Canacol Energy Ltd.

Hello and welcome to the Canicol Energy 3rd Quarter 2024 Financial Results Conference Call-In Webcast. 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. You may submit questions throughout the event by connecting to the webcast. On the webcast, please place your question in the Ask a Question field. Questions will be addressed after the formal presentation has ended. Please note, this event is being recorded. I would now like to hand the call to Carolina Orozco, Vice President of Investor Relations. Please go ahead.

Good day and welcome to CannaCall's third quarter 2024 Financial Results Conference call. This is Carolina Orozco, Vice President of Investor Relations. I am with Mr. Charles Gamba, President and Chief Executive Officer, and Mr. Jason Bettner, Chief Financial Officer. Before we begin, it's important to mention that the comments on this call by Canacol 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, Canacol assumes no responsibility in the event that future results are different from the projections 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 for our third quarter 2024 results. Mr. Jason Bednar, our CFO, will then discuss financial highlights. Mr. Gamba will close with a discussion of 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 Charles Gamba, president and CEO of Canacol Energy.

Thanks, Carolina, and welcome everyone to Canacol's third quarter 2024 conference call. We're pleased to report that this past quarter was another record-breaking one for Canacol, with EBITDAX reaching a new high of $86 million, driven by interruptible pricing, efficient operations, and the ruling in favor of the company in an arbitration process with PromiGas, a gas transportation company here in Colombia, which Jason will discuss in more detail later. Our realized natural gas prices for the quarter were $6.69 per MCF, 24% higher compared to the same period in 2023. Additionally, we generated netbacks of $5.25 per MCF, representing a 27% increase compared to the third quarter of 2023, maintaining strong operational margins of 78%. Our strong performance continues to be supported by robust natural gas prices, which early in the year were driven by the impact of El Niño, weather phenomena in Colombia. While El Nino ended in May, reservoir levels have been recovering slower than anticipated, keeping electricity prices high and driving up interruptible natural gas pricing and demand. Additionally, Colombia's gas supply is tightening. due to the continued production decline of Ecopetrol's large 30-plus-year-old gas fields by Jena on the Caribbean coast and the Cusiana-Cupahagua complex in the interior. This supply challenge has led to increasing reliance on imported LNG to meet national gas demand. This market environment, combined with our focus on cost reduction, production stabilization and increased exposure to the interruptible gas market, have been essential to maximize our response to market dynamics and achieve these results. Our commercial strategy, introduced at the beginning of the year to increase our exposure to the interruptible market, has been effective. During the quarter, we averaged 169 million standard cubic feet equivalent per day of gas and oil sales, which include average realized natural gas sales of 160 million standard cube per day and 9 million standard cube per day equivalent of oil sales. Throughout 2024, our gas production capacity has been gradually recovering thanks to successful exploration drilling activities and our maintenance programs, which include ongoing workovers of existing wells and the installation of additional compression. This last quarter, we drilled the Chantadoura 3 appraisal well on our VIM21 block, continuing with our strategic approach of low-risk near-field drilling, targeting drilling prospects close to existing infrastructure and utilizing legacy 3D seismic data. Chantadoura 3 successfully produced gas into our existing infrastructure. We also drilled the first exploration well in our new Ritolante 3D seismic program located in the northern part of the VIM5 block. The Cardamomo 1 exploration well encountered 203 feet of net porous sandstone within the Cienaga de Oro formation, with non-commercial amounts of natural gas encountered. Despite not resulting in a commercial discovery, it provided valuable data confirming that an active petroleum system exists in a largely undrilled area of the basin on our block. With over 200 feet of reservoir encountered and the presence of gas, Cardamomo results have significantly reduced reservoir and source risk for future prospects we plan to drill in this lightly explored area. I'll now turn over the presentation to Jason Bednar, our CFO, who will discuss our third quarter financial results in more detail.