Valeura Energy Inc.

Hi, everyone, and thanks for joining this Veloura Energy webcast, where we'll talk about our Q3 2025 results. We're recording the event today, November 17th, 2025, and we'll make a replay available on our website and on our YouTube channel within the next day or so. My name is Robin Martin. I'm the Vice President of Investor Relations and Communications for Veloura. Joining me on this call are Dr. Sean Guest, our CEO, Yassine Ben Mariam, our CFO, and Dr. Greg Kolowski, our COO. Running order for today's event, we will start with some prepared remarks tied to slides that you should see on your screen now. They're also available on our website. And then we'll proceed into a Q&A session. I'll guide us through that part of the call. The Q&A offers two options for you. You can either press the Q&A button in Teams and type in a question for us, in which case I'll voice that for the team to address. Or you can press the raise your hand button, which will be a cue to me saying you'd like to ask a live question and I will unmute your microphone to do so in due course. Before we get going, I will just draw your attention to our disclaimers and advisories slide and ask that you pay in particular attention to the forward looking statements disclaimers here. So with that, I will hand the floor over to Sean. Go ahead, please.

Hi, Robin, thank you very much. And thank you for joining us here today. If you just go to the next slide. So, I'll start to kind of give you a bit of an intro on how we look back the previous quarter and really actually what's gone on in the past couple of years and then also looking forward. Greg will then talk to you about the WASANA project and some of our recent execution, and then Yassine will summarize some of the financial highlights before I kind of bring it back and really talk about what we've seen recently in performance, share price, and what we kind of see going forward in the company. So, starting with it, if we look at growth, now, one of the things we announced this year was we did a large scale farming with PTTEP, the national oil company. In addition to that, what we've seen is we kicked off earlier this year, the Wasana oil field, full field development. And those are 2 projects that are really focused on the sustainability and the long term growth of the company in Thailand. And we're very excited about both of those. And I'll go into a little more detail on them. Financially, the good news is you would have seen in the press release that actually compared to a year ago, or compared to last quarter, really all of our operating financial metrics are up, which is very pleasing to us, especially with strong margins, even at the current oil prices. And that's allowed that balance sheet to also continue to strengthen, which improves really our ability to fund opportunities and to look at other M&A opportunities. Now, when you look at execution within the company, we reiterated a couple of months ago, our guidance is intact. You know, we did point at that time too, that we expected to production to be at the lower end of guidance. However, if you've seen in the current release at the current production with the drilling that we've done is actually increase that a lot. So that production so far in November is actually higher than any of the quarterly averages we've had in 2025 to date. And importantly, a lot of this is coming from our non-yield field, which is most profitable. Now, we've also seen that is heading towards the lower end of our guidance, which therefore we're really delivering on that cost per barrel basis. And the final thing just emphasizes as we've taken over these assets, we've actually been able to year on year, reduce the emissions intensity from the assets and that's continuing this year. You know, we could be targeting as much as a 30% decrease in emission intensity since we took over from a year ago. Just before I hit the last two points, I really want to point out that those first bits really point to what we see as an extremely successful country entry into Thailand. We managed to get a couple of good deals, but then we built on that with execution of assets, delivering on the production, delivering on the reserve growth. And finally, as we pointed to there, the longer term growth opportunities that we're seeing with the farm in and the redevelopment of PTT that aren't just looking at 5 years, but are looking at 5, 10, 15 years or more. And then, as we look forward, well, we did sign 2 deals in Q3, the PTT deal that I'll talk about in more detail. But also we signed a deal to farm someone in at our Turkish acreage, which, while it is not a focus for us now, is still a very high value opportunity. And I'll talk just a bit about that at the end. But what I can tell you, and we talk about this quite a bit, but we remain very focused on transformational opportunities. There's a good suite of them that we now see coming to market and we're actually very involved in those now. And then finally, the last 1 on value. Well, while we've come up a lot since a year ago, the recent kind of downturn with oil price and then the decrease that we've seen actually, we see it is a very good time to look to buy into the company because even though it's been coming share price been coming down the business has been delivering. Okay, next slide please Robin. So I'm just going to talk about the PTT e-farming before I