Panoro Energy Stock

Good morning, and welcome to Panoro's Half 1 Results Presentation. I would first like to draw your attention to this disclaimer. This presentation contains certain statements that are or may be deemed to be forward-looking statements, which include all statements other than statements of historical fact. Forward-looking statements involve making certain assumptions based on the company's experience and perception of historical trends, current conditions, expected future developments and other factors that we believe are appropriate under the circumstances. Although we believe that the expectations reflected in these forward-looking statements are reasonable, actual events or results may differ materially from those projected or implied in such forward-looking statements due to unknown or known risks, uncertainties and other factors.

Next slide, please. There will be time for Q&A at the end of the presentation. [Operator Instructions] I would now like to hand you over to Julien Balkany, Panoro's Chairman, who will take you through some highlights of today's exciting news and our results.

Thank you, Andy. Good morning, everyone. I'm joined today on the call by Eric d'Argentre, Panoro's CEO and President; and Qazi Qadeer, our CFO. Before we move to our half year results, trading, financial and operational update, I would like to say a few key words on the new transformational and accretive acquisition that we have announced yesterday evening.

By now, you will have all seen the exciting announcement we made yesterday after market close whereby we have signed a definitive agreement with DNO to acquire an indirect 9.09% interest in the gas producing Block CI-27 offshore Ivory Coast. Before we talk in more detail in the next slide about our latest acquisition, I want to take a moment to reflect on how our well-timed and strongly accretive M&A strategy that is part of our DNA has been a core driver of our growth in recent years.

Since 2018, we have successfully completed acquisition of production assets in Tunisia, Equatorial Guinea, Gabon and now Ivory Coast, establishing a robust and well-diversified production business across 4 jurisdictions in Africa. This latest acquisition, which will be our second this year, coming hot on the heels of our recent purchase of an additional 40% interest in Block G from Kosmos Energy. It will establish a fourth production leg to our business in a new first-class jurisdiction that has a very strong oil and gas sector and which we believe can position us for further follow-on growth opportunities at the right time.

When we look at the business back then compared to today and following the number on this slide, they speak for themselves. Panoro is today a more resilient, better diversified business that it has ever been at any point in its history. If you look at it, we have rapidly scaled our production from virtually 0 at the start of 2018 to a current pro forma rate of around 20,800 BOE per day, firmly positioning Panoro as a leading independent producer in Africa. We have increased our 2P reserve by a factor of more than 4 with our overall 2P plus 2C resources have increased by almost 8x to 183 million BOE, illustrating the depth of organic growth reserves and resources opportunity we have within our portfolio today.

Over this time and up to yesterday close, we have seen around a 4.5x appreciation to Panoro share price in the same period. It is important to note that when we have issued equity to fund external growth, we have always done so at a progressively higher valuation each time than the time before with today at NOK 28.77, we will issue share to DNO.

Alongside this, we have responsibly used various form of debt financing and be careful to preserve what we believe to be a prudent and disciplined leverage profile. It has also allowed us to return substantial amount to shareholders, which, including the cash distribution announced today amount to a total of NOK 950 million so far or roughly about 25% of our market cap as yesterday close. Delivering enhanced shareholder return over the long run is our backbone and core to our strategy.

Next slide, please. Acquisition of indirect 9.09% interest in Block CI-27. Moving on this acquisition itself, Block CI-27 is operated by the privately held and excellent first-class and long-time established operator of Foxtrot International, whose principal business is a 27.27% effective participating interest in the asset. The DNO subsidiary, which Panoro is acquiring hold an indirect 33.33% interest in Foxtrot and therefore, an indirect 9.09% interest in that asset. Other joint venture partners in the asset include Petroci, the national oil company and SECI S.A. The consideration is $80 million and the effective date of the transaction is January 1, 2025.

It is important to highlight that there is no regulatory approval pending or required and there are no preemptive rights. This transaction is therefore fully derisked, and we expect completion to occur by the end of Q3. I will let Eric to talk to you in further details about the asset, which holds the country's largest nonassociated gas and meeting over 70% of the country gas need.

Net production for our interest in the assets stand at approximately 3,334 BOE per day in the first half 2026 and net 2P and 2C resources at 14.4 million BOE. In terms of funding, to finance the acquisition, Panoro will issue 7 million new shares to DNO, which will represent about 4.9% of outstanding Panoro share, post issuance of those shares. The share price is based on the VWAP for the last 5 trading days preceding the announcement, so coming at a price of NOK 28.77 per share.

Additionally, to diversify our credit profile, Panoro has placed a $50 million senior unsecured bond carrying a 10.25% coupon with maturity in 2031. The bond was fully placed and subscribed in the private domain by 2 long-standing strategic investors along primary insiders.

In summary, this new acquisition will continue to transform the scale, geographical diversity and longevity of Panoro portfolio and strengthen our capital structure enabling us to deliver enhanced shareholder return over the long run while also positioning us for further growth opportunities at the right time in Ivory Coast.

Next slide, please. Some of you may not be too familiar with Cote d'Ivoire. So I think it is worth briefly touching on why the core country fundamentals are extremely supportive for our gas business supplying the domestic market here. Natural gas sits at the heart of Cote d'Ivoire power system, accounting for around 65% of electricity generation, which makes reliable domestic gas supply a strategic priority rather than a marginal fuel source. The country has delivered consistently strong economic growth with the World Bank highlighting average real GDP growth constantly above 6% for the last years.

And growth in Ivory Coast is not dependent on a single sector. Cote d'Ivoire has developed into one of West Africa's most diversified and strong economy with a BB- sovereign credit rating, underpinned by agriculture, mining, services, manufacturing and a growing hydrocarbon sector. Indeed, Cote d'Ivoire is a thriving oil and gas sector and is yielding some of the largest and most impactful oil and gas exploration discoveries in West Africa in recent years, Eni with Baleine and Calao South discoveries, more recently, Murphy with Bubale discovery that was announced as being commercial in June.

I will now hand over to Eric, our COO and President, who will take you through the next slides. Thank you.

Thank you, Julien. Good morning, everyone. So I will take you through the presentation of CI-27 asset overview. So that CI-27 is between 12 and 15 kilometers offshore Ivory Coast in what we call shallow water with platform territories. This is the largest nonassociated gas accumulation in the country. And as Julien mentioned, meeting more than 70% of the domestic gas need.

The asset was developed back in 1999 with the first 2 fields, Foxtrot and Mahi, and the installation of the first platform, PFA and the production has been increased and be very good and steady over the years. In 2015, Foxtrot developed the Marlin and Manta accumulation that you can see on the right-hand side of the map with the installation of a second platform, platform Bravo, PFB. Today, we have 12 wells on production. Both platforms are equipped with all the required process to treat the gas and condensate as well as gas compression, and I will come back on the compression.

There is a lot of -- we see, and there is a lot of upside potential in the CI-27 in those current fields and additional appraisal fields or fields to be appraised, sorry. We have today Foxtrot started a drilling campaign back 4 months ago on Foxtrot field with 5 wells to be drilled, infill wells. The first 2 wells have reached a reservoir with a higher pressure than expected, which is a very good news. It means that the depletion assumed is lower than it is in reality. So more volume to be produced.

So those volumes will be moved very shortly from 2P to PDPs, proved, developed and producing volumes and will help to extend the plateau, the production plateau and increase depending on gas demand. We are today producing an average of 200 million scf per day for the last 3 to 4 years. If the demand grows, those wells will be available to match the demand if it does peak.

To come back on the potential, there is a potential as well in surface facilities to upgrade. There is the gas compression system. Without entering too much in details, but the lower the pressure is on the gas well, the better and the longer it will deliver in life and the compression can be worked on, and there is some compression project to be able to produce longer and drain more volume at lower pressure in the future. So lots of potential way past the 2034 PSC terms. Next, please.

So in terms of gas and liquid sales agreement, we have a very strong partnership in Ivory Coast. The vast majority of our gas produced is sold to CI-ENERGIES with CI-ENERGIES is a key partner in Ivory Coast. CI-E mission is to ensure supply of energy that supply of energy meets the demand. They lead major structuring project in production, transport and distribution of energy with rural electrification. So CI-E is a key partner derisking the gas export sales to the local consumers. We have a long-term contract to the PSC term 2034 with a take-or-pay of 140 million scf per day. We are delivering an average of 200, as mentioned earlier, and a gas price that is around the USD 6.5 per million BTU on the contract sales. Next, please.

So once -- the group production update, some of you will remember, we communicated last quarter that Panoro was on the way to 20,000 barrel of oil per day net once we would have recovered the full potential of the Ceiba field in Equatorial Guinea and with the MaBoMo Phase 2 drilling campaign in Gabon with the well on stream. We are already today at 17,500 net, and that's a strong -- a very strong performance in the last quarter. We're clearly on track to the 20,000 barrel of oil per day in 2027, including the recently announced transaction from last night, that does accelerate the 20,000 milestone for the group. And on a pro forma basis, we would already be above the 20,000. And therefore, Panoro net is more on the road to 23,000 barrels of oil per day net in 2027 once all the mentioned work will have been completed.

I would like to highlight our resilience in terms of costs. It's important to note that our operating cost per barrel is at $23 today with $3 to $5 on what we call the non-recurrent CapEx, meaning all the important integrity, FPSO life extension, class extension that needs to be done on a yearly basis. So between $26 and $28 per barrel that makes Panoro very resilient in low price environment, which is a very good discipline to have. Next, please.

On Equatorial Guinea Block G update, as I said in my previous slide, very strong performance in production, especially in the last quarter with some good action on -- good results on Ceiba recovery from MPPs and subsea clusters as well as in productive investments, well intervention workover on the Okume complex that does illustrate the great potential of those 2 accumulations.

The latest production net to Panoro today is above 11,000 barrels of oil per day. And we have -- we are working on the future project with our partner and operator, Trident Energy. The recovery factor of the block is still low. Drilling campaign is being matured with our partner and the objective is to take FID for the future campaign in Okume complex with a jack-up, conventional jack-up rig end of 2026 for the FID so that we should be able to drill on Okume complex by Q1, Q2 2028. Recovery factor is low. So any 1% additional recovery is 25 million barrels to be produced, and that's the objective on the short, mid and long term of the partnership. Next, please.

