Meren Energy Inc.

Hello, everyone. My name is Sonia, and I will be your conference operator today. At this time, I would like to welcome everyone to the Africa Oil Corp Fourth Quarter 2024 results presentation. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, please press star 1-1 on your telephone keypad. If you would like to withdraw your question, please press star 1-1 again. Please note that at any time, participants on the webcast can submit questions using the Q&A box on the webcast interface. Please note that this event is being recorded. The recording will be available for playback on the company's website. I'd now like to pass the meeting to Mr. Shahin Amini, Africa Oil's Investor Relations Manager. Please go ahead, Mr. Amini.

Thank you, operator.

On behalf of management, I thank you for joining us today for our 2024 results presentation. On the call today we have President and Chief Executive Officer Roger Tucker, our Chief Financial Officer Pascal Nicodem, and our Chief Commercial Officer Oliver Quinn.

There will be a presentation for around 20 minutes before we go into the Q&A session.

First, I would like to remind everyone that remarks made during this session are subject to forward-looking statements which involve significant risk factors and assumptions and have been fully described in the company's continuous disclosure reports. The information discussed is made as of today's date and time, and Africa only assumes no obligation to update or revise this information to reflect new events or circumstances, except as required by law. The company's complete financial statements and related MD&A are available on the company's website and on CDOT. Roger, we are ready for you. Please go ahead. Thank you very much, Shane. 2024 was a busy year for our company as we delivered a number of key strategic transactions. to retain our growth opportunities, streamline our asset ownership, and de-risk our balance sheet. This, together with Prime's robust performance, having delivered production and cash flows in line with our management guidance, enabled us to return almost 68 million US dollars to our shareholders through the base dividend policy and share buybacks. This is the largest annual return to Africa Earth shareholders since our first dividend distribution in March 2022. Another notable achievement was the successful completion of the Venus appraisal program, with the project moving forward into development planning stage. I'm very encouraged by the operator's positive updates as we look forward to the project's final investment decision by the end of the first half of 2026. and to ultimately see Venus coming on stream as Namibia's first producing oil field. Venus is a key growth asset for Africa oil, and it is crucially that it is funded to, first of all, through the innovative farm-down agreement between our investee company, Impact, and Total Energies. This year also covers all of Impact's exploration and appraisal expenditures through the first commercial production from Venus. We've also successfully advanced our key strategic objective of strengthening our rights and influence over impact by acquiring additional shares and increasing our stake in impact to 39.5%. These deals were crucial enablers for us to reach the agreement with BTG to consolidate all the prime shareholders in Africa into Africa Oil. And our company is now on the cusp of a truly transformative and value-accreted event. Next slide. And I'm pleased to report that we are very close to completing this transaction, which is expected to be on or about the 7th of March. This will be a strategic milestone for the company as we will double our reserves in production and will take direct control of prime cash flows and balance sheet. We will be in a stronger position to implement steady and predictable shareholder returns and to pursue new growth opportunities focused on producing assets in a disciplined manner. Our intention under the new capital allocation framework is to distribute an annual base dividend of at least 100 million U.S. dollars. Our plan, subject to the customer consents and board approval, is to declare the first quarterly dividend distribution of 25 million U.S. dollars on completion of the deal. Also recall that we intend to distribute 50 cents of excess free cash flows net to the base dividend in the supplementary dividends and the share buyback. Next slide. 2024 was a good year in terms of production as the assets achieved average daily rates within our four-year guidance, reflecting robust operations including allowances for planned maintenance programs. These included the ACPO FBSO's full-field shutdown from mid-March to mid-April. Even so, the new ACPO roles drilled and completed achieved better than expected average rates and helped offset natural declines In total, three new producers and one new injector were successfully clamped back to the FDSO in 2024. Agena outperformed expectations thanks to high production efficiency and successful rail interventions during Q3 and Q4. An economy performed in line with plan. We did start planned maintenance on one compressor at the end of Q4. which will be carried over into Q1 2025, but overall performance remains strong. All in all, these results highlight the resilience of our portfolio and show how ongoing web interventions are helping to sustain production. We'll share more details on our 2025 production outlook once the prime year is finalized. With that, I'll hand things over to Pascal for the financial highlights. Next slide.