hand over to Greg. We announced this back in July where we'd actually farmed in with PTTEP, who are the national oil company and the largest oil and gas producer in Thailand. Now, this has significantly increased our acreage position and set us up very well for the future. But one of the questions we've got since really doing this deal was, why did PTTEP want Veloura to farm in? They obviously are a very large company, significant production, cash flow, and have a capital budget going forward in kind of the tens of billions. But what really their CEO has said, and what we're seeing continually being reiterated is they believe they're the natural gas operator in Thailand. and with the work that they've seen us do and our operations they believe we're the natural oil operator here and they see that that combination together is a way of maximizing the value and the way forward on these blocks so we'll earn a 40 percent interest in there and what we like is it's bringing diversity it's bringing gas opportunities to us But it's also bringing this opportunity to have medium and longer term growth through these blocks that can really step us out into the future. The other important thing to note is that these blocks really abut right up against the major producing gas fields in Thailand as well as some of our oil assets. And these type of tiebacks are really the highest economic returns you can look at in our industry. All of the main producing facilities, the pipelines, those are all in place and you're just tying back into those. So, your, your topics per barrel, your optics per barrel tends to be extremely good and very high returns. Again, on the entry cost, we really came in for pretty well at ground floor. But the important thing I want to note too is that while the deal is not closed and we do expect it to close immediately or in the near term, I did meet with PTTEP and the regulator last week and all the paperwork, everything is progressing. But while we're still waiting for that to close, both teams are already working together, both commercially and technically on driving forward the work in this block. so that in 2025 we've already seen all of the committed seismic data acquired, approximately 1200 square kilometers, as well as we've seen four exploration wells drilled with discoveries in those. And the important thing with that is there's existing discoveries already here, and the team is already working on the development planning to try and look for some FIDs in 2026 to take these forward. Next slide, Robin. And I really wanted to zoom in a bit on the G3 block and the more southern block, because this is 1 that really emphasizes those immediate development opportunities, particularly in the gas. But I'll also speak to the oil opportunities that we see that can be tied back to our field. So, when you look at the block immediately to the east of our block is actually the Boncott gas field, and it runs all along the boundary there. And that field's producing just under a BCF a day. So extremely large, a lot of gas coming out of there. Now, in the middle, there is an existing 3D seismic area with a number of discoveries. And this is where a new discovery has already actually happened this year. And that's where the team are starting to work on progressing this towards an FID in 26, whether it's for one new gas platform or two. But there's that opportunity here of proven gas immediately next to a producing gas field. So the team have put in place that they actually filed the production area application and work is going ahead on the technical work and commercial work to progress this in 2026. and we really hope to have much more technical details on this as we head into early next year. But that's really the immediate work that can come and therefore we can see an expiration block going from expiration to cash flow within a few years. There is new seismic being acquired in the south over more gas discoveries down there, which could follow at a later date. But then when you look up around our Nong Yao field, which is in the north, our most profitable oil field, We've identified an oil fairway that we think exists from the Nong Yao field up to an undeveloped field called Ubon in the north. Now, while new seismic has now been acquired over that, and we expect to next year process that, work that into a suite of drilling prospects, the team already have 3D seismic from our block that extends in there, and we have a suite of opportunities immediately to the east of the Nong Yao field. First, there's a number of prospects that actually are drillable from the platform could be immediately tied in once you drill those. And then the other 1, that's even very interesting is we have just to the north of that. We have identified on the 3 D, a very good exploration prospect that could be tied back to the platform to even increase production. So it's just reiterating with this block that. What we see is immediate tie back opportunities of very high value, but then you can continue to explore and develop these add in more platforms and really get what we might call a string of pearls here. And that exists for both the oil and the gas. So, again, very exciting opportunity for us and we really hope to be able to speak more on this quantitatively once you get this closed and progress to FID in 2026. So at that time, I'll hand over to Greg to talk a bit about the Wasana development.

