Frontera Energy Corporation

Good morning, my name is Sergio and I'll be your conference operator today. Welcome to Frontera Energy's second quarter 2023 operating and financial results conference call. All lines are currently on a mute to prevent any background noise. I would now like to remind you that this conference call is being recorded today and is also available through audio webcast on the company's website. There will be a time for questions following the speaker's remarks. Analysts and investors are reminded that any additional questions can be directed to the company at ir.fronterraenergy.ca. This call contains forward-looking information within the meaning of applicable Canadian security laws relating to activities, events, or developments the company believes or expects will or may occur in the future. Forward-looking information reflects the current expectations, assumptions, and beliefs of the company based on information currently available to it. Although the company believes the assumptions are reasonable, forward-looking information is not a guarantee of future performance. Forward-looking information is subject to several risks and uncertainties that may cause the actual results of the company to differ materially from those discussed in the forward-looking information. The company's MD&A for the quarter ended June 30, 2023, and the company's annual information form dated March 1, 2023, and other documents it files from time to time, with securities regulatory authorities describe the risk, uncertainties, material assumptions, and other factors that could influence actual results. Any forward-looking information speaks only as of the date on which it is dated and it is made, and the company claims any intent or obligation to update any forward-looking information except as required by law. I will now like to turn the call over to Mr. Gabriel Alba, Chairman of the Board of Frontera Energy. Mr. De Alba, you may begin your conference.

Thank you, operator. Good morning, everyone, and welcome to Frontera's second quarter 2023 earnings call. Joining me on today's call are Orlando Cabrales, Frontera's CEO, and Rene Burgos, Frontera's CFO. Also available to answer questions at the end of the call, we have Victor Vega, VP Field Development Reservoir Management and Exploration. Alejandra Bonilla, General Counsel. Ivana Arevalo, BP Operations. And Renata Campanaro, BP Marketing, Logistics, and Business Sustainability. Frontera continued to efficiently execute its financial, operating, and strategic plan in the second quarter for its three core businesses. In the company's Colombia and Ecuador upstream onshore business, production, cost, operating EBITDA and CAPEX are between 2023 guidance at 80 per barrel average brand prices for the year. In its potentially transformational Guyana exploration business, Frontera and joint venture partner CGX Energy safely concluded its planned two-well exploration program for the current time block and announced an old discovery at way one well offshore Guyana. With the conclusion of the drilling campaign for way one, the joint venture has complied with its exploration commitments under the current time petroleum prospecting license. Way one is the second discovery in the current time block following the CAO1 light oil condensated discovery in 2022. In its standalone and growing Colombian midstream business, I'd like to take a moment to discuss an important development in the company's efforts to unlock value of the sum of its parts. As you likely saw in Frontera's earnings release last night, subsequent to the quarter, Puerto Bahia enter into an agreement to connect the Puerto Bahia liquids terminal in Cartagena with Ecopetrol's Cartagena refinery known as Reficar. Puerto Bahia will build, operate, and maintain the 6.8-kilometer 18-inch bidirectional hydrocarbon flow line, which will have a normal capacity of 84,000 barrels per day. The connection will be capable of handling imported and domestically produced crudes and other hydrocarbons. The agreement is the result of many years of effort by the team and marks a significant milestone for the continued development of the Cartagena Bay as a strategic activity hub for Colombia. And Fronter is excited about the strategic project with Reficar and for the future of its growing and standalone midstream business. Frontera remains committed to generating even more value for shareholders by unlocking the sum of its parts. I will now turn the call over to Orlando Cabrales, Frontera's CEO, and our CFO, René Burgos, who will share their views on Frontera's second quarter results and the performance of our three core businesses. Orlando?

Gracias, Gabriel. Good morning, everyone. Frontera delivered positive second quarter results. We increased our average daily production by 1% to approximately 42,000 DOE per day for the quarter, as we successfully brought production back online following the resolution of third-party road blockades that occurred during the first quarter. An increase water handling capacity at KIFA and CP6, where production improved 8.4%. We also grew natural gas liquids production by 41% to approximately 1,800 VOE per day through increased gas ring reinjection at B1. At CP6, We recently achieved daily record production of 6,177 barrels per day. We deployed approximately $155 million in capital spending, primarily to drill 19 development wells at Kifa, CP6, and Pueyron, improve flow lines, build a storage tank, and other facilities to double water handling capacity at CP6, drill two exploration wells in Colombia, and complete wave one exploration drilling activities.