Frontera Energy Corporation

Good morning. My name is Ludie and I'll be your conference facilitator today. Welcome to Frontera Energy's third quarter 2024 Operating and Financial Results conference call. All lines are currently on mute to prevent any background noise. I would like to remind you that this conference call is being recorded today and is also available through audio broadcast on the company's website. Following the speaker's remarks, there will be time for questions. Analysts and investors are reminded that any additional questions can be directed to Frontera following today's call at IR at fronterenerg.ca. This call contains forward-looking information within the meaning of applicable Canadian securities 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, 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 a number of 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 September 30, 2024, and the company's annual information form dated March 7, 2024 and other documents it files from time to time with securities regulatory authorities describe the risks, 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 made, and the company disclaims any intent or obligation to update any forward-looking information except as required by law. I would now like to turn the call over to Mr. Gabriel D'Alba, Chairman of the Board of Frontera Energy. Mr. D'Alba, please go ahead.

Thank you, operator. Good morning, everyone, and welcome to Frontera's

third quarter, 2024 Operating and Financial Results Conference call. Joining me on the call today are Orlando Cabrales, Frontera's CEO, and René Burgos, Frontera's CFO. Also available to answer questions at the end of the call, we have Victor Vega, VP of Field Development, Reservoir Management and Exploration, Alejandra Bonilla, General Counsel, Ivana Evalo, VP Operations, and Renata Campagnaro, VP Marketing, Logistics, and Business Sustainability. Thank you for joining us. Frontera remains focused on the execution of its strategic objectives and priorities. It is upstream infrastructure and Guyana's business segment. The company's upstream business continues to perform according to plans overcoming unforeseen social issues during the year. The company is gaining momentum with cruise production ramping up to average over 42,300 barrels per day so far in the fourth quarter. And the company is targeting fourth quarter average daily production above 42,500 barrels per day. In its standalone and growing infrastructure business, the company continues to advance the strategic alternatives review in large areas this year. This process is actively ongoing with a virtual data room open and discussions with interested third parties underway. The company remains particularly excited about the long-term prospects of its Puerto Vallarta assets including the replica collection as well as the recently announced LPG input project with its JV partner, GASCO. With respect to its Guyana assets, the company and its joint venture partner remain committed to potential development of the Corentine Block as supported by the recent discoveries. While the company remains confident about the exciting potential of the Corentine Block, it is reviewing all available alternatives to safeguard its interest in the Block and Guyana. Turning briefly to Frontera's financial health, I'm pleased to report that subsequent to the quarter, S&P reaffirmed the company's credit rating at D with a stable outlook reflecting Frontera's strong credit quality and financial position underpaid by the company's low leverage. The company ended this quarter with a $21.2 million and a healthy cash position including the expected cash of $240.3 million. Frontera's solid financial position has supported the company's ability to deliver significant shareholder returns in 2020. Notably, after the quarter and with significant shareholder take-ups, the company successfully executed on its 30 million SID, which saw over 90% of the company's shareholders participate. Together with the completion of the successful SID, the company has returned more than $53 million to shareholders in 2024, including $11.7 million in quarterly dividends, $3.9 million in declared quarterly dividends, and $7.8 million to the repurchase of its common shares through its NCID for an estimated aggregate deal of 10%. In addition to its quarterly dividends, the company announced yesterday its intentions to commence a new substantial e-servive of up to 30 million, pursuant to which the company will offer to purchase for cancellation a portion of its common shares at a fixed price per share. The terms of the new SID, including pricing, shall be communicated in due course, and the company expects that the new SID will be completed in January 2025. Frontera remains committed to share buyback, distributions, or bond buybacks, which will be based on the company's results, capital generation, and the company's strategic goals. I'd now like to turn the call over to Orlando Cabrales, Frontera's CEO, and René Burgos, Frontera's CFO,