Thank you, Sean. Hello, everyone. So let me continue with the growth updates. And really, I want to talk a little bit more about the Wasana field, which is our key organic growth opportunity in the operated assets. This is a project where we have taken an FID in May of this year. on redevelopment which involves installing a new central processing facility over the main part of the field which you see marked in that in the red circle on the right and so you know this this central project has got a very strong economics as as we have shared before and it will see production out into 2043. And this production just from the main field is reflected in the reserves in the Wasana field, which now stand at post-FID at 20.5 million barrels to be. But the development concept also envisages satellite times. And we already have provisions in the design to be able to do so with risers in the main facility. So we've got these two areas with resources in the north and in the south of this license. Now, in the north, we already have sufficient volume of resources and sufficient level of appraisal. to really start a satellite development in the south we've got some contingent resources already discovered but we also see further upside potential with prospective resources and that's why we are planning some exploration drilling to capture those upsides in the south and i guess you know what's important is that because this is a field which is operated by us and 100 owned by valora it means that we've got quite a lot of optionality on the driving the optimum timing for fid and then bringing those north and south satellites on stream if we go then to the next one robin please So just a brief update on project delivery, which is going very well. We are well on track for first oil in Q2 of 2027. And we've got now very high confidence on being able to deliver this project on or below budget. The main EPC contract is fixed price and is proceeding very well without any variations. all of the main equipment orders have now also been issued. And so there is relatively small amount of scope that can give rise to any cost variation. So again, very, very high confidence on delivering a budget. And overall, we are in aggregate about 35% complete on this project. So going really well. If we then switch to the next slide, Robin, and moving on to the ongoing world delivery and production delivery, the most notable area of rig activity in PO3 has been our drilling campaign in Nongyao Field, which has gone really well. So we have finished the quarter at just under 12,000 barrels per day equity production, having brought successfully a number of wells in the campaign. So we drew 10 wells in total on Nongiao in the quarter. Since then, the rig has moved across to the Jasmine Fields, where we are drilling now, and we have actually brought some wells on stream in Jasmine. and so as a result of all of that activity uh november to date we are at uh 24 and a half or or maybe even a bit higher uh thousand dollars per day production so so going very well and that's why we have reconfirmed our overall production guidance for the year which which will be coming within the guidance albeit slightly towards the lower end now i think uh With that, let me hand over Yacine to you.

