Valeura Energy Inc Stock

Hi, everyone. Thanks for joining for this Valeura Energy webcast, where we'll discuss our Q2 2026 results released earlier today. My name is Robin Martin, SVP of Communications and Investor Relations. And joining this call from Bangkok are Sean Guest, our CEO; Yacine Ben-Meriem, our CFO; and Greg Kulawski, our COO. We are recording the call today, the 6th of August 2026, and we'll make a replay available through our webcast and YouTube channel later today.

Running order for the event. In a moment, I'm going to hand over to the team to present some slides and offer their prepared remarks. Those slides are available on our website, by the way, if you'd like to download a copy. After the prepared remarks, we'll go into a Q&A session, which I'll moderate. For that, you're able to either type your questions or ask a live question. Again, I'll explain how to do that when we get to that segment.

Before I hand over, I'll just draw your attention to Slide 2 in the pack, which is our disclaimers and advisories, and I'll ask that you pay particular attention to the forward-looking information cautionary language here. So with that, Sean, I'll ask that you unmute your microphone and you can go ahead.

Hello, everyone. This is actually Greg here. Thanks very much, Robin, for kicking off the call, and thank you all for joining us. I'll start with a few updates focused on operations. I will then hand over to Yacine and thereafter to Sean. And so first of all, it's been a really good quarter in terms of operational delivery, which combined with a very strong pricing environment resulted in record cash generation for the company. So we have that $154 million of adjusted cash flow from operations.

I would really draw your attention to the margin related to this, which we believe is top-quartile, $77 per barrel of CFO margin. Free cash flow of $105 million. This resulted in increased overall cash position for the company at the end of Q2 of $317 million. And overall realized price behind these numbers is $106 per barrel. Now the quarter operations proceeded without any incident. Production delivery was pretty much exactly right on plan.

We have also continued to execute our drilling program per plan, and the wells have either met or exceeded expectations. And we had a couple of specific highlights in well delivery in the quarter, the longest horizontal well that was ever drilled in the Gulf of Thailand, just pretty much exactly 5,000 feet.

We have also delivered our first multi-lateral well and actually the first multi-lateral well of that level of complexity in the Gulf of Thailand, which is now on production. Wassana Redevelopment is ahead of schedule and under budget and we are also on track to add 4 additional drilling slots on the Nong Yao A platform. So let me just say a few more about those assets.

I think on drilling, apart from the execution of the Q2 program, I would highlight the new drilling rig contract that we have signed during the quarter. It's a high-spec jack-up drilling rig, very comparable in terms of capability to the rig, we've been using over the last few years, but we have been able to secure about a 30% reduction in day rate for this rig compared to what we're paying now.

And given this favorable rate, we have decided to lock this rig in for a 3-year term, given also the strength of the drilling portfolio we see. We now expect that the operation of the rig will start in Q4. And initially, we will start drilling wells on Nong Yao, utilizing the slots that are now being installed. And thereafter, we will proceed to redevelopment of Wassana and drilling to the new platform.

And I think the point about the multi-lateral well that we have now brought on stream is really that in an environment where we continue to be constrained by the number of slots on the platform, this a technology that allows us to access more subsurface volumes at a lower unit development cost through targeting 2 separate subsurface compartments through a single top hole and a single surface platform. So, we're really pleased with that result.

And it's just this one-off on Nong Yao, but it's something that we are planning to do in Wassana Redevelopment and also other fields across the portfolio. Let me then say a few things about our projects. First of all, Wassana redevelopment. This project is proceeding very well. And what you see on the picture on the right-hand side is a photograph of the platform in the yard in Thailand in July.

And so all of the main elements structurally, but also the main pieces of equipment are already in place. And the contractor is now finishing mainly the cabling installations, instrumentations and such like. And we now have -- we are pretty confident the mechanical completion will be accelerated to 1st of October. Now with that expectation, the team has been working really well to secure also an earlier installation slot for this platform. So we expect to start installation in October.

Now this is kind of part of a sequence of installation activities of the same set of installation assets that are working in the Gulf of Thailand for other operators will then come to execute the Wassana installation. So there is a bit of a queue, but we have actually secured an earlier slot in that installation queue. Now it's a very positive development. Again, we are working to fully finalize the execution of it, but we expect it will accelerate some of the CapEx, which would otherwise have been spent in '27 into '26.

But it would mean that the first oil from that redevelopment field will be on stream, say, 2 months later. And that would, sorry, 2 months earlier, obviously, and that would be equivalent to about 0.5 million barrels of extra production within calendar year '27 compared to earlier. So really, really good progress, and we'll give further update as we get closer to Q4 and the end of the year. Now the other project that we flagged earlier is the decision to add additional 4 drilling slots on the Nong Yao A platform for the cost of about $7 million of additional CapEx. That project is now in execution.

Some of the equipment has already been fabricated actually on the platform itself. We're already executing some of the modifications and adding the flow lines in anticipation of these slots being ready for drilling. We expect we will finalize installation of the slots in around October time horizon, then in time to start drilling around November of these additional Nong Yao wells.

And then the last project I would flag is progress in the G1 and G3 blocks where we have signed a funding agreement with PTTEP. We have now obtained the seismic, the 3D seismic that was acquired last year. The seismic has now been processed and it's now on the workstations. And so the teams are working to then interpret the seismic data and update the 2027 Exploration Program.

We already know we are planning an exploration well in the oil-prone area in the so-called Nong Yao versus Northeast area that's adjacent to our G11 Nong Yao block. So that's already stated for Q1 '27. On the Gazprom part of this block in the Bussabong area, the teams have been working together and really firming up an FID, which is pretty much technically and commercially ready of a 2-platform gas development.

So really, we expect to announce that FID in the coming months after Valeura has been formally signed on the PSC of the block following Thai Cabinet approval. It's an approval where we don't see any risk of not getting it, but there has been probably a bit of delay in terms of how long it takes now with the new government to process it through a pretty busy cabinet agenda. So again, really good operational progress and translated into excellent cost delivery.

With this, I'll hand over to Yacine.

Thanks, Greg. Greetings, everyone. I guess for the purpose of the financial, it might be worthwhile just circling back in terms of like where the pricing is today because this kind of explains a lot of what our quarter -- our results for the financial quarter for these results. As I'm sure you're all aware, our crude tend to be benchmarked against Dubai, which historically has traded at a slightly discount to Brent.

What we benefit in our Thai crude is that like most of our crudes in aggregate tend to be at the premium to the Dubai, which kind of lands us at around the Brent pricing. Now I'm sure if you've been following the relationship between Brent and Dubai since the conflict in the Middle East has started, you must have noticed quite a big volatility in terms of pricing between these 2 benchmarks. At the start of the conflict, the Dubai price have shot up compared to the Brent at a significant premium.

And a month or 2 after that, it reversed to quite a significant discount. However, in terms of our realized price, what we have noticed is that also our premium compared to Dubai in this quarter has also strengthened, which led to effectively matching the Brent prices. So I think in terms of consistency, we continue to guide the market towards Brent as an equivalent to our realized price rather than just relying purely on the -- what we see in the news and where the Dubai benchmark is trading at.

Effectively, the premiums we received have offset to a certain extent, the discount that has been widening between the Dubai and the Brent. So again, the key message here is that as far as Valeura is concerned, our conviction right now at this point in time continue to be that we should be -- as far as modeling or any perception as to what our revenue will be, the Brent benchmark is a good reflection of where we stand today despite where Dubai is today.

So as Greg mentioned, this is quite a standout quarter for Valeura, and it's across all the key numbers that we, as a management team, we tend to keep an eye on. So let me kind of walk you through the -- for this quarter. So in this quarter, we have recorded around -- close to $260 million of revenue. As a reminder, this is over 100% increase compared to the last quarter, and that's on the back of a realized price of around $106, which is broadly in line with Brent and also on the back of 2.45 million of barrels that got sold.

Now this is -- as sometimes it happens in our quarter, this is above the production we had during the quarter, but it's really a reflection of some of the inventory drawdown that we've done compared to the previous quarter. Now once we include the royalties and the adjusted OpEx, and also SG&A, we end up with a pretax cash flow from operation of around $163 million. And in this quarter, we have realized a tax of around $8 million with just a small amount related to the SRB.

Now as you are all aware, Valeura had benefited from tax losses that we still have. But as a reminder, those tax losses really are pertaining to a few of our assets. This [indiscernible] that has been recorded in this quarter related really to Jasmine, which is out of the scope of the tax losses. So this is why we have recorded [indiscernible] on this occasion.

When we sum all these up, we end up with effectively the highest -- one of the highest cash flow from operations we've ever recorded as a company of around $154 million, which, as Greg mentioned, it equates to around $77.1 per barrel, and an extremely outstanding results really for this quarter. So how does this translate in terms of our balance sheet? We started the quarter with $262 million.

Once we add the adjusted cash flow from operations, also the CapEx was spent in this quarter for around $54 million, of which $17 million was related to the Wassana Redevelopment and around $1 million related to the explorations and other income of around $5 million. And this $5 million is really related to interest income and also from the royalty that we've seen from Rossukon. We continue to receive those royalties.

And obviously, we benefit equally from a high oil price that is pertaining in current market. Once we adjust for the working capital and also take into consideration the tax payment that we've done this quarter related to prior year taxes, SRB taxes of around $90 million. And equally as well, during this quarter, we have spent around $7 million as what we call here anti-dilution, which related to prior historical option in PSUs and RSUs.

The aim here is really to try to retain our cash -- our share count the same. We end up with a cash position with a very healthy cash position of around $360 million, $370 million. Now as the title says here on the slide, the balance sheet continued to be strengthened. And on top of that, which maybe in the next slide, Robin, please. Lead us to kind of like how does it fit within our guidance now.

Now as Greg mentioned, at this point in time, let me first maybe start with the production range. I think considering we are 6 months down the line in terms of -- for the full year, we have narrowed a little bit our production. It's really a reflection of our confidence in where the assets are performing, as Greg mentioned earlier on. So we just narrowed the range a little bit here.

Now if we look at the CapEx and expect in terms of capital spending overall, we have maintained the same CapEx for now. But as Greg mentioned, there might be scope later in the year once we have secured like the slots for the installation of Wassana acceleration for this CapEx to actually move a little bit. And as a reminder for everyone, and I think Greg also flagged it, the bulk of this spending is really just shifting some of that phasing, shall we say, shifting forward some of the spending from '27 to '26.

As far as the OpEx are concerned, we are again maintaining the same -- the same range for now. It's worth highlighting that like -- and I think we've mentioned it to the market overall previously, a good chunk -- there's a good percentage of our OpEx that's related to oil price via the diesel, which we use for our logistics and everything around that. So as the prices strengthened, we might end up at the top end of that range, and there might be a possibility to go below that or even above that if the price goes beyond above this.

However, from a financial perspective, so to speak, if the oil price is higher, obviously, our margins will expand. And therefore, it's something that we're more than happy to absorb in that scenario. Overall, I think the whole message is that like we still maintain that 2025 long-term view, and this is where we stand in terms of production. Now with the guidance as it is today and with the balance sheet, as I've just described earlier on, maybe Robin, we can move to the next slide.

It's worthwhile kind of like revisiting an item that we disclosed to the market the last few months really is relating to our liquidity overall. It's obvious that like as a company of our size, we do have the financial resources quite a substantial amount of resources we have cash that sits on our balance sheet, which, as I mentioned right now, is about $317 million, $360 million.

However, I think we've been quite clear to the market that like our strategy and our growth aspiration is really related to how we can inorganically grow the business. And it's therefore, this is why we've decided to kind of trigger or at least go on and secure financial facilities that will enable us to kind of tap the market when it's required, when we want it rather than when we need it. And this is why we have announced the financial -- sorry, the RCF and also the accordion.

As a reminder for everyone is we've secured a $75 million RCF -- it doesn't require us to hedge it. It's also like a 3-year facility. I would like to point to the -- to everyone really is the accordion associated with that. We have right now size of the $250 million, but it's important for everyone to realize that, that number can easily be expanded for the right assets. And it's all about like setting us up to be able to do deals that are transformational to the company.

I think as we mentioned during the announcement of this facility is that like we would rather have it in place when we are prior to be ready rather when we actually need it. And it's kind of like -- to a certain extent, it also reflects how we see the current market and how we can -- how we feel confident about being able to actually participate in all the opportunities that we are seeing around us. And it sits again with the whole strategy, which I'll let Sean really kind of gives you a bit of an overview again, a reminder for everyone. Sean?