Thank you, Roger. In 2024, Prime achieved an average regular price of $84.6 per barrel, compared to an average stated rent of $82.7 per barrel. We did have allocated liftings in Q4, but these were deferred to Q1 2025, resulting in a large underlift position at your end. This will be unrolled in Q1 2025, with up to 5,000 schedules for liftings. For the full year, Prime lifted 9 cargoes, totaling about 9 million barrels, compared to 13 lifting in 2023. Prime's oil marketing and price risk management continues to rely mostly on forward sales contracts with a trigger price mechanism. And Prime is complementing this strategy with adjunct instruments such as put options and colors. For instance, in third quarter 2024, Prime purchased a major output for 1 million barrels at a strike price of $75 per barrel for the period between 2nd of January and 31st of March, 2025. So the average brand spot price over this period is below $75 per barrel. Prime will be compensated in cash for the difference with the strike price. During the third quarter of 2024, Prime also entered into a zero premium Asian-based brand color transaction for $1 million a barrel. We strongly realize prices and a well-structured listing schedule. We are well positioned to optimize sales and cash flow in 2025. Next slide. In 2020, Africa recorded a net loss attributable to common shareholders of $279.1 million, which is a decrease from the net income of $87.1 million recorded in 2023. The net loss is primarily comprised of income from the company's investment in Prime for $226 million, which is upset by the losses from the company's investment in alpha shades of $38.7 million, and the non-cash impairment loss in the company's investment in Prime for $436.7 million. This non-cash impairment is due to the fair value of the existing 50% shareholding in crime being calculated based on the implied value of the proposed evaluation calculated using the number of shares to be issued to consolidate the other 50% shareholding in crime and African share price at the end of 2024. It is important to reiterate that these non-cash impairments and there can be a further loss of gain on the completion date of the prime deal based on the company's share price and asset rates. Now, looking at prime financial results, it is notable that prime recorded not to Africa's 50% shareholder, and it was taxed at approximately $242 million during fourth quarter 2024, which included the recognition of a $164 million gain from prime red banner securitization agreements. Prime had made the provision for the full cash payment it had received from the greatest parties to reflect the mechanism pursuant to which any formal academic settlement payment could offset the security deposit. However, Prime relieved this provision from the original cash payment in December 2024 to reflect the absence of a comprehensive resolution amongst all unit parties regarding tight participation in the inquiry field. Although I've already stated that PRIME achieved working interest and retirement production rates within the management guidance ranges, I'm also pleased to report that PRIME also achieved cash flow from operations before working capital adjustments and interest payments of approximately $268 million. That fell within our 2024 guidance of $260 to $290 million. Next slide. The year-end is 2024 with a cash balance of $61.4 million compared to year-end 2023 cash of $12.32 million. During the year, Africa received two dividends from Prime for a total receipt of $36 million. The main news is about cash and credit total, showing a return of approximately $68 million, our highest annual return so far. and an additional investment of about $89 million in impact to enhance our influence and control over core strategic assets and value drivers in the Namibian Orange Basin, containing the Venus Lighthouse Fiat. But most importantly, as we look forward to the completion of the Prime deal, I must add that the combined African 100% of Prime cash balance as of year-end 2024 is about $461 million. This does not account for Prime's carbon already listed this year and the $32 million dividend that we received from impact earlier this year. So looking ahead, we can be very pleased with our substantial liquidity position, which grants us immense financial strength and greater flexibility to effectively support our strategic priorities and drive sustainable growth.

