Tethys Oil AB (publ)

Good morning, ladies and gentlemen, and most welcome to this review of the Tethys Oil second quarter 2024. We have quite a lot to talk about and some actually rather positive numbers to review. So let's get going. First, speaking of reviews, we announced a strategic review of our portfolio in February. That has been ongoing and has generated a number of interesting questions and interesting ideas for the board to review. That's in parallel to running all the business as usual, of course, which is also showing strong progress with the Block 56 Field Development Plan submitted in early June. The Block 58, first well, the Canoes 1 rig is finally on site, being inspected. We expect spurts within the next week. And on Blocks 3 and 4, we are starting to see good progress both on the implementation of the gas to power project, but also on its impact on the operating costs. Production from three and four, which remains our only commercial production until we have the commerciality on block 56, came in at 7,688 barrels per day for the quarter. That's down a bit from the first quarter. We should, however, remember that that was severely impacted by some quite extreme weather conditions in both April and May. Revenue, pretty stable. EBITDA up a bit, but more encouraging and actually quite significant. Cash flow from operations increased from six to nine, almost $20 million for the quarter. And we started building a cash on our cash pool again from the low of $14.9 million cash in the bank by the end of the first quarter we now come above $18 million for the second quarter. Both these are strong indicators that things are moving in the right direction. We've also signed a loan facility agreement with Abu Dhabi Commercial Bank. and for $60 million, and this is a facility that we can use if needed, and it gives us the necessary ability both to continue the strategic review from a position of optionality and also, of course, to make sure that we can fulfill all our commitments and the ongoing commitments in the various blocks. Turning to the first point here, the strategic portfolio review, Let me first remind you what we are talking about. This is the Sultanate of Oman, and the blue areas are the ones where we are partners. We have 30% in blocks three and four, our commercially producing assets. We have 65% in block 56, where an FTP has been submitted, and we hope to have commercial production or commerciality very shortly. 58, where we have 100%. and where we are starting to drill a well within the next week or so. And we have 49 where we have drilled a well that is undergoing some review for a block that we still believe can be quite prospective. It's the Rub al-Khali Basin in Oman, completely different to what else we have. But we do believe there is both conventional and possibly unconventional potential in that block. When we started the review, we noted that we did not really see that we had full values for what we have on our balance sheet, and we felt a bit misunderstood from the capital markets what we are trying to do and also the asset values we are dealing with. We've been pursuing this Omani strategy for several years now, where we are trying to take what we've learned from Blocks 3 and 4 and apply that to other parts of Oman, in particular areas where what we've learned from three and four can be an advantage to unlocking potential overlooked by others, just as three and four was such a case from the beginning. We conducted a successful long-term production test on block 56, which has now brought us to the FTP situation, the field development situation. While we were affected by sinking production from three and four, which didn't really see any clear turnaround signs. So we wanted to see what would possibly be out there. We have been assisted by the eminent investment bank Jeffries Financial Group as advisors to the board. And we have come up with a number of interesting opportunities and ideas for the board to review. This will continue. We want to make sure that we do the right thing, and we also want to make sure, of course, that we have the best possible understanding of what's in our portfolio, ranging from the non-operated 3 and 4 through the operated and soon hopefully commercial 56 and for the now upcoming well, high-profile well, I should say, on Block 58. The portfolio review will continue. And of course, if there are any updates, we'll let you know. And in parallel, do follow us for what's happening on the quite exciting milestones to come about, in particular, 56 and 58 in the near term. The loan facility has been signed. It gives us up to $60 million of credit to guarantee that we can fulfill our commitments. that we also can evolve and continue the work that we want to do on our blocks. It's a five-year, 60 million facility. And now it's a facility we can draw on it if needed. We don't have to draw on it if we don't need it. It also shows that the banks at least believe that we do have some strong value in our asset portfolio. And, of course, then in particular in the producing blocks three and four. PETA, our CFO, will give you more detail on this facility later in the call. But the ongoing strategic review, the loan facility, are important pillars for how we continue to evolve. Turning to the production of Block Stream 4, our main cash flow stream. You've seen production come down, and really not until the end of the first quarter this year did we start to see a stabilization. Then we were hit by rain, severe rain in the mountains surrounding the flat plains where the production from 3 and 4, in particular Box 3, was situated, which caused some flooding. which caused the shutter in both the facilities, but in particular a number of wells, and they are not fully up and running yet. We saw a lot come back in June, but we are still running at reduced capacity in the field. The operator is confident this will be rectified early in the third quarter, and we would expect to see a fairly strong second half of the year. Turning to three and four, these are vast blocks. The producing areas are the Farah South field and the Shahad fields with the surrounding areas, these are Wan and Ulfa, Erfan fields. We have discoveries in the south of block four, the Jari one in particular. Massive seismic has been shot to the tune of close to $100 million growth over the last years. We are now in the western part of Block 4, where we're almost done. The seismic survey is about 95% complete. This is, of course, something that will have an impact on the CAPEX going forward when the seismic is completed. And in particular, we will have a complete inventory for the remaining potential on Blocks 3 and 4. We've also seen from the development well drilled and the appraisal well drilled over the quarter that the far south field continues to outperform, whereas the carbonates in Shahad and in Block 4 are much more fickle and more difficult to predict. But with that knowledge and understanding, the joint venture's understanding of the producing areas, is continue to