Thanks, Yacine. Yes. Thanks. Greg took us through a lot of what's going on in our operations because we have had an extremely good quarter, both operationally and financially. One of the things we like to point to is we've said one of our key pillars of our strategy is operational excellence. And we're seeing that, whether it's delivering on the production, the HSE, our projects where we're taking on the biggest project we've ever done and delivering that early and under budget.

All of these really build to the credibility of the company, which is what shareholders are looking for. All of that is going extremely well. Yacine pointed to the amount of cash that we've actually brought in and importantly, also at this point in time, to that extra debt facility that we now have accessible to us that really creates that liquidity that allows us to look at further growth.

And this slide from our corporate presentation, we always talk about, okay, that strong cash flow and where is it going. We've said to the market, we've said to all of you that we're a growth stock, and that's what we're looking at. But when we look at it, I mean, we're really producing about the same amount of hydrocarbons as we were 3, 4 years ago when we took over the asset from Mubadala, but we've delivered top end growth, top-quartile in the shareholder growth.

And that's because we've been able to deliver to the market and demonstrate that these assets have much more future to them, really reaping the extra amount out of the assets and showing that future, which has really underpinned that growth that we've had. So when we look at that cash flow, yes, it's deploying it back into these assets to remain that -- to really support that strong cash flowing engine. What we've also seen in Turkey now is we're starting to see growth there in the deal with G1 and G3, and we're making investments there.

That's really a solid foundation that we have. The other element then to it, which we've talked about for a while is the M&A aspect. And really, we believe the 2 pieces of that are coming together right now. Our cash position, the access to liquidity is coming at the same time that we're actually seeing some significant deals that we're involved in right now in the market.

So again, we've been focused on this for a while. We've been telling you that. We've continued to deliver the strong shareholder growth and value growth there, but we see this is an opportune time now. There is a lot going on in the market, and we see ourselves as very well positioned to deploy that into further M&A for that next step of growth for the company.

So Robin, maybe just go to the last slide. So look, we talked about this, all the aspects that are going right. But one of the things we really want to emphasize to you is that we've set up this business. We've designed this business to deliver solid, good returns at $65 oil price. And we've seen that over the past couple of years, and we've been delivering on that on the oil price. We also made a decision last year when oil prices dropped to make the biggest investment decision that this company had made by doing a Wassana Redevelopment.

And that's proved to be perfect timing is that was at a point in time when oil prices had dropped, right? And we made the right decision because we're looking at the long-term view. The other aspect, if you look right now is that now oil prices have jumped up. Okay, Greg was talking about the new project that we're looking at on Nong Yao, the acceleration in the project on Wassana. We're not doing these because the oil prices jumped up at this point in time.

We're doing them because these are projects that deliver positive cash flow, positive returns within 12 months. That's why we're doing these projects and accelerating these things is because of the value of the company at $65. And then setting it up that way, when we get these bonuses in the oil price, we just reap the benefits of that into our cash flow to create the solid foundation of the company.

So it's been an excellent quarter. Things have gone extremely well operationally and financially. And we just look forward right now that we're extremely well positioned to take this company to the next level. So thank you very much for joining us here today. And at this point in time, we take questions.

Thanks, Sean. [Operator Instructions] Let's start off with a batch of questions that we've had on the PTTEP farm-in. And perhaps not surprisingly, the main question here is on timing in 3 separate ways: Number one, best estimate for timing of the government approval; number two, timing for providing more color on the size of the opportunity set that we're looking at; and number three, anticipated timing for the Bussabong FID.

Yes. Okay. Maybe I'll take that one. Thanks, Robin. It's a key one because it was 12 months ago that we actually announced this deal. And I know I can say that, honestly, we've been a little disappointed that it hasn't been through formal approval yet to get us in. There is nothing that has us concerned on this. We're watching it progress. We're seeing what's happening in the political situation in Thailand, elections, new cabinet, energy crisis that's currently ongoing.

They are dealing with the matter. So we're following this. Everything looks like it will come to fruition very closely, but we do appreciate in the market that there's a little nervousness when you see it kind of waiting around on this. But during this whole 12 months that we've been waiting for that approval, our team have been working very closely with the PTTEP team, right? We have drilled wells. We've shot seismic, process seismic. Now that data has arrived on the workstation.

And importantly, the teams have been working together to come up with an FID, a Final Investment Decision for the Bussabong Gas Project. And we really expect that to come fairly shortly after we actually get the formal approval and get in on that. So it has taken longer than we would have liked. The teams have been working positively together. And what I can say is once we do get that formal announcement, we will plan to really try and get more information out to the market there to allow whether it's the analysts, the investors in that to quantify the value of this opportunity because it's something of both oil and gas that we're very excited with, but we do really want to actually start converting this opportunity into actually cash flow.

Okay. Let's move on to a question on exploration. So probably for Greg. Can you say more about the open water well that you're planning on the G1 block? And anything you can share on size of the prospect risk and comment as to whether the volumes are in our prospective resources?

Yes. So I think I was referring to an open water well on the G3 block, not on the G1 block, right? So it's this area of Nong Yao Northeast. It's -- we see already a set of prospects that are adjacent to our Nong Yao facility. It's sort of northeast of Nong Yao A. There's actually a number of well identified prospects for which we already had prior 3D seismic, but the new 3D seismic covers all of that area. right? So we've already between our technical team and PTTEP have agreed that we will drill exploration area wells in that area in Q1.

And now with the new seismic, the teams are just finalizing the best locations and the best well targets for that, right? But again, we see strong prospectivity. And so we expect that in the case of successful discovery, this is a block that can go into relatively quick development with a tie-in into the Nong Yao system lets say, well at the platform. And there is potential for multiple of those, not just a single one.

Thanks for that. While we're on the subject of drilling, in our announcement, we speak about Turkey and specifically mentioned that a well was drilled on the Banarli block that's been flagged as a discovery. The question is, what does that actually mean for us? And I think what the question is getting at here is, is this, in fact, a Valeura well? Or does it just have some other bearing on us?

Yes. So simply on that, we actually it was a 2 block -- big blocks that we have in that area, each of them had actually a well commitment that had to be drilled prior to June '26. And one of them was drilled in the West Thrace Block earlier this quarter or and a while ago. And in actual fact now we have drilled one which we had drilled for us in the Banarli Block. That was a gas discovery.

And kind of an agreement we had there was that we paid for the drilling of that well. It's a success. The revenue will flow back to us to cover all the costs that we had in there. But what it gives us is a discovery in that block, it gives us the right to then go forward for a 2-year extension period. So we have the extension period on the West Thrace Block. Now that we have this commitment fulfilled the discovery in this block, we will actually go forward with the seeking an appraisal -- a 2-year appraisal period on the Banarli Block. So it's really about protecting the acreage much more than it is about having a discovery and having cash flow.

Okay. Let's move on to some finance-oriented questions. First of all, on operating costs, we mentioned diesel a couple of times. And the question is, how much are our diesel costs? And what proportion of the operating cost does that comprise?

All in, Robin, the estimate -- all in across all our fields and across all the operations, 25% -- around 25% of our cost is diesel -- is related to diesel. So as you might imagine, an increase in oil price, which we've seen over the last few months since the conflict in the Middle East have started have led to an increase in our OpEx.

Okay. Well, I've got you, you've seen a question on the debt facility as well. And the question is, is the size of this debt facility tied to our existing assets somehow? And would an increase in the borrowing base by way of an acquisition change the debt capacity?

Yes. Look, let me make this crystal clear. We've selected this debt facility, the firm side of it, which is the $75 million, is really just as a mean to build the relationship with the banks. It's not a reflection of our current borrowing base. It's really just a number that we felt, a, created that relationship with the banks. And secondly, as a working capital kind of allows us to really just again, just having that flexibility around that. It does not reflect by any measure really what's the borrowing case -- borrowing base of our current assets.

And I think as we flagged it before, this borrowing base doesn't require us to hedge. We continue to be completely unhedged company. We have a full exposure to the oil and gas, but it's really about like, again, building that relationship with the financial institution that have backed so far and to enable us to build -- enable us to kind of tap into the market for the right acquisition targets we're currently pursuing.

Okay. That's a good bridge to the next question here, speaking about M&A. And I'm just going to read this one straight out. Many of your peers talk about seeking scale and relevance in the markets. How do you consider this with respect to the future cost of capital for both debt and also for equity in terms of attracting large institutional shareholders?

Look, I think philosophically, and I'm speaking -- I'll let maybe even Sean and Greg to come in into it. But philosophically speaking, we do not believe that like scale on its own actually creates value. I think we've been crystal clear from the beginning that all we really focus on is creating value. You can build scale by just acquiring by overpaying for things. I think this is something that people have done before. And like it works and sometimes it doesn't work. But our focus is about creating value to shareholders.

Do we believe that scale create opportunities? Absolutely, we do. There is potential rerating in terms of like your cost of capital associated with the scale of the business and diversification. But all of this is really philosophical in nature. So look, we focus -- if it's a very simple business model. We focus on the cash flow. We focus on the barrels. We focus on paying like fair value for assets and if we can even lower than that. And that's what we will continue to do. If you ask us, are we going to be overpaying for things just for the sake of building scale, I don't think this is within our DNA.

I think the only thing to add there is it does come down to your weighted average cost of capital, right? Whether you're relying on your own cash or relying on debt or relying on equity. And what we've tried to be very clear with people is it's in that order, cash, debt, equity. We are always going to equity last because of the cost of capital on that. So why we've tried to build on this cash position, now we've added on this debt facility is that actually right now is quite a low cost of capital for us to go after acquisitions.

Very good. Okay. While we're on the topic of cash, a couple of questions here, and I'll sort of paraphrase them because there's 2 or 3 that are very similar. It is very clear that the company is focused on M&A as the primary use of our financial resources. And a further comment from an investor here saying there's a clear preference for high IRR project investments to use that cash.

However, the questions turn to returns here as well and beg the question, at what point do you feel you need to pivot a little bit and provide for some form of shareholder returns, whether that's through a special issuer bid or some other similar mechanism?

Yes. And I think we've tried to say to people that really when we -- the size of the deal we were looking at, we wanted to maintain that $250 million, $300 million cash base. And people can see with what's happened over the past quarter that actually we've got to the point of we've exceeded that. However, what I can say is that with the opportunities we're currently involved in, and the opportunities that we see coming at us in the 6 months, it's very unlikely we'll be looking at returns in this near-term period. There are some extremely good opportunities that are right in really the area, the sweet spot that we've said to the market we're after, which is transformational here in Thailand, here in Asia.

And carrying on that line of thought, another question here is there's been a surprising amount of M&A transactions getting over the line given how high prices -- oil prices have gone. Are you starting to see a convergence between buyer and seller expectations?

I mean, historically, when the oil price goes up certainly the way it's been -- we've seen recently, you actually have a diversion between the bid ask them to widen. But I think broadly speaking, what we are seeing is that like long-term views on prices haven't really shifted that much between buyers and sellers at this point in time, which kind of create a deal space to happen.

And look, I think people now are also becoming a lot more creative in terms of trying to bridge the difference between both sets of buyers and sellers. But so far, we haven't really seen like a complete dislocation in terms of what the sellers are seeing and what the buyers are kind of -- what the sellers are asking for and what the buyers are willing to pay for things.

Obviously, there's always like strategic premium that people might choose to put in on assets, and that's quite understandable. But at this point in time, and I think people are still of the opinion that what we are currently seeing in the market, it's kind of like it still underpin effectively quite a healthy oil price in the long term.

Okay. Thanks for that. [Operator Instructions] One more question has come in. If nothing else comes about, this will be our last one. On the Wassana acceleration option, assuming you're going ahead with that, how much CapEx do you anticipate moves from 2027 into 2026? And can you give a directional steer on what that means for overall 2027 CapEx?

Well, look, so I think, again, we'll be a little bit cautious about firming up the numbers at this stage. But I would say at a high level, it's sort of between $10 million and $20 million, I would guess. And that's the amount that would move across effectively between '27 and '26 largely, right? So if that does happen, we can fully execute this, we would then expect that the '27 CapEx will be probably the lowest we've had on these assets over the last few years, right? Given also the much lower rig rate we'll be now using from Q4.

Very good. One more question has come in here. There was mentioned on the call of production being unhedged. Can you elaborate on the thinking behind that and the prospect of potentially locking in some hedges over the next 6 to 12 months? Is that something you're considering?

Look, we certainly keep an eye on trying to kind of like ensure that like the balance sheet is protected. Again, operationally speaking, our breakeven prices are significantly low. This is kind of like we explain the kind of margin we're receiving. So when we think of hedging and like a lot of other competitors, we're not really trying to hedge against operationally or even like trying to protect like some sort of like financing required hedging.