I will now hand you over to Roger for the next slide. Yesterday, we published our year-end 2024 statement of reserves, achieving 1P and 2P reserve replacement ratios of 101% and 77%, respectively. Proforma 2P reserves 100% of Prime is approximately 102 million barrels of oil equivalent on the working interest basis and 116 million barrels of oil equivalent on the net entitlement basis as of end of 2024. This provides the enlarged Africa with full ownership of Prime. with long life assets and high net back production. These reserves continue to be liquids rich with 78% in the medium to light gravity crude oil category. Furthermore, considering that 60% of the 2P working interest reserves are in the proven category, we continue to benefit from a low risk reserve base from reservoirs that are technically well understood and monetized through high-quality and well-maintained FPSOs. We do benefit from low lifting costs, which averaged approximately $10 per barrel of oil equivalent in 2024, supportive fiscal regimes, and as Pascal has already presented, premium Brent pricing. An independent valuation of the pro-former reserves base is more than $2 billion U.S. dollars. The next slide. Now let's turn to 2025 and our outlook for these Nigerian assets. The focus of 2025 drilling campaign is on infill wells on the ACPO and the GINA fields, with a plan for up to five infill wells and one high-impact near-field exploration well, targeting about 120 million barrels of oil on a gross field basis. Considering this is a near-field exploration play, a discovery would benefit from the existing FPSO and can present a very attractive development opportunity as a subsea tieback. Further info on drilling on ACPO is expected during the second half of 2025 and has a benefit of 4D seismic data acquired during 2024. Similarly, drilling on EGINA is supported by valuable insights from the 4D M2 surveys completed in 2024, and this is set to begin in the first quarter. For Obama, at the end of fourth quarter 2024, the operator started a planned maintenance program on one of the three gas compressors. That work has continued into 2025, with full overhaul of the remaining compressors scheduled over the next two years to sustain high uptime. At the same time, we're advancing on 4D seismic data processing. This will shape Agbani's 2026 drilling campaign, which remains on track alongside a full field maintenance shutdown planned for fourth quarter 2025. Finally, a quick update on Proreg. For the priority discovery that lies at the north of the Agena complex and is a sub-seat tie-back candidate to the Agena FPSO, the focus now is on cost optimization and field development studies using 4D baseline seismic data from the second quarter of 2024. These efforts are key as we look forward to the project's final investment decision. Now, as we are very close to completing the prime deal, we have made the decision to wait and present the consolidated 2025 management guidance for the enlarged company on or after the completion. I'll now hand over to Oliver for a discussion on the outlook for our Orange Basin assets. Thank you, Roger. We're now going to turn on slide 12 to the orange basin and talk about Namibia, where we've seen positive progress around the Venus development. To recap, Venus is a world-class deepwater white oil discovery that was made in 2022 and subsequently appraised in 2023 and 2024 through three further wells and flow tests. Most recently, we're encouraged by the operator's public statements about the commerciality of the field and the timeline towards final investment decision, which is expected by the end of the first half of 2026, although we understand the JV stretch target is still focused on the end of this year for that FID. As per Total Energy's communication, the first Venus FPSO is being designed with a sustained plateau production rate of 150,000 barrels of oil per day. That topside scale and plateau rate is ultimately driven by the forecast associated gas production and the reinjection of that gas into the reservoir. Stepping beyond Venus, exploration activity continues in the wider area and within about two recent 3D seismic surveys that were acquired during 2024. As already communicated, Marula 1X is drilling to the south of the Venus oilfield, targeting a large deepwater fan system very analogous to Venus itself, and Total End Users also communicated the plan to continue with further exploration drilling across the licenses through 2025. So overall in Namibia, we expect to see significant progress on two fronts, both the maturation of the Venus development, and in parallel, extensive testing of further large prospects in the area. In terms of our commercial position, we of course hold our Namibian interest through impact oil and gas, and this ownership position remains a key value driver for the company. During 2024, we further strengthened our shareholding position in impact, increasing our stake from 31.1% to 39.5% through two investments for a total investment of approximately $89 million. This both deepens our exposure to Venus and the broader exploration upside, and enhances our influence and control over a core asset. As a reminder, impacts costs across exploration, appraisal, and development are fully carried across the two licenses, delivering exposure to future cash flows and material resource upside at no upfront cost. So we're now going to stay in the orange basin and move a bit further south on slide 13. So let's look at Africa Oil's operations in Block 3B-4B, a position owned directly by Africa Oil in an exciting area in the Orange Basin, positioned southeast of the Venus Discovery and the other finds to the north. The block is covered in high-quality, extensive 3D seismic, and this has allowed the team to identify several promising exploration prospects