strengthen. And that also gives us confidence that we will see a stabilization on the production side from three and four for the rest of the year. And we have tweaked our guidance a little bit. Petra will deal more with this later today. But we are still quite confident that we will come in around the 8,000 burners of oil per day for the full year for Tethys. which coupled with the good oil prices we've had so far and what would be also the oil prices we have locked in through the pricing mechanism for the third quarter suggests a strong third quarter on top of the strong second quarter we've already had. Returning to what is maybe more for the future and the immediate future, the Block 56. A geologically interesting block that covers both the eastern flank of the Omani salt basin, the main producer in Oman, and also the central area of the block, which is sort of between the tertiary basin coming in from the ocean and the salt basin petering out into the highs of the Block 56. We are quite close to infrastructure, as you can see. To the left on the block, we have the Karim field area in production for a good 15 years now with ample infrastructure. We are simply a continuation of that play, the eastern flank play. You can see from the next slide here, which is the seismic cross section, how the eastern flank truncates towards the Hug of Rich, creating one large pinch out where the oil migration comes from the central parts of the salt basin and moves towards the Hug of Rich where it comes to a stop. And this is, of course, the main basis for our interest in Block 56. We've already seen, and I think we've done about some 15 wells have been drilled on block. All but one have encountered oil. A very similar situation to what we had in blocks three and four now more than 10 years ago. Lots of oil, unclear how the distribution, quality, and trap mechanism. And that's, of course, what we have put in a lot of work to try to understand that. That's taken us as far as to the field development plan, which is the initial development for the known discoveries on 1956. We will, of course, continue the exploration first on the eastern flank between the Hook of Rich and the Block Boundary, but then also in the Tertiary Basin to the right on this slide, where we have some quite interesting leads and also a completely different petroleum system suggesting both different oil qualities and also different reservoir mechanisms. In the eastern flank, what we're looking at now, we are primarily in shallow plastics and slightly deeper carbonates, whereas the tertiary basin part is, we are looking more at block three and four lookalikes, the older rocks being charged by newer oil from the tertiary basin. Zoom in on the eastern flank. We see the extension of the KSF trend as it truncates towards the hook of arc. And all we have had some good tectonic activity, a lot of trapping. But we are also indications of stratigraphic traps here that we would expect to be considerably larger than what we have seen from the structural traps. The structural traps have proven sufficiently well understood and sufficiently large to suggest commerciality for the block with the FTP that we have submitted. It's pretty uncomplicated from a technical perspective. We have the small rig here that we used to drill the well in December, January. And we have the pumps and the rudimentary but quite sufficient production facilities and tanks in the Aljumd area. This one is the Aljumd 2 well. Aljumd is the first structure that was drilled here, the first discovery on the block, which we have appraised and put on test. So we produced some 60,000 barrels. Aljumd is the first part of the field development plan. And what we hope to do is, of course, to open up the shut-in wells. in the aljumd area, and then drill additional wells while also having a comprehensive drilling program on the additional discoveries. We can simply turn to the next slide. And the field development first part covers the aljumd, sarha, and minna discoveries. They will form the basis. And then there will be continued appraisal and exploration along the more than 12 leads that we have identified along the eastern flank, while of course firming up the leads in the tertiary area and what we call the central area of the bloc. The FTP was submitted in early June and we have an ongoing dialogue with the ministry to have it approved as soon as possible. Some additional color, as you can see also in this part. It's quite flat. It's a stony area, not many sand dunes. It's quite easy to work here. And we are considerably closer to the ocean than we are in Blocks 3 and 4. But the surface conditions are optimal for running an oil field. Turning to 58, a block that we've had since 2020. What enticed us originally was the Vahad structure. We have firmed it up from a lead to a prospect. We have done seismic over the South Lahan area, which in itself is a completely separate play, which is really analogous to the oil fields you see in block six, just to the right of the boundary line. Lahan will be the subject of further exploration after we are done with the Fahad area. Fahad is large. We are looking at a Canoes 1. It's actually targeting 120 million barrels of unrisked prospective resources. Well mapped on the surface. I think we are quite confident that the structure is there, the trap is there. It's a well-defined prospect. We are primarily hopeful that we will have oil in the carbonates, the Buha and the Hufai, which are exactly the same rocks that we produce from Block 4 in the Block 3 and 4 area. One of the main risks here is certainly reservoir. As we know from three and four, these carbonates can be quite fickle. We don't have any wells into these carbonates in this part of Oman. We believe we have a good understanding both of the depositional environment and of the migration system. So I think we are quite confident we will find something And the main risk, I'd say, is the reservoir quality. We hold the chance of success to be just under 20%. But with a potential of up to 120 million barrels, I think we can safely say that this is one of the most interesting wells to be drilled in Oman this year. It's not expected within the next week or so. Docs three and four, apart from the ongoing oil production, There's also been an environmental initiative, the Gas to Power Project, where we use associated gas to convert that into electricity, saving both on the occasional flaring of the gas, but more importantly, on the import of diesel to cover the electricity supply for pumps, et cetera. This will have a double impact, both in getting the carbon footprint down, duly so, from less flaring and less diesel consumption, but also getting the OPEX down from the less use of diesel. So we are quite happy with the operator for having delivered this so far and for phase two now moving on. On that note, I would like to hand the floor to Petter for the more detailed look at the financials and our loan facility. And as I said, the financials are better than for many a quarter. Petter, please.