Our hedging is really -- the way we look at it is around like how can we protect the cash balance that we already have as this is really what we want to use as a dry powder for M&A. So we obviously keep an eye on in terms of hedging. We still see that like the volatility in the market doesn't really make hedging attractive to us at this point in time. So this is why we kind of like haven't really triggered -- pulled the trigger on it.

Obviously, if the market kind of like -- if the market moves the way we'd like it to move and we see opportunity to kind of put some sort of like a floor on our price, then we'll do it. But as a reminder to the whole market, when we talk about hedging, we are talking by buying puts. We fundamentally think that like our whole equity story is about like giving us that beta to the oil price and that exposure to the oil price.

And what we don't want to do is to kind of like put some sort of like hedging mechanism that kind of limit the upside that exists. I mean if there are a few companies out there that kind of like hedge at the beginning of the year and kind of like might they have missed out on like the increase in oil price. We don't want to be doing that. We think when it comes to hedging, we think about buying puts just to protect the downside.

I'll kind of just expand on that in a bit of a simple way, which is people tend to think when oil price jumps up, it goes to $80, it goes to $90, it goes to $100, you should hedge, right? Because the oil price is high. But it's all related to the forward curve. And the forward curve with all of this volatility has fallen off drastically.

So if oil is $100 a couple of years out, it's back at $75. The cost of hedging is extremely high. So it's not easy. It's not -- just because you see oil at $100 doesn't mean we can hedge at $100. It's the volatility has made it almost impossible to hedge in the near term. So we've just kind of ridden it, and so far, it's worked out well.

Thanks for that. We've had no further questions. I'll just remind the audience that if there is anything that springs to mind after the call, feel free to reach out to us. Contact details are on the website. You can always e-mail me at [email protected], and we'll make a replay of this call available through our YouTube channel and website later today.

So with that, over to you, Sean, just to wrap up.

Yes. Thanks, everyone, for joining us. It's -- obviously, we're experiencing a time globally where there's a lot of uncertainty, there's a lot of volatility. To us, it's worked very advantageously. We've had an extremely good quarter, but that's just on price. And I just really want to emphasize the people. We designed the business to work at $65. This is just a windfall that we actually take on because it's the quality of the team delivering on the assets that's really working out, and we have the confidence in the team to take this forward. So again, thank you for joining us here today.

Hi's, everyone. Thanks for joining us for Valeura's 2026 -- I almost said '25, 2026 AGM. My name is Robin Martin, SVP, Communications and Investor Relations. Just a few housekeeping items before we get going. No fire drills scheduled for today. So if we hear an alarm, it's the real deal. If we need to evacuate, that will be through the back of the room, up the stairs, out the front door, and we'll follow the instructions from the petroleum club thereafter.

Today's event is being broadcast and recorded, and we'll make that available online later today or tomorrow. Running order for the day. So in a moment, I'm going to hand over to Dr. Tim Marchant, our Chairman, who will take us through the formal AGM. Thereafter, Tim will hand over to Dr. Sean Guest, our CEO, to do a business update. At the end, we'll take a Q&A session. We can do that live with those of you in the room. And for those who are listening online, you can either type your questions through e-mail or type them through the MS Teams' system.

So with that, over to you, Tim. 4:00 on the dot.

I appreciate the support. So good afternoon, everybody. It is 4:00, and I will ask that this meeting come to order. My name is Tim Marchant, and I'm the Chairman of the Board of Directors of Valeura Energy. I will act as the Chair for today's meeting. On behalf of Valeura, I'd like to welcome you all to today's meeting. And I'd also like to welcome the shareholders and others listening on our live audio broadcast.

Before we proceed with the formal business of the meeting, I'd like to introduce the directors and the management of Valeura who are present today, and I would ask that each stand momentarily if I remember to call their names. First, our directors, Tim Chapman; Anna Green; Russell Hiscock; Lina Lee; Sean Guest, also our CEO, as you all know.

From the management team, we have Yacine Ben-Meriem, our CFO; we have Greg Kulawski, our member this year, our COO; Kelvin Tang, our EVP, Corporate General Counsel and Corporate Secretary; Robin Martin, who has already introduced himself to you; and James Boyd, who is our Chief Information Officer. We're also joined today by our Pipeline Director, Jim McFarland and our Founding CEO; and our new Director nominee, Joetompkins . You can get to know Joe after the formal proceedings.

Before proceeding with the business of the meeting, I would like to inform the attendees of the meeting that the Board decided to extend the cutoff for proxies in respect to this meeting by an additional 24 hours from the original deadline. And all proxies received prior to 4:00 p.m. May 13, so yesterday, have been accepted. For this meeting, Kelvin Tang will act as the Secretary, and I appoint the representatives of Computershare Trust Company of Canada to act as the scrutineers. Thank you.

The notice calling this meeting, the form of proxy and the mailing request form were sent to all those that requested printed copies of the information circular, these were mailed to all registered shareholders on April 17, 2026. The declaration of mailing is available for inspection by any shareholder, and I would ask the secretary to file a copy with the minutes.

I've been advised by the scrutineers that the quorum has been met for this meeting. The scrutineers' report is available for inspection by any shareholder, and I would ask that the secretary file a copy of this also with the minutes. With that said, I declare the meeting is regularly called and properly constituted for the transaction of business.

As Robin said earlier, for convenience, we've divided this meeting into 2 parts. The first part will deal with the formal business of the meeting and is the most exciting. The second part will consist of a presentation by Sean Guest, our President and CEO, on the operations of Valeura and will be followed, as Robin said, by questions from registered shareholders and proxy holders.

To facilitate the timely completion of the formal business, arrangements have been made with certain shareholders to move and second the resolutions to be considered. Votes will be conducted by way of ballot. If you are a registered shareholder and have not received or submitted a form of proxy or you're a proxy holder and you have not received a ballot, please identify yourself to the scrutineers and a ballot will be provided for you. Thank you.

The first item of business is the presentation of the 2025 audited financial statements of Valeura and the auditor's report therein. The financial statements are available on SEDAR+ and have been sent to those shareholders who have requested copies. The next item of business is the appointment of the auditors. May I please have a motion for such business?

Mr. Chair, I move that Deloitte & Touche LLP Singapore be appointed as auditor of Valeura to hold office until the close of the next annual meeting or until their successor are appointed. As such, remuneration is now to be determined by the Board.

Is there a seconder?

Mr. Chair, I second the motion.

Any discussion? As previously stated, the approval of the auditors of the corporation will be voted by way of ballot. If you have not received a ballot, please identify yourself to the scrutineers.

I'm advised by the scrutineers that the motion has been carried by the necessary majority. Accordingly, I declare the motion carried.

The next item of business is the election of the directors. Valeura has nominated 8 directors for election and will not receive any -- and did not receive any nominations from shareholders in accordance with our bylaws. Accordingly, I will now receive the corporation's director nominations.

Mr. Chair, I nominate the following for election as directors of Valeura: William Sean Guest, Timothy R. Marchant, Russell J. Hiscock, Timothy N. Chapman, Lina Lee, Anna Green, Chalermchai Mahagitsiri and Joseph A. Tomkiewicz.

May I now have a motion for this business?

Mr. Chair, I move that the corporation directors nominee be elected as Directors of Valeura to hold office until the close of the next annual meeting or until their successors are elected or appointed.

Is there a seconder?

Mr. Chair, I second the motion.

In accordance with Valeura's majority voting policy, the directors will be elected individually by way of ballot. For a nominee to be elected as a director, he or she must receive a majority of the votes cast in favor of his or her election. If you have not received a ballot, please identify yourself to the scrutineers.

I'm advised by the scrutineers that each director nominee has received greater than 50% of the votes cast in favor of his or her election as required by our majority voting policy. Accordingly, I declare the motion carried and that each nominee has been elected a director.

The next item of business is the approval of all unallocated options under the stock option plan of Valeura. May I please have a motion for such business?

Mr. Chair, I move that the resolution on Page 13 of the information circular be approved.

Is there a seconder?

Mr. Chair, I second the motion.

Any discussion? As stated previously, the approval of all unallocated options under the stock option plan of the corporation will be voted on by way of ballot. If you have not received a ballot, please identify yourself to the scrutineers.

I'm advised by the scrutineers that the motion has been carried by the necessary majority. Accordingly, I declare the motion carried.

The next item of business is the approval of all unallocated performance share units and restricted share units under the performance and restricted share unit plan of Valeura. May I please have a motion?

Mr. Chair, I move that the resolution on Page 14 and 15 of the information circular be approved.

Is there a seconder?

Mr. Chair, I second the motion.

Any discussion? As stated previously, the approval of all unallocated performance share units and restricted share units under the performance and restricted share unit plan of the corporation will be voted on by way of ballot. If you've not received a ballot, please identify yourself to the scrutineers.

I'm advised by the scrutineers that the motion has been carried by the necessary majority. Accordingly, I declare the motion carried.

That now concludes the formal business of the meeting. I declare the formal part of the meeting terminated, and thank you all for attending.

Now that the formalities have been completed, Sean Guest, our President and CEO, will give an update on Valeura's operations. If you have any questions at the end of the presentation for those of you who are in the room, we ask that you raise your hand, wait to be acknowledged and be handed a microphone and then begin your question by identifying yourself and indicating whether you are a registered shareholder or a proxy holder. For those of you listening online, you can submit questions through the Q&A feature on Teams or by e-mail. Thank you.

Sean, over to you.

Thank you very much, Tim. Thank you all for coming here today and being with us. Now when I look back about a year ago, we were together here in this building and doing our AGM. And at that time, we had just gone through an oil price shock. We've seen prices drop over 15%. We were looking at oil in kind of the low $60s at that point in time. And here we are a year later, and actually we're dealing with an oil price shock again, but this way, going the other direction.

But in many ways, it kind of supports our business model because we've designed this company to deliver really good returns at $65 and to also then give everyone really good exposure to the upside that exists. So Robert, if you can jump forward a couple of slides.

So looking at the last year, just glancing back over to some of the key points is we're currently just over USD 1 billion. A year ago, we were just over $600 million. Part of that is due to the increase in oil price, but actually, a lot of that increase we saw the increase in share price all occurred prior to the Iran war and the closing of the Strait of Hormuz.

Another area we knew we had to focus on the company was reserves when we took over the assets in Mubadala. It was the challenge that shareholders saw. We had yet another year of, in this case, almost 200% reserve replacement, which has taken us up to about 58 million barrels of reserves, and that's approaching just under 8 years reserve life index, more than double what we had when we took over these assets.

And the other key point really being as well with that high reserve replacement ratio. is that we've produced pretty well all of the oil that we bought a few years ago, and yet we still have double the reserves. And that's what you can get here in Thailand. It's just another year of success in that direction. It was exactly a year ago, we took FID on what was the biggest project the company had ever undertaken, the new central processing platform and redevelopment of the Wassana field. We're now here a year later. That project is on schedule and on budget.

And in fact, we do expect to come in under budget on that, and we're even seeing if we can deliver that early. But the project is going extremely well at this point in time. So on new business, we farmed into the G1, G3 blocks with the NOC, PTTEP. When we looked at the map a year ago on the right-hand side, we had tiny little yellow areas that were just our field. Now we're holding some of the biggest acreage positions in the Gulf of Thailand next to some of the biggest producing assets as well as our assets. So that's a very important deal that we've managed to get through, and I'll talk a bit more about that on the end.

And then on the farm-out side, we actually have operations going on in Turkey now. Many of you here in this room even have been involved in the company since those days in Turkey, where we've held those assets, managed to protect them, and now we've had a farm and we have some operations ongoing. Obviously, for us, that's blue sky upside, but if that works over there, that has huge potential.

And then the last point is the oil price. As we said, we have no debt. We are unhedged. You won't see in our Q1 or our financials any hedging losses. We are fully exposed to that oil price. So it's been an extremely good year. We're very pleased with the growth we've managed to deliver. Next slide, Robin.

So just a couple of other points actually on where we're at. The bottom right slide, there are a number of awards we had. Well, at the end of last year, we were actually awarded by The Globe and Mail, the #1 growing company in Canada. That's across all industries, and that's based on 3 years increasing revenue. The other point is with that increase in share price, we have built up the cash position. So right now, just at the end of Q1, we're just over $0.25 billion cash in the bank.

Okay. Next slide. And I just want to reiterate again to all shareholders and that what is the strategy of the company. Our strategy is based on growth. We're looking to really use the capital we have, use our assets, our relationships to build the company and return value to people through share price growth. That's what we've been able to do in the past 3 years, and that's what we intend to do going forward.

Now the key pillars of that are really looking at the asset base we have is looking at that as a foundation of cash flow, and we've been able to do that. We can see we're extending the life of these assets. We're getting good cash flow from them, especially in the current environment. Operational excellence. Greg's background, my background, Shell, Woodside, we bring that type of professional approach to the assets.