that have been matured to a drill-ready technical status. A key commercial milestone came in August 2024 when we finalized a farmland agreement with Total Energies and Qatar Energy. This transaction secured up to $47 million in value, including cash up front and an exploration drilling carry. Then, in January 2025, with the exploration funding in place, we deepened our position by acquiring an additional 1% interest from Advinam, a subsidiary of EcoAtlantic, bringing our stake up to 18%. On the regulatory side, the South African Department of Mineral Resources and Energy granted environmental authorization for up to five exploration wells in September 2024, which was a major step forward, and we are now working our way through the customary appeals process in-country. The maturation and farm-down strategy has mitigated our financial exposure to exploration spend and leaves us with significant upside. With an experienced operator in Total Energy, the stage is set for meaningful drilling activity, and Africa Oil is in a strong position to test the potential of 3B, 4B. In line with Total Energy's public statements, we expect the first exploration on this block to be drilled during 2026, and given our material direct interest, a commercial discovery on the block could be transformational for the company. We will now change focus and move to slide 14 to discuss the company's value proposition and capital allocation framework. So on this slide, we present the value proposition for the enlarged Africa oil, so that is post-completion of the prime consolidation. I think the first point to note is the simplification of the business, with core NAV driven by offshore Nigeria production, and as mentioned by Pascal, a significant cash balance that results in a net debt of around $250 million. Just for reference, Nigeria valuation uses a 12.5% discount rate, and these values are as estimated for our year-end 2024 statement of reserves. So with our total cash balance of just under $500 million, prime debt, which will transfer to Africa oil at completion of $750 million, we see a core NAV with Nigeria of around just under $1.4 billion. The key point to focus on here is that at current trading levels of our share price, that's somewhere around a 35% discount to that, what we believe is a very disciplined view of core NAV. If we look at pro forma market cap on completion, we assume, for this case, no change in share price. We simply take today's share price multiplied by the new share count and grab a market cap of $900 million. As we look beyond core production, we see future value in de-risking of Namibia, as described, the future orange basin well in 3B, 4B South Africa, and in equatorial Guinea and exploration potential too. Today, we see these as low-cost, well, net zero cost options. Needless to say, we believe the current valuation does not reflect fair value. Following Prime's completion, we will be well positioned to unlock this discount, leveraging a strong net cash position, material reserves, high margin production, and fully carried exposure to high-value capitalists that can drive further upside. I'll now hand back to Roger to talk about capital allocation. Thanks, Oliver. So after completing the prime consolidation, we will implement what we've actually shown you over the last several months since signing the deal. We will implement our new capital allocation framework, which is designed around prudent balance sheet management, sustainable leverage and our commitment to shareholder returns. Two key criteria for prudent balance sheet management are maintaining a minimum cash balance of $150 million and a net debt to EBITDA ratio of no more than one times. As already presented, we are significantly increasing our base dividend policy, which is a clear and confident message on our outlook for the business and its free cash flow generation capacity over the coming years. Also, as we have already communicated, we are committed to supplementary returns, which are 50% of free cash flows net of the base dividend, and this will be used for special dividends and or share buybacks. This reiterates our goal to strike the right balance between shareholder returns and continuing to deliver growth as part of our drive for a total shareholder return model. Of course, with the benefit of funded growth opportunities, such as the Venus Project, and with a streamlined business organization through the Prime consolidation, which is supported by a strong liquidity and balance sheet strength, we are confident that we are in a very strong position to pursue new business opportunities outside the existing portfolio focused on producing and cash flow generating assets. We will do this exercising strict strategic financial and operational criteria. And then to recap on the last slide, we can look back, I think, as a business on 2024 as a very busy and successful year for the company. We have concluded multiple strategic deals and investments as well as delivered on our shareholder return commitment. Our full year 2024 capital return of 68 million US dollars is the highest in our corporate history and we are getting set to beat this in 2025 with the enlarged annual dividend policy of at least 100 million US dollars. With our strong liquidity, high net-back production, and funded organic growth opportunities, we offer a balanced business model between shareholder returns and continuing to deliver growth. We have strong pillars to our business, and I am confident that we are and well-positioned in the independent E&P sector to take advantage of the consolidation opportunities that we believe will be coming our way. And I will reiterate that we will do so adhering to strict strategic operational and financial criteria. Thank you very much for your attention, and let's open up to the Q&A.