In Gabon, update on Dussafu, our cornerstone asset. Dussafu is a very prolific area, and we continue to have a strong performance, good uptime and good production in this very prolific block. We are today drilling in MaBoMo Phase 2 as it was announced previously. The rig is on location, drilling the first well, we have a campaign of delineation and infill wells, 4 producing wells, maybe more depending on the results. There is some optionality for more wells. This MaBoMo Phase 2 drilling campaign will take us back to the nameplate capacity of the installation at 40,000 barrels of oil per day.

And another important milestone is we -- the partnership took FID on the Bourdon discovery that was announced last year. We have now FID the project. Its work is ongoing on the jack-up conversion to become the [indiscernible], a little bit like the MaBoMo development. And we have 3 wells to be drilled and the pipeline to be installed to connect the Bourdon to the main pipeline. First oil of Bourdon is expected for Q1 2028.

So lots of things happening in Dussafu as well as the reprocessing of the recently shot seismic in Niosi, Guduma, that is as well covering the north part of the block and to mature the current and already recognized prospects. So bear with us on Dussafu, lots of things happening in the near term. Next, please.

On Tunisia update, TPS assets, very stable production above 3,000 barrels of oil per day, project being matured on workover, well intervention and additional development in our various concession. We have managed in the last 6 to 9 months to offset the natural decline by some productive investments and work on our wells. So it's encouraging for future project. Next, please.

I will take you through quickly on the Estrella and Rodo high-graded prospect in Block EG-23. We have discussed and presented this in the past. It's very exciting prospects. We are now working on a commingle development. As you can see on the map, the Estrella discovery in 2001, which is a gas condensate field accumulation and next to it, the Rodo in green. The Rodo field, it's an oil accumulation. There are a few kilometers away, and our conceptual development plan is to install a drilling center in the middle and drill both accumulation in the same campaign and make what we call a commingled development. Engineering is ongoing for the well architecture, platform specification and pipeline design and installation. We will progress that and give some more news on this development next quarter. Next, please.

Thank you very much, Eric, for the operational review. This is Qazi Qadeer. I'm the CFO of Panoro, and I'll take you through the financial highlights. We have had a relatively stable quarter on an IFRS basis for the second quarter. The half year results, as we published this morning with lesser liftings compared to the previous period in 2025. This is largely due to timing differences on how the parcels are spread out through the course of the year. And other than that, there is no major difference, which I would like to flag.

However, the eventful thing that happened during the quarter right at the very end was the completion of our acquisition of the enhanced interest in Block G in Equatorial Guinea, which has been now integrated into our financial statements. So you would expect to see an increase in assets and liabilities, which were consolidated through a purchase price allocation exercise on a provisional basis as of 30th of June. Because the completion only happened around mid-June, there is very little reflected in the results with no sales and costs associated with the acquisition.

Henceforth, we have prepared details on a pro forma basis to facilitate analysis. On a pro forma basis, first half results are strong with revenue of $130 million and a pro forma EBITDA of $68 million based on accounting policies and assumptions consistently used by Panoro as a group. We have been carrying a sizable amount of inventory as well at the end of the quarter with about unsold 1.3 million barrels as of 30th of June. We continue to make distributions to our shareholders. And this morning, we have announced a NOK 50 million distribution for this quarter, which is expected to be paid by 21st of September 2026. Next slide, please.

Again, just continuing on the theme for shareholder distributions. I will echo the points made by Julien that the company has consistently and -- returned cash to the shareholders, and we will continue to make it part of our philosophy going forward as well. However, just to point out and repeat here, like we always do, is that the distributions are determined after taking into account various factors, including oil prices, operational performance, which is what we bring to the equation every time we make a decision to distribute. Our capacity to distribute is determined under the bond terms, which is basically 50% of full year cash flow, which was determined to be about $21 million for the calendar year 2026. So we have basically followed the guidance that we gave at the start of the year and are following in equal distributions throughout the year. Next slide, please.

We are going to talk a little bit about liftings. So as I mentioned earlier, the second quarter was a stable quarter with no enhanced barrels added on an IFRS basis from the acquisition. So following the completion of the Block G acquisition, we will expect a more pronounced second half of 2026 with higher volumes and an improved frequency of liftings, which you would see that we are guiding about 1.3 million to 1.5 million barrels for 3Q. Again, this is all coming from the inventory we are carrying at 30th of June, which I mentioned a few minutes ago. The fourth quarter guidance, again, is of a similar nature with consistent volumes available to be lifted in the fourth quarter. Next slide, please.

This is a busy slide, but the key points here are to guide towards the CapEx. CapEx guidance has remained unchanged at $55 million on a core basis. Since we have now acquired Block G business, the $72 million guidance for the full calendar year on a pro forma basis is now confirmed. On an IFRS basis, up to end of June, we have spent only $12.5 million year-to-date, which is the current run rate at the moment, but expected to increase because of the higher percentage we are carrying in the assets we have just acquired.

We are not giving any guidance at the moment on our newly announced acquisition in Ivory Coast. We will include the refined pro forma-based guidance once we have made the completion of the acquisition. And hopefully, we should be able to give all the details by the time of our third quarter results later this year.

I will now leave Eric to conclude on the next slide and open up for questions.

Thank you, Qazi. As a conclusion, I'd like to come back on today's presentation on the strong operational performance, the disciplined financial management of Panoro and the delivery of the growth strategy.

Panoro has 3 main pillars in its strategy, production and reserve in our asset portfolio. Group production today is at a record level, as I mentioned, at 17,500 barrels of oil per day without additional announced transaction. We are above the 20,000 including CI-27 transaction. We are drilling in Dussafu as we speak with 2 pilot wells and 4 production wells. That's a very exciting project that will increase even more our production and delivery. And we have material reserves and resources base with almost 170 million barrels of oil equivalent in 2P plus 2C. And it's important to highlight that the very healthy position with -- in our 2P base with more than 15 years of production in our 2P volumes. That's a very good position to be in. So that's the first pillar.

The second pillar of Panoro is to mature its asset portfolio and extend reserve life. We are doing this with the FID of Bourdon as explained earlier in the presentation. Estrella and Rodo in EG-23 is a very exciting project. I have explained you the conceptual development plan we are working on. We are targeting first oil and first gas on this commingled development by mid-2028. That's a very exciting part of the business. And the 3D seismic, again, shot last year in South of Gabon is explaining and demonstrating the maturing and the work done on exploration and asset portfolio. So lots of projects on this pillar 2.

And the third one and a very important one that Julien explained in his introductory slide on the corporate and external growth strategy. Panoro has a strong track record in its DNA, accretive M&A transaction. We have announced earlier the Block G with Kosmos Energy, today with the DNO indirect interest in CI-27, and that's a demonstration of our strategy on growing the Panoro business. Thank you.

Thank you very much. And we will now move to Q&A. [Operator Instructions]

The first question will come from Stephane Foucaud.

I've got a few on Cote d'Ivoire. So the transaction has an effective date of early '25. There is a consideration of about $80 million. Is it what you expect to pay on closing in 3Q? That's my first question.

And I was wondering whether you could talk about payback for the acquisition, maybe the remaining CapEx to produce the 2P, if there are any decommissioning and when that will happen?

And lastly, so Panoro will hold a stake in Foxtrot. So how do you see the mechanism for the cash from Foxtrot to go back to Panoro?

Thank you very much, Stephane. This is Qazi Qadeer. I have noted down a few questions, so I may ask you to repeat some. I think I'll take the last one first. There's a very well-established mechanism from Foxtrot to the entities we will own in a few weeks or months' time, which is basically a formalized arrangement between the Foxtrot and up the chain, how the money distributes.

So what we see is that instantly, when funds are paid by the buyer of gas, they land in dedicated accounts and those accounts -- bank accounts have instructions to basically flow the money up the chain pretty much immediately. So there is hardly a lag of about a day or 2 from collection to reaching the top of the chain. But financially speaking, the way the funds flow is technically distributions from down the chain to the top of the chain.

So sort of dividend on a regular basis?

Yes, dividends on a regular basis, but it is a function of how the mechanism is designed. There's no lag. It is on proceeds basis that the funds are routing up the chain. Okay. Then your other question was about...

Closing price.

Closing price, yes. So I'll let Julien answer that.

Based obviously on what will be the timing, but I would say to be on -- more or less, we would expect the closing price around $70 million. You had some additional question?

Yes. Then maybe a sense of payback on the acquisition, if you had. And then I had some question around the technicality, some technicality on the asset.

Yes. I believe the asset has been constantly generating between $17 million to $20 million in free cash flow per year. So on the safe side, I would say it would be somewhere between -- it's 3.5x. So it gives you an idea about the payback.

Yes. Great. And then I have more question about the asset, which is the remaining CapEx to produce the 2P reserve and whether there are some decommissioning and by when?

Yes, this is Eric. The remaining CapEx, well, the ongoing drilling campaign has a budget of around $220 million gross for the 5 wells that are being drilled on the Foxtrot field. And decommissioning is not -- we have numbers. There is obviously numbers on decommissioning, but it's not something that is imminent at all. As we said, there is more than 520 Bcf of 2P and almost more than 900 Bcf of potential altogether with 2P, 2C. And the contract will undoubtedly be extended and the life of the field extended.

Yes. So just to add to that, Stephane, we see that the remaining productive life is 15 years or more for the asset. So it's a very long-dated, stable, steady profile. And so the decommissioning is at the back end of that.

The next question will be from Teodor Sveen-Nilsen.

A few questions first on the deal. The Ivory Coast deal definitely establishes you in a new country and a new jurisdiction. How should we think about this deal as a platform to do more M&A in the country? And what kind of opportunities do you see in the country?