It's very important to us that we run these things as top quality assets. And it's actually bought us a lot in relationships as well, the respect that we've got in Thailand by making sometimes a hard decision to shut in a field if we're concerned about the asset, but to correct it and then bring it back online. That's worked very well.

And then the inorganic growth. Of course, we did the G1, G3 deal last year, but we continue to look for more deals in that area. And that's where we actually have the cash position that we currently have is to be able to do that deal with the cash and debt access and still do deals of very significant scale.

Next slide. So I'll just put in a couple of slides on Q1 where we released the results this morning. Some of these were released earlier, but you can see the revenue for the first quarter was actually quite low. And what we had was as we sell packages of oil from our tankers in March, the buyers were able to actually push that just out into April. So we had no oil sales in March, which you'll know is, of course, the time of high prices, right?

Now all of -- a lot of that inventory was then sold in the first few days of April, and we've got back now to having very good sales looking in April. So if you look at our revenue that we had of $92 million for the first quarter, we had almost the same revenue. We're just over $90 million for April alone. So then you can start to look at, well, what does that mean from a cash flow point of view?

Well, you can quite simply work it out in your head. The OpEx we had on April is 1/3. The SG&A is approximately 1/3. The royalties and that stay the same, and we're still -- we have very low tax exposure because of those tax losses we have. So you can see where that's going to leave you on an adjusted free cash flow at the end, the cash flow from operations. It can be very strong for April, and let's see what's going to happen in May. We're still getting strong sales, and we're seeing strong prices. So it's really bringing a boost of cash flow into the company.

Next slide. And then just again, we commented that we have very good cash. Now we are down a bit from where we were at year-end last year. We expected that to be the case. Not just that we had the lower revenues in this quarter, but also this was a quarter where we're investing heavily in building the Wassana platform. And in addition, we went out and bought one of the FSOs. We knew that this was an investing quarter. But if you look at that inventory and the amount of inventory that was sold in the first few days after the end of April, that would add about an extra, I think, after royalties another $60 million in cash.

Next slide. So as we kind of then look forward to the year and how things performed so far, what are we thinking about in guidance? Production, we are right on where we expect to be, right? OpEx, we're still within our guidance on OpEx. If oil prices stay really high for a lot of the year, well, we would see our OpEx creep up a bit because we buy -- we use a lot of diesel and obviously, that's costing more in this environment. But obviously, recognize if oil prices stay high, the revenue side of the equation is extremely high. So we feel very well situated in those 2 areas going forward.

Now CapEx. All of the projects we've talked about our drilling, the Wassana platform are all running on budget, but we are increasing the CapEx because with the higher price that, we've been able to get a very good rig contract, and we're planning to bring that rig in and started drilling earlier. So we expect about 2 months earlier than planned. So you've got extra drilling and as we've talked about as well, we're going to do an expansion on the Nong Yao A facility to allow us to put in 4 more well slots and then go and drill on those well slots. So you can just increase the production from that platform going forward. So all in all, guidance looking good for the year.

Next slide. So the 2 things I just wanted to talk about from an asset point of view is one, the Wassana redevelopment, which is going extremely well. Now as I said, we took this decision about 12 months ago when oil was at $65. And we were looking at this decision as well, how does this project look even running it down to $60 or even lower. And the economics on the project are very good. Obviously, now as we look at where oil price is and look forward a bit, the economics on this look even better. And as I said, I expect we're going to come in on or even under budget on this.

We did announce recently that we just signed a 3-year rig contract, which is one of the first things that will do is the drilling on Nong Yao and then on this project. Our timing on that was extremely good. We went out for tender at the end of last year when you were looking at that low oil price environment. And the bids that we got coming in were really almost at a level that we saw back in COVID times. And therefore, we've locked in the pricing for 3 years for a full 3-year contract. We have the drilling portfolio. We have the projects that can underpin that and the price is low that really increases the economics of all our projects.

Next slide. So we announced last year too, we did the farm-in with the NOC PTTEP, pretty well in ground floor terms across their exploration blocks. We have 40%. They have 60% in the blocks. Now this is just the one block we're most excited, and we'll come out with more details on this as we progress here. But to give you an idea of scale as we sit here in Calgary, the size of this block on the right-hand side over there is pretty well the distance from Calgary to Edmonton.

And what you see on the right-hand side or to the east are some of the biggest gas fields in Thailand. So the Bangkok field doing about 800 million a day, and we're right up against that. There are discoveries is already there. So in that central area in green, this has already been converted over to a production area, and we expect to come forward with an FID on 2 gas platforms this year. So kind of watch this space, that work is maturing and looking very good. The economics on the project are good.

The other area for us that's very exciting here is up in the very north, that's our Nong Yao facility. And the map in the left side down below shows our Nong Yao field and where the platform is. We already have a whole portfolio of drillable prospects from our platform in this block. And we've identified a suite of exploration opportunities that extend up towards the north. We expect we've acquired a lot of new seismic here. It's coming to the workstation. But I think in Q1 next year, the plan with PTTEP is we'll go in and drill a couple of oil wells here to allow that whole area to be converted to an oil production area that will then form tiebacks into our own Nong Yao facility. So this is a very exciting exploration block where exploration is going to convert to cash flow extremely quickly.

And just looking at cash flow, what are we doing with our cash flow or our capital allocation policy? The first one is the reinvestment into our assets. And this we've talked about a lot. We intend to keep the assets we bought originally at about 20,000 to 25,000 barrels a day. We have the capital to do that. You can see our cash flow is fully funding a whole new platform and redevelopment of Wassana. It's also sufficient to do the platforms that are coming from PTTEP. We have the cash flow from this to fully fund those.

Next, we are very focused on the M&A. The deal last year was a farm-in is fairly small, but we do see the big deals out there, and we are actively involved in some processes. I think I pointed out in our last call, oil price volatility is challenging. It will likely make a few deals go slower, but corporate deals, it doesn't slow down at all, right? You still have that ability to move forward. That's where the growth is coming in.

And finally, then returns. And we have had a share buyback policy in place, but what we have emphasized to people is we're not looking to really reduce the share count. We're looking to manage it. So we're buying out dilutive instruments. We're doing some share buybacks, but just really to keep the share count at where we've had it or a little bit below. What we will need to look at as well this year, with this boost in cash flow that we're currently getting and having over $0.25 billion in the bank already, we've said that's sufficient to look at significant deal size. If we get through the latter half of the year and those deals are not there, then we'll likely have to sit down with the Board and look at what we're going to do with that excess cash as to how we might return it.

Next slide. So finally, just touching on some of the ESG aspects. I think the one thing we're very proud of is taking over these assets in the first 2 years of production, we were able to reduce the emissions intensity by 30%. So in other words to point out to people, the same oil is being produced, but with 30% less emissions. And key to us as well is the projects that we took on reduced OpEx on that. And a lot of it is about using less diesel, right? So with doing that, you're reducing emissions, but you're reducing your OpEx as well. That's gone extremely well.

And very well, HSE stats, too. We have not had a lost time incident for coming up now on 3 years. Things are going very well there. No spills, we're all offshore. The team runs this shop very professionally, and we work under a lot of ISO regulations. And I do like to continually emphasize to people, when I look at Thailand and our operations there, we have 200 staff in the office and offshore about 500 full time and then 2 shifts, and we have about 5 expats in country, a quality team of Thai people over there who are running these assets extremely well.

Last slide. So really, things have gone extremely well for us since we've moved into Thailand. When I look at what we've done in Thailand, it's really -- you couldn't draw out a better country entry. And we've built up the asset there and the asset base that it can go forward. It's sustainable. It's running itself. It's a strong business unit delivering that cash flow. We still have more growth. There are other assets we're looking for there in Thailand.

But the country entry into Thailand has gone very well. Where we, as an executive, have been focused now much more and going forward is where are we going to repeat this now? What's the next country that we're going to move in to do this. And it's going to be another exciting year as I see coming up. Good cash flow, looking for growth. Thank you very much.

Thanks, Seans. Okay. So we'll move into a Q&A session now. We're, as I mentioned, able to take questions from the room. If you'd like to ask a question, raise your hand, Thomas will bring you a microphone.

It's [ Jeffrey Say ], and I have unregistered shares. Do you have any more details on the testing in Turkey when we might expect results from that?

Yes, Jeffrey. It's a good question. We do get it quite a bit. We're a little disappointed at the time it's going to take to really set this up. But in our discussions with Transatlantic who are operating that testing out there, they're really looking at getting this testing set up that it can be low cost. And what they're trying to achieve is a test that we're not going to test the well for a week or a month or 2 months. They want to see the ability to have this test set up and run for a long time.

So they have got all the equipment out there, but they've just had some issues on power that I understand they're solving at this point in time. So hopefully, we'll get back to testing. But disappointingly, since we talked about this a few months ago, we actually have no new data I can talk about on that. But where we're really looking at now in those assets, it's about setting it up for the next 2-year phase for the blocks, fulfilling the commitments, getting the testing ongoing, protecting the rights we have there to allow this work to then progress forward.

Will it be testing a vertical well or are they drilled a horizontal?

No, this is going back into the original wells that we drilled several years ago. And there was a new frac stimulation and test in the well, and that's actually what they're working on now. It's a different zone than we tested before, but it is all vertical. So there's no expectation of getting a really high flow rate. What you're looking for is sustainability and then getting the tech cost low that you can show you can keep this thing on and then model it up to a horizontal.

Okay. We'll take another question from the room. And just a reminder to the online audience that you can use the Q&A feature in Teams if there's anything you'd like to ask or e-mail us with that address you see on the screen.

[ Keith McDonald ]. I'm a shareholder. Sean, any more visibility on the actual approval of government approval requirement and the signing?

Yes. And what you're pointing to there is G1 and G3, those were done, submitted to the government and then you had a new election within Thailand, where everything has actually slowed down, right, they went through an election, but they now have had the election. The cabin has been appointed. You have an energy minister. It's our understanding that, that now has moved forward to his desk. But there's a few other things going on in energy right now. I can say that the cabin is quite focused on. But whether it's next week, next month, next quarter, we're not sure, but we have ways to move forward with PTTEP, and we are working with them every week. So our team is working with them on working these projects together.

Okay. We've got a couple of online questions as well, Sean. First one, with your additional drilling in Q4 that wasn't originally planned as well as more well slots at Nong Yao, when do you expect we'll see production increases?

Yes. So we're drilling through to the end of August, and then we're going to stop for probably a few months and then come back and start drilling. So you will see the production fall off. during that time period. And then once we get the drilling back on, then you're going to get those new wells come on. But we haven't really said we're going to be at the upper end of production because if you're drilling development wells right at the end of Q4, you don't get a lot of contribution for that year. Where we see we're going to get the production coming on is actually in '27. So that's the focus just to increase it then.

Okay. One more here. Your April realized price was $110, which looks like a small premium to Dubai. With all the talk out there about the difference between physical and paper prices in oil, why wasn't the premium higher? And what should we expect going forward?

Yes. So a lot of this has to do with actually how we tender for our oil. So we'll decide we're going to do spot cargoes and maybe we'll put out in and we would go now for maybe tenders in June, that sort of time period. So June or July even, right? So you're a few months late. So the bidding that was done in February was likely for April pricing, right? So the premiums that we were getting in the bidding were related to the low oil price.

What we're seeing now is the premiums we're getting on a number of the fields are much higher. And in fact, if prices were to fall tomorrow to $80, we would still be getting that higher premium. So it's that fact, there's a couple of month delay that comes in there from when we actually go to tender the oil to when it's actually sold and you get the revenue.

Thanks for that. We have no further questions online. Anything else from the room? With that, over to you to wrap up, Sean.

Again, thank you very much for coming. Again, we've been on a very good run, delivering value to shareholders, and we see ways to continue this as we move forward over the next year or 2. So thank you to our team, the executive here in the room, to the Board, to our whole team in Thailand, who've been working extremely hard and to all of you as shareholders. We look forward to continuing to work together. Thank you.

Hi, everyone. Thanks for joining us for this Valeura Energy webcast, where we'll talk about our 2025 results that were released just yesterday. My name is Robin Martin. I'm Valeura's Vice President of Investor Relations and Communications. Joining me on this call, Sean Guest, our CEO; Yacine Ben-Meriem, our CFO; and Greg Kulawski, our COO.

We are recording the event today, March 19, 2026, and we'll make a replay available later today through our website. In just a moment, I'm going to hand the call over to Greg to get us started with some slides and prepared remarks. That will be followed by Yacine and then Sean. And at the end of the call, we'll also take a Q&A session. [Operator Instructions]

Before we get started, I'll just draw your attention to Slide 2, which is in the slide pack that you can see on your screen and as I said, is also available on the website. I'll ask that you pay in particular attention the cautionary language here around forward-looking information that we may use in the course of this call.