who will share their views on our third quarter results. Orlando? Thank

you, Gabriel. Good morning, everyone, and thank you for joining us for today's call. Frontera delivered another strong quarter, generating $16.6 million in net income and $103.2 million in operating in line with our plan, despite lower average rent prices and certain unexpected events that occurred during the quarter. We remain on track to meet our 2024 production and EBITDA guidance. We increased our quarter or quarter average daily production by 2% to 40,616 BOE per day, driven by strong performance from the company's heavy oil assets, as we completed successfully drilling campaigns in both the We increased water disposal capacity in the CPE6 block, where the company achieved another daily production record, reaching 8,810 barrels per day. We increased our light and medium crude oil production, driven by improved performance in Ecuador, and where international activity performed during the first half of the year, which helped maintain light and medium crude production levels. We also increased our natural gas liquid production during the quarter, with the completion and start-up of the compression facility's expansion and gas reinjection projects at our BIN 1 block. Following the completion of the BIN 1 gas reinjection project, natural gas volumes produced at BIN 1 were rejected, reducing natural gas production and sales volumes. And I am very pleased to report that our four quarter production has averaged 42,300 barrels per day. We invested approximately $82 million in capital expenditures during the quarter, primarily to drill 15 development wells at Keefa, CPE6, and Sabanero. At Keefa, the company invested in new floor line facilities for new well production and connection for the SAGARA project. Also invested in the development facilities and increasing water handling capacity at the CPE6 block. At the BIN 1 block, all pre-drill activities related to civil work for the platform and roads were completed for the EDA 1 exploration well. However, exploration drilling activities are expected to resume early next year following delays associated to social issues. Additionally, two new exploration wells were sanctioned for the Cachicamo block, expected to start in the fourth quarter of this year. The company is also engaged in pre-seismic and pre-drilling activities related to social and environmental studies in the Yandos 99 and BIN 46 blocks. In Ecuador, in our Perico block, performed two workovers and one well service to increase production during the quarter. Furthermore, as part of our continuing drive to simplify our business, Fronterra and the ANH mutually agreed to terminate Car 1-5 and Car 1-6 block exploration contracts due to long standing social and security restrictions in the contracted areas, reducing the company's exploration commitments by $53 million. In our infrastructure business, ODL continues to deliver strong operational and financial results, generating $68 million of every DAF for the quarter. Net distributions to Fronterra amounted to $12 million during the quarter, totalling $43 million year to date. At our SAARA project, we are currently processing approximately 50,000 bottles of water per day and expect to grow water handling capacity to 250,000 bottles by year-end, boosting heavy crude oil production at the Keefa block. I would now like to turn the call over to René Burgos, Fronterra's CFO. Thank

you,

Orlando. I'd like to

take a moment to highlight a few key financial aspects of our third quarter results. For the third quarter, the company recorded a net income of $16.6 million, or $0.20 per share. This quarter net income includes approximately $27 million in income from operations, plus Fronterra's share of income from associates of $13 million from its share of income from ODL. And $6 million in income related to risk management contracts, primarily related to our FX hedging position. These incomes were offset primarily by roughly $18 million in net finance expenses and approximately $10 million in income tax expenses, including $4 million in deferred income taxes. Operating EBITDA for the quarter was approximately $103 million. Compared to the third quarter, our EBITDA was affected by lower realization price and higher transportation costs, partially offset by lower production costs during the quarter. So for this year, Fronterra has generated $311 million in operating EBITDA and remains on track to meet its 2024 consolidated operating EBITDA guidance of $400 and $450 million at $80 barrel rent average price for the year. From a barrel standpoint, I would like to take a moment to share the key indicators related to our realized prices and costs. During the quarter, we saw weighted average brand sales prices for Fronterra of $77.95 and an average Vascona differential on our export sales of $4.92. For the third quarter, the purchase group net margin was $3.05, higher than the $2.13 for the prior quarter. The -over-quarter variance was a result of higher dilution needs for our heavy oil assets. Taking a closer look at our operating costs, our production, energy, and transportation costs per barrel for the quarter totaled $8.88, $5.11, and $12.12 respectively. This compares to $10.79, $4.74, and $10.92 in the prior quarter. The decrease in production costs per quarter were driven primarily by higher production as well as lower well-intervention activity during the quarter. On the energy front, the increase was a result of higher energy use during the quarter due to increased production from our heavy oil assets. On transportation costs, costs increased during the quarter due to trucking and pipeline tariff increases that occurred as well as higher volumes transported. Our operating net back in the third quarter was $40.59 per VLE compared with $46.40 per VLE in the prior quarter. The decrease was mainly a result of lower realized prices driven by lower benchmark oil prices, which fell over $6.00 on a -over-quarter basis. Partially offset by lower royalties, paid in cash, and lower production costs. The stock continues to show cash generation in the third quarter, with cash loads from operations totaling $124 million, including a $90 million tax refund associated with the company's 2023 income tax return and the receipt of $12 million in dividend and capital payments from ODL. On the infrastructure side, adjusted infrastructure e-bidda in the second quarter of 2024 was $26.2 million compared with $27.8 million in the prior quarter. The -over-quarter decrease was primarily due to lower liquid volumes due in part to severe weather conditions and an increase in cost and G&E expenses in ODL. Due to inflationary pressures on services and wages indexation. We expect these conditions to improve during the fourth quarter for both ODL and Puerto Barria. ODL volumes transported were $244,000 per day during the third quarter compared to $249,000 in the second quarter, mainly due to lower volumes transported from the Yano 34 blocks. As of September 30, 2024, the company reported a total cash decision of $240 million, including $206 million in unrestricted cash. Turning now to risk management, our current risk management strategy continues to show how our hedging discipline supports our operations and planning. From Tera uses derivative instruments to manage exposure to all price and effective utilities. On the oil side, the company entered into hedges, successfully securing a 40% hedging ratio until February 2025, protecting against a potential drop in oil prices. For the remainder of 2024, the company has said it would strike prices between $75 and $78 spreads. For 2025, the company has entered into hedges at $70 spreads for January and February. From Tera has also entered into four exchange rate hedges totaling $220 million, covering 40% of the company's expected peso exposure up to the third quarter of 2025, with puts between $4