And second question on the deal specifically, that is I understand that the gas is priced at $6.5 per MMBtu. Is that a fixed price for the entire volume? Or is that a function of gas price or oil price? Any comments around that would be useful.

Yes. Thank you, Teodor. This is Julien. So clearly, it's an exciting new entry for us in a well-established oil and gas jurisdiction, as I mentioned earlier. And obviously, it's a first step. And I think it's going to position us in the near future for follow-on growth opportunities. But I would say it will be the future, not right now. First thing first, we have to close on this transaction, and we will have to digest it.

Understood. And on the pricing, can you share some more details on how we should think around the pricing other than the $6.5 per MMBtu?

Yes, yes. So there's a minimum fixed price of $6 per MMBtu, and there's an indexation applied to that, which has increased the current pricing to around $6.50 per MMBtu. So there's a very, very stable minimum price, and there's -- underpinned by a take-or-pay feature within the gas sales agreements. So there's virtually no volatility on 95% of the product sales from the asset.

Okay. Understood. And a couple of more questions here on the overall production for your portfolio, you're talking about a few new wells in Gabon and EG in second half of the year. From the portfolio, excluding Ivory Coast, how much growth should we expect in second half?

Sorry, Teodor, just you're asking about the production growth organically in the second half of the year or including pro forma the acquisition?

Organically, excluding Ivory Coast assets?

Okay. Yes, that's Eric. Production growth, as I mentioned earlier, in Block G has been very strong, very good and positive in the first half of the year. We started the year a bit softly with some -- the Ceiba subsea problems and some in Okume as well. We have regained a very good level at almost 22,000 barrels of oil per day gross in Block G today. We were more in the 15,000, 16,000 earlier this year. There is still work ongoing, productive investment in Okume, the workover unit is still doing well intervention. So we expect to increase.

An important point I did not mention not to answer in too much details, but the long-term problems we had on water injection in the Ceiba accumulation as well as in Okume has been repaired. And we see now a very positive effect on the Ceiba production from the water injection. So that's a very steady operation, and we will regain potential on the long-term basis on Ceiba with the water injection.

We have as well dedicated team working on the central cluster and C-45 well intervention. That takes more time with supply chain and engineering, but we hope to do the intervention end of the year and next year on those wells.

So yes, organically, Block G will continue to increase. Tunisia will remain stable with a slight increase. And importantly, in Dussafu, we have -- we will be on an increasing trend from now on with a well coming on stream every 2 to 3 months on the MaBoMo Phase 2 drilling and very shortly after the Bourdon development. So yes, production will remain strong in '26 and continue to increase in '27.

Okay. And my final question is just on accounting technicality for the Ivory Coast assets. I assume you will account for that or use full consolidation. Or will this be accounted for as an associated company?

I think, Teodor, the accounting assessment at present is the same, how the vendor used to account for it. So it will be accounted as an associate, but we will obviously include enhanced pro forma disclosures to capture the fundamentals on a like-for-like basis.

Thank you. The next question is from Robert [indiscernible].

This is my question. With the PSC extension in Gabon to 2053 and Panoro's focus on the long-term asset, how is Panoro approaching government relation and local content strategy to ensure regulatory stability and sustainable partnership across the West African country, including Equatorial Guinea.

This is Eric. Thank you for your question. As you mentioned, yes, we have a long-term extension on our PSC in Gabon, 2053. Part of our policy and strategy in Panoro is to have a very healthy and positive relationship with all stakeholders, including the authority in each country where we operate. Local content is part of the strategy that we are monitoring and implementing with our partners when we are non-operated. And there is a strong local content policy and reporting and the regular reporting from our operator in Gabon as well as in Equatorial Guinea, where we have a regular meeting, operating committee meeting and other statutory meeting with government, national company and ministries to demonstrate our involvement in the local content and sustainability part of our operation.

Thank you, Eric. And with no further questions, that will conclude today's Q&A and our webcast. Thank you very much. Goodbye.

Hello. Good morning, and welcome to Panoro Energy's Q1 2026 Trading and Financial Update. Before we commence, I'd like to very quickly read a brief disclaimer. This presentation contains certain statements that are or may be deemed to be forward-looking statements, which include all statements other than statements of historical fact. Forward-looking statements involve making certain assumptions based on the company's experience and perception of historical trends, current conditions, expected future developments and other factors that we believe are appropriate under the circumstances.

Although we believe that the expectations reflected in these forward-looking statements are reasonable, actual events or results may differ materially from those projected or implied in such forward-looking statements due to known or unknown risks, uncertainties and other factors. Next slide, please. Thank you. As usual, we will have time at the end for Q&A. We will endeavor to take as many questions as we can. The platform today may have a slightly different look and feel to prior webinars, but the functionality is the same. I would note that we think there may be some platform issues today with our meeting. So on this occasion, we very much appreciate as you could use the written Q&A panel as a first means of asking a question. Alternatively, you may submit a question at [email protected], and we will get back to you as soon as we can. Thank you. Next slide, please.

I will now hand over to Julien Balkany to take you through a highlight of our results.

Good morning, everyone. I'm Julien Balkany, Executive Chairman of Panoro Energy. I'm joined on the call today by Eric d'Argentré, Panoro's COO and President; and Qazi Qadeer, our CFO. Before Eric and Qazi take you through our results and operation in detail, I would like to share with you some highlights and outline the good operational progress we are making with our successful accretive growth strategy.

Our performance in Q1 was in line with expectation with pro forma working interest production of around 15,000 barrels of oil per day, and we are on course to reach the milestone of 20,000 barrels of oil per day in 2027 when our various work program are completed. Our recent annual statement of reserves has validated a substantial pro forma 2P reserve of 84 million barrels, which based on Q1 production equate to about a 15-year reserve life for Panoro. And our pro forma 2P plus 2C base of 169 million barrels of oil equivalent emphases our exciting pipeline of organic growth opportunity that is larger than ever. We are actively developing our assets with near-term catalysts, including the MaBoMo Phase 2 drilling campaign and the Bourdon discovery advancing further as planned.

In Equatorial Guinea, we have received independent 2C resources recognition at Block EG-23 for the first time, and we have high graded the [ Estrella ] project as a potential fast track development. Personally, I'm very excited by this asset that has a true potential to be a game changer for Panoro. At the corporate level, we have continued to prudently manage the business with disciplined capital allocation and commitment to deliver strong returns for our shareholders. We announced today the payment of a [ NOK 50 ] million dividend for the quarter.

More significantly, during the first quarter, as you are all aware, we extended our strong track record of highly accretive growth through M&A with a well-timed and opportune acquisition of an additional 40.375% interest in Block G, which I will discuss further in a moment. But before I do so, I want to highlight the extremely bright outlook I see for Panoro. Acquisition of [ producing ] assets have been and are still a core part of our DNA. I'm also very excited by strong price realization we have locked in so far during Q2, subsequently to our first quarter results. And with the vast majority of our 2026 crude lifting ahead of us, we are extremely well placed to benefit from the higher oil prices environment.

Next slide, please. Acquisition of an additional 40.375% interest in Block G. As you are all aware of the transformational and well-timed acquisition we announced in February, where we are purchasing an additional interest in Block G from our partner, Kosmos Energy. Since this announcement, we have seen benchmark oil prices surged by over 50%, which is very clearly a strong positive for the interim period calculation in Panoro favor. The transaction metrics highlighted on the right side of the slide were highly attractive at the time of the acquisition and obviously are even more compelling in today's oil prices environment with 3-digit numbers. We received an overwhelming endorsement of the acquisition from the capital market with USD 150 million bond tap and USD 49 million private placement, both multiple times oversubscribed and closed within a matter of hours.

As we outlined at the time of the announcement, we have already secured all governmental approval and no preemptive right apply. So I want to reassure and highlight that we are on track for a smooth completion of the acquisition in Q3 as announced and planned. The only remaining condition to satisfy is the competition clearance from CEMAC. We have made the necessary application in March and fully expect to receive clearance in Q3. As you can imagine, we are very eager to close this acquisition and take ownership of this enlarged interest in Block G, so we can work with our esteem operating partner, Trident Energy, to unlock the vast remaining potential of Ceiba Oilfield and Okume complex that have been a world-class asset for a long time.

I will now hand over to Qazi, our CFO, who will take you through the next slide and Q1 results.

Thank you very much, Julien. Next slide, please. Good morning, everyone. I will take you through some highlights this morning. You would see that we have, on an IFRS basis, reported a revenue of USD 34.9 million. This is largely a reflection of the volumes we have sold this quarter. And a lot of it is skewed towards the early part of the year when we were not in a period where oil prices were exponentially increasing, and that's basically the reflection of it, which translates into the results, which is showing an EBITDA of $10.9 million.

And hence, what the realizations are a little bit on the lower average than what you're currently seeing in oil prices. Having said that, on a pro forma basis, the results, including the potential acquisition volumes and the revenues are USD 57.4 billion with a pro forma EBITDA of $18.4 billion. All in all, we have 785,000 barrels of pro forma lifting during the first quarter of 2026. We continue to maintain a strong balance sheet with $218 million of cash on the balance sheet as of end of the quarter, which includes restricted cash of about USD 148 million. Again, as a reminder, this will be released and available to use once we conclude on the acquisition of Block G from Kosmos.

We expect the time line, as Julien mentioned, to be in the second half of the year, early second half of the year, and we remain on track to deliver that. We have continued to make our distributions. Again, for this quarter, we are announcing a NOK 50 million distribution, which is in line with the communication we made earlier and is consistent with the capacity we have available within our bond framework. Next slide, please. So just to take a step back and look at some history of our distributions. We have consistently returned cash to our shareholders and continue to do that with the NOK 50 million that we paid in March. And again, today, we have announced another NOK 50 million.

Again, this is restricted due to the bond framework we have in place for this year with another headroom of NOK 105 million equivalent to be available throughout the year. As a policy, we will continue to monitor the situation closely before making any distribution decisions, which every prudent oil company continues to do. Next slide, please. A little bit of detail about the liftings. So as I said, the first quarter liftings were largely before the escalation of oil prices. But we have sold lesser volumes in the second quarter. This is largely driven by the buildup of entitlements and the lifting program schedule between the partners. But we have continued to see a very strong conversion of price realization there, averaging $114 a barrel on a pro forma basis.