So without further ado, I will hand over to Greg and ask that you unmute your microphone, Greg.

Thank you very much, Robin, and hello, everyone. Thank you for joining us. So let me first start with a summary of 2025, which I thought has been another year of strong delivery for us operationally with 23,200 barrels per day of average annual -- average daily production and another year of almost 200% reserves replacement.

Now we've also made some significant strategic moves in '25, including taking FID on the redevelopment of the Wassana license but also a farm-in deal with PTTEP on 2 pieces of -- very large pieces of exploration acreage in the Gulf of Thailand, which are close to existing infrastructure and with a line of sight to developments following discoveries and including discoveries, which already exist on these blocks. Cash-wise, it was another year of strong cash generation, and we further built up our cash position. And that's really despite oil prices being lower in '25 than they have been in prior couple of years.

Now I'll then just zoom in into a couple of these points in the next few minutes. So if you go to the next slide, Robin. Just on reserves. So in aggregate, we now have had over 200% reserves replacement over that window of 3 years. And in total, we've added almost double the reserves we've had initially despite having then produced most of the reserves in volume terms that were in the assets when we acquired them at the end of '22. Now in '25, the reserves replacement ratio was 192%. But I would highlight that this was evaluated at a price deck used at the year-end '25, which was significantly lower than that used at the year-end '24.

And our estimate is that had we used the price deck the same as year-end '24, we would have been above 200% again and our overall reserves life index on a 2P basis would have been around 8 years, right? And of course, net asset value would also have been very significantly higher, right? And that's not even talking about the elevated prices that we've been seeing in the last couple of weeks.

Now if we then move to the following slide. So about 10 months ago in May of '25, we took a final investment decision on a major redevelopment of the Wassana license, which really allows us to develop significant volumes, which we have confirmed now in the field, which cannot be really extracted using this old MOPU from which we're producing at the moment. And the project economics even at $60 Brent per barrel have been very strong, and that's why we have taken that decision, which has got something like 40% IRR, payback in less than 2 years, and it would take our unit OpEx on the field once this production is on stream to a range, which is comparable to what we see at Nong Yao, which is our best field currently.

Now since we took that decision 10 months ago, execution of the project has been progressing incredibly well, touch wood. And as of now, we are around 56% complete on the project. So the construction of the facility, which you see on this picture is progressing significantly ahead of schedule. And what we are looking at is whether there might be an opportunity to also install this platform offshore earlier and thereby be able to accelerate first oil with earlier drilling. It remains to be confirmed but it's a good opportunity to be working on.

What I would also flag here is that the design of Wassana central processing platform is prepared for future satellite tiebacks because we do have already significant confirmed volumes, both in the northern side of the license as well as in the southern area. And so whilst the main project is now being constructed, we are also progressing work to mature these satellite developments. And this includes designing further exploration and appraisal wells for the southern area of the Wassana license to confirm volumes for the potential satellite pilot.

And in parallel, we are looking at engineering concepts for pilots to really try and leverage all of the capabilities that we have designed into the main platform and thereby minimize capital costs that would be involved in a satellite development. And so we're looking at things like really minimum scope wellhead platforms and some of those platforms could, for example, be even installed by a drilling rig. So really, really good progress so far on this.

Now if we go to the next slide, Robin, please. In these 2 licenses, G1 and G3, quite a lot of progress has also been achieved since we have farmed in. And in particular, I would highlight 2 focus areas that we have identified where we are seeing a line of sight to near-term developments and bringing then those developments on stream. Now one of those areas is so-called Bussabong. That's sort of greenish area on the right-hand side of the picture sort of in the middle. And there, we are working with our partner, PTTEP, towards an FID of a gas development likely or expected really within 2026, which then would take us to first gas in 2028.

Now this development may involve something like a couple of platforms but the volumes in this area and the application for the production license for that area already envisages additional daisy chains of further platforms. So very exciting gas development areas, and that's within a close vicinity of the major Bongkot gas field where we would tie these developments in.

Now the other area where we are focusing on in the G3 license is so-called Nong Yao Northeast. So if you look at this map on the left-hand side of the slide, the green area is the existing Nong Yao field from which we are producing. And in direct vicinity of that field, you see this -- a number of these sort of blocks marked 1 to 6, which are significant prospects, each of which could potentially, if successful, warrant another satellite facility, which can then be rapidly connected to evacuate production through Nong Yao A. So again, work is going on in that area to mature these prospects for exploration and appraisal drilling and start working towards the development plan.

Now then one more thing I would flag, which is, if we go to the next slide, Robin. Thank you. Now this is also related to the Nong Yao production system but a much more near-term opportunity where we've identified a way to add 4 additional slots on our Nong Yao A platform. And this is a relatively small low-cost budget of around $7 million, which gives us significant potential to add production and accelerate production within the Nong Yao field. And work is already progressing on engineering and then subsequent installation of these additional slots. We are targeting readiness in November of this year. And we can then drill new wells from these slots immediately in Q4 of this year or perhaps adjust timing as we are working through different optionalities and particularly looking at the current environment of prices and how we can capture additional value.

Now even on a kind of standard set of, if you like, screening prices we have been using, Nong Yao wells are very attractive. I mean, it is our most valuable field. And these wells would typically have a payback less than 12 months. So very, very exciting near-term opportunity that we are progressing down.

Now with that, I'll hand over to Yacine for some further comments.

Thank you, Greg. Greetings, everyone. I'm pleased to kind of walk you through 2 parts, one in terms of how the share price have evolved over the past couple of years but really focusing over the last year or year-to-date. And then thereafter, I'll walk you through the financials.

I guess, as you can see from the share price here on your right-hand side, I mean I think it's the share price that we've presented to the wider market since we did the pivot to Asia. But I would like to focus maybe the audience attention as to what's happened over the last year-to-date really from January. You can see there, I think our share performance relative to our peer groups globally, but if we focus a little bit more on the TSX Market, position us effectively in the 98 percentile.

But I think what we are most proud of, to be honest, is really the bulk of that growth or at least over 50% of that share price performance came prior to the events that happened in the Middle East or prior to the increase in oil prices. And I think that kind of like ties up well with what Craig was saying earlier on in terms of how delivering operationally in terms of production, cash flow and importantly, reserves kind of was reflected in -- at least kind of recognized by the market. And I think the latest share price uplift was really reflective of what we are in the oil market as a whole.

So I mean, if you think about it, this is a company where we entered the year -- when we entered 2006 where the share price was around like the $8 to $9, and we're currently standing at around like $14.5. Again, a transformational year-to-date. But it's a reflection of really operationally, the delivery, operational safety and also ability to kind of like, again, showcase what these assets that we have in Thailand can deliver, both in terms of barrels, in terms of cash flow and also in terms of longevity. And importantly, as Craig was alluding to just a few minutes ago, the organic growth that is within the portfolio.

Robin, maybe we can go to the next slide. So talking about the year 2005 and kind of tying up to the financial results, I'll probably start with the cash -- with our cash flow performance. So despite navigating a low price environment, which -- relative to 2024, Valeura continued to demonstrate real operational resilience this year.

And I think the numbers reflect that. So if we turn to the cash flow bridge here on your screen, you can see that we've lifted around 47 million barrels during the year at an average price of $70, and we generated around $594 million. While the realized price was softer this year compared to our -- compared to 2004, I think the team has executed well on the cost side to enable us to protect the margins. So if you look at our adjusted OpEx that came in at around $223 million, these already include $33 million of leases, which from an operating cost perspective would not be included, which equates to around $26 per barrel, again, in line with what we had in 2024. And if you exclude the leases, we are talking about $22.4 per barrel.

This figure is internally, we're quite pleased and actually very pleased with, and it reflects the lean and disciplined operating models we've been building and continue to optimize as we go. I think critically, considering the majority of these costs are fixed to a certain extent in nature, notwithstanding like in fuel that we use in our operations, it enables us to -- it means that like in an oil price rise, we don't see a proportional increase in our cost chasing those revenues. The incremental barrels flow through to cash at an exponentially high conversion rate, something that is quite relevant in the current environment, as you might imagine.

Now going back to that cash bridge, after taking royalties and the adjusted OpEx, we've delivered an operating netback of around $300 million, which is around $35.2 per barrel. Again, a strong conversion from wellhead all the way to the cash.

Now moving down to the bridge after SG&A and the tax payment, which is, again, we are still benefiting from the tax losses that we have. As a reminder for everyone, we have -- post the combination of our -- some of our subsidiaries, we've benefited from around quite substantial amount of tax losses. As of the year-end, these tax losses stands at around $282 million or $283 million, which is, again, we see like strong benefits, especially at 50% taxes in terms of like accelerating those cash injections into our cash flows.

And with that, we arrived at an adjusted cash flow from operation of around a very healthy $247 million. It is a robust result in the context of the price environment we were operating in. And again, it reflects the quality and low-cost nature of our asset base, as Craig kind of alluded to earlier on.

Now moving on to the balance sheet. Sorry, Robin, do you mind moving on to the next slide, please? Robin? Yes. Thank you. We've entered 2025 with a cash balance of $259 million, and we are certainly pleased to report that we've closed the year with a cash balance of $306 million. It's a meaningful strengthening of the balance sheet. And again, we remain debt-free, and Sean will talk a little bit more about like in terms of our capital allocation, how we think about that cash.

So let me walk you through quickly in terms of the key moving parts there. Now with the cash -- with the adjusted cash flow from operation of around $247 million, we partially deployed that against a CapEx of $189 million. Worth highlighting that $44 million of that CapEx was dedicated to our growth project, which is the Wassana redevelopment that Craig was talking about earlier on, which is a key strategic investment for us that ultimately will position us well for future production growth and again, margin expansion there.

We've also incurred some exploration expenses, and we've benefited as well from income for $11 million related to our interest on the cash that we have and also revenue from the Rossukon, the royalty that we get from Rossukon. Now with that and some working capital movements, we ended up with a cash balance prior to paying prior -- 2024 taxes of around $276 million. This year, we've also paid, as I said, the 2024 taxes, which were due to be paid in 2025 of around $55 million. Bulk of it is really just the SRB obligations that we had. And as you can see, if we add the deposit that we've put for the G1, G3 acquisitions and also like the other income here, as you can see in the table, which related to the NCIB and also other anti-dilution that we took, we ended up with around $306 million.

Overall, again, it's the balance sheet, it's the strengthening of the balance sheet is about like being -- allowing us to have a resilient balance sheet that allows us to not just take advantage of opportunities within the portfolio but also to look for growth and ultimately as well, see how best to kind of like deploy this capital through our capital policy.

And I guess with that, I'll just kind of hand on to Sean.

Thanks, Yacine. So Yacine and Greg have spoken really about the strength of our business and how this business is working extremely well at that $65 a barrel realm. We've got the strong margins. We're generating free cash flow. We have the ability to reinvest. We can support growth in Thailand. We've really designed this business to work extremely well at $65 a barrel and even to be protected going down well below that.

Now 12 months ago, we had an oil price shock post liberation day. We saw oil prices fall significantly. And yet just a month after that, we had the confidence in our business to make the biggest investment decision in the history of Valeura, the Wassana redevelopment. Our business works really well at those pricing levels in the mid-60s. Now we're experiencing another oil price shock, a period of very high oil prices driven again by global geopolitics. And what I really want you to come away from this call with today is to understand what these periods of high cash flow mean for Valeura and how it really accelerates that extra cash flow onto our balance sheet.

Now I know all oil and gas companies benefit from the high prices. You can see it in the share prices as everyone moves. But globally, I believe that we at Valeura have some of the best exposure to these high prices. And looking at some of the key factors, we are a tax royalty system. If you compare that to a production sharing contract or other areas like North Sea, possibly with high government take, we have full exposure to the upside in prices. And the other point is our royalties and taxes are contractual and are protected under that contract. They're not going to change.

More significantly, if you recall from our corporate restructuring about 18 months ago, we have these tax shields. We will not pay taxes on 3 of the 4 assets we're producing from. Now if this period of continued high prices extends for a lengthy period, we'll eat through those tax losses very quickly. But that's a brilliant outcome. We're accelerating all of that cash onto our balance sheet.

