Parex Resources Inc.

Good morning and thank you for standing by. At this time, I would like to welcome everyone to the Perixx Resources 2025 Operational and Financial Results Conference Call. Today's conference is being recorded. 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, simply press the star key followed by the number one on your telephone keypad. If you would like to withdraw your question, press star one again. At this time, I would like to turn the conference over to Mike Crookton, Senior Vice President of Capital Markets and Corporate Planning. Please go ahead.

Good morning, everyone, and welcome to Parks Resources' fourth quarter 2025 conference call and webcast. My name is Mike Crookton, and on the call with me today are our President and Chief Executive Officer, Iman Molson, our Chief Financial Officer, Cam Granger, and our Chief Operating Officer, Eric Furland. Please note that at any time, telephone participants on the call can press star 1 to submit a question. As a reminder, this conference call includes forward-looking statements, as well as non-GAAP and other financial measures, with the associated risks outlined in our news release and MD&A, which can be found on our website or at cdarplus.ca. Note that all amounts discussed today are in U.S. dollars, unless otherwise stated. I will now turn the call over to Ahmad. Please go ahead.

Thank you, Mike, and good morning, everyone. As we reflect on 2025, I'm pleased to share that this year was defined by disciplined execution, meaningful strategic progress, and strong shareholder returns, all of which further strengthened our foundation and position parks for sustained long-term value creation. During the year, we delivered full-year average production of approximately 45,000 barrels a day to achieve our budgeted guidance range. This outcome reflects our strong asset base, consistent operational uptime, and ability to grow efficient use . At our capacity role, In block 34 assets, enhanced recovery initiatives continue to perform as designed. Optimized water flood patterns combined with polymer injection programs are enabling us to effectively manage decline rates and maximize recovery. We're enforcing the long-term life nature of these assets and reducing our year-on-year sustained capital requirements. At block 32, the Taukema acquisition completed early last year has been highly successful. Since assuming full control, we increased peak production to more than three times pre-acquisition levels, have added significant reserves, and recently drilled a complex multilateral well, the first in Colombia. This is a clear example of our execution capability where we acquired a high-quality asset, was identified upside, applied our base and operational knowledge, and scaled efficiently. On the exploration front, our high-quality prospect funnel continues to generate strong results. Our 2025 near-field exploration program delivered a 75% success rate, reflecting strategic refinement to our exploration approach and our ability to deliver repeatable near-field successes. With our strategic partner, Expatrol, we made clear progress to strengthen our alignment and grow future production. In the Putumayu, we successfully gained operational access and started drilling activities. These blocks are sizable and underexplored. With more than 1.8 billion barrels of oil in place, our strategy is already seeing promising results and is positioning us for significant inventory growth by moving from vertical production to multilaterals. Eric will touch on this further, giving its importance and potential. In the Janus foothills, we formalized our strategic alliance and strengthened our position in a truly world-class basin, with pre-drill work underway. With all of the puzzle pieces now in place, we are excited to spot our first foothill well later this year. A high-impact growth opportunity in alignment with our gas and exploration strategies. On the financial front, we remain focused on shareholder returns. We returned $134 million in 2025, bringing in total capital returns over the last eight years to $2 billion. Additionally, through ongoing share purchase programs, we have reduced the diluted share count by over 40%. a significant achievement that enhances per share value and sets our long-term track record apart from our peers.