Next major lifting program in our program is in July with about 1.1 million barrels to be lifted in Gabon and Equatorial Guinea. If we include it on a pro forma basis, we are talking about close to 1.5 million barrels, including the potential acquired volumes from Kosmos. We have continued to take an active approach towards our hedging program. So we are currently protected at a blended average of $76.5 a barrel for our upcoming liftings in 2026. There is no hedging in place for '27 currently. But for 2026, we believe that we are adequately balanced for leaving some upside for the company and also protecting the downside if the oil prices were to retreat back to normalized levels. This is the first quarter we are taking a recognition of the change in fair value of the hedges.

So you would see, obviously, that the results reflect a rather large unrealized position on hedges. But we will see that this will continue to just be trued up as the quarters progress. So expect lesser volatility as we basically convert the program into realizations and also the price movements are not as impactful as they would be in the first period of recognition. So this is a kind of a unique quarter where we had to basically introduce this. But from next quarter, we would expect it to not be as impactful as it is right now.

Next slide, please. CapEx guidance, again, a lot of information, but starting from the left, we have a strong balance sheet, as I mentioned, with a very good cash position, largely driven by financing, the $150 million tap issue back in February, March and also the highly successful $49 million equity issue, which we completed in the month of February earlier this year. The bond currently stands at USD 300 million with a $25 million repayment coming in last quarter of this year. And then from next year, we -- subject to closing the Kosmos transaction, we will follow the pattern as it displayed on the screen on the bottom left-hand side chart. Capital expenditure, we have continued to maintain the guidance of a full year USD 55 million. This excludes the acquisition costs. And again, we believe that we will continue to maintain the budget as well on Block G with added interest when we have completed the transaction. On a full year basis, this will increase our expenditure to about USD 17 million on a pro forma basis. Next slide, please.

So I'll now hand over to Eric to take us through the production details and some background on performance of the assets.

Thank you, Qazi. Good morning, everyone. This slide illustrates on the production update, the very successful years of Panoro in increasing production year-on-year from the beginning. And you can see on this slide that 2025, as announced before, was our historical high above 10,000 barrels of oil per day net to Panoro. And as seen here, the Block G additional equity acquisition is a step change to Panoro production with a pro forma guidance for 2026 between 15,000 to 17,000 barrels of oil per day.

And we are on the road to the 20,000 net to Panoro in 2027 with the Ceiba potential full recovery as well as a list of productive work on our asset as well, including the MaBoMo Phase 2 well on stream and some additional investments in Okume, Ceiba and even in Tunisia.

Next, please. So our reserves number are very strong. Julien mentioned in his introduction, the 15 years production equivalent with our 2Ps. That's a very healthy position to be in for the group. The announced transaction is doubling our reserve base, as you can see on this slide. In 2025, we have achieved a good reserve replacement ratio with the 3.7 million barrel discovery, which you can see on the left -- on the right-hand side on the top, which is a Bourdon discovery recognition.

And we are more or less at a flat number. Our 2P plus 2C remain strong at 170 million barrels on a pro forma basis. So 15 years production, that's what needs to be remembered in this slide. And a lot of additional resources to be worked on and transform into 2P with the appropriate work program on the coming years. Next, please. Block G. Block G is a multimillion barrel accumulation world-class asset. As you can see here on the table, the recovery factor of Ceiba and Okume complex is approximately 20% to 21% today. The target is to reach the 30% recovery in the long term by 2035, 2040. There is a work plan for that. I just want to stress to highlight that every 1% of recovery factor we can gain on Block G is equivalent to 25 million barrels of reserves or for those who are familiar with the Panoro story, the 25 million barrel is equivalent to the Bourdon discovery that was announced last year on Dussafu block in Gabon.

The partnership is working together on the productive investment program for the next 3 to 5 years, including targeted well intervention, especially on the Okume complex with platform and dry [indiscernible] and additional drilling first in [ Elon ] or [ Oveng ] field on Okume complex within '28, '29. That's the objective. And later in the 2030, '31 on the Ceiba accumulation with subsea wells. The clear objective in Block G for the partnership is to bring the production back to the 30,000 barrels of oil per day level.

Next, please. So on Gabon Dussafu, our cornerstone asset, Dussafu production and uptime in Dussafu remained very strong for the quarter. Uptime is in the up 95% and above. MaBoMo Phase 2 drilling campaign is on track for this summer, as previously announced, and we anticipate to be back within summer 2027 at the 40,000 barrels of oil per day, which is the nameplate capacity of the FPSO once all 4 wells on MaBoMo Phase 2 are online. So that's on track. In the meantime, the joint venture is progressing the bolt-on development as well as the review of additional identified potential in the Bourdon area and in the northern part of the block, where we shot the seismic a few months ago. The strategy in Dussafu is to maintain a long-term plateau between 30,000 and 40,000 barrels of oil per day. And with all the identified potential, we are on track in '27, '28 and in the further years. Thank you. Next, please.

Next slide, please. So on Tunisia, the asset, the update, we have -- we operate the asset onshore and offshore in the region of [indiscernible], the TPS asset. Production is very stable with good performance above the 3,000 barrels of oil per day. We have rationalized cost and maintain production. The ongoing project will -- and well intervention will not only maintain the plateau and extend it, but increase production in the course of the year and next year. Next, please. So I have discussed a little bit before on the Dussafu block about the potential.

We have -- as you know, we shot the seismic in December, January, a 3D seismic on Niosi, Guduma block, which you can see on this map around the Dussafu area and part of the Dussafu, which was an area of interest. The seismic processing and interpretation is ongoing as per plan. The objective is to confirm the great potential seen in this prospective area in a well-known hydrocarbon basin. You can see all the Dussafu production. You can see the Etame field operated by Vaalco up north. So the trend and the hydrocarbon play is there. So we are progressing well on this project for an exploration well sometimes in 2029. And it is worth noting that on the Dussafu block, obviously, the seismic was shot in this highly prolific area, and we also expect to unlock some material upside.

Next, please. Block EG 23, an Estrella discovery that we high graded. This is a very exciting block and exciting project where Panoro holds 80% working interest and is the operator with its partner, GEPetrol, holding 20% -- as I said, it's a very exciting asset in our portfolio. We have received resources recognition, which are confirming the potential on the Estrella and surrounding prospects, namely Rodo and Riaba, which you can see on the map in green, just above Estrella discovery. Work is progressing on the conceptual development plan of Australia discovery as well as Rodo and Riaba oil discovery with multimillion barrels of recovery expected in the coming joint development plan with one drilling center that will target on one side, the Estrella discovery and accumulation, gas and condensate -- and on the other side, target and drill the Rodo oil accumulation and the Riaba one in reachable distance from one central platform. So that would be a very cost-effective solution, and we are looking at fast tracking the drilling of the Estrella discovery.

Next, please. So just to come back on this slide, and that will be the last slide of the presentation. We are on track to deliver as per our guidance. And as we said and as I said earlier, on the road to the 20,000 barrels of oil per day in the course of 2027 once all the recovery of potential in Ceiba and additional development in Gabon will be done and online. We are in a very good position in terms of reserves with 15 years ahead of us and with a very strong organic growth pipeline of projects to unlock additional potential on our asset base.

That will conclude today's presentation. Thank you.

Thank you very much, Eric. And we will now open for Q&A. [Operator Instructions] the first question has been submitted online. Qazi, perhaps could you please maybe provide a little bit more color on the phasing of our hedges throughout the remainder of the year and timing of settlement expected for those?

Yes, certainly, Andy. As I mentioned, we take an active approach towards hedging. And our strategy is always to align our hedge positions to the lifting events. So to the extent possible. In summary, the hedge positions are bespokeally concentrated for the same periods when we are basically selling and pricing our cargoes. And the current portfolio or the current positions we have are again concentrated towards the lifting events, which are largely in the second half of the year, and they will be unwound as we lift those barrels in the coming months.

Thank you very much, Qazi, Eric, a question has come in on Equatorial Guinea Block G. Could you please elaborate on the current status of Ceiba field and the work ongoing to restore and normalize production.

Thank you Okay. Sure. So the Ceiba field, as you were aware, we had some issues last year with the famous multiphase pump MPPs sitting on the seabed on the subsea clusters, how we call them, with wells being impacted in terms of production. We have had 3 MPP issues in 2025. Two of them have been restored already as per planning, one in October last year and one in January, February this year. We have the central cluster that needs some additional equipment, which is being engineered and supplied. We expect to get back to a full steady and reliable production on the Ceiba accumulation and complex within in the course of the first half of 2027. Once everything has been restored and the long lead items have been supplied and reinstalled. It does require some subsea interventions, which has been -- they are being engineered and planned accordingly.

Thank you very much, Eric. A question has come in, perhaps, Julien, you may want to take this one. Obviously, the Block G acquisition was very well timed. How are we seeing or is potential for further external growth opportunities? Or is the focus now going to be more on the internal organic opportunity set?

As mentioned, we -- our acquisition of Kosmos interest has been extremely well timed. We have been announcing it a couple of days before the start of the Middle East conflict. And clearly, our core focus is to close this transaction. As I mentioned, we are on track to close it during the next quarter. And we have a very strong and exciting pipeline of growth opportunities. But in the meantime, we are always considering new M&A transaction. It has always been part of the DNA of Panoro, as I mentioned, and it's very core to our focus. But let's be quite candid here in the current high oil prices environment, it's not going to be that easy to replicate the recent announced transaction with Kosmos.

Thank you. Thank you very much. Question for Qazi. Again, Qazi, how is the current oil price environment affecting your thinking about further hedging.

I think we obviously, as I say, take an active approach towards hedging. So insofar as we have certainty of the lifting program, we are not averse to hedging. But certainly, our approach has always been towards downside protection rather than being speculative on oil price. We will continue to expose the company to upside through introducing a proportion of our barrels to be protected for the downside. But certainly, we will not consider a very, very kind of heavy hedging program. The hedging program inherently for us is on a kind of a rolling basis.