Thank you very much. Hi, everyone. Thank you for joining us today. As Sean mentioned earlier on in his opening, this is one quarter where effectively from a financial operational matrix or perspective, everything seems to be on the green side. So allow me first to walk you through some of the key highlights. And as usual, we'll start from an operational perspective where we are seeing quite a good momentum, be it on a production side or even the cost side. So starting with the production, as you can see on the screen in front of you, we recorded around 20, just shy of 23,000 barrels a day, equivalent day in Q3. That's up 3% versus the same quarter in 2024, and 7% versus the last quarter. This uplift in production is predominantly driven by Nanyang, the infant campaign drilling that we did this quarter in Nanyang. And as a reminder for everyone, Nanyang is our biggest and most profitable field. Not only did we see improvement as well in the production, but also importantly in the lifting was, as you can see, it's up 14 and 22% double digit versus last quarter and quarter, the same quarter last year. This is just a reflection of better optimization and scheduling really of the lifting. And it allows us as well to kind of eat into some of the inventory, which is something that we keep track on. Although, you know, as a reminder, production and lifting do tend to move, you know, sometimes there is a gap between the two. Now, moving on to the real in terms of pricing environment, obviously, we are in a pricing environment that is quite different from the same period last year where all price Brent and our realized price were really hovering around the $80. For this quarter, we had the realized price of 72.1. which is significantly which is up compared to the last quarter of of 70 67.9 i think what i'd like to draw your attention really here is the premium that we get to for our crude compared to historical historical numbers and what we've been really pleased this quarter is that really that expansion in our premium versus brent whereas in the last quarter we recorded just shire of a dollar in this quarter we've recorded 2.5 Now, moving on to the cost, and I think this is one of those graphs that we really like to look at internally. And it just gives you an indication as to how our cost control kind of translate into financials ultimately. So this quarter, as Sean mentioned, I think earlier on, our OPEX per barrel have come down quite significantly, not just from last quarter, but the same quarter last year. So now we are just at 24.8%. This is really a reflection of an ongoing effort throughout the organization in terms of trying to chip at cost at any point, and be it on a temporary basis or more structural in nature. But it's an ongoing exercise that we keep doing across the organization. So how does this translate in terms of financials? Robin, next slide, please. So with higher production, improvement in prices, and better control, as you can see, we've seen a significant improvement in terms of our financials, be it on the EBITDAX level, or most importantly for us, I guess, in adjusted cash flow from operations. I think notwithstanding the increase itself, I think what we're really quite pleased with is really the margins, the improvement in margins. So looking at the EBITDA, that's more than 400 bps point increase and more than 100 bps point increase compared to the last periods. And on adjusted cash flow for operations, I think this is really where the numbers comes into play, where you see an improvement in margins from 35. And it's a continuous improvement, quarter to quarter, where we go from a 36 last year to 39 this year. And now we're just shy of that 50%. So for every dollar that we received, effectively, we're generating half a dollar from our cash flow from operations, which we then can spend on CapEx. and importantly, strengthening the balance sheet and effectively for M&A ultimately. So, and how does this translate in terms of cash? So as you can see, our cash positions have, both cash position and adjusted network, networking capital have almost doubled compared to last year's. That's a 60% and it's almost a 70% improvement from last year. And as we continue with generating cash from the business, considering it's a highly cash generative, we can see this balance increasing and giving us that, you know, solid fortress balance sheet that enables us to not only invest in our business, but also to seek, you know, highly accretive and transformational deals, as Sean mentioned earlier on. Next slide, please, Robin. So, you know, how do we end up with a cash flow from operation? I think the key point I'd like to highlight here is that, like, during this quarter, We've had, you know, we recorded some SRBs, and that's really related to the Thai three regimes. And as far as the corporate tax, this is really related to some subsidiary that are outside of Thailand. But within Thailand, we haven't recorded any PETA, as you might imagine, because of the tax consolidation that we've done. Next slide, please, Robin. So as I mentioned, you know, with the strong cash flow from operation, You know, we are able to invest in our business first and foremost. And as you can see, during this quarter, we invested around 52 million, of which close to 16 million was within the development that Craig was alluding to earlier on, was talking about earlier on. On top of that, you know, we spent a little bit on exploration, but this is really studies, no drilling at all. And we also recorded 3 million in other income and interest. Now with the change in working capital, our format for this quarter would have been 252 million. However, we've also spent money on NCIB and also putting the deposit for G1 and G3 when we signed a deal. And also we've paid some small corporate tax payment again due to outside subsidiary outside of Thailand and Singapore. So, we end up with the quarter again with 248, you know, again, it's all about strengthening the balance sheet and allowing us to, you know, to deploy that capital. As we go forward, and I guess with that, and then back to Sean.