Thank you, Magnus. Yes, indeed, it's a pleasure to present these financial numbers in the second quarter 2024. Revenue-wise, it was stable versus the previous quarter. as the higher oil price offset slightly lower production. But the improved profitability and cash flow came as a result of lower expenditure, both operating expenditure and capital expenditure, as we'll get into in a while. And we ended the quarter with $18 million in cash compared to 50 in the previous, and that is the first quarter since Q3 2022 where we had an improving cash position. We continue to operate at full net entitlement at 52% for blocks three and four, as we have used the full cost allowance given to us under the PSA terms. And after several quarters of underlift, we in this quarters had an overlift of 23,000 barrels with an ending position of a slight overlift position. of about 2,300 barrels. And that has significance for our cash flow in the quarter. Operating expenses is one of the bright points of this report, I would say. Operates per barrel improved sequentially from $20 to $18 per barrel as a combination of seasonality and cost savings kicked in in the second quarter. And in particular, we can see some cost savings and operator overheads and workovers, but also some of the effects of gas to power starting to trickle through. And the improved OPEX result in also an improved EBITDA, which went to $15.7 million in the second quarter compared to $13 in the first quarter, and which in turn, of course, translates into improved operating cash flow. So the cash flow from operations in the quarter was just about $15 million before working capital. And with a positive working capital effect in this quarter of 4.5 million compared to a negative effect of 6.7 in the first quarter, makes for a big swing in the cash generation of the company. And the main reason for that is the movement from being significantly underlifted to being slightly overlifted in the quarter. CAPEX was also a contributor to a slightly improved cash flow. On blocks three and four, we have seen CAPEX trending down for several quarters, and that trend continued in the second quarter as expenditure on a number of projects decreased. We are, however, expecting a similar level of CAPEX for blocks three and four in the second half of the year as in the first half of the year. And on top of that, in the third quarter, we expect to see the capex of the drilling of the canoes well on block 58. All in all, this resulted in a positive cash generation of about $3 million on the bottom line, and ending the quarter with a healthy $18 million in cash. Speaking of liquidity in cash and financing, Just last week, we concluded the loan agreement with Abu Dhabi Commercial Bank, a $60 million facility with the use of funds being particularly blocks three and four capex. And we will have the $60 million available for about 12 months, and thereafter, it is subject to a fixed amortization schedule. It is subject to the customary covenants, and in terms of pricing, we currently see this being about a single-digit interest rate on the drawn funds. It is, as Ninus says, a facility that we can elect to use as much of it as we want. We are not committed to drawing down the full facility, and we'll do so on the basis of need going forward. Now, it does give us a significant backup to support the block 3 and 4 asset, and it also allows us to free up cash to invest in other assets in our portfolio. So by drawing on these funds, we will be able to support the investments on 3 and 4, and thus freeing up more cash for the other assets. It's worth mentioning that it does come with some requirements on hedging of interest rates and oil sales, and we will come back to that when that is implemented. but currently we would see the interest rate hedging having a positive effect on the interest rates, lowering those, and the oil sales arrangements will be subject to what the markets can offer us at that time. But it's only up to 35% of our average sales. It's also worth mentioning that we continue to build cost pool in blocks three and four. It was 33 million at the end of the quarter. as we have been unable to recover all the costs that we have spent on the block, that is expenditure we expect to get back from that asset through entitlement in the future as expenditure comes more into balance in relation to revenues. So we essentially can see that as deferred cash flows. Forward-looking production and financial guidance. We now believe the production to be for the full year around 8,000 barrels per day plus minus 200. That is mainly due to the effects of the severe weather in the first half of the year. We ended the first half of the year with about 7,800 barrels per day. We do expect to be able to do better in the second half. but it all depends on how quickly those wells can come back and perform as expected and, of course, the effects of the drilling program. So the change is mainly due to the effect we have already seen in production during the first half of the year. Operating expenditures, we continue to believe it to be around $17.50 per barrel. This is due to the OPEX coming down in the second half of the year, as we had expected, the whole time and as cost savings kick in and some of the effects of gas to power. Investment, we now believe to be around $77 million for the full year from previously $90 to $94 million. That is primarily the deferral of the exploration well on Block 56 to next year and the second well of Block 58 to next year as we have received the license extension. And all these investments will be financed by our own cash flow, cash on hand, and the debt facility we now have available to us, giving us lots of ability to continue to progress our assets and create value irrespective of the cash flow being generated in each quarter. So it does put us in a very strong position for value creation and being able to act in a long-term fashion when it comes to those assets in the portfolio. And with that, I'd like to hand over to Magnus to talk a bit about the Algerian projects.