And lastly, the really important thing I want to point out is pricing. You know we have direct exposure to international pricing, and we've always guided the market for simplicity to look at Brent. It's a well-known benchmark. However, all of our sales are linked to Dubai pricing. Now historically, as you see on the chart in front of you, Dubai has been at a slight discount to Brent $1 or $2, '25, it was a little bit above. But generally, the premiums we've had in our fields has more than offset that, and that's yielded a premium to Brent. But we now need to look at the details. Everyone is talking about what's happening to Brent right now. Brent is in the 90s, Brent over $100, Brent above $110. But Brent is largely an Atlantic Basin metric. The event we're dealing with right now is directly hitting the Middle East and Asia. And for the past week or so, Dubai has been trading at a USD 40 to USD 50 a barrel premium to Brent.

Now just to reemphasize that again, in the past few days, the pricing that we're hanging off of Dubai has been $150 to $160 a barrel. That is the reference for Thai oil sales. Then on top of that, you need to add our premium we're still getting on our fields. And currently, we're seeing that we're actually getting higher premiums than normal as buyers out there are extremely focused on security of supply and accessing those barrels.

So just looking at that, you can see and you can look at the numbers, as you've seen as presented, how our business works, what are our cash flows at the lower prices. And then with these numbers, it's very quick to kind of work out the boost in cash flow that Valeura will yield from these pricing data, and it's stunning.

Now I'll just recognize again, this business works at $65. These are real wins with high prices, and this is not new to us. I remind you that back in 2022, we did the deal to buy 3 of these fields from Mubadala, and that purchase price was $10 million. Everyone believes that the low price on that deal was due to the low reserve life index and the high abandonment cost. It was not. And in fact, our 3 years of operating have proved that that's not the case as we've really solved both of those issues.

Why we were able to achieve such a low price was because of the high prices that occurred in '22 due to the Ukraine war. The original offer Valeura made had a January 1, '22 effective date. These assets due to the high price with the war premium spun so much free cash flow during that period that Mubadala in the end was willing to actually move the effective date forward 8 months to sweep that cash windfall back to the head office. That was in effect the acquisition price. It's seen how much these assets can flow cash in these periods. right?

Now I do caution you, we are in a period of high volatility and rapid changes. You can't look at the $150 and $160 a barrel price and use it to model the NAV of the company over the next 10 years or even 2 years. But I emphasize again, we've positioned this company to cash flow very well at $65 and each one of these price increases is just a great win and a cash windfall for us. So whether it lasts a month, highly unlikely or a year, there will be immediate cash flow benefits to Valeura.

So Robin, just to the next slide. Now at that point, I just want to emphasize that we maintain the same capital allocation priorities as we've been sharing with you for several years. Organic investment, M&A growth and shareholder returns. Now Greg took you through a number of -- highlighted some of the organic opportunities, and we have a number of them. Wassana redevelopment is going very well, and we are now really planning to take our first gas FIDs on the G3 block this year. The cash we have and this cash flow has given us full confidence in the FID we took on Wassana and the FID we expect to take in the coming months.

M&A, we've told you that we have now built the balance sheet that allows us to make very significant acquisitions. Our Q4 cash last year was between $250 million, $300 million, and we have no debt. So now I will caution though that while we're currently actively engaged in several significant opportunities, you must recognize that with these high prices and this volatility, it's expected to slow down M&A announcements as sellers look to revisit their expectation. It doesn't stop you on the ability to do corporate deals as kind of target companies can move their value in parallel with Valeura but asset deals will be challenged for a little while here.

And then finally, shareholder returns. We emphasize that the focus of the company is really growth. But if the prices continue to be high like we're seeing, we've already built up the balance sheet that we need for M&A. So we're going to have to look at this area and revisit this with the Board as we move forward as to whether there would be some level of shareholder returns.

So just coming to the concluding remarks. Look, I emphasize first that the last time we presented a quarterly result to you, we're at a significantly lower price, as Yacine noted. We've had great share price appreciation here. We've gone through CAD 100 billion market cap. Now that we see we're well over USD 1 billion market cap. But additionally, what I want to point out on the value side is what we still need to bring into the business is to quantify the value of the G1 and the G3 deal that we did with PTTEP. As Greg noted, this is progressing extremely well, the work on this block, and we're really highly appreciative of the quality of the work that PTTEP is presenting. And we hope to be able to announce the closure of this deal in Q2 and then announce the resource volumes shortly thereafter.

Additionally, we're still focused on the timing of FID for these gas developments in Q3. And I think getting that information out into the market, getting everyone to be able to quantify the value that we're seeing in these blocks, G1 and G3 is going to be extremely important. So again, it's been an exciting year in '25 and already 2026 is showing a lot of excitement as well.

So thank you all for your continued support and for your time here today.

Thanks very much, guys. We will move on to the Q&A session. At this point. We've got a couple of typed questions, and I see a couple of individuals raising their hand to ask a live question first. Yes. So we'll go to that first. I'm going to unmute your microphone, Stephane, just give me a moment. There you go, Stephane, you should be able to unumute your mic and ask your question live.

I've got 2, and that's really going back to the great picture of Brent versus Dubai shown. So could you explain, given the timing of the liftings, if Valeura has already started capturing that oil price move? Or if not, when does that start? Is it Q2 event, will be a Q1 event? That's my first question.

And then perhaps for Yacine, how would you see SRB in the current environment at, say, different pricing?

Certainly. Thank you, Stephane. Robin, I'll just take both maybe. So Stephane, maybe going back to your first question in terms of the current price environment and how does it impact our revenue. So let me maybe just clarify or at least simplify how the lifting and the pricing works on our end. Effectively, the way price -- the way our contract are signed for our lifting is that the seller, what they pay is effectively the average price during the month where lifting occur, right? So the current environment -- in the current month, let's say, like for March, we will see how many lifting we have done during this month. And then it's the average of the month that get reflected into the invoice that we send to the buyers.

Now as it happens for this month, our liftings are on the tail end of the month. It just operationally, that's how it works. So we do see potential for it to fall in March or potentially might slip into early April 2026. It's still too early for us to say this, Stephane, because the nomination hasn't occurred yet. Usually, this nomination occurs like 10 days before the date itself. So that's in terms of the lifting occurs.

Now in terms of the SRB, obviously, SRB by its nature is has quite a significant beta to the oil price. So the higher the oil price, the higher the SRB. So yes, so I do expect that in the current environment, you will probably see an elevated SRB compared to what we had last year. And it's quite a big difference between the 2 sides. But I mean, if I have to give you a number, let's say, like -- again, let's use the number that Sean was talking about in terms of like $150 Dubai buy. The SRB then will shift quite significantly. We're talking about potentially a factor of around like 6 or 7x. So that's the kind of like compared to like, for example, a price of $65 or $60 realized price.

Thanks for that, Stephane. David Round, we're going to go to you next. Let me just allow your microphone. There you should be able to unmute now.

Yes. I think I've done it. A couple of questions from me, please. I think the first one, just I think the last time we spoke, we were talking about sort of weakening prices and sort of a softening services market and potential savings at Wassana, I think specifically around drilling. I mean, is that at risk of reversing now? And can you just remind us what costs you have locked in, both on Wassana but also just interested in sort of the ongoing drilling program, the contract you've got there, when it expires and sort of any possibility of extending on similar terms?

And the second question is, can you just please remind us how the gas price at G1 and G3 is derived? Is it benchmarked to international prices? Or is it just calculated on a project rate of return type basis?

Greg, do you want to handle the first question really on the price -- the service costs?

Yes. Let me do that. So David, first of all, on the Wassana project, I mean, we've advertised an overall cost for the facility and installation of the facilities of $120 million. And at the time we took FID, about 80% of these costs were fixed, right? And so we are now well progressed on track. We've not really seen any significant variations. So I am very confident that we are actually going to come in on or below that budget for the facility side, right? So that's the first component.

On drilling, indeed, we -- at the time we took FID, there was more scope for those costs to move up or down. As we see now the market evolving for services, particularly drilling rig, I expect actually a reduction compared to the rates we are committed currently to, right? So we are actually in an active process of tendering for a drilling rig. Yes, we're starting to see some price indications and those price indications are going down relative to current contract.

Now as you may recall, our base case business plan envisages 8 months of drilling, so until the end of August. And we've left deliberately optionality for the remaining 4 months of the year, right? Now as we are now firming up towards a contract award decision on a drilling rig contract. We are now looking at ways to fill that option potentially with significantly value-adding activities. And that could be, as I indicated, we're looking -- could we accelerate Wassana redevelopment subject really to the installation being able to be implemented earlier. We have Nong Yao slots that we are going to construct that would enable us to start drilling in November and add additional wells with some incremental production already likely in '26 and then even more in '27, right?

So yes, basically, opportunity or pretty firm expectation of drilling costs coming down on a new contract beyond August and a better to fill activity and value in those months that we haven't yet locked in currently from September onwards.

I hope that answers your question. Maybe, Sean, if you want -- something you want to add.

Yacine, do you want to talk about maybe the gas price and how it's done?

Certainly. David, so as far as Thailand is concerned, all the gas prices are effectively linked to international benchmarks. Now that could be like Dubai or fuel oil but they tend to be benchmarked against international crudes. So you don't have like a fixed return, like, for example, what you would see in other countries. or like a fixed price, it tend to be more linked to international benchmarks. So you do have that exposure to higher oil prices as well. I think embedded within that formula that they use is also like -- it's almost like an S-curve that what you often see in the LNG market because that's really what you're competing against fundamentally within Thailand. You're competing against the LNG imports, which is significant. So you do have a protection on the downside as well but your ultimate upside can also be like tempered down to a certain extent.

Thanks for that. While we're talking about gas in Thailand, let's move to talking about the PTTEP farm-in. And question here is, what are the potential CapEx requirements you would see for gas development at the Bussabong area?

Maybe I'll take that one just to keep the variety of people going. Look, currently, right now, we're looking at multiple platforms and FID on multiple platforms. We expect the FID to be on initially 2 gas platforms installed in that sort of realm. So net to us, to give you some idea, is probably on the order for a rough number of about $50 million, right? So just to keep that sort of range in mind. Now again, we're still waiting for cost, final numbers to come through. But to give you an idea, this isn't that it's another -- it's not a $200 million project for 2 platforms. These are gas platforms. They're much cheaper. These are gas wells, and we know that the gas wells in the Gulf of Thailand, we expect them to be drilled each development well about $1.5 million to $2 million, extremely cheap. This is kind of PTTEP's bread and butter is these platforms and drilling these type of wells. So it gives you a bit of an idea for 2 platforms, probably spend starting in '27 and then production coming on in later '28.

Okay. And that brings up another question. What sort of production would you expect from a platform?

Yes, I'm trying to remember the exact numbers. Greg, can you get the numbers that we're using as a rough figure? And again, we don't have the data yet for all of these all worked up. We're still doing the FID work.

I mean as a rough number, we talked about something in the range of 30 million scfs per day per platform, right? So 2 of them would give you, say, 60 million scfs per day, so about 10,000 barrels per day oil equivalent in that range, again, with caveat that it's subject to FID and final numbers, et cetera.

Yes. And just for clarity, Greg's numbers were gross. The cost I gave you is net.

Correct. Yes. So you apply 40% to that.

Yes.

Very good. Okay. We'll move to another live question. Jamie Somerville, I've just enabled your microphone. You should be able to unmute now. Jamie? Okay. Not to worry, we'll try you again in a moment.

In the meantime, let's change geographies. What's happening in Turkey is the question? And what are transatlantic's plans for next steps on the deep tight gas play?

Yes. This is one I should probably take as one of the few executive members who actually was around during the Turkey period. So look, I think we talked that we were ready to -- in transatlantic, we're looking to take this well on to a long-term test. That's kind of gone slower as they've done the work on the well and the facility to set this up for a long-term test but they're getting to the point now that we expect fairly soon to start it. I think the good news is they're really looking for the design of this test and the testing period that it can be long term. We're not talking about just testing for a few weeks here. They're looking at taking this thing out months and are trying to achieve a testing cost that can be really offset really by the production that you'll get, right?

So things are going ahead there on the testing. And along that lines as well, we're now in discussions with the government as well with transatlantic on the next moves. But I expect we'll have some more information on that as we go through the next few months here.

Okay. And are you able to provide any clarity or any expectations on what gas pricing would look like in Turkey?

Look, we know that the gas price over the past few years has been very healthy at kind of USD 10 plus. I expect now that it's significantly above that. But again, we really don't make our decisions based on these spot prices. We're looking at Turkey has had a very healthy gas price for the past few years. So it's a good environment.

Good. Okay. A couple of price-related questions here. Number one, with the prices where they are right now, are you tempted to add any hedges given the outlook?

