And so are you exporting everything through the pipeline, or are you using trucks?

When we were still exporting, it was through the pipeline. There have been periods in the past when the pipeline wasn't available to Iraqi and Kurdistan sales that we used that. use trucks, lots of trucks.

Yeah, apparently there's like a huge surge in demand for trucks now. Everywhere.

Well, yeah, I think we'll have to take the next question now.

That's fine, I'm sorry.

From Nicholas Stephanou, and I think that will be, and there seems to be a follow-up question from Taylor, and I think those will be the last two questions today. So, Nicholas, you might go ahead and into, yeah.

Good to hear that from you. So, just a clarification on Kurdistan realizations. Yeah, you very rightly said so that, you know, I mean, we're like $120 dead right now for that time period, for this quarter, but, I mean, would you, if you're going to resume production there and sales, would you try and make an agreement with the traders for a much higher price before you do that? Or how should I be thinking about your sort of like approach to getting a bit more of the share of the pie there?

Well, again, the price we were getting before and the range that we haven't placed before were based on $50, $60 oil prices. Those are now doubled. It moves up and down every day, as I said. So you can be assured that our aspiration is to get a higher price. And we are talking to several different parties to see how best that can be achieved. It's complicated by politics and geopolitics and access to infrastructure, to transportation infrastructure. It's complicated, but you can assume and you should be assured that we will do everything possible to try to capture the higher global prices and the higher value that our oil commands. And I hope when we meet again for our next quarterly discussions that we will have some of those arrangements clarified and hopefully put in place, but we're working day and night to try to get there.

Does the change to the old class environment change in any way you think about your participation in the two-part agreement?

We had some concerns about that agreement that we voiced at the time. That was many, many months ago. That agreement is now evolving in terms of how it's working. I'm not privy to all of the details, but I assume we will have more information about how it works and how those arrangements and those payments compare to what we were receiving through our alternative arrangements. So we'll see. We'll see how that has worked in practice, how quickly and how much Baghdad is going to be paying the other companies under that arrangement. And if that turns out to be favorable with some of the uncertainties that we were concerned about that had resolved one way or the other, then we'll have more information as to how that and Iran to come to some agreement and sanctions are removed. Iran would be one other way of getting oil out of Kurdistan into global markets through swaps that there are refineries near the border between Iran and Iraq. One can potentially how Iraq and Turkey, what they're doing as they reach in the sale and transfer of Kurdistan oil was based on a budget law that was passed over a year ago and with a different government and how those there will be a new budget law that also covers Kurdish oil or whether Kurdistan will choose to again export its oil from the region itself we don't know There's a lot of moving parts, and we're watching them very carefully, and we will try to engage in the arrangements that we can put in place that best collapse the price we receive for our oil, that price and all the prices. But again, we should know more on how those conversations will go. next quarterly meeting, I hope, but if something goes to place before then, of course, we will announce that to the market when that takes place.

Thank you. And there will be a last short follow-up question from analyst Theodor Sven Nilsson.

Yes, thank you for taking that follow-up. It's regarding the sea lifting schedule in Q2. Should we expect over-lift or under-lift for your sea production in the second quarter?

Yes, I don't have all the details on top of my head, but April and June, more normal, is at least some thoughts I've been given. I don't have all the details and all the facts, but I'll tell you to be honest, it's not my best. We can come back to you afterwards.

I can chime in. Yeah, thanks. We have talked about the Q1 production, just about production from my side. The Q1 production, as we talked about doing, came in very well. We expect to go down, as we mentioned, because of the maintenance and these upgrades that is happening now in Q2 and Q3, slightly. in 2026 here, around 90,000. Okay, so no warning for lifting?

The liftings are always very difficult to predict, as you know, and particularly when you get to the end of the course, just a few days can make the cargo flip from one course to the other, so it's extremely difficult to give guidance on liftings. However, I just emphasize for everyone that we have contracts in place so that we don't just get paid depending on the price of the oil on the day of the lifting. We have what we call PQ contracts in place so that we're exposed to the price of oil every day. So you don't have to worry. I know for some of my colleagues who have offshore production in West Africa and so forth, then you cannot get those type of financial arrangements, and so the price you get is just when you load your cargo. For us, we are on both the gas and the oil in the North Sea. We have the exposure to the ongoing prices that you see. Well, you may not see on your screens because, of course, the date of Brent has been considerably higher than the front month Brent during March and April. So whilst the liftings impact on our profit and loss side of our accounts, when it comes to the cash flow, we are not dependent on the liftings.

Very nice, Greg. Thank you.

Are there any other questions? Just the first question that we'll deal with afterwards. Because we're like Donald Trump, we can't stop talking to the press and also to our shareholders, so we don't want to cut you off if our other questions... this session and on the press.

I just wanted to ask, what is your name?

Sorry, if there is a press question, it's not going to be written for you. It's Diaser Al-Maliki from Middle East, I think, Nice, right?

Yes, sir. Will you unmute yourself?

Hello. Good morning. Can you hear me? Yes. Well, good morning. Thank you very much, and congratulations on the results. My question is to Chairman Muzaffar Rahmani. You mentioned – I'm just picking up on something you mentioned. You mentioned that there has been some sort of conversations with SOMO with regards to restarting production, if I understand it, from your earlier answer. Because what we hear on the Iraqi side is that they want the Kurdistan companies to produce so they can double exports currently to Turkey. But I'm just trying to understand if there have been any conversations on that recently. Thank you.

Thank you. Any other questions?

The answer is yes.

Yes, but, and we've had discussions with others as well who might open up channels to export some monetization and start up a production and monetization of that production. We had to cease production while we did repairs again, and we sprinted to make those repairs, but we've been hit before and damaged, and we are very sensitive to that, and the situation in the region continues to be very uncertain. Other companies have been attacked as well by missiles and drones. But we anticipate we will start production. And that anticipation of startup, of production, we started up now for some weeks. Work in the fields, work over some existing wells so that when we start up, the wells are available to produce at maximum volumes. We build new wells. We will have additional production. So we're doing what we can. We are, as you well know, the largest producer in Kurdistan. As I've said, we're the only company actively preparing for a startup by drilling new wells. And I believe once we, as the largest producer, as the oldest producer in Kurdistan, once we start production, our expectation is that other companies will follow the production of these products. us producing safely for some period of time, they will have. So for purposes of SOMO, when we start up, it won't be just us starting up at 85,000 barrels a day. It will be additional oil coming from Curtis SOMO as well. And that's, I believe, everyone's advantage to contact the other companies. Once we take the lead and take the first hits, I hope there won't be any hits. And then the situation will be of exports will open up much more oil than just ours alone.

Thank you. Just to pick up on this, is the channel you're looking at, is it Syria or is it Turkey when you're looking at the alternative channels? I'm thinking here trucking.

Trucking is an option for Syria. Trucking is also an option for Turkey. But I think that the currently available routes for substantial amounts of oil, where the transportation cost is lowest, is the pipeline to Turkey. That has been the option, the preferred option, and the one that we've used maybe not half the period we've been producing Kurdistan, because we have also used trucks. It was not available. There was a time we were producing, I think, 125,000 barrels a day in Kurdistan. We were loading a truck every one and a half minutes. At the time, I described it as doing like a Coca-Cola plant. The trucks would come up with fill, they'd move on. So that's an option. pipelines to Turkey for economic reasons, for other reasons of efficiency. But if it comes to trucking, we'll look at that option as well. And trucking opens up Syria as a possible route. It also opens up Iran. Thank you very much.

Good to be seen.

Thank you. That concludes this earnings call and thanks to all for participating and see you again next quarter.

Thank you.