Thank you very much, Petar. So indeed, we have had a new venture strategy, always basically. We have from time to time discussed the opportunities to enter a second country outside of Oman. In no way are we unhappy with what we have in Oman and what we're doing in Oman. Rather, as you can see, we are stepping up work there and getting to a point where we hope now we'll have our second commercial bot shortly. But Algeria is a vast country with considerable geological potential. So it's been on our radar screen for more than 10 years, actually, and we have on and off looked at opportunities there. We have now gone as far that we actually signed a heads of agreement with Sonatrac, the state oil company of Algeria, and we are in negotiations for two blocks that we believe have substantial potential to generate value. We have had a number of meetings, and we are also now refining our geological models of those particular blocks, not only Algeria in general. The MOU, the House of Agreement, was for six months, and it will expire in September, early October. Of course, there's no guarantee that we'll actually sign an exploration production sharing agreement in Algeria, but we have identified opportunities we'd like to pursue. And we are far advanced in the negotiations. So all I can say is we will try to land this. And we will be very hopeful about entering Algeria, where we see considerable potential. And so stay tuned, and we'll see how far we can take it. That brings us to the end of the second quarter review. So just to remind you, what is the most important part going forward? Well, it is, of course, the drilling of the canoes well, which, if it comes in, will have a substantial impact on our future. It is, of course, the field development plan of 56 to get the approval to start commercial production from Block 56. And, of course, an update on how we are progressing with the strategic review and what the ultimate conclusion for the company's positioning and options will be. So do stay with us. We expect a rather interesting and eventful third quarter. Questions?