Okay, thanks. You just want to really reiterate and emphasize again how we look at full allocation in the company. And the 1st thing with the assets that we, we acquired, so the 4 key assets we talked about maintaining those net 20 to 25,000 barrel day out to the 2030s. you can see the projects like and that that we've been undertaking that are really pushing that out and extending that. We're also looking at exploration spend. Now, again, we'll discuss more as we get into next year on how G1 and G3 funding come in there. But it's a good time to really emphasize that the gas developments are significantly less expensive than the oil. The costs for platforms that are much less, but that's really our first event we're looking for. Maintain the production from the assets to deliver that cash flow as we then look to expand into other areas. after that it really is value accretive M&A we still see an extremely good environment out here in the region with the number of deals that are starting to come to the market to very few operators and really there's quite a shallow buyers pool we've made those points before and we've talked to people about this but I can't honestly say that we are seeing a change now and that we're actually very actively involved in some transformational activities which we hope we'll be able to talk about more as we get you know, into Q1 next year. But the other point to really emphasize is we've said You know, the promise we made in 24 when it came to returns was, if we, as a company went through 2024, and we're getting to the latter half of the year, and we were building cash, and we were not seeing the, you know, the opportunities in the near term, we would put in place some sort of share buyback or return to shareholders. If we put that in place, we've had that in place during the past year, and we've actually reduced the share counts in a mild amount as well as taking out a number of dilutives. But the thing we've said to people, if you ask this this year, is that as we go through 2025, as long as we are still delivering the cash flow, and we have a very strong balance sheet capable of M&A, if we got to the latter half of the year, then we would also look for ways to return more of that money. Well, with the deals we currently see, we do not expect to see that we would be doing any large return money to shareholders. There's a line of sight on some good opportunities that we're very actively involved in. And that remains our primary focus is delivering growth. Okay, next slide, Robin. And then I just want to really look back as we come near the end here at the past year. Now, obviously, when you compare a share price back to a year ago, we're still up over 50% in that time, which is great. But the disappointing thing is that we've seen the slide in recent months. So we had good, strong delivery as we really got up to that PTTP farming, which jumped us up. But since that time, yeah, there's been some pressure on oil price, but in actual fact, our assets have still been delivering. This is a period where we've delivered on the production growth and which we've delivered on the free cash flow, as well as we've had other news like being ranked the number one growing company in Canada. And I like to keep emphasizing that's not in the energy industry, that's across all industries. And we announced that Turkey joint venture farming where we'll see some activity there to try and realize some of that blues die upside. So, you know, to us, this has been a bit of a frustrating time, as I'm sure it has been for some of our shareholders, but we continue to deliver on execution and we hope that in the end sets the right thing that continue to see the share price turn there. So, in many ways, it opens up a good buying opportunity. especially as we start to look at the coming months where we see some catalysts could be coming in new business. I think people are really looking for us to be able to close that G1, G3 deal. We see no risk in that at all, but we do appreciate that until those are solidified that the market can sometimes be nervous about them. And then as we get into the first half of the year, start to really quantify the bid about going towards an FID on those gas developments. And as we've had for the past couple of years, we expect a good reserve number when we actually release those numbers in February. So a good suite of opportunities, even before you consider that we actually have some activity going on in Turkey at this time. So, just before I move off that, maybe just the time to talk a bit about that Turkey farm, that Turkey farm. And now we have really changed our shareholder base. There'll be a lot of people actually, who are shareholders now who aren't really aware of what happened there to summarize it quite a bit. there is a significant amount of gas in deep in the turkey unconventional gas very tight we've identified through the drilling through 3d seismic there's tens of tcf there but during the work we did with our previous partner we had not demonstrated a commercial flow even though we've done 12 separate flows we've flowed wells for up to three months so the gas will flow from the ground But recently, now we've had a new partner come in who's going to look at retesting the well, and based on that, we'll actually go forward to look at drilling a well. And the partner we have is an extremely good partner. We've dealt with them before as a partner. They're an extremely well-funded private company. They're the most active company in fracking and flowing in Turkey. And they're also very well connected and been working in Turkey for years. What we're trying to say to our shareholders is, look, we are not putting our capital into that at this time. It's not taking the focus of your management team, but we have a blue sky opportunity there that while it still has risk on it, if we're able to prove commercial flow of gas from that opportunity, it's a very big upside for our shareholders. So still a lot of risk on that, but it's nice to see some work progressing there that could open that up. So finally, just reiterating as we move to the next slide, Robin, we see actually it is a good time to come in based on the recent slide in share price. Again, we trade very well relative to our peers. We're under, you know, really we have a lot of upside potential still available to us, both from our NAV as well as our analyst consensus. So again, a good time to buy in. So Robin, just the last slide. So just reiterating again, We really see that we've done the country entry into Thailand. We have a solid business unit there. That's now delivering not only on the execution of the assets they have, but also looking at growth. We do see other opportunities within Thailand, but I can also tell you that the executive, we're very much focused now on looking at how we can take what we've done in Thailand, that successful opportunity, that growth that we've got there and look at where do we apply that next? Where's that next transformational deal? And that's what's ongoing at this point in time. So again, a good quarter, a good growth we've seen relative to last year and to the previous quarter, and we look forward to carrying that on to the year end. So with that, I'll hand over to Robin for the Q&A period and thank everyone for joining us.

Thanks very much, Sean. Just a reminder that if you'd like to ask a question, there's two ways to do that. You can either press the Q&A button in Teams and type a question, in which case I'll voice it for for the team to answer, or you can press the raise button, which is a cue to me to say you'd like to ask a live question. So while we wait for more of those to come in, we do have a couple of typed questions here. First on reserves, you mentioned we should expect a good reserves report at the end of the year. Can you give us a directional expectation for what that actually means at year end 2025?