Sorry, I just realized I was still on mute. Maybe I'll take this one. I mean, obviously, we do look at hedges in terms of like what can be done there. Look, fundamentally, we do try to protect the downside. This is -- I mean, oil and gas is a cyclical industry. Prices goes up, they do go down. We do have quite a resilient -- operationally, we do have quite a resilient portfolio. But is there any way for us to actually strengthen that? We certainly look at it. I mean we've just -- and we do that honestly, especially now with what's happening in the market, we've been kind of like canvassing the market literally on twice a day. And what I can say right now is that despite the fact that we're seeing very high oil prices, put prices, which is really the instrument we'd like to use because we'd like to retain the upside. They seem to be a little bit too still elevated, but it's something that we certainly keep an eye on.

Okay. On the other side of the price sort of discussion, the question here is, given the very high Dubai prices, is there any risk that Thailand might look to start setting domestic sales closer to the Brent benchmark?

Maybe I'll take this one as well. Look, this is not the first time that we've seen an elevated oil price. There have been other occasions where oil price really kind of like went through the roof. And that has never changed. The way the contracts have changed have always been set against the Dubai, which is the natural crude for this part of the world. So I don't see this changing. There's always a mechanism for buyers and sellers to agree a fair price between the 2 sides. And that's what you have the premium or the discount potentially can come in. But so far, we haven't.

As Sean was saying earlier on, over the past couple of weeks, we did issue a new tender for like April and May down the road. And all I can say is that like these are the best premium that we've had as a company. And again, they were benchmarked against Dubai. So no, we don't.

Okay. Great. Yacine, I'm going to ask you another question, and I'm going to leave it with you for a minute to do the math in the background. We'll move on to another question after that but -- because you'll want to calculate this one. I think it will be a fun thought experiment here. Let's say we get $150 Dubai prices over the next couple of years, what additional cash would you expect to get? So let's just park that for a moment. I'll let you crunch those numbers in the background, [ not to be ]on the spot.

But in the meantime, a couple of questions around capital allocation. First one is when we look at your M&A landscape in Southeast Asia in the Asia Pacific region, what proportion of the transactions you're looking at would be corporate transactions versus asset?

Yes. I think at a much lower proportion are on the corporate level. It's something we've always kept track of across a number of different players in this region as we've looked at it and how they behaved. But it's on the order of 75% asset, 25% corporate.

Okay. And also along the lines of M&A, if you find that getting M&A transactions across the line is delayed and you continue getting windfall revenues, will you look to shareholder returns? And if so, is your preference for things like share buybacks? Or are there other formats of shareholder returns that you would consider in that sort of environment?

Yes. So that was the point I was making is, yes, that's something we would discuss with the Board and look to as to shareholder returns. We would look to the best way to kind of do it at the time. We've looked at a number of different things as to whether it's dividends, special dividends, Dutch auctions on share buybacks or straight share buybacks. But depending on how much surplus cash you bring in, a normal buyback is just too slow a process to actually go through that, right? So all those things are kind of on the table but it's something that we would investigate as we kind of go through the number of months here. What's going on with the oil price, what's going on with the cash flow, where a number of these deals that we're actually involved in, are they progressing or not?

Great. Okay. Let's turn back to you Yacine then that question, which I'll just voice again. So you had $150 Dubai over the next couple of years, what sort of additional cash would you expect?

Yes. quite a healthy cash flow, as you might imagine. So effectively, we are talking around like almost our current EV. That's the kind of numbers we have.

So just for clarity.

So it's anything between $700 million, I think around that.

Okay. $700 million.

Short of our current EV considering our share price, our market cap currently is $1.1 billion. So it's around $700 million.

Okay. Very good. Thanks for that. We don't have any other live question requests at this time. [Operator Instructions]

with nothing else showing up here, maybe we'll leave it there. And I'll just remind you that we're available any time to take questions as well. Contact information is on the website with contacts available in Asia and in North America. So feel free to reach out any time.

So with that, I'll hand over to you, Sean, just to wrap up.

Look, I'll just say, again, reiterate, thank you very much for everyone's support and kind of staying with us through this. It's been an extremely exciting ride. Obviously, the times we're in right now are very challenging for people on all levels. But corporately, it's obviously created a bit of a windfall for us, and we'll just take advantage of that for the time being and look at how we can add more value to shareholders. So thank you very much for joining us.

Thanks, everyone. That concludes the call.

Hi, everyone, and thanks for joining this Valeura Energy webcast where we'll talk about our Q3 2025 results. We're recording the event today, November 17, 2025, and we'll make a replay available on our website and on our YouTube channel within the next day or so.

My name is Robin Martin, I'm the Vice President of Investor Relations and Communications for Valeura. Joining me on this call are Dr. Sean Guest, our CEO; Yacine Ben-Meriem, our CFO; and Dr. Greg Kulawski, our COO.

Running order for today's event, we will start with some prepared remarks tied to slides that you should see on your screen now. They're also available on our website, and then we'll proceed into a Q&A session. I'll guide us through that part of the call. [Operator Instructions]

Before we get going, I will just draw your attention to our disclaimers and advisory slide and ask that you pay in particular attention to the forward-looking statements disclaimers here.

So with that, I will hand the floor over to Sean. Go ahead, please.

Hi, Robin, thank you very much. And thank you, everyone, for joining us here today. If you could just go to the next slide, Robin.

So I'll start to kind of give a bit of an intro on how we look back at the previous quarter and really actually what's gone on in the past couple of years and then also looking forward. Greg will then talk to you about he Wassana project and some of our recent execution and then Yacine will summarize some of the financial highlights before I kind of bring it back and really talk about what we've seen recently in performance, share price and what we kind of see going forward in the company.

So starting with it, if we look at growth. Now one of the things we announced this year was we did a large-scale farming with PTTEP, the national oil company of Thailand. In addition to that, what we've seen is we kicked off earlier this year the Wassana oilfield full field development, and those are 2 projects that are really focused on the sustainability and the long-term growth of the company in Thailand. And we're very excited about both of those, and I'll go into a little more detail on them.

Financially, the good news is you would have seen in the press release that actually compared to a year ago or compared to last quarter, really, all of our operating financial metrics are up, which is very pleasing to us, especially with strong margins even at the current oil prices. And that's allowed that balance sheet to also continue to strengthen, which improves really our ability to fund opportunities and to look at other M&A opportunities.

Now when you look at execution within the company, we reiterated a couple of months ago our guidance is intact. We did point at that time, too, that we expected the production to be at the lower end of guidance. However, if you've seen in the current release that the current production with the drilling that we've done has actually increased out a lot. So that production so far in November is actually higher than any of the quarterly averages we had in 2025 to date. And importantly, a lot of this is coming from our Nong Yao field, which is most profitable.

Now we've also seen that OpEx is heading towards the lower end of our guidance, which, therefore, we're really delivering on that cost per barrel basis. And the final thing just to emphasize is, as we've taken over these assets, we've actually been able to, year-on-year, reduce the emissions intensity from the assets, and that's continuing this year. We could be targeting as much as a 30% decrease in emission intensity since we took over from a year ago.

Just before I hit the last 2 points, I really want to point out that those first bits really point to what we see as an extremely successful country entry into Thailand. We managed to get a couple of good deals, but then we've built on that with execution of assets, delivering on the production, delivering on the reserve growth. And finally, as we pointed to there, the longer-term growth opportunities that we're seeing with the farm-in and the redevelopment of PTTEP that aren't just looking at 5 years, but are looking at 5, 10, 15 years or more.

And then as we look forward, well, we did sign 2 deals in Q3, the PTTEP deal that we -- that I'll talk about in more detail. But also, we signed a deal to farm someone in at our Turkish acreage, which, while it is not a focus for us now is still a very high-value opportunity, and I'll talk just a bit about that at the end. But what I can tell you, and we talk about this quite a bit, but we remain very focused on transformational opportunities. There's a good suite that we now see coming to market, and we're actually very involved in those now.

And then finally, the last one on value. Well, while we've come up a lot since a year ago, the recent kind of downturn with oil price and then the decrease that we've seen, actually, we see it as a very good time to look to buy into the company because even though share price has been coming down, the business has been delivering. Okay. Next slide, please, Robin.

So I'm just going to talk about the PTTEP farm-in before I hand over to Greg. Now we announced this back in July where we'd actually farmed in with PTTEP who are the national oil company and the largest oil and gas producer in Thailand. Now this has significantly increased our acreage position and set us up very well for the future. But one of the questions we've got since really doing this deal was, why did PTTEP want Valeura to farm-in? They obviously are very large companies, significant production and cash flow and can have a capital budget going forward in kind of the tens of billions.

But what really their CEO has said and what we're seeing continually being reiterated is they believe they're the natural gas operator in Thailand, and with the work that they've seen us do and our operations, they believe we're the natural oil operator here. And they see that, that combination together is a way of maximizing the value and the way forward on these blocks.

So we'll earn a 40% interest in there. And what we like is it's bringing diversity. It's bringing gas opportunities to us, but it's also bringing this opportunity to have medium and longer-term growth through these blocks that can really step aside into the future. The other important thing to note is that these blocks really abut right up against the major producing gas fields in Thailand as well as some of our oil assets. And these type of tiebacks are really the highest economic returns you can look at in our industry. All of the main producing facilities, the pipelines, those are all in place and you're just tying back into those. So your CapEx per barrel, your OpEx per barrel tends to be extremely good and very high returns.

Again, on the entry cost, we really came in for pretty well like [ ground ] floor. But the important thing I want to note, too, is that while the deal is not closed, and we do expect it to close immediately or in the near term, I did meet with PTTEP and the regulator last week and all the paperwork, everything is progressing. But while we're still waiting for that to close, both teams are already working together, both commercially and technically on driving forward the work in this block. So that in 2025, we've already seen all of the committed seismic data acquired, approximately 1,200 square kilometers as well as we've seen 4 exploration wells drilled with discoveries in those. And the important thing with that is there's existing discoveries already here, and the team is already working on the development planning to try and look for some FIDs in 2026 to take these forward. Next slide, Robin.

And I really wanted to zoom in a bit on the G3 block and the more southern block because this is one that really emphasizes those immediate development opportunities, particularly in the gas, but I'll also speak to the oil opportunities that we see that can be tied back to our field. So when you look at the block immediately to the east of our block is actually the Bongkot Gas Field, and it runs all along the boundary there. And that field is producing just under 1 Bcf a day. So extremely large, a lot of gas coming out of there.

Now in the middle, there is an existing 3D seismic area with a number of discoveries. And this is where a new discovery has already actually happened this year. And that's where the team are starting to work on progressing this towards an FID in '26, whether it's for 1 new gas platform or 2, but there's that opportunity here of proven gas immediately next to a producing gas field.

So the team we have put in place -- they actually filed the production area application and work is going ahead on the technical work and commercial work to progress this in 2026. And and we really hope to have much more technical details on this as we head into early next year. But that's really the immediate work that can come, and therefore, we can see an exploration block going from exploration to cash flow within a few years.

There is new seismic being acquired in the south, over more gas discoveries down there, which could follow at a later date. But then when you look up around our Nong Yao field, which is in the north, our most profitable oil field, we've identified an oil fairway that we think exists from the Nong Yao field up to an undeveloped field called Ubon in the north. Now while new seismic has now been acquired over that, and we expect to next year work to process that, work that into a suite of drilling prospects, the team already have 3D seismic from our block that extends in there and we have a suite of opportunities immediately to the east of the Nong Yao field.

First, there's a number of prospects that actually are drillable from the Nong Yao-A platform could be immediately tied in once you drill those. And then the other one that's even very interesting is we have just to the north of that, we have identified on the 3D, a very good exploration prospect that could be tied back to the platform to even increase production. So it's just reiterating with this block that what we see is immediate tieback opportunities of very high value, but then you can continue to explore and develop these, add in more platforms and really get it what we might call a string of pearls here. And that exists for both the oil and the gas. So again, very exciting opportunity for us, and we really hope to be able to speak more on this quantitatively once you get this closed and progressed to FID in 2026.

So at that time, I'll hand over to Greg to talk a bit about the Wassana development.

Thank you, Sean, and hello, everyone. So let me continue with the growth updates. And really, I want to talk a little bit more about the Wassana field, which is our key organic growth opportunity in the operated assets. This is a project where we have taken an FID in May of this year on redevelopment, which involves installing a new central processing facility over the main part of the field, which you see marked in the red circle on the right. And so this central project has got very strong economics as we have shared before. And we'll see production out into 2043. And this production, just from the main field, is reflected in the reserves in the Wassana field, which now stands at post FID at 20.5 million barrels 2P. But the development concept also envisages satellite times, and we already have provisions in the design to be able to do so with risers in the main facility.