We always look at upcoming liftings and continue to be hedged out 6 to 8 months in advance for the events that are happening, and we are reasonably certain that will happen in that time frame. So the answer is yes. There's always an appetite to hedge. But in the current environment, near-term months, we are not expecting or looking to extend any more positions because the prices are high as it is, and it gives us a nice upside to our barrels that are currently available for sale.

Thank you very much. A further question is regarding the final payment to Kosmos when the acquisition is closed. And can it be assumed that the final proceeds will be reduced proportionately to the cash flow produced by the EG assets and the corresponding adjustment made. Julien, perhaps you'd like to take that one.

Yes. This assumption is totally correct. And as we mentioned, the effective date of the transaction with Kosmos is January 1, 2025. And we're anticipating closing sometime during this summer. And we mentioned in the past that we were anticipated to the final cash consideration to be paid at time of completion to be somewhere around [ 140 million to 150 million ]. That was a number we provided to the market back in February when we announced the deal. Obviously, that was before the strong surge in oil prices. So again, it will depend on when we will close with all the lifting and revenues that will be generated. But we can assume that this number will probably have drastically improved and be much lower.

Thank you very much, Julien. Eric, a question has been submitted. Obviously, given the extension to 2053 of the Dussafu permit offshore Gabon, how should people be thinking about the longevity and implications -- positive implications that long-dated extension has for extending the production today?

Okay. That's a very good question. The first benefit of this long-term extension to 2053 versus the 2038 that was our PSC was giving us 2x 5 years post 2028. It will -- we will be able to enjoy the long end tail of the current production. Today, we are developing reserves. We've been -- as you can see, the story is a very -- it's a success story, Dussafu, Hibiscus field and discoveries. The early production reserves will reach maturity and long-term final production post 2038. So it's maximizing capturing the end of production of the current fields as well as being able to see -- to have a long-term view on, first, the Bourdon discovery, which will be developed, the wall treatment and some other objects, which are -- we know we have potential, not just in the Bourdon area with Bourdon Southwest extension and some others.

We have potential in the northern part of the block. And this will take from now on until 2030 and even '35, we will still be analyzing and drilling some new objects and tying them back to the existing production center and facilities. And this will extend post 2038. So we'll be able to maintain and carry on investing on the fantastic potential of the block.

Just a clarification, perhaps Qazi, just on the -- how the stronger oil price environment, when it may be reflected in the shareholder distribution capacity and just to confirm that the 2025 capacity has been predetermined and won't change.

Yes. So the 2025 capacity has been predetermined. This is in line with the bond framework we have and the kind of available capacity that it unlocks on a structural basis. we had about just north of $21 million of capacity, which is in accordance with the bond terms at 50% of free cash flow to equity, which is a defined term in the bondholder agreement. So that is available to us for this year. For next year, 2026 cash flows will be the benchmark and 50% of that or 2025 cash flows, whichever is higher. This is on the assumption that the amendments that were proposed under the bond terms back in February have been implemented, and that only happens once we close the Kosmos transaction.

Thank you very much, A further question submitted online. Could you -- are you able to comment on the expected time line for the CEMAC approval? And if there are any other factors that may affect the timing of completion of the acquisition?

We don't envisage any roadblocks to the completion of acquisition. CEMAC approval from the entire competition division, let's say, is on track. All the applications, associated filings, explanations have been filed. And we are continuing to engage with the excellent team at CEMAC to progress our case. The decision obviously is -- needs to be reached in a maximum of 6 months from the filing date, which is still within our completion period. And we see no reason why it can't be completed within this time frame. So hopefully, we will continue to monitor it actively as we do, but there's no suggestion or any indication that we can't get there as we communicated earlier.

Thank you very much, Qazi. Eric, a question has come in regarding the exciting Estrella project in Equatorial Guinea. Could you please comment what you see as the key steps, events or catalysts to achieving first gas in the oil?

Thank you, Andy. So Estrella, yes, very, very exciting project. We are still today in the first exploration period until first quarter 2028 with no well obligation. This being said, we have the opportunity and the occasion -- the option of fast tracking and accelerating the drilling. The first step is we are in the seismic reprocessing study, which should finalize. We'll have the final numbers and view this summer. And then I see Estrella. And as I said earlier, the commingled development of Estrella and Rodo together by its typical shallow water development close to existing infrastructure, which is the Alba complex. By the time we supply the platform, long lead items, the well engineering, the pipeline, it's more or less a 2 years process from now. So summer '26, we can expect first oil and first gas Q1, Q2, '28, that would be our approach.

And that will conclude the Q&A for today's webinar. Once again, we thank you for your attendance. If you have any further questions, please do contact us on [email protected], and we will get back to you. Thank you.

Thank you.

Good morning, everyone. This is Qazi Qadeer from Panoro Energy. I'm the CFO. With me joining today is Eric d'Argentre, our Chief Operating Officer; and Julien Balkany, our Chairman. We are also supported by Andy Dymond, who is our Head of IR and Corporate Finance.

I'll read out the disclaimer to you before we begin. This presentation does not constitute an offer to buy or sell share. So there are risks and uncertainties, including, among others, uncertainties in the exploration and for the development and production of the gas and oil interest in estimating those as well. And we basically -- we are going to discuss some forward-looking statements that are often identified here in these presentations. I think the disclaimer is understood to be read, so we can begin.

For the housekeeping, we have a feature to do question and answers. [Operator Instructions] We are going to keep a disciplined, focused time on this call to take questions because we have a very, very packed agenda today, so we appreciate if the questions keep coming, and we'll try to answer those after the call on an offline basis.

Next slide, please [ Sarah ]. I'll hand over now to our Chairman, Julien Balkany, who will take us through the materials.

Thank you, Qazi. Good morning, everyone. Before we move to our Q4 results, trading, financial and operational update, I would like to say a few key words on the transformational and accretive acquisition that we have announced last night.

I'm very delighted to announce that we have agreed to purchase an additional 40.375% in Block G offshore Equatorial Guinea from Kosmos Energy. The upfront headline consideration is $180 million with interim adjustments in Panoro's favor from the effective date of the transaction that is January 1, 2025, which expect to reduce the cash payment on completion between $140 million to $150 million. Closing is anticipated sometime during summer 2026.

There is a further deferred contingent consideration of $29.5 million (sic) [ $39.5 million ] in aggregate link to certain production and oil price thresholds over 2026 to 2028.

I would like to highlight that ourselves and our partner, Kosmos have been able to fully derisk the transaction, mitigating the execution risk, clearing all governmental approval and preemptive rights in advance.

The only outstanding approval is CEMAC, which is an anti-competition assessment from Central Africa regulator, which we expect to be concluded within a set 6-month timeframe from submission to facilitate completion in summer 2026.

As of the effective date and initial consideration, we are acquiring 46 million barrels at an enterprise value of about $3.91 per barrel, which is over 50% discount to Panoro last traded multiple market benchmark, including broker valuation and regional transaction comparables in West and Central Africa. Production net to the interest being acquired in 2025 was around 8,200 barrels of oil per day.

In terms of funding to finance this acquisition, we launched yesterday an equity private placement at yesterday closing price, at no discount, for just below $50 million, which we have successfully closed and was multiple times oversubscribed last night. The demand for the placement and fact we completed it at no discount is a clear testament to the quality of Panoro asset base, including Block G and the compelling terms of the acquisition.

We are also seeking to utilize the $150 million tap headroom in our existing bond framework. And today, we are commencing fixed income meetings with prospective bondholders.

Next slide, please. Transformative impact, materiality and longevity. I would say this slide speaks for itself and show the transformational impact on Panoro's operating profile. Based on 2025 full year, the acquisition increased Panoro pro forma production by approximately 80%. And on a 2P reserve basis, it increased Panoro size by over 100%. This acquisition basically doubled the size of Panoro overnight.

Other of the many benefits of the acquisition will be the increase and more frequent crude oil lifting, giving us better and greater regularity with the oil price through the years, which we fully expect to drive material cash flow expansion with the objective to enhance shareholder return for the next years to come.

Next slide, please. Block G overview. Before I hand over to Eric d'Argentre, our COO and President, I want to remind people that it is almost 5 years ago today since we announced our entry in Equatorial Guinea and the acquisition of our current 14.25% interest in Block G from Tullow Oil. That acquisition paid back in less than 18 months. And as you can see in the graph on the slide in front of you, our 2P reserve at our last annual report are greater than the 2P reserve at acquisition, showing that we have replaced more reserves than we have produced.

There are clearly some parallels with the acquisition we have announced last night, hopefully, at the right time in the current oil prices cycle and Panoro's ability to transact swiftly and with certainty and also the strong support of the capital market and our shareholders.

I will now hand over to Eric, who will take you through the operation of not only Block G, but also the exciting and high-impact work program across our wider E&P portfolio.

Thank you very much, Julien. Good morning, everybody. On this slide, on the Block G, you can see on the left-hand side our Ceiba and Okume Complex. So Block G is composed of 2 different oil accumulation, 6 fields on conventional more shallow water and the Ceiba field, which is a subsea development.

The key figures on a pro forma basis are very strong. We have 115 million barrels of 2P. Our production for '25 on a pro forma basis is 11,000 barrel of oil per day. As you can see on the left-hand side, the production curve, delivery was strong through the years. 2025 saw a little low on production delivery mainly on the Ceiba field. We have discussed that in the previous reports, quarterly reports on the Ceiba multiphase pump failures or problems. I'm pleased to say that, back in October, one pump was back in service. Another one is being finalized now as we speak this coming weeks. And we expect the Ceiba field to gradually recover production and get back to its full potential in the course of the year 2026.

Next, please. So Block G, Okume and Ceiba, it's important to note that it's very large oil accumulation, multibillion barrels of oil in place originally, 1.3 billion on Okume and 1.1 billion on Ceiba field, with the current recovery factor that is rather low at around 20%, 21%. And with our long-term view and extension granted in 2022 until 2040, we expect, with the work program, to recover around 30%. That is the target.