Thank you. As a reminder, to ask a question, you will need to press star 1 1 on your telephone keypad and wait for your name to be announced. To withdraw your question, please press star 1 1 again. You will now take our first question.

Please stand by.

And the first question comes from the line of Stefan Foucault from Actis Advisors. Please go ahead. Your line is now open.

Good morning, James. Thanks for taking my question. I've got two and they are a bit of the same nature. So on the strategy to review, I was expecting to perhaps have an update by now of results. So could you come back on what exactly has been taken more time? Is it that you have started maybe negotiation with a specific party? Is it that because you've basically received so many different structures, you need to be scratching your head about which one is the best? Or is it that you're still receiving offers? So it would be great to have a bit more color on that. And on that 56, do you have a sense of time on when you would be receiving it? the approval of the government, and when you will be able to provide some more detail around the reserve and resources that have been validated by the FDP. Thank you.

Thanks, Justin. First, I'll take the second question last. We would expect to have a speedy response on the FDP. We have a good dialogue with the government. Both sides are quite interested in getting more production in Oman. And, of course, commercializing Block 56 will be one step in that direction. So we would not expect any major delays and would expect it in weeks rather than months, I would say. As soon as the FTP is approved, we'll be able to share details on it, which of course will include both production profiles, production targets, reserves, resource base, as well as prospective resources. Turning to the strategic review, I would almost say that all of the above of the various options you proposed have validity. Obviously, a strategic review has both the advantage of giving the board a lot more data as to how the broader market, the capital market, but also the broader industry actually looks at our assets and our asset base, whereas the stock market is just one facet of that. And that process has proven to be quite, shall I say, encouraging and interesting, has given the board a lot of food for thought. However, it's important to draw the right conclusions of the data that has been forthcoming. And I would like to put it in that Context, there is a lot to review, a lot to discuss, while also, at the same time, the assets are moving, hopefully, up in value. And all these factors have actually turned out to be a little bit more complicated and take a little bit more time than may be originally envisaged. And therefore, the Board has simply concluded to continue the process. to make sure we come up with a good result. And that result could include, as we say in the report, it could include divestments. It could include farm outs. It could include new partnerships. It could include all right divesting assets. All these options are on the table. All these options are being evaluated. while, of course, it's important to maintain the ongoing possibility of delivering on our work programs and on our commitments. And we believe that we are in that position now, which means that we have a very strong position to do whatever we perceive to be in the absolute best interest of our shareholders and other stakeholders. Did that help a bit, Stefan?

