Canacol Energy Ltd.

You may submit questions today throughout the event by clicking in the submit a question box on your screen. Questions will be addressed after the formal presentation has ended. Please note that this event is also being recorded. I would now like to hand the call over to Carolina Orozco, Vice President of Investor Relations. Please go ahead.

Good morning and welcome to Canacle's second quarter 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 Bednar, Chief Financial Officer. Before we begin, it's important to mention that the comments on this call by Canacle's 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, Canacle assumes no responsibility in the events 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 from the corporation for the second quarter of 2025. 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 2025. At the end, we will have a Q&A session. I will now turn over the call to Mr. Charles Gamba, President and CEO of Canacle Energy.

Thanks, Carolina, and welcome everyone to Canacle's second quarter of 2025 conference call. We're reporting another profitable quarter with realized natural average gas prices in the net of transportation of $6.77 per MCF, given the favorable commodity pricing environment. Field operating costs held at $0.54 per MCF, generating robust natural gas operating net of $5.11 per MCF, with robust and stable operating margins of roughly 75%. Strong margins translated into adjusted funds from operations of $36.9 million, adjusted EBITDAX of $47.4 million, and a net income of $13.9 million. This last figure marks our fourth consecutive profitable quarter and a sharp turnaround from the net loss recorded in Q2 of 2024. Total natural gas and oil sales during the quarter were $127 million standard cubic feet per day, with $119 million standard cubic feet per day corresponding to realized natural gas sales and 1,382 barrels of oil per day. With strong pricing and industry netbacks, Canacle remains well positioned to continue generating attractive results through the remainder of 2025. Operationally during the second quarter, we drilled a total of four successful wells, consisting of two appraisal and two expiration wells, extending our track record of operational delivery and disciplined execution across our near field and rapid commercialization strategy in the lower Magdalena Valley Basin. We drilled the Sikhu III appraisal well, which encountered 200 feet of high quality CDO pay, and the Fresa IV appraisal well, which encountered 122 feet of gas-charged CDO sandstones. On the exploration front, Zamiya 1 and Bourbon 1 were also successful, encountering 32 and 157 feet of CDO pay respectively. These wells further add to our inventory of commercial opportunities. Even though we drilled a total of four successful wells during this period, from a production standpoint, only Sikhu III, which sputtered on April 7th, reached first gas within the quarter and contributed to mitigating the natural decline from base fields. The other wells, Zamiya 1, Bourbon 1 and Fresa IV, were all spud by quarter end, but did not contribute to production volumes during Q2, as completions and tie-ins extended into July. As a result, quarterly average production was lower than in Q1, reflecting the combined effect of natural base field decline and the timing of the new wells coming online post-quarter. I'd like to provide additional context on our drilling activities in the Sukri North Day area. Drilling operations at Zamiya 1, Bourbon 1 and Palomino 1 experienced temporary delays due to restricted site access caused by local unrest. Once access was restored, our teams mobilized quickly to continue with the drilling activity in this area without further disruptions. Had these delays not occurred, production from these wells would likely have come online during Q2, as originally planned. That said, I'm pleased to report that Zamiya 1, Bourbon 1 and Fresa IV are now tied in and flowing, bringing current gas sales to approximately 137 million standard cubic feet per day. At Natia II, the rig has been released as a forward plan. It's being prepared to drill a new Natia III well, targeting the gas-charged sandstones encountered in the various side tracks of the Natia II well. The new drilling plan will incorporate drilling techniques to address the difficulty in running production line or across the over-pressure gas-charged sands encountered in the Port Guerreau Formation. I'm also pleased to announce that during the second quarter of 2025, we published our 2024 integrated ESG and TCFD reports. We believe that strong ESG principles are essential to building a cleaner, more equitable and accountable energy future. We invite you to read our full reports, which are available on our website. I'll now turn over the presentation to Jason Bednar, our CFO, who will discuss 2025's second quarter results in more detail.