Thank you. As a reminder, to ask a question, you will need to press star 1-1 on your telephone keypad and wait for your name to be announced. To withdraw your question, please press star 1-1 again. If you have any questions on the webcast, please type it into the box and click Submit. We will now take our first question. Please stand by. The first question comes from Harrison Locke from Stifel. Please go ahead, your line is now open.

Kyle, thanks for taking my question today. I appreciate you've shared the new capital allocation framework for post-consolidation, but if we actually look at the numbers here, you're going to have a pretty healthy cash balance. So I just wondered if you could talk around your plans for this cash balance. I appreciate it's above the minimum liquidity you're talking about, so any color there would be extremely helpful.

Yes, actually, we had your colleague in earlier on today who asked exactly the same question. And what I said is that it's very, very good to to have a positive cash balance of $500 million, much better than having a negative cash balance of $500. It is obviously significant. And we have a series of options with this. We do have debt repayment opportunities within the existing portfolio. We have announced that we will be starting the $100 million per annum dividend stream. And also included in that is that we're going to be paying that on a quarterly basis. Obviously, as we get towards the end of the year, we do have the potential to do further dividends or a potential share buyback. but we are in the midst of looking at other potential opportunities which we will potentially need cash for. Nothing is decided and we are constantly looking at the criteria that we will use, both financial and operational, to deploy that capital, either as additional returns to existing shareholders or in acquiring other assets.

I know that's extremely helpful. I mean, that's all for myself. So thanks a lot, guys.

Thank you. I'd now like to hand back to the room for any questions on the webcast.

Thank you, operator. We do actually have a number of email questions.

There are two questions from Tilda at Sparbank who unfortunately couldn't join because of the conflict. So I'm sure the capsule returns. Tilda just wants to What we are committing to is the dividend stream and you'll see if you look at the slide on the capital allocation that we do have the option of paying 50% of any excess free cash flow either as a dividend or as a buyback. Obviously, at the present time, one would think that this share price and this differential valuation to share prices by that could be attractive. But we will be reviewing that with the new board continuously as we go through the year. But we are committing to a dividend stream. This will be a dividend-paying entity which has got the flexibility within it to either buy that component as and when required, but that will be decided by the new board when that becomes effective. Well, look, I mean, we've, over the last three years, well, our first capital return was the base settlement policy that was introduced in March 2022. Since then, we've returned more than $160 million in dividends and buybacks. And I think the two are very important tools, but different tools. So clearly, dividends give a very confident message on our long-term cash flow. output and the robustness of the business. And obviously, the buybacks are a very important tool in terms of allocating capital if you believe that your share price is at a significant discount or underlying value.

So they do send different messages, but we have applied both opportunistically. If I may, we want to answer a couple of questions

on production and guidance, I think it's important for us to reiterate that we are very, very close to completing the prime deal, consolidation, and we will give you a consolidated management guidance for 2025 on that point. So do bear with us, but we will give you that view in due course. The next question was actually, if I may, a couple on the Equatorial Guinea and about the expansion of the boundaries on that. And what was the plan for this year? What were our aspirations for this year? Roger? So basically, just a confirmation that the boundary of EG51 has been expanded? It has been. It's been expanded northward. And so there was a prospect, which was already the bulk of it, was on our previous block boundary, which is called Massif. And that extended into the area to the north, and now that area, which means now the whole of the prosperity is on our block, has been allocated to us. Okay, and the next one was, what was the output for this year? I suppose then in terms of the farm back. Yeah, thanks, Sean. I'll take that one. So we've got two positions in Equatorial Guinea, which are actually a very different nature. So as Roger just mentioned, It's effectively a discovery and developed very close to the existing EG LNG facilities. So the development concept is a fairly short cycle, low CapEx, tie back to backlit wallage in that facility. And the second position, again, is different. block EG18 which is outboard kind of deep water large sand fans so kind of high risk high reward exploration we have a position of 80% in each of those and then the state has a 20% position so what's critical is to bring partners in there and through a partner to attract capital to de-risk the financial investment from our position so that's a very active process this year there's been a lot of new data there's been some critical milestones as Roger said expanding the the licensed boundary around Massif to capture the full prospect.

and significant technical de-risking.