Yes, no, thank you. And perhaps coming back on 56, you said weeks away. So... I said weeks rather than months. Rather than months. Yes. But I was wondering... What's the nature of the exchange now? Are you still refining the FTPs?

It's really what you can expect. We have made a proposal how to commercialize the block. Of course, there will be questions both on the near strategy of how do you see this, is this the right number of wells, What were your assumptions for productivity from the extended well test? Questions of that nature, which is what should be expected. And I think the important thing is that we have a very good dialogue and a strong interest from the ministry in keeping momentum in the process. And that's what's ongoing. We would hope, as I say, to be in a position to declare commerciality on the block, hopefully in weeks rather than months.

Okay. Thank you very much.

Thank you. We will now go to our next question. Please stand by. And the next question comes from the line of Knut Martin Karlsson from Comcamp. Please go ahead. Your line is now open.

Good morning and nice to hear from you again. I have quite a few questions, but I think I want to start with a broad question regarding guidance and timing of events. I would like to start with quoting you from the Teddy Soil 2008 annual report, where you said that the best laid scheme of mice and oil men, and that indeed things do not always work as planned, but the time of writing, tetties cannot complain. And I think that's correct today, too, because the operational part of Teddy Soil is quite impressive, while the financial valuation of the company is quite another story. But could management please reflect a bit on the value of giving guidance? And when looking back at the past four years, I think the correct answers to the guidance would have been, we don't know.

Interesting point there. I think certainly there has been both disappointment and frustration when it comes to the blocks three and four development. And since it is a non-operated block, we are, to a large extent, depending on information from the operator. Of course, we try to vet it. We try to have our own opinion. But I mean, with 20 people in Tethys and 500 or plus with the operator, we can only do that much. And I think there's certainly been disappointment in the development of 3-in-4. And that's partly also what caused this review. We see that we are, as I gratefully acknowledge that you noted, doing quite fine, although a trifle slower than we expected, maybe in 56, 58. But we are doing quite fine in the blocks we operate ourselves, whereas our quarters are constantly measured against the underperformance of three and four. Thus the strategic review, or at least that was a strong part of instigating that. We believe, as we say in the report and as we said at the call, that the operator is now getting a much better handle on the true productivity of the blocks from the ongoing production, has also firmed up the be much more systematic in the exploration of the blocks three and four, which of course also is evidenced by the seismic and the forthcoming interpretation of the seismic. So I think from, we believe that we will have a better understanding and predictability from three and four We see signs that we are seeing production stabilize, possibly also creeping back up. We are seeing more systematic inspiration. But, of course, what interests us more and where we really want to make a difference, that is within the operating blocks, and we would very much like to be judged on our operating ability in 1956 rather than the... non-operated blocks three and four assets. But these questions are such that are certainly a part of the deliberations for the strategic review. And that may be also partly why it's taken more time, in that we want to be in an optimal position for the board to come up with the best possible conclusion.

I appreciate the candid answer and we're looking forward to seeing how you're performing the operator blocks, which I think it's a good turn over to block 56. So we have three questions there. So the first one is regarding third party prospective resource audit. On block 58, you've given us a thorough review on two different parts of the block with numbers and that stuff. while there's been very limited information on prospective resource potential on block 56 taking aside the production tests. Is there any reason for the limited information flow on block 56 compared to block 58?

It's really more a focus matter. 56 early on turned into a potential development. So focus has been more on bringing the development in place rather than to quantify the prospectivity of the docs. It's a parallel endeavor, but we would expect to be much more open, be able to be much more open on both prospectivity, but also on the reserves and resource potential of the bloc. I mean, clearly, we have continued resources associated with the FTP. Upon commerciality, we will be able to book those as reserves, and they would then be included, of course, in our full year reserve audit, while in parallel releasing substantial information on the prospectivity of the bloc outside of the immediate development areas. So a great answer to your question, I think, is really more, whereas 58 is a pure exploration block and has been treated as such, 56 is more of a melange between development, production, and prospectivity. And therefore, the resources have been more evenly spread. And we would expect to have a more comprehensive view once the block has been declared commercial.