And you can see from 2025 going forward on the next 5 years, we have in the first few years, focusing on the recovery of our cluster in Ceiba field, additional well workover and intervention, stimulation, pump optimization on the Okume Complex and then moved to -- in 2 to 3 years in 2028 and forward, on the drilling campaign to add additional drainage point on the Okume field and the Ceiba accumulation over the years that we expect in our 5 years plan to reach -- to get back above 30,000 barrels of oil per day and produce around 55 million, 54 million gross production at moderate development cost, around averaging $10 per barrel.

Next, please. So on the large group production, Panoro has delivered a consistently increase of production with a historical level in 2025 at 2,300 barrel of oil per day pre-acquisition. And you can see here, the impact of the 40.3% acquisition of Kosmos interest on '25 pro forma basis.

Our production guidance for 2026 on a pro forma basis are around -- between 15,000 and 17,000 barrel of oil per day with the current program. And as I mentioned in the previous slide on Block G, we have as well strong program -- investment program, specifically on Dussafu block in Gabon with MaBoMo Phase 2 drilling starting this summer. And we are on the road to the 20,000 barrel of oil per day net to Panoro Group.

That is very strong asset base is as well in terms of cash generation, very healthy and strong. You can see on the right-hand side, we are very resilient at oil price. Even at $60 a barrel, we have a healthy cash flow generative way above our pro forma bond feature and going up to the $800 million and $900 million mark once the barrel price goes to $75, $80.

Next, please. So we have discussed this morning the transaction on Block G, but let's not forget the rest of our asset base and especially the Dussafu asset, which is a cornerstone asset for Panoro, has strongly delivered production with a very good upside for the years. And here again, with historical peak production in 2025, about 33,000 barrels. We have a strong 2P base. As I mentioned, the MaBoMo Phase 2 was FID-ed and drilling will start very soon. And we have -- in parallel, we are maturing with the operator Bourdon FID. Bourdon was discovered late '24, '25. It's a 25 million barrel recoverable reserves and we expect FID to be sanctioned in the coming months.

Next, please. On Tunisia, it's a more modest asset base, but very steady, very important in the portfolio as well. We have delivered good production last year, above 3,000 bopd fighting decline, maintaining our baseline. And we have a list of productive project and well intervention in 2026. And we are maturing some drilling project for later '27, '28, that will not just maintain the plateau or extend the plateau above 3,000, but increase production on the Tunisian asset. Thank you.

Next slide, please. Another exciting project we have, on exploration. We have the Niosi and Guduma blocks, which are, as you can see right in the middle of a very prolific basin with the Dussafu production and the Etame field of VAALCO very close to it. And we have finalized the seismic survey back in December and January. It's now being processed and interpretation this year and part of 2027 to mature the already identified prospect, whether on the top corner of the Dussafu block or on the Niosi trend as well. That's a very, very exciting project, and we aim to well being sanctioned sometime in 2028.

Next slide. Another very exciting project in block, Block EG-23 in Equatorial Guinea. We have high-graded Estrella discovery, very exciting discovery with well tested above 6,700 barrel of oil per day and almost 50 million standard cubic feet of gas. It's about 10s kilometers from existing producing facilities of the Alba field, making it a very fast track and easy tieback. And you can see next to Estrella, the green Rodo discovery that would conceptually could be a commingled development of Estrella and Rodo with one platform and drilling center. So another exciting project to follow.

Next slide, please. Thank you. I will hand over to Qazi Qadeer to take you through the full year results.

Thank you so much, Eric, and good morning, everyone. I'm going to discuss very briefly the 4Q and full year highlights for 2025. We are looking at revenue of $216 million, a little bit less compared to 2024, but it is a function of 2 items, which is oil price and the composition of liftings, which then basically affect the cutoff of the sales if they are very, very close to the period end.

EBITDA was $98 million approximately. Again, this was driven by the volumes lifted during the year versus the realization for the year compared to 2024.

We came exactly on our guidance on the capital expenditure of USD 40 million, which we believe is a good result for the discipline of capital we maintain at the company.

Strong cash position, $77 million, and we are basically fully drawn on our bond, which we raised last year and very, very healthy and strong cash flow generation from operations at USD 73 million.

We are looking at cash distribution of NOK 50 million, which we have announced this morning to be paid on or about 10th of March. And just looking at the few years, we have started to declare our distributions, accumulated basis is about NOK 710 million, with a very healthy set of buybacks as well at NOK 135 million.

Next slide, please. Just to talk a little bit about the shareholder returns. So effectively, we have returned 30% of our current market cap. Obviously, this will be a little bit different if we consider the market cap of this morning, but certainly when we wrote this presentation, 30% of market cap since we started consistent distribution since March 2023.

A very healthy yield so far we have maintained, but obviously, we are constrained by the framework that we have under our bond terms, which basically give us a finite capacity for distributions in 2026, which is about, in equivalent terms, USD 21 million. And off this, we have distributed for this quarter about NOK 50 million equivalent.

Next slide, please. We are going to talk a little bit about guidance on liftings and also discuss how the announced acquisition affects our business. Very, very positive change from the acquisition of Kosmos' interest, which is expected to be fully available to us in 2027, but certainly from the later part of the year when we complete the transaction in the third quarter 2026.

On an existing basis -- business basis, we are talking about accumulation of inventories until the first half of the year, which is about close to 600,000 barrels, but very, very active sale campaign in later part of the year. So for guidance purposes on existing asset base, 3 million to 3.5 million barrels of sales versus assuming on a pro forma basis, we get about 5.1 million to 5.5 million barrels of sales for this year.

Now what it also does is that it increases our frequency of the lifting and during the completion period with Kosmos transaction, we are still taking the benefit of a more spread out profile of our crude liftings, which also exposes us to more data points on the pricing for our crude.

Next slide, please. So again, just talking about how the buildup for cash has been for this last -- past year. As I mentioned very healthy cash flow generation from operations. We have also between the recycling of inventories through the advances. We are close to about $100 million of cash flow including operations. With our discipline delivery on the capital expenditure of our $40 million and after paying off all our obligations, we are returning about close to $40 million in share buybacks and cash distributions for this year, ending with about $77 million of cash at the balance sheet as of 31st of December 2025.

We are also, as you have seen, announcing a tap issue for a $150 million bond to fund the acquisition of our announcement this morning to take the working interest of Kosmos Energy's Block G 40.375%. This will basically be the source which will basically fund this acquisition later in the year.

For guidance purposes, we have some capital expenditure, which is about USD 50 million to USD 55 million on an existing basis of the assets. And with -- on a pro forma basis, assuming we complete the transaction with Kosmos, it is going to be another $15 million to $17 million higher.

Next slide, please. So just in summary, I will let Eric summarize the messaging and then we'll go straight into Q&A.

Thank you, Qazi. As a summary and the main message for you today is that we are delivering on our strategy -- on our growth strategy. The first pillar being the production baseline and the reserves, we have produced highest production this year -- in 2025 last year, at record level.

We have FID'd the MaBoMo Phase 2 as we discussed. That will take us back to 40,000 on the Dussafu block. That's a very exciting Phase 2 drilling. So we have a consistent organic reserve replacement, whether it is in Gabon or in Equatorial Guinea as well as in Tunisia.

In parallel to this strong production and reserve base, we are maturing growth project in our asset portfolio with the Bourdon discovery in Gabon. We mentioned -- and I mentioned the Estrella project in Block EG-23, for which we expect resource recognition very soon.

And the new 3D seismic we just acquired with our partners, BW Energy and VAALCO, Niosi, Guduma and Dussafu block will allow us to mature and firm up extra additional growth within the south of Gabon area where we are already.

And in terms of corporate, in our growth strategy, Panoro has a strong track record of accretive M&A. That's part of the company DNA, and we have delivered on that strategy with the announcement yesterday of the acquisition of the 40.375% interest of Kosmos in Block G offshore Equatorial Guinea.

Thank you. That's the last slide. We'll now go on the Q&A for some time, and I would remind you to try and focus on the big news of last night and this morning on Block G, so that we stay focused. Thank you.

We will now open up to Q&A. As has previously been mentioned, for obvious reasons, we are on a tight timetable today. If we don't manage to answer your question or get to you, please do contact us on [email protected] or [email protected], and we will get back to you.

First question is from Stephane Foucaud.

It's really around EG and around the production profile over the coming years. So two on that. The first one, could you confirm if this production profile is indeed just on the 2P case or whether it includes some 2Cs to achieve that target?

And then I think you talk about a $540 million of CapEx from '26 to 2031, I think it is. Could you give a sense of the timing of that CapEx? How it is spread over the years?

All right. Thanks, Stephane. So to answer your question, we have, in terms of production and the 5 years plan about your 2P, 2Cs, it's -- we are talking here about the 2P, not the 2C in this 5 years plan. The 2C would come as an addition to this 5 years plan. So the drilling we mention is on current recognized reserves, but not all developed, so underdeveloped reserves.

And the other part of your question on the CapEx. So the next 5 years plan a net rev means producing around 55 million barrel of oil at an average cost of $10 per barrel. You can well imagine that some of the work like stimulation of light workover on the Okume Complex may come at $5, $4 to $5 a barrel development. Drilling in Okume Complex is more within the $10 to $12 or $13 range, and the Ceiba drilling will be around $15 to $17 per barrel development cost. So the average of this large portfolio is around $10 per barrel development cost.

Okay. So if I understand therefore, looking at the slide, that means that probably the higher cost, in overall, probably come in the later years rather than the earlier years of the program?

Yes, exactly. The -- yes. The Ceiba drilling needs more work, more engineering. It's higher investment. So we are going for the conventional shallow water first, easy barrels on Okume wells -- well stock, maximizing the existing well stock, and then we will go on drilling. And the Ceiba drilling will come after the Okume drilling campaign. That's where we are very much aligned with the operator.

