Parex Resources Inc.

All participants, thank you for standing by. The conference is ready to begin. Good morning, everyone, and welcome to Pyrex Resources' second quarter earnings call and webcast. Yesterday, Pyrex released its unaudited financial and operating results for the quarter ended June 30, 2021. Like all Pyrex disclosure documents, the complete financial statements and related MDMA are available on the company's website at www.parexresources.com, and on CDAR. Before turning the meeting over to Mr. Ken Pinsky, Chief Financial Officer of Parex Resources, Inc., I would like to mention that this event is being recorded, so the recording will be available for playback on the company's website. Parex 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 PARACS assumes no obligation to update or revise this information to reflect new events or circumstances, except as required by law. Please note that at any time, participants on the webcast can submit their questions under the Ask a Question tab at the top of the webcast interface, and participants on the phone can press star 1. I would now like to turn the meeting over to PAREC's Chief Financial Officer. Please go ahead, Mr. Pinsky.

Thank you, Operator, and thanks to everyone on the line for joining myself and our CEO and President, Ahmad Mohsen, for our Q2 conference audio webcast. We appreciate your constant support of Clark's resources. Before we start our Q&A session, I would like to provide some highlights of our Q2 financial results and discuss our plans for the remainder of 2021. All values mentioned in this call are stated in UF's dollars, unless we otherwise specify. I'll begin by saying that our priority during the COVID-19 pandemic still remains the health and safety of our employees, our contractors, and the communities neighboring our operations. Our G2 production averaged 43,900 DOE per day, a 4% decrease from the previous quarter production due to the transportation blockades in Columbia that technically restricted supplies to drilling and completion activities and our movements of oil within our fields. Normal field operations were restored in June, and as present, Pyrex is operating four drilling rigs and assigned a crew. For the second quarter, our funds still provided by operations totaled $132 million, or $1.03 Canadian per share basic. Our Q2 capital expenditures were $45 million, generating free fund flow of $87 million. With a portion of that free fund flow, we repurchased 4.2 million shares, and thereby returned Canadian $91 million to our shareholders. Eric had strong performance for the quarter, with earnings of $92 million, and we maintained financial strength of $353 million in cash and no debt. The exit of the second quarter was working capital of $371 billion. And along with our credit facility undrawn of $200 billion, we have over $500 or half a billion of liquidity. Pyrex reiterated its dedication to continue lowering our greenhouse gas emissions and testing for BOE from operating assets. The company's strategy in the short to mid-term will focus on optimizing carbon footprint, displacing carbon-intensive power sources, and increasing power generation from renewable sources. The long-term carbon strategy will gradually emerge as FARCS evaluates the uncertainties it could face during the net energy transition and outlines sustainable pathways to achieving its net zero ambition. FARCS is aspired to be among the least, less carbon-intensive oil and gas E&T companies, while continuing to deliver shareholder value and meet ongoing global energy demand. We enter into another strategic partnership with Expatrol, whereby PARCS earns and operates a 50% interest in two blocks in Northern Columbia, Arroca and LLA 38. PARCS' independent qualified reserve engineer, GLJ, recognized company interest 2P reserves, or approved plus probable reserves, of 7.8 million barrels of light medium crude oil, along with futures only capital of approximately 70 million. The initial work plan, which we hope to commence in 2021, will be funded by PARCS, and consists of drilling two development wells in the Arouca field, and one exploration well, and a further capital program of 75.8 billion, which us and Expatrol will determine how to allocate. I would now like to pass the meeting over to our present CEO, Ahmad Mohsen, to go over the second half of 2021 outlook. Please go ahead, Ahmad.

Thank you, Ken. Barracks is in an exceptional financial position, as can be explained, and doesn't currently have any hedging in place, so that allows us to reap the full potential upside of strengthened oil prices. As we move into the second half of 2021, Barracks will be focused on appraising our recent discoveries and extensions. Key projects include continuing our appraisal well program on Cadastral, in which drilling commenced in June. So far, we are very encouraged by the initial results. We plan to start our significant capital program in Aralca province, beginning with at least 6 development and exploration wells in Capachos, followed by the Ectopetrol Partnership work on Aralca block. On Fortuna, we are drilling a multilateral well, Berlanegra one, on the Olini formation. We are applying proven but new technologies to Colombia to assess areas with significant oil in place. Accelerating the installation of facilities to enable the production of compressed natural gas for La Beleza discovery. We are expecting production to begin at restricted rates in Q4, and we expect to have initial results from our Planadas I exploration wild in September. Initiating quarterly dividends of 2.5 cents per share. We believe this is a material milestone for Perixx. Demonstrating our confidence in our portfolio and our commitment to shareholder returns. With this brief overview, I'd like to turn the line back to the operator to start the Q&A session. Operator, over to you.