I appreciate that. So my two next questions, they're not necessarily looking for a specific answer, but more like directional answers. And the gross resource potential in allumed area was initially estimated at 7 million barrels gross and risk. over the past year? Has this estimate been revised up or down? While specific numbers are not necessary, could you provide some insight into the direction and magnitude of this revision?

Certainly. Let's say that the knowledge of the Altum structure, the building of the database for the Al-Khalata Reservoir over the entire Eastern Bloc area has, of course, increased. The resource potential, given that we simply know more and understand it better, is certainly moving in the right direction. Let me put it this way. The numbers that underpin the FTP of course, are sufficient to, we believe, to make this a commercial discovery. And the understanding of the potential of Al-Jumd is a lot better. And we would expect the prospectivity both of the Al-Jumd discovery as such and the adjacent areas within the eastern flank to have increased as the understanding of the area has increased.

Great. And moving on to the third question, and this is with regard to your comments in the shareholder letter and the reserve replacement ratio. In 2023, there was 2 million barrels deficiency in the 2p reserves to achieve 100% reserve replacement ratio. Is this the potential range we're looking for with regard to the production and field development plan on Block 56?

I would say no. I'd say it's a common saying that irrespective of the revisions for and any potential replacement in 3 and 4, we believe that any commercialization of 56 would put us back in positive territory on reserve replacement. But it should not be construed as a proxy for the exact numbers.

Okay. So given all the assumption you mentioned about it would be 3 million plus?

I suppose that's a fair interpretation.

Okay, thank you. And then moving on to Block 58, and I would like to couple this a bit with my comment at the start. I mean, if you're looking at the share price of Teddy Soil, and the 2008 annual report was published in the spring of 2009, and the share price is hovering around the same levels. But if you're looking at Block 58, and the way to evaluate that kind of an asset as an investor and looking at some similar, if not quite as similar, transactions in the past by, for example, BV Energy, which acquired an interest in Reconsense Energy's Onshore Namibia project, where there's only combined risk-recoverable prospect resources at this point. do you have any perhaps reflections on how to think about Block 58 from a valuation perspective? And I'm asking this due to the large diversion between what the market thinks the companies value that and what certain other people think. Thank you.

I mean, valuing exploration assets, I mean, one way of doing it is simply take the risked prospective resource number and modeling what that barrel of oil would be worth in Oman. I mean, that's only one way of doing it. Now, given the closeness to the drilling of the well, obviously we will know within the next 30, 40 days whether we actually have a discovery in canoes or not, and also whether, if it is a discovery, how much of an oil column we would have and what kind of productivity we would have. Normally, I would say that, of course, one should attribute an element of value to an exploration asset, ideally built on the prospectivity, on the risk prospectivity of the resources. In the current market environment, however, it seems to be very much of a show-me attitude. So, I mean, as you rightly pointed out, I mean, we had a lot of expectation value in Tethys in 2008, 2009, whereas we have, I would say, negative expectation value in the valuation today. But it appears that the stock market, at least in the current environment, at least in the current location, would not attribute any value to anything that has not been tested and proven to float the surface. So we'll see if we will get any kind of excitement in the run-up and the drilling of the well. If not, we will simply have to wait and see how any discovery would be received.

Thanks. That was all the questions for me. Thank you.

Thank you.

Thank you. As a reminder, to ask a question, you will need to press star 1 1 on your telephone and wait for your name to be announced.

To withdraw your question, please press star 1 1 again. As there are no further questions, I would like to hand back to Magnus Norden for any closing remarks.

Thank you very much for listening. Enjoy the rest of your summer and speak to you again, if not before, so in November for our third quarter. Thank you.