,100 pesos and $4,200 peso rates. The company has also entered into hedges at $7,000 pesos, and $4,200 pesos for the first quarter of 2025. The company has also entered into hedges at $7,000 pesos, and $4,200 pesos for the second quarter of 2025. The company has also entered into hedges at $7,000 pesos, and $4,200 pesos for the third quarter of 2025. Apologies for the communication. All right, we're back. These hedges provide the

company with stability and will help mitigate impacts from future fluctuations while allowing the business to deliver on target. Finally, I'd like to provide an update on our stakeholder value initiative. Under the current NTAB, which commenced on November 21, 2023, the company has to refer to approximately 1.6 million common shares, or just over 2% of our total common shares withstanding for cancellation, for approximately 9.5 million after November 7. For a bit I announced that it was filed with the DSX a notice of intention to commence a new SID once the current one expires. We expect to our quarterly dividend on October 16 from that of approximately $3.9 million, or 6.25 cents per share of Canadians to shareholders. Together with yesterday's results announcement, the board declared a quarterly dividend of 6.25 per share of Canadians being able to shareholders of record as of January 3, 2025, on around January 17, 2025. Additionally, the company recently announced the successful completion of its SID announced in August of this year. The company purchased for cancellation close to 3.4 million common shares for an average consideration of $3 million at a fixed price of $12 Canadian per share. The SID was widely accepted as shown by the over 90% of the company shareholders participating. Furthermore, Frontera also announced the intention to commence a new substantial issuer bid through which the company will offer to purchase up to $30 million of its common shares for cancellations at a fixed price. The terms of the new SID, including price, will be determined in due course and the company expects that it will be completed in January 2025. The SID will not be conditional upon any minimum number of shares being tendered and will be subject to conditions customary for a transaction of this nature. The company believes this format is the most efficient means to distribute capital to all of our shareholders and looks forward to launching this process in the few weeks, next week. I would like to turn the call back now to Olana.

Thank you, René. Before I wrap up today's call, I would like to highlight that during the quarter, Frontera achieved 73% of its sustainability goals for the year. Frontera made purchases from local suppliers that represent around 11% of its total purchases, exceeding our annual goal of 9%. Additionally, our efforts to maintain close and empathetic relationships with all of our stakeholders, including our employees, was recognized as Frontera received the Great Place to Work Award and ranked 17th as one of the best companies to work for in Colombia. Our work planning framework of cybersecurity has been effective and we have managed to maintain our rate of material cybersecurity incidents at zero. And finally, we are continuing the strategic review process for our infrastructure business, where a virtual data room is available and discussions with potential third parties are ongoing. In addition, to unlock value for Porto Aria, where the construction of the connection to the Refikar refinery is over 60% completed, and we are expecting that the connection shall become operational by the end of the year. With respect to the RPG import project, working groups have been assembled and digital engineering work is underway. On our Guyana business, as Gabriel said in his remarks, we remain confident about the potential development of the current team block as supported by our discoveries and are reviewing all available alternatives to safeguard our interest in the block and Guyana. With that, I would like to conclude by saying thank you to Gabriel and René for the comments and thank you everyone for attending our call. We will now turn the call back to our operator who will open up for questions.