Well, look, so I think we have talked previously about the process by which whenever we drill new development worlds, we typically also target appraisal targets within these campaigns. We've done it this year just as we did in previous years. Some of it has been in Dongyao, some of it has been in other fields. I mean, again, I would be probably careful with, you know, hazarding numbers before we conclude all of the audits, especially given the movement in the prices. But I would say that, again, we've had on the operational side some additional volumes. And, of course, we've had the significant addition from WASA and FID, which you already are aware of.

Thanks for that, Greg. We've got a live question now from David Round. I'm going to unmute your microphone here. There you go, David. You should be able to unmute now and ask your question.

Yeah, David, just a reminder that, yeah, there you go.

You have got it. Yeah, sorted. Thanks, guys. First question, just you've gone back to drill it, Jasmine. I'm just wondering, does does that program differ much from from the one at the start of the year? Should we be thinking about kind of similar outcomes in terms of things like production? And I think in the past, I think you've talked about potential constraints bringing on new wells. Is that a problem at Jasmine at all?

Well, so I think we are planning these campaigns in a way that optimises both the capture of the subsurface resource and the targets that we continue to see in the future well inventory, as well as then capacity and slot availability in the production facility to be able to bring them into production, right? So I think, I mean, we've, you know, we've been drilling kind of year round cycling through all of our fields. So we have had that campaign as you said earlier in the year in Jasmine, we are now back. I would say, you know, it's actually going very well in Jasmine so far. That's, you know, that's part of the production we've been seeing in November. So yeah, I would say it's so far so good in the Jasmine campaign.

And you talked about cycling there. I suppose, obviously, Nong Yao has been great. As we kind of think about the next sort of set of drilling post-Jasmine, I mean, will you be ready to go back to Nong Yao once the Jasmine program finishes? Or would you be willing to go back and drill at Manora? Or should we think maybe that's the time for a pause in the program?

Yes, so for next year, I guess we will provide a more precise guidance early in the year for the annual plan. But in short, yes, we will be looking to go to Manora for probably a shorter campaign after Jasmine and thereafter we will be back in Nongyao again with a significant campaign there.

Okay, right. Sorry, a quick final one just on Masana while I've got you. You know, given the softer commodity prices we've seen recently, are you seeing anything positive in terms of reduction in rig rates? And I understand you haven't locked those in yet. Correct me if I'm wrong. If you haven't, at what point might you look to lock those costs in?

Yeah, so it's a good observation, David. We have seen a softening in the rig market. At the moment, the rig we have is committed through to August of next year. And so we are actively now going to be looking at the market to try and capture the opportunity associated with these softening rig rates.

Right. Very helpful. Thank you.

Very good. We'll move over to a typed question now. With PTTP being the operator of the new licenses, G1 and G3, and their focus being primarily on gas, will Veloura still get a fair opportunity to pursue oil-focused drilling on these blocks, for example, the Nongyao Northeast extension?

Yes, very, very much. So, and the 1st thing I just emphasize with is when it comes to the gas development and experts that we're extremely happy to have them as the operator, they are doing, they're installing new platforms and drilling continuously with 11 rigs out there. So they really are the lowest cost operator you have around here. And we noticed that when we took the trip out to the was on a yard that yard that's building the was on a platform last week. There is a suite of PTTEP gas platforms sitting there, half constructed, fully constructed, all ready to go. They are installing these things continually. So it's like a conveyor belt that they're doing there. So that's really the way that you get the highest efficiency in both your contracting and delivery. So very pleased for them to be our operator in the gas. Now on the oil, like we emphasized, They're looking for us to do to bring the oil opportunities here and work it out. We're kind of sharing the load there on the work. But what I can tell you is with the work that we've done, even around Nong Yau, there's a lot of enthusiasm for their management as they bring that forward, show us those opportunities, show that we can accelerate it. You know, while the volumes are smaller for them, There's still very good economic opportunities that are development of Thailand's assets, which are very much in line with what PTT, PSE, NOC is trying to achieve. And the other thing is the agreements we have with them also allow that if they look at an oil opportunity and say, look, that's too small for us to consider, we still have the ability to move forward on those.

Thanks for that, Sean. While we're on G1, G3, another couple of questions. What's the typical size of a platform for gas development in that area, in production, MBOED?

Yeah, the average was about 10 million BOEs.

Yeah, so about, say, 60 million SCAP would be a kind of, you know, a discrete, you know, additional, you know, one of these time developments, yeah, so that's, yeah, 10,000 BOE per day equivalent, you know, in that range.