That is all in good shape, and so we will be, through the summer period here, spring, summer, seeking to attract farmer needs for that. I think the final thing to say on it is just to tie that back to our capital allocation framework, and again, you know, why are we seeking foreign partners and foreign partners that bring funding? It's not, again, giving the cash balance because we can't fund it ourselves. about capital discipline and risk allocation, so we would like to de-risk it financially ahead of any further activity. Thank you very much, Oliver. There's a question which is more to do with the sector outlook for M&A activity, and the question is, do you expect consolidations among some of the larger international oil companies to yield acquisition opportunities as they rationalise portfolios? Are you seeing any new entrants in the areas of interest that increase competition in the M&A market? Oliver, do you want to talk about that? Yeah, I think it's a pertinent question. So I think as the cycle goes here, there's been a lot of, of course, M&A in the U.S. central business, there's been M&A in the international, as it were, E&P business, but kind of big companies, mid-sized companies, right? As you move down to the space that we're in, there hasn't been so much for various reasons. So I think our view is that there's a natural consolidation of the that could come together and ultimately create better vehicles for their investors. So there's a big opportunity generally in the market for that. I think the flip side specifically on the asset point is, of course, the world's moving fast right now, but... know generally the bigger companies are going longer on hydrocarbon and therefore you know they're not necessarily in the place they were a couple of years ago to divest at the asset level so I think even when they do the question from our perspective would be again we talk all the time about discipline in our M&A and organic growth is could we get true value from those type of activities acquisitions right big question so look i think yeah restructuring um still kind of overdue if you like in this space um asset transactions per se somewhat more challenged from a value perspective but it's certainly um you know we expect it to be an active landscape through the next period i think it's just important to um to note that because of the strength of our balance sheet We can afford to wait for exactly the right opportunity rather than rush into anything urgently. So we can be extremely selective with what we tend to go for. Question on BTG becoming Africa's largest shareholder once the prime deal is closed. What does that mean for Africa, Will? I was talking to people earlier. Yesterday was the last board meeting of the old Africa Oil Board ahead of completion of this transaction. And what I'd like to say is that the way I describe it is that this is the full stop, if you like, on old Africa Oil. We've been through all of the consolidation. We're bringing in a very highly educated shareholder that we've known for over five years in this. And the company has effectively turned 180 degrees to be focused on generating cash and production. And the company will continue in that field. The critical element is that prior to obviously signing the deal, We agreed what the forward strategy would be. We agreed what our view of this space was. We agreed what we thought was going to happen over the next three, four, five years. And we are very, very aligned with them. There are several other companies that are out there. We've got major investors in there that you can cast your eye on. I think it is going to be a thing. that defines the successful companies that are down in this market cap side, that you do need to have a very powerful industrial inside you that is going to be long-term supportive. My question is on, does Africa become an operative state? Yes. My members will get it out when we get over with. we would review operated assets. I am a huge amount of operating experience. I don't want to necessarily build an operating business, but we would look at taking on operated assets because we have certain strategic directions that we're considering three, four years out where that could be a strong competitive advantage. very good there are three questions which are orange based and specific one is actually on the Venus phase one development and the total has guided Yeah, I think there's probably two things in there. So I think the, you know, the context on the recent total energy guidance on 150,000 of oil today, plateau production. So, the ultimate significant resource in Venus, the question of scale of the first FPSO is really around handling gas, associated gas from the reservoir, which will be re-injected into the reservoir, and how to optimize that process. So, ultimately, you know, the scale of gas compression on the top sides vis-a-vis how much oil does that unlock. And so, I think the recent work that they've has pointed to a lower headline rate than some of the prior numbers, as there's a peak production rate, but a longer plateau. So really that's an optimization, economic optimization of development of the first FPSO. The second part of the question I think was around does it imply there will only be one FPSO? It doesn't. I think, again, it's about optimizing that first FPSO and the economics and returns on that rather than just going for scale where incrementally those top end barrels cost you more. But, look, I think the work is ongoing, but I think we would see sufficient resource there that there's certainly a case in consideration for further developments. a block through before we sort of Yeah, so the 3B4B, of course, just to recap, we had a farm-out process, farm-down process in 2024. We attracted and brought in Total Energies as operator and Qatar Energy as partner. So we put in place a very powerful consortium with a very, very good operator who, of course, we know well from both Nigeria and Namibia. Having done all that, the joint venture has proceeded at pace, the technical work is mature, the well planning is mature. It then moved, of course, late last year into the regulatory space where there was an application processed for an environmental permit from the government essentially to drill up to five wells that was approved. That then has gone into a statutory appeals period, and as expected in South Africa, because this has happened on every level so far, appeals have been made, and those will be reviewed by the department, and they will either accept or reject those appeals, and then there is a further right of appeal from those that may wish to pursue that. So that process is ongoing. Again, nothing unusual there. It's what we expected. What that means on timing is that to tell energies have pointed publicly to 2026 as the planned date for the well. They have other positions in country as well, so it ties together for them, which makes sense for us too. So the view is it would be 2026 right now. Yeah, no, it's early stage, but again, I'd point to what's happening in the basin when you step back. Talamange is, of course, a very important partner to us. One of the many attractions of bringing them into the 3B, 4B, because you can imagine in the Orange Basin there was a lot of interest, is that they are, of course, drilling in Namibia, so they understand the play. They've drilled a lot of wells in it. They have rigs in the region. They also have Tungsten Explorer, a 10-year contract, which they have co-ownership of, and so we think they're very well placed to bring a rig in, as opposed to bringing in another partner who may have had to source a rig, and that could have cost us more time. There's an interesting question I think we should put to Pascal. With BTG as a partner, do you still have a banking syndicate?