Thank you and ladies and gentlemen, at this time for those wishing to ask a question, please press star followed by the number one on your telephone keypad. If you would like to add your question, please press star followed by the number two. Once again, for anyone who would like to ask a question, please press star one on your telephone keypad. One moment please for your first question.

And your

first question comes from the line of Darja Lemma with Bloomberg Intelligence. Please go ahead.

Hi, good morning, Gabriel, Orlando and René. Congratulations on a great quarter. I just wanted to ask you, I think the question which is on everyone's mind is, do you have any updates on the Guyana license and what are the alternative solutions you were mentioning

you're going to explore? Thank

you. Well, thank you. Thank you for the

question. As I mentioned, we remain committed to the potential development of the block. And that belief is supported by the discourse. We are also confident that we have complied with all the obligations under the petroleum agreement and the exploration license. And as I said, we are reviewing different alternatives to protect our interests in the license. So I don't have more

to say at this point in time. And of course, we will continue to consider these matters with the block.

Okay, thank you. And do you have any timeline? When can we expect the next updates on Guyana perhaps?

We don't have a timeline at this point in time. No.

Okay, thank you. And my second question

is on production. I saw your production has been accelerating in October compared to already strong production from FreeQ. Do you see the same trends throughout the Q4 and perhaps early next year?

Yes, as we said, we are envisioning that the fourth quarter production would be above -5,000 barrels. So we are confident based on the performance of the heavy oil assets and the increasing in water handling capacity at CP6 and KIFA as well as the performance of Salanero. So we are

confident for that. Thank you. That's all from me now.

Thank you. And your next question comes from the line of Christian Farah with KNG Securities. Please go ahead.

Hello. Well, thanks for the presentation and for taking the questions. I have four questions. I would like to go quick. First question is we're observing higher quality differentials despite lower brand prices. Are you seeing a normalization by the fourth quarter or should we expect these high values to

continue? That's the first question. Well, we've been

seeing the market. I think you're going to see consistency. We do not expect a high variation. Actually, we are quite excited about the heavy crude mix because of current status of geopolitics. So the short term is we will probably continue to see the levels that we're seeing today.

All right. Thank you. My second question is regarding these $90 million tax refund that you got this quarter. Could you provide us some color on the reason behind this and if we should expect any other tax refund for the incoming quarters?

That's a good question. So as part of the ongoing process, we call taxes once a year. We call our taxes in early the first quarter and then subsequently if we're due a refund, that refund is managed during the year. So the payment that we received in July or the third quarter is associated with our 2023 income tax filing. What I will point to is that from data has historically carried NOLs within its operation and you can see a balance of these within our deferred tax asset amounts that we carry in our balance sheet. This year we successfully were able to recover that amount due to our refund of as we highlighted. Moving forward, we still remain to have some additional deferred tax assets that we expect to capture next year.

All right. Thank you. My third question is regarding these infrastructure business divestment. I want to know if you could comment us a bit more on how the discussions are going and if you have any plans for the use of the proceeds in case you decide to go through with the sale or spin off. Thanks.

So I would say it's a little premature to talk about results. I think our goal here is to maximize the most value from these assets and I think both Orlando and Gavir said it well. We are positioning the company to unlock the most value for all of our investors. So as of today, I think Orlando highlighted that we have engaged counterparties in discussions. We have a virtual data room open and as soon as we have something to announce, we will announce it to the market and then kind of give them some guidance as to how that would be materialized. That said, and I think we also need to get, as our advisories point out, there is no guarantee that it may occur. However, we are very excited about the potential value unlocking associated from our infrastructure assets.

All right. Thank you. My last question is, while we've been seeing heavy share repurchases over the past months, are you planning on increasing your bond repurchases considering the low price so you can lock that profit in your P&L?

Thanks. I think that both Orlando and also Gavir highlighted that all options are on the table. One of the things that we're visualizing is how do we deploy the cash generated from our business? We do maximize value. We're very excited about the results from the first SIV and even more excited about the results of the second SIV. We have actually bought some bonds in the past. I think today we bought roughly $5 million and we will continue to, if the market is available, to continue to do some of those purchases. As to guidance going forward, it is certainly something on the radar. So you will need to kind of just stay tuned and see how

these develop. All right. Thank you so much. Yep. Thank you.

And your next question comes from the line of Joaquin Robit with Balance Capital. Please go ahead.