Yeah, so, and they will vary depending on also how many wells you have on them, but, you know, kind of that range of 30, 60, that sort of range, whether you start lower and work it up, but But, yeah, that's kind of the size of production that you're looking for. But then again, the thing to emphasize to people and again, I'll bring it back to our visit to the yard last week is that. This is 1 of the most active areas in the world for the installation of these platforms. Like, we were talking with the yard last week and saying, where in the world do you have these facilities being built? And the only thing we could really come up with was around Saudi Arabia and the drilling that they're doing offshore. It's this continual number of platforms being installed. So I can tell you that PTTP doesn't look at it and say, well, we're going to install two platforms here. They look at it, we're going to install two, and then one of the next two, and one of the next two. How do we get these things daisy-chained together? And that's how you really build up the volume of production, and you build up that longer-term future for the company.

Very good. Yassine, you've been resting your voice, so let's move to a tax-related question. Could you please remind us of the origin of the tax consolidation? I suspect the question means the tax loss carry-forwards. And also, what's your expectation for when Valura will need to start paying taxes?

Okay. So, in terms of history, When we did the deal with Chris Energy, Chris Energy's piece came with tax losses, around 400 million USD. And when we did the acquisitions with Mubadala, which was a cost-generative portfolio, we put we put them together and by putting them together we have access to the 400 million of tax losses now worth highlighting that these tax losses are ring fence on the thai three regime so they apply effectively to asana nanya and manuela jasmine is outside this scope so jasmine we will pay taxes on it um so and in to your second questions robin uh honestly it's all question of what all price are you assuming uh i think at the at the softer old price like we see today we're probably going to be talking i think i think what we think is around like two or not so around three years till we consume all of these taxes tax losses however at the higher oil price obviously that period that window will get shorter okay very good um while we're talking about uh cash payments

Just switching back to G1, G3, and the question is, what do you anticipate would be your cash payment for G1, G3 at the time of FID? So I'm assuming this question means anticipated 40% of the total spend up to that point. What would that cash outlay look like for us?

Yeah, you know, we don't have the final numbers on that. Now. We're still working them up, but, you know, to give an idea that we see the platforms is probably about 1, 3rd, the cost 1 quarter to 1, 3rd, the cost of our oil platform on and then again, remembering that we're at a 40% level of those. All right. So, you know, again, the was on a redevelopment whole new field there that is a central processing platform, oil development, high power requirements. Those are quite expensive gas tie back platforms tend to be quite cheap. So, yeah, I would work about a quarter to a third of the cost, but we'll have details on that again. Once we have the numbers next year, early next year.

Okay, very good. I'll just remind the audience that if you'd like to ask a live question, just press that raise button and we'll allow you to unmute your microphone. Or you can type a question using that Q&A feature. I've got one more question here on M&A. It appears the majors are returning to Southeast Asia, at least a little bit in Indonesia and Malaysia, perhaps. What does this mean for competition in the region?

Yeah, very good question, because it's a good observation. It is happening. We saw a lot of the retreat companies, particularly someone like Total, who had really almost completely left production in Asia. And now they've come back with a vengeance into Malaysia. But what I can say is the assets that those guys are looking for are extremely different to the ones that we are. And we still see the cases of You know, if you're doing 50,000 barrels a day, that sort of level, it is not material for these guys. They need to be looking at gas and they need to be looking at big gas. That's what's drawing them back into the region. Not modest levels of of oil production. You can see when Chevron closed their deal to acquire Hess, almost immediately they sold some of Hess's acreage in the joint development area, and we continue to watch to see what else will come now that Chevron have that deal closed.

Okay, very good. We have no further questions that have come in. I'll remind the audience that if anything does come to mind in the interim, feel free to reach out to us at any time. Our website and contact details are all available on the slide in front of you. Pardon me, available on our website. So please do feel free to reach out. We're happy to take questions at any time. So with that, I'll hand over to you, Sean, to wrap up.

Yeah, and from my side, I'll just say I'd really like to thank everyone for joining us here again today for following the company and your support as we move forward. We still see going into 26. It's going to be an exciting time with lots of new catalysts coming. So thank you very much. Thanks, everyone. That concludes our call for today.