[Operator Instructions] Okay. On the basis that there are no further questions pending, I'd just like to remind you if you do have a question after this call, please feel free to contact us online and we will get back to you. Otherwise, that will conclude today's webinar. Thank you very much.

Thank you.

Thank you very much.

Thank you all.

Hello. Good morning, and welcome, everybody. I'm Qazi Qadeer, Panoro's Chief Financial Officer. Thank you for joining us. This is our third quarter and first 9 months of 2025 trading and results update. We have this morning released a press release and an accompanying presentation, which we'll go through now, which shows the progress we have made during the course of the year.

Joining me on this call today are Panoro's Executive Chairman, Julien Balkany; and our Chief Operating Officer and President, Eric d'Argentré. As a reminder, today's conference call contains certain statements that are and may be deemed to be forward-looking statements, which include all statements other than statements of historical fact. Forward-looking statements involve making certain assumptions based on company's experience and perception of historical trends, current conditions, expected future developments and other factors that we believe are appropriate under the circumstances.

Although we believe the expectations reflected in the forward-looking statements are reasonable, actual events or results may differ materially from those projected or implied in such forward-looking statements due to unknown or known risks, uncertainties and other factors. And for your reference, our press release is available on our website, panoroenergy.com. Next slide, please.

So we have our Chairman, Julien Balkany here, who is going to take you through the key messages.

Thank you, Qazi. Good morning, everyone. Before we move to our Q3 results and operational update, I would like to say a few key words on the business, our recent achievement and our objectives. In terms of production and reserves, within the last 5 years, we have rapidly grown through both organic and external growth. And today, we have a stable and well-diversified production and reserve base across three African countries. In 2026, we will actively continue developing our assets at Dussafu with first MaBoMo Phase 2 drilling as well as progressing the Bourdon discovery to FID.

Moving on to exploration and appraisal. We have an exciting portfolio that will provide us with some very good catalyst. We have strategically positioned our E&A portfolio with Block EG-23 in Equatorial Guinea and Niosi and Guduma Offshore Gabon close to existing infrastructure, so that in a success case, we can seek to rapidly and cost effectively monetize any discoveries. As an example of this, in the Hibiscus South and other discoveries we made in the last Dussafu drilling campaign where new barrels that were put on stream within 6 months of discovery at a finding and development cost of just $5 per barrel.

On the corporate side, I want first to come back and address the recent announcement that our friend and very dear colleague, John Hamilton, long-time Panoro CEO that usually walks you through the quarterly results, has taken a temporary leave of absence for family reasons. John has our full support and best wishes during those difficult times. While John is absent, let me reassure you that under my leadership, we have an extremely talented, focused and committed management that provide continuity in the delivery of our strategy and an entire team of colleagues who are experts in their respective fields and very excited by the potential of our assets.

It brings me now to Panoro DNA that has been acquisition, which has, over the years, played a major role in our growth story. In order for us to achieve our ambition and increase our size and scale, we will remain focused on M&A opportunities and are constantly evaluating new accretive deals that would deliver immediate free cash flow to the company and create shareholder value.

Our successful bond issuance last year has diversified our access to capital and support our overall growth strategy. Underpinning all this and our core objective remain to maximize shareholder return. And I clearly want to reemphasize that shareholder return is at the center of all decision-making in Panoro. Since March 2023, including to the declared cash distribution of NOK 80 million, we have returned in total around 33%, 1/3 of our current market cap, to shareholders. It demonstrates our strong commitment to create value for all our shareholders while maintaining a very disciplined approach.

I would now hand back over to Qazi, who will take you through our Q3 results.

Thank you very much, Julien. And on this slide, you will see that we have assembled the highlights for this quarter and the year-to-date numbers. For the first 9 months, we are showing a revenue of almost $150 million and EBITDA of $70 million. CapEx is just under $30 million, the majority of which was incurred in the early part of 2025 in relation to the successful bolt-on discovery offshore Gabon. Then we have the third quarter revenue, which was $63.5 million, EBITDA of $19.3 million. It should be noted that Q3 EBITDA includes a noncash effect of negative $14 million worth of inventory movement arising from the expensing of Q2 inventory buildup, which was lifted and sold in Q3. So you would expect to see swings like that if liftings happen quarter-on-quarter.

On the balance sheet, we have around $44 million in cash at bank at September 30, $150 million of gross debt, and net debt to trailing 12-month EBITDA ratio of about 1.04x. We have maintained a very solid and good balance sheet throughout this period.

On the right, we have announced a quarterly cash distribution of NOK 80 million, which will be paid as a return of paid-in capital. Once paid, that will bring us to a cumulative cash distribution of NOK 660 million since March 2023. And including all share buybacks to date, we have returned approximately NOK 790 million to the shareholders, which, again, as Julien mentioned earlier, around 33% of our current market cap.

On the next slide, that builds up our distributions for 2025. We have followed our policy for the calendar year 2025 to distribute NOK 80 million quarterly in cash distributions, and that honors our commitment what we set out at the start of the year. Year-to-date, we have purchased NOK 83 million worth of our own shares from the market as of close yesterday. We have been out of the market in the recent weeks because of close periods, but we still have some room left this year.

If you look at the right, we have a limit of NOK 500 million of total distributions in the calendar year 2025, which is about $45 million. It's a key figure that we distribute in Norwegian kronas. As you can see, we have some headroom over the remainder of the year and have adhered to our quarterly schedule, again, underlining our commitment to shareholder distributions.

This covers a bit of production update. In terms of group production, we break it down by quarter, so everybody can see that what is going on at our assets and broader trends over time. Dussafu continues to perform brilliantly with all wells available and performing in line or even ahead of expectations. The Q3 rate doesn't quite tell the story, as in the period, the operator successfully completed 3 weeks of planned annual maintenance, which limited production availability to about 80% in the quarter. You can see in the graph what impact this has on our group production in the gray shaded box.

Tunisia has been quite steady. But in EG, the previously communicated downtime at the Ceiba field has impacted group production over the last 2 quarters. As a result, we expect group production for full year 2025 to average slightly below 11,000 barrels of oil per day. CapEx guidance for 2025 is unchanged at $40 million for the full year.

On the next slide, we'll talk about the liftings a little bit. Those that are familiar with our business know that while we produce oil every day, we do not sell oil every day. It is sell in -- sold in parcels over different dates throughout the course of the year. We keep this slide updated each quarter and refine as necessary what's the logistical and commercial factors that drive our lifting allocation firm up. Our lifting in the first 3 quarters have been in line with our expectations. The first 9 months, we have lifted and sold just over 2 million barrels at an average realized oil price of $67.49 per barrel. In Q3, we realized a premium of around 1% over the average Brent oil price of the period 863,000 barrels or thereabouts, which is in line with previously communicated guidance at almost $69.5 per barrel.

In Q4, we expect to lift around 1.1 million barrels of oil. It could be a bit higher as well, given that we have some inventory available to be lifted at the end of the year. Notwithstanding this, Q4 remains our busiest quarter from a lifting perspective with around 35% -- 2025 liftings occurring in the period. We have already lifted around 950,000 barrels in Gabon during mid-November. So the vast majority of Q4 has already locked in.

On the next slide, this is a busy slide, but it summarizes a few key points. But just taking it from the top right, there is a reconciliation on our top left rather, there's a reconciliation of our cash at the start of the year and cash at September. On the left, we show our bond amortization, noting that we do not have any repayment during the year, and it only starts in the late part of 2026. On the right, we have our capital expenditure guidance for the year. As I said, it is going to be in line with previously communicated USD 40 million for the year. As everybody knows, we had a very heavy CapEx last year. This year, it's more around $40 million. We have just spent up to $30 million in September, and we are in line to meet our target of $40 million.

I will now hand over to my colleague, Eric d'Argentré, who is going to take you through the operations. Thank you.

Thank you, Qazi, and good morning, everyone. I am Eric d'Argentré, Panoro's CEO and President. I have -- I'm delighted to join Panoro early September, coming from 29 years at Perenco in operational and senior management position globally and in particular across Africa. So I am indeed very familiar with Panoro area of operations.

This being said, on Dussafu operation update. So as Qazi mentioned, the production delivery remains strong and steady since the beginning of the year. And the 3 weeks annual maintenance operation on Dussafu was very well executed by the operator BW Energy in time with no extra days, but it does impact indeed the uptime in the period. On the project side, we have FID-ed and already planned mid next year, the exciting MaBoMo Phase 2 development coming around June '26. That will be a four-well drilling campaign, horizontal wells with long drain as we successfully did in the past. So applying the same techniques and strategy for those four wells. This -- those four wells will bring us back to the maximum surface capacity in terms of production on the MaBoMo and Adolo FPSO.

The other exciting news on the Dussafu block is the Bourdon discovery. You heard about it earlier this year. This is roughly 50 million barrel in place and 25 million barrels to be recoverables. We are maturing with BW Energy, the FID for this project. The full development plan will include a first phase with three wells being drilled from a platform or a jack-up conversion and the pipeline to tie back to the existing facilities. And that will come in future and help us to extend the production plateau at the Dussafu block. And there is other exciting prospect around the Dussafu area, which we will come in the next slide.

Again, you have heard about Niosi and Guduma block in the past. This is clearly a potential to repeat the Dussafu success story. And I'm very excited to say that we have started the seismic survey, which we discussed in the past this week on Niosi and Guduma as well as on Dussafu. We have two area of interest, which you can see on the slide in blue gray. One, including the top corner of the Dussafu block on the east part, where the seismic will help us to understand better and map better the Walt Whitman discovery and other prospects in the area, as well as the Niosi area, which you don't need to be a subsurface expert to realize that the Niosi area of interest is very well positioned between the Dussafu field and the Etame field operated by VAALCO in a very well-known and productive petroleum system here. So the partnership of BW Energy, VAALCO and Panoro is very well positioned in terms of knowledge in the area, and there is no better joint venture to understand the potential of Niosi and Guduma field.