Oh, thank you for your presentation. It was good to see ODL getting the tariff bump and we wanted to focus on this because we understood that inflation updates on regulated goods holes have been suspended until... Sorry,

you sent a little muffled. I'm sorry to interrupt you, but I really want to hear your question. Can you perhaps speak a little bit more clearly on the phone?

Can you try again? Yeah. Do you hear me well,

Joaquin? This is better,

yes. Okay, good. So it was good to see ODL getting the tariff bump and we wanted to focus on this because we understood that inflation updates on regulated crude tolls have been suspended until internal tariff revisions took place. Or at least that was the case for CENSA. Is that suspension over or the ODL pipe has a different remuneration scheme? If the latter is the case, was the bump related to an inflation update or an integral tariff review or a contractual change with off-takers?

Okay, that's a terrific question. And what I would say is excited to hear questions about our very exciting infrastructure assets in these calls. The tariff adjustment is in recognition from the government. There have been no adjustments as ordinarily scheduled. Ordinarily, the review should have happened two years ago. It didn't happen. The government currently is reviewing the framework under which some of these tariffs are adjusted. And at the request of the pipeline operators, it granted this adjustment, which by the way, doesn't cover the full pastoral inflation, but rather a portion of the inflation that we've seen over the past couple of years. As an interim step, while the full process continues to be vetted by all the stakeholders, it's being consumers of pipelines, pipeline operators, and the government. So to answer your question, no, there is no final, there's no completed tariff adjustment. It's ongoing. Yes, the tariff were adjusted for both OSMSA and ODL. ODL starts on September and OSMSA starts in January. And we continue to see and I asked to how this develops. And I would say this is very positive for pipeline business, but not so positive for all business. So there's a balance here. But again, we're excited to receive this question. And thank you very much for it. Hopefully that clarifies your

doubt. Yes, thank you. And your next question comes from the line of Juan Berias with BigTut. Please go ahead. Juan Berias, you might be on mute. Yeah, do you hear me? Is it better now? Is it better? Hello? Yes, we're good.

Yes, we can hear you. Yes, perfect. Thank you very much. Congrats for the results. I know that you have said that you're not sharing some information, but maybe we ask on a different way and if you cannot, it's fine. But regarding the M&A process of the pipeline, is it anything that you could share regarding like number of people like in the data room? Is the data room still open for potential new buyers? Or any timing of it? Anything you can share on that? That's the first question. And then the second question is regarding Puerto Aya. I know that Puerto Aya has a little bit more than $100 million linked to that port. Just confirming that any potential divestment would be together with that debt, right? And then I have a final question about maybe those together, if you can.

Let me take the first one and then I can take the second one. As I said, as I said, and Gabriel said it as well, the VDR is open. We are having active participation from different interested parties. Discussions are ongoing. Nothing more that we can report at this point in time, but that is

the indication that we're getting to it.

Okay. Depending on the outcome of a transaction, that debt could certainly be fully repaid, but it would be outcome dependent. Was that clever, your question?

Yes. Yes. Okay. But maybe just to be sure. So there's no chance that if you sell it, that debt remains at frontera. At the holding. That is not

guaranteed by frontera. So frontera acts as a sponsor in this transaction, but that's a debtor or guarantor. Depending on the outcome of the transaction, there could be a piece of debt that remains, but it is outcome dependent. It will ultimately depend on the transaction that the board chooses and what effect it will hold on.

Perfect. And the last question is regarding 2025. Are you sharing any sort of, I don't know, soft guidance or indication about capex for next year and volumes?

Not at this point in time. We are working on that. So we will do it in the near future.

Okay. And you cannot share if it will be lower or same or above the current level,

right? Okay. I think the one thing that we already shared is how we're looking to end the year. So we can point to where production is. And I think that the other thing that I would add is that under Orlando and the board's leadership, our goal is on sustainable and cash flow over volume. So you should see more of the same. But again, we're finalizing numbers and having the discussions internally. And as soon as those are available, we will look to share that with the rest of

the world. Okay. All right. I was referring in particular about capex, sorry.

But that's okay. Okay. Thank you very much. Thank you, Juan. Thank you.

And your next question comes from the line at Diego Espinosa with BTG Pack Tool. Please go ahead.

Hi. Thank you for taking my questions. Can you hear me? Yes, sir. Perfect. Just

have a couple of questions. Most of the questions have been already answered. But just if you can give us some color of how much on share buybacks you've already done so far this year. How much do you expect in million dollars? Just to understand the amount of money related to cash flow. Do you expect to do during the fourth quarter and the first quarter of 2025? If you can give me some color on that just to understand.