That's a good question. The RBI is going to remain in place, and we have a very strong syndicate at the RBI level, and therefore we are definitely keen to keep that syndicate from there. As Roger mentioned before, we plan to refinance that RBI. We talked about refinancing, but it's mainly an extension and restatement of the existing facilities, so we are looking forward to having this syndicate to stay in place. We know that some banks are going to leave, it's important that we keep our relationship with our existing syndicates.

Excellent. A couple of questions on recent drilling activity on block 2913B, specifically Tambosi. We're not going to say anything other than what we've already put in our press release. The results, that's well drilling cancer, oil bearing intervals, EVOS testers, As always, we will look to the operator, TotalEnergies, for formal communication on that. We have nothing more to say on that for now. Now, just changing tack on to the corporate side, in terms of the board, you said, Roger, obviously we'll have the last board's final meeting took place, and the new board is coming in. Would you just please remind people quickly of the make-up of that board, the incoming chairman and so on? Yes, so the new board, it's actually being prepared at the present time, will become effective on the day of completion of its process in place. And so the chairman, replacing John Craig, is going to be Hugh Jenkins, who is an extremely senior person within the BTG group based in London. And in addition to that, BTG will appoint two other people, it's going to be a nine-person group, by the way, will appoint two other people. One of them is Edwin Nieves, who runs one of the major trading desks within the greater BTG group. is the chief executive of Petrolon, which is becoming a significant shareholder in the Company Firsters transaction, and that is Ahansi, who will be coming on board. Then on our side, there are only two directors that will be continuing on from the old board, are Mike Epsary, who was appointed in May last year. Extremely experienced man in both Nigeria and at the CEO level and CFO level. And he will become the new independent director. And then also, Kimberly Wood is continuing on in the board. And as some of you will have seen, our current CFO, Pascal, who I will say has done an absolutely outstanding job in getting us through this transaction in difficult circumstances, will be standing down as CFO, but will be taking an MED role in the company and will be our third nominee. And in addition, there are two independently nominated people, One of them is a man nominated by BTG. His name is Richard Morris, a very competent, highly regarded technical person with a background, obviously a technical background, but also, strangely, he has been an advisor to EOS. And so he knows these assets very, very well from world days. And he does sit on another company board for V333. And on our side, we are currently temporarily going to put on John Craig to take our independent slot whilst we are out for search, which is proving not difficult, but we have a particular requirement in the Canadian regulations require that we have both a Canadian national and a Canadian resident. And we We're close to doing that, so that's what temporarily John Craig will continue. So that is the make-up of the board. I'm continuing on the board. It is nine people. We've already held the first integration session about three weeks ago where we went through the committee structures and everything else. And so this transition will be seamless. But you have anxieties at