Next, please. Okay. On Equatorial Guinea operation, we have on Block G, two fields, the Ceiba field and the Okume field, tied back to the FPSO. While the Okume production has delivered as per expectation this year, we have suffered low delivery in Ceiba. This was explained earlier this year due to subsea and equipment issues. The operator, Trident Energy has worked hard and is working hard and diligently to restore production on the Ceiba field. One subsea cluster is already back on production. The second one is in operation. Marine and subsea operations are ongoing as we speak. We expect to have cluster 2 back on production sometime end of November, early December. And the rest of the production will -- should be back online early 2026. Next, please.

In Equatorial Guinea, we also have a very exciting and one of our best asset, actually Block EG-23, which is located, as you can see in blue, in between the Niger Delta and the Rio Del Rey in Cameroon. So a very prolific petroleum system, well known, lots of oil and gas fields in the area. And you see Block EG-23 just up north of the Alba field operated by Conoco, which has already delivered above 1 billion barrel as well as the Zafiro prospect -- development with, again, over 1 billion barrel production. So we are at the moment in reprocessing of seismic data on this block. And we should have a better image within mid of 2026.

Just a zoom on Block EG-23 and the Estrella discovery, which is a very [ want ], a very important, very much interesting for us. Estrella was -- Estrella-1 was drilled in 2001 and discovered 60 meters of reservoir. The well was tested above 6,700 barrels of oil per day and almost 50 million standard cubic feet of gas. As you can see, it's very close to the Alba infrastructure. It's 7 to 10 kilometers away. So it's an easy tieback and an obvious one, and then going onshore to the Punta Europa gas plant that has spare capacity. And we can see on the map, the dotted line shows you the 20 kilometers radius, which shows that most of the prospect identified and discoveries on our block are within tieback distance. And the idea is once we have one field tied back, then the next one will be in short distance, and we can repeat the same strategy as we've done in South of Gabon.

Coming to Tunisia. Tunisia asset, as I mentioned, is producing steadily around 3,500 barrels as of today. So we have seen in the recent months, an increase in production of 10%. I was -- I visited myself the site a couple of weeks ago, and I was very impressed by the dedication of the team in maintenance, integrity and uptime. So we have a good asset base in Tunisia, and we are working on new -- on productive project and investment to increase production and extend the plateau on the TPS asset. Next, please.

So as discussed in the previous slides, we have a very exciting pipeline of organic growth within our existing field with robust 2P reserves and a very good above 300% replacement ratio. That's a very good performance. Bourdon discovery will -- is not yet included. But as soon as FID is done, we should be able to book those reserves. We have other 26 million of 2C as of December '24 of discovered resources. And on Block EG-23, you see above 100 million barrel potential which is the Estrella field and other identified prospect I discussed earlier. And we will work towards transforming those 2C into 2P and then in production.

On top of the Block EG-23, the Niosi, Guduma and the Dussafu, the EEA has clearly potential to increase substantially our resources. Again, the first step is happening as we speak with the seismic survey on the two exploration blocks, Niosi and Guduma, and that will be -- that will feed the pipeline of organic growth in coming years.

Coming back to the key messages, I will leave you with those messages on the screen and move to the Q&A session.

Thank you very much, Eric. We will now take question and answers. If you will be able to raise your hand or post your questions via the chat box on the bottom, which should be available to you. If you have a question, please raise your hand and we'll try to unmute your line and take your questions live.

Thank you very much, Qazi. We will now open up to Q&A. The first question has been submitted online. You have honored the quarterly cash distributions for 2025 with the NOK 80 million declared today. Can we expect to see continued buybacks under the program?

As mentioned by our CFO, Qazi Qadeer, we have been in close period, and we intend to restart and restore our buyback program when we will be able to do so. We have headroom of just under NOK 100 million under our maximum priority distribution. And once again, our core focus is to deliver shareholder return.

Thank you, Julien. The next question is from Christoffer Bachke.

This is Christoffer from Clarksons. So I have two questions today, if I may. The first question relates to Block EG-23, where investors currently seem to assign limited value. Can you comment on how you view the potential of this asset and what strategic options such as partnering, farm down or alternative development pathways you're evaluating for the block going forward? And the second question is on M&A. Given your history and track record on accretive acquisitions, how are you thinking about further growth and M&A at this stage?

Okay. Thank you, Christoffer, for your question. Concerning Block EG-23 we see has presented a lot of potential, not just on Estrella-1 discovery, but on the global picture of this block, which is ideally positioned. We have 80% of the block. We are the operator. We are in Phase 1. We need to get our seismic reprocessed, get -- clarify the volume in place, and then we will most likely be looking for partners. There is already a lot of interest in our block because we believe this is clearly the best block in EG, in shallow water with lots of potential and very close to a infrastructure tieback. So yes, we will be looking for partnership in the future.

Thank you, Christoffer. I will address the second part of your question. As I mentioned earlier, M&A has been at the roots of Panoro, it has been part of our DNA. And clearly, in the current oil prices environment, we are remaining focused on M&A opportunities. And we are constantly permanently evaluating, assessing new accretive deals. And those transactions need to be accretive starting day 1 and immediately generate free cash flow for the company to benefit all the shareholders.

The next question is from David Messer.

Andy, two questions from me. First, on the EG-23 block. From the presentation, you can see there's been a number of smaller oil and gas discoveries. So I suppose my question is why were those discoveries appear to be subscale compared to, I imagine, what the original driller assumed them to be predrill? And why was this block not -- or why were these discoveries not developed since they've been discovered by another operator, maybe? And then just secondly, on Trident and its operational issues. Can you just give me a bit more color on what the facility issues have been on Ceiba and how Trident has gone about ensuring that these are not recurrent operational issues that happen going forward?

Okay. Well, thank you very much. Concerning Block EG -23 and the discoveries of the well drilled. And yes, those wells have indeed penetrated reservoirs, some tested, some not tested. But in fact, it's -- depending on what the previous operators were exploring for, whether they were looking for gas or looking for oil. On the Estrella, for example, it was a gas play with a lot of oil. It was deemed to be marginal at the time versus bigger, what I would call the elephant or the giant field. Estrella might not be a multibillion field, but it's clearly a multi-hundred million in place.

And the nearby exploration, the problem is when you have no infrastructure or just one not bad close, it's difficult to make a small discovery commercial. And that's a strategy we will develop in EG-23. Once we have a platform and a mean of evacuation from Estrella, for example, any small discovery not material from major in the past will become clearly material and commercial forest with easy tieback. So that will be a step-out approach from one to the other on EG-23.

Just to your second question on Ceiba field. What has been the issue is, as discussed, it was a subsea. In a development like this, you have your well producing to the seabed and from the seabed, you have flow lines or umbilicals, risers going to the surface on your FPSO. It's deep and long. So there is multiphase pumps installed on the seabed, what we call on different clusters with X number of wells arriving at each cluster. And we had a combination of a series of failure of multiphase pump earlier this year, which obviously without the pump, the well cannot deliver to surface. It's too high, okay, with back pressure on the well, without going too technical.

So the operator has, with one subsea, worked very hard and diligently to get those multiphase pumps shipped back, turned around and sent back to Equatorial Guinea. The first one has been installed. The second one is on the support vessel with the ROV and should be installed in a couple of weeks, and the third one earlier next year.

On the long-term plan with Trident, the operator is looking at a quick turnaround of multiphase pump system with one subsea, but as well with internalizing a bit more the maintenance of the pumps in country. They have done that successfully with one already. So we expect to see a quicker turnaround of any maintenance issue on those subsea equipment.

The next question is from Ntebogang Segone.

Can you guys hear me?

We can.

Ntebogang Segone from Investec Bank Limited. I have got a few questions around production. If you could provide us with more color around OpEx per barrel for me. I mean, production, even management is saying that for FY '25, we'll be tracking below guidance. However, if you look at guidance for FY '25 in terms of OpEx per barrel at a consolidated basis, it still remains unchanged. So if you can maybe provide more color on that as to why it is that there is no increase or increase in your OpEx per barrel?

And then in relation to the Gabon asset where there's been the 3 weeks planned annual maintenance, how should we then be looking at production, particularly in the fourth quarter? Should we be looking at it relative to operating at similar levels as in 1H 2025? Or will it be tracking below that? And then in relation to CapEx, on the exploration side, I do see that there's a lot of projects that you have in place. I mean, you've got the discovery, the Bourdon discovery coming up. If you could please just provide us with more guidance around how we should look at CapEx from FY '26 as well?

Thank you, Ntebogang. Just there's been a couple of questions as well online just about 2026. I mean we issued 2026 guidance once we've been fully through the budgeting cycle with our partners at our assets. So we're going to continue to do that. So as we have always done, we'll be providing 2026 guidance early in the new year. Obviously, Ntebo, I think in terms of the production question that I think we set out, kind of what that impact had in terms of deferring volume in Gabon from the planned maintenance, which was successfully completed in the quarter. If we hadn't had that impact and if you just would look at it on producing days, we'd have been fairly stable. So I think you can extrapolate that sort of into the fourth quarter. I think Tunisia production is pretty stable as well. Equatorial Guinea, as Eric has already gone through, we are seeing some restoration and expect to see that and normalize into Q1 2026.

So I think from that, that kind of builds the picture as to the guidance that we've set for the full year at just under 11,000 barrels a day. The capital expenditure at Bourdon, we made the discovery in Q1 of this year. And so there's still a lot of work going on. It's a bit premature to start sort of speculating because there's various concepts under evaluation and it's being matured towards FID. And once we have sort of a firm picture on the basis for FID, we'll obviously communicate that. But what I would say is, look, the intention is to follow the sort of MaBoMo strategy. So as a starting point, you can look at the kind of costs that we've developed and the strategy we've developed the Hibiscus area with the operator.

Just on the OpEx per barrel, I mean, obviously, what we try and show there is the actual cost of producing the barrel of oil out of the ground. There are some timing things. So what I'll do with that is I'll -- rather than go into so much detail right now, I'll follow up with you separately, Ntebo.

And that will conclude our Q&A for today. Thank you very much, everyone.