Perfect

question. So far this year we've completed through the NCIB, and this is going to include some data from last year, right, because we launched it in November. We've done 1.6 million shares of our NCIB, roughly costing us a little bit under $10 million. In addition to that, we did the SIV that we completed in August. So we bought 3.4 million shares. That's a total of 5 million shares. And we bought those shares for again $30 million, a total of $40 million. And now we just announced today our intention to launch an additional SIV. We haven't arrived at a price for that SIV, only an amount or volume. We expect this to be widely accepted just like the other one was, but that will be for an additional $30 million for a total of close to $70 million. And that's what's going to get us through at least through January of 2025.

Perfect. So $30 million is the

additional cash flow that will be used to share buybacks until January 2025. Okay. And then the next question is, what are the potential additional dividends? I know that you have $240 million in cash right now. Can you

give some cover on the use of that cash? Look, the two things, we will

continue with our quarterly dividend, obviously subject to our board's decision. And the other thing is, as I said in my notes, the SIV is an efficient way for us to distribute capital to all of our shareholders. And that's why when we think about the level of participation, I think it was 92% of all of our shareholders participated in our SIV. So we're using both dividends and SIVs as a means to return this capital to our shareholders in a way that we believe is most efficient. But again, to answer your question, we believe that we will continue with our quarterly dividend subject to any other decision that may be determined by our board.

And I think that the message from Jorne, Gabriel, and myself have been here in terms of that, based on the company's results, the cash flow generation and the strategic goals of the company, we will continue exploring the returns to our investors in share buybacks,

dividends, and bond buybacks. Okay, perfect. And the last question

is, when I look at your cash flow generation, I saw that around $60 million in working capital pressures consumption there. Can you give us some color about that? If it

would be transitory,

what

is related to that? $60 million.

If I can take this one off, I can look into it off the top of my head.

Perfect. That's it. Thank you for taking my questions. Yes. Thank you.

And once again, if you would like to ask a question, please press the star 1 on your telephone keypad. Your next question comes from the line of Juan Cruz with Morgan Stanley. Please go ahead.

Good morning, Team Frontera. Congrats on the results. Two questions. First one, with regards to the infrastructure asset sale, can you let us know if you're working with one potential buyer or is it multiple potential acquirers as number one? And number two, with regards to the bonds that you have purchased and intend to purchase going forward, is the intention to keep those bonds outstanding or do you want to cancel them?

That's it. Can you repeat the question, the second one,

please? Yes, and the second question is with regards to the bonds that you have purchased in the market and that you intend to purchase in the future, are you intending to keep those bonds outstanding or do you intend to cancel them?

On the first one, you can take the second one. I mean, it is a competitive process. So it is a competitive process, just to address your first question. Does that mean that there is more than

one potential interested party?

Competitive means more than one. That's what I would assume. If you want me to get one, I can look up the Webster dictionary. Competitive definitely means more than one. Welcome, Rick. You'll be a competition of

one. And you won, since I've been the only one.

There's no competition. On your other question, look, no, the bonds that we purchased, the intention is for those to be canceled.

You intend to cancel them. Okay, cool. Excellent. Thank you. Thank you. And once again, if you would like to ask a question, please press star 1.

Your next question comes from the line of Joe DiDonato with CGX. Please go ahead.

Hi, this question is for Gabriel. I think the whole issue with CGX, I think shareholders have been extremely patient, waiting well over a year for any kind of information regarding what's going on. I don't seem to understand why everything has to be so cryptic and so secretive. I have been invested with CGX since the year 2000. We're going on 25 years soon. And I'm looking for a bit more information than we are working to try to unlock potential. We had two

excellent

discoveries that were flubbed in a lot of people's opinions in terms of delivery of information to the public.

Enough

is enough. You need to explain yourself a little bit better today, please.

Thank you very much for the question. I think this is not the channel for that question. This is a channel for you guys to actually go chat with the team at CGX. But I understand and thank you for your question.

Gabriel runs or is a board of directors on CGX and he, Frontera is a major shareholder of CGX. I

don't understand why the secrecy. There's no secrecy. There's no there.

We cannot speak on behalf of CGX. So again, I'll point you to questions about CGX in the shareholders. I'll point them

to CGX. Thank you. Thank you.

Thank you, presenters. And there are no further questions at this time. Should you have any further questions, please email IR at FronteraEnergy.ca. This concludes the call. Thank you all for participating. You may now disconnect.