Canacol Energy Ltd.

Good day, and welcome to Canticle Energy's 2023 year-end financial results conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one on a touchstone zone. To withdraw your question, please press star, then two. Please note, this event is being recorded. I would now like to turn the conference over to Carolina Orozco, Vice President of Investor Relations. Please go ahead.

Good morning and welcome to CannaCalls Fourth Quarter 2023 Financial Results Conference Call. This is Carolina Orozco, Vice President of Investor Relations. I'm with Mr. Charles Gamba, President and Chief Executive Officer, and Mr. Jason Bednar, Chief Financial Officer. Before we begin, it is important to mention that the comments on this call by Canonical Senior Management can include projections of the corporation's future performance. These projections neither constitute any commitment as to future results nor take into account risks or uncertainties that could materialize. As a result, Canonical assumes no responsibility in the event that future results are different from the projection shared on this conference call. Please note that all finance figures on this call are denominated in U.S. dollars. We will begin the presentation with our President and CEO, Mr. Charles Gamba, who will summarize highlights from our fourth quarter and 2024 year-end results. Mr. Jason Bednar, our CFO, will then discuss financial highlights. Mr. Gamba will close a discussion with the corporation's outlook for the remainder of 2024. At the end, we will have a Q&A session. I will now turn the call over to Mr. Charles Gamba, President and CEO of Canacol Energy.

Thanks, Carolina, and welcome everyone to Canaco's fourth quarter of 2023 conference call. In 2023, the corporation achieved several important goals, including record EBITDA of $237 million and 11% return on capital employed. This is achieved with average realized natural gas sales of 178 million standard cubic feet per day within our guidance for 2023 of 160 to 206 million standard cubic feet per day. We also announced the entry to Bolivia with the award of three gas-focused exploration contracts. Starting in August of 2023, we experienced some unexpected production capacity issues related to both well performance in a couple of our smaller gas fields and production facility related issues at our hobo gas processing plant. To offset these issues, we drilled additional development wells between October and December, executed a number of well workovers on existing producing wells, including those in the smaller fields that experienced premature water breakthrough, and repaired the affected production facilities. Our internal reserves analysis, as supported by our 2023 year end reserves report from our third party auditors, which we released yesterday, confirmed that the reserves in our largest fields, those accounting for over 80% of our production base, were not affected by these issues. These fields not only have been performing as predicted, but also recorded positive technical revisions to proven and proven plus probable gas reserves as of year end 2023 based on production performance. Our 2P after-tax NPV10 increased 34% to $1.8 billion at December 31, 2023, compared to $1.3 billion at December 31, 2022, primarily due to stronger wellhead gas pricing and the corporation's tax restructuring in the fourth quarter of 2022, the results of which have been incorporated into this report. year and 2023 reserves report. This has material increased our estimated net asset value per share to $15.14 on approved and $40.24 on approved plus probable basis in both cases after-tax present values discounted at 10%. That means that our share price using a year-to-date average now represents a very large discount of 60 to 85% to those proved and proven plus probable net asset value per share estimates. Our expiration drilling activities in 2023 met with limited success as evidenced by the fact that our reserves replacement ratio was 32 and 31% for proven and proven plus probable reserves respectively. Exploration success at Divi Divi, Chimela, and Lulo were offset by negative results at Pina Norte, Cereza, and Fresa in our near field areas, as well as the inability to reach the target of the high impact Natia 1 exploration well on our SSJN7 contract due to mechanical drilling issues. With respect to our achievements in ESG, we continue leading the industry as one of the cleanest oil and gas producers in both Colombia and North America. During 2023, through the continuous and successful implementation of our corporate ESG strategy, we achieved the distinction of being included in the S&P Global Sustainability Yearbook 2024 for high performance and sustainable practices. Caneco was the best company in corporate governance in the oil and gas upstream and integrated segment, and we ranked among the top 10 percent in our industry overall we expect to be releasing our 2023 sustainability report during the month of may 2024. i'll now turn the presentation over to jason bednar cfo who will discuss our fourth quarter financials in more detail thanks charles we reported approximately 237 million dollars in adjusted ebitdax for the full year of 2023