So we've got these 2 areas with resources in the north and in the south of this license. Now in the north, we already have sufficient volume of resources and sufficient level of appraisal to really start satellite development. In the south, we've got some contingent resources already discovered, but we also see further upside potential with prospective resources. And that's why we are planning some exploration journey to capture those upsides in the south. And I guess what's important is that because this is a field which is operated by us and 100% owned by Valeura, it means that we've got quite a lot of optionality on the driving the optimum timing for FID and then bringing those North and South satellites onstream. If we go then to the next one, Robin, please?

So just a brief update on project delivery, which is going very well. We are well on track for first oil in Q2 of 2027. And we've got now very high confidence on being able to deliver this project on or below budget. The main EPC contract is fixed price and is proceeding very well with other variations. All of the main equipment orders has now also been issued. And so there is relatively small amount that -- of scope that can be priced and the cost variation. So again, very, very high confidence on delivering the budget. And overall, we are, in aggregate, about 35% complete on this project. So going really well.

If we then switch to the next slide, Robin. And moving on to the ongoing well delivery and production delivery, the most notable area of rig activity in Q3 has been our drilling campaign in Nong Yao field, which has gone really well. So we have finished the quarter at just under 12,000 barrels per day, equity production, having brought successfully a number of wells in the campaign.

So we drilled 10 wells in total on Nong Yao in the quarter. Since then, the rig has moved across to the Jasmine fields where we are drilling now, and we have actually brought the drill some wells onstream in Jasmine. And so as a result of all of the activity, November to date, we are at 24,500, or maybe a little bit higher, barrels per day production. So going very well, and that's why we have reconfirmed our overall production guidance for the year, which will be coming within the guidance, albeit slightly towards the lower end.

Now I think with that, let me hand over, Yacine, to you.

Thank you very much. Hi, everyone. Thank you for joining us today. As Sean mentioned earlier on in his opening, this is one quarter where effectively, from a financial operational metrics or perspective, everything seems to be on the green side. So allow me first to walk you some of the key highlights. And as usual, we'll start from an operational perspective, where we are seeing quite a good momentum, be it on the production side or even the cost side.

So starting with the production, as you can see on the screen in front of you, we recorded around just shy of 23,000 barrels a day equivalent day in Q3. That's up 3% versus the same quarter in 2024 and 7% versus the last quarter. This uplift in production is predominantly driven by Nong Yao, the campaign -- the infill campaign drilling that we did this quarter in Nong Yao. And as a reminder for everyone, Nong Yao is our biggest and most profitable field. Not only did we see improvement as well in the production, but also importantly, in the lifting was, as you can see, it's up 14% and 22%, double-digit versus last quarter and the same quarter last year. This is just a reflection of better optimization and scheduling really of the lifting. And it allows us as well to kind of eat into some of the inventory, which is something that we keep track on. Although as a reminder, production and lifting do tend to move. Sometimes there is a gap between the two.

Now moving on to the real -- in terms of pricing environment. Obviously, we are in a price environment that is quite different from the same period last year where oil price, Brent and our realized spreads were really hovering around the $80. For this quarter, we had a realized price of $72.1 which is significantly, which is up compared to last quarter of $67.9.

I think what I'd like to draw your attention really here is the premium that we get to -- for our crude compared to historical numbers. And what we've been really pleased this quarter is that really that expansion in our premium versus Brent, whereas in the last quarter, we recorded just shy of $1. In this quarter, we recorded $2.5.

Now talking now -- moving on to the cost. And I think this is one of those graphs that we really like to look at internally. And it just gives you an indication as to how our cost control kind of translate into financials ultimately. So this quarter, as Sean mentioned I think, earlier on, our OpEx per barrel have come down quite significantly, not just from last quarter, but the same quarter last year. So now we are just at $24.8. This is really a reflection of an ongoing effort throughout the organization in terms of trying to chip out cost at any pocket, and be it on a temporary basis or more structural in nature, based on ongoing exercise that we keep doing across the organization.

So how does this translate in terms of financials? Robin next slide, please? So with higher production, improvement in prices and better control, as you can see, we've seen a significant improvement in terms of our financials, be it on the EBITDAX level or most importantly for us, I guess, adjusted cash flow from operations. I think notwithstanding the increase itself, I think what we're really quite pleased where there's really the margins, the improvement in margins.

So looking at the EBITDAX, that's more than 400 bps point increase and more than 100 bps point increase compared to the last period. And on adjusted cash flow from operation, I think this is really where the numbers comes into play where you see an improvement in margins from 35% -- and it's a continuous improvement quarter-to-quarter where we go from 36% last year to 39% this year and now we just shy of that 50%. So for every dollar that we sent -- that we received, effectively, we're generating $0.5 from our cash flow from operations, which we then can spend on CapEx and importantly, strengthen the balance sheet and effectively for M&A ultimately.

And how does this translate in terms of cash? So as you can see, our cash positions have -- both cash position and adjusted net working capital have almost doubled compared to last year. That's a 60%, and it's almost a 70% improvement from last year. And as we continue with generating cash from the business, considering it's a highly cash generative, we can see this balance increasing and giving us that solid fortress balance sheet that will enable us to not only invest in our business, but also to seek highly accretive and transformational deals, as Sean mentioned earlier on. Next slide, please, Robin.

So how did we end up with the cash flow from operations? I think the key point I'd like to highlight here is that during this quarter, we've had some -- we recorded some SRBs, and that's really related to Thai III regimes. And as far as the corporate tax, this is really related to the -- some subsidiaries that are outside of Thailand. But within Thailand, we haven't recorded any PITA, as you might imagine, because of the tax consolidation that we've done. Next slide, please, Robin.

So as I mentioned, with the strong cash flow from operation, we are able to invest in our business, first and foremost. And as you can see, during this quarter, we invested around $52 million, of which close to $16 million was within the Wassana redevelopment that Greg was alluding to earlier on, was talking about earlier on. On top of that, we did some spend a little bit on exploration, but this is really studies, no drilling at all. And we also recorded $3 million in other income and interest.

Now with the change in working capital, our Performa for this quarter would have been $252 million. However, we've also spent money on NCIB and also putting the deposit for G1 and G3 during the -- when we signed the deal. And also, we've paid some small corporate tax payment again due to outside subsidiary, outside of Thailand and Singapore. So we end up with a quarter again with $248 million. Again, it's all about strengthening the balance sheet and allowing us to deploy that capital as we go forward.

And I guess with that, I'll hand back to Sean.

Okay. Thanks, Yacine. I just want to really reiterate and emphasize again how we look at capital allocation in the company. And the first thing with the assets that we acquired, so the 4 key assets. We talked about maintaining those net 20,000 to 25,000 barrel a day out to the 2030s. You can see the projects like Wassana and that, that we've been undertaking that are really pushing that out and extending that. We're also looking at exploration spend.

Now again, we'll discuss more as we get into next year on how G1 and G3 funding come in there. But it's a good time to really emphasize that the gas developments are significantly less expensive than the oil or the cost for platforms that are much less. But that's really our first really event. We're looking for maintaining the production from the assets to deliver that cash flow as we then look to expand into other areas.

After that, it really is value accretive M&A. We still see an extremely good environment out here in the region with the number of deals that are starting to come to the market to very few operators and really, there's quite a shallow buyer's pool. We've made those points before and we've talked to people about this. But I can honestly say that we are seeing a change now and that we're actually very actively involved in some transformational activities, which we hope we'll be able to talk about more as we get into Q1 next year.

But the other point to really emphasize is we've said, the promise we made in '24 when it came to returns was if we, as a company, went through 2024 and we're getting to the latter half of the year, and we were building cash and we were not seeing the opportunities in the near term, we would put in place some sort of share buyback or return to shareholders. If you put that in place, we've had that in place during the past year, and we've actually reduced the share count in a mild amount as well as taking out a number of dilutives.

But the thing we've said to people and say, we asked this, this year is that as we go through 2025, as long as we are still delivering the cash flow, and we have a very strong balance sheet capable of M&A, if we got to the latter half of the year, then we would also look for ways to return more of that money. Well, with the deals we currently see, we do not expect to see that we would be doing any large return money to shareholders. There's a line of sight on some good opportunities that we're very actively involved in. And that remains our primary focus is delivering growth.

Okay. Next slide, Robin. And I just want to really look back as we come near the end here, the past year. Now obviously, when you compare share price back to a year ago, we're still up over 50% in that time, which is great. But the disappointing thing is that we've seen the slide in recent months. So we had good strong delivery as we really got up to that PTTEP farm-in, which jumped this up. But since that time, yes, there's been some pressure on the oil price, but in actual fact, our assets have still been delivering. This is a period where we've delivered on the production growth, and which we've delivered on the free cash flow as well as if you look at other news, like being ranked the #1 growing company in Canada. And I'd like to keep emphasizing, that's not in the energy industry, that's across all industries, and we announced that Turkey joint venture farm-in where we'll see some activity there to try and realize some of that loose tie-up side.

So to us, this has been a bit of a frustrating time as I'm sure it has been for some of our shareholders, but we continue to deliver on execution, and we hope that in the end that's the right thing that we continue to see the share price turn there. So in many ways, it opens up a good buying opportunity, especially as we start to look at the coming months, where we see some catalysts could be coming in new business. I think people are really looking for us to be able to close that G1/G3 deal. We see no risk in that at all, but we do appreciate that until those are solidified that the market can sometimes be nervous about them.

And then as we get into the first half of the year, start to really quantify a bit about going towards an FID on those gas developments. And as we've had for the past couple of years, we expect a good reserve number when we actually release those numbers in February. So a good suite of opportunities even before you consider that we actually have some activity going on in Turkey at this time.

So just before I move off that, maybe just a time to talk a bit about that Turkey farm, that Turkey farm-in. Now we heavily changed our shareholder base. There will be a lot of people actually who are shareholders now who aren't really aware of what happened there. To summarize it quite a bit, there is a significant amount of gas in deep in the Turkey unconventional gas, very tight. We've identified through the drilling, through 3D seismic, there's tens of TCF there. But during the work we did with our previous partner, we had not demonstrated a commercial flow. Even though we've done 12 separate flows, we've flowed wells for up to 3 months. So the gas will flow from the ground.

But recently, now we've had a new partner come in, who's going to look at retesting the well. And based on that, we'll actually go forward to look and drill a well. And the partner we have is extremely good partner. We've dealt with them before as a partner. They're extremely well-funded private company. They are the most active company in fracking and flowing in Turkey, and they're also very well connected and been working in Turkey for years.

So what we're trying to say to our shareholders is, look, we are not putting our capital into that at this time. It's not taking the focus of your management team. But we have a blue sky opportunity there that while it still has risk on it, if we're able to prove commercial flow of gas from that opportunity, it's a very big upside for our shareholders. So still a lot of risk on that, but it's nice to see some work progressing there that could open that up.

So finally, just reiterating, as we move to the next slide, Robin, we see actually it is a good time to come in based on the recent slide in share price. Again, we trade very well relative to our peers. We're -- really, we have a lot of upside potential still available to us, both from our NAV as well as our analyst consensus. So again, a good time to buy in. So Robin, just the last slide.

So just reiterating again, we really see that we've done the country entry into Thailand. We have a solid business unit there that's now delivering not only on the execution of the assets they have, but also looking at growth. We do see other opportunities within Thailand, but I can also tell you that the executive, we're very much focused now on looking at how we can take what we've done in Thailand, that successful opportunity, that growth that we've got there and look at where do we apply that next, where is that next transformational deal. And that's what's ongoing at this point in time.

So again, a good quarter, a good growth we've seen relative to last year and to the previous quarter, and we look forward to carrying that on to the year-end. So with that, I'll hand over to Robin for the Q&A period, and thank everyone for joining us.

Thanks very much, Sean. [Operator Instructions]

So while we wait for more of those to come in, we do have a couple of typed questions here. First, on reserves. You mentioned we should expect a good reserves report at the end of the year. Can you give us a directional expectation for what that actually means at year-end 2025?

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

Thanks for that, Greg. We've got a live question now from David Round.

Yes, David, just a reminder that -- yes, there you go.

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

Well, so I think we are planning these campaigns in a way that optimizing both the capture of the subsurface resource and the targets that we continue to see in the future well inventory as well as the capacity and slot availability in the production facility to be able to bring them into production, right?

So I think -- I mean we've been drilling kind of year-round cycling through all of our fields. So we have had that campaign, as we said earlier in the year. In Jasmine, we are now back. I would say it's actually going very well in Jasmine so far, that's part of the production we've been seeing in November. So yes, I would say it's so far so good in the Jasmine campaign.

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

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

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

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

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

Yes, very, very much so. And the first thing, just to emphasize with PTTEP is, when it comes to the gas development and exploration, we are extremely happy to have them as the operator. They are doing -- they're installing new platforms and drilling continuously. It was 11 rigs out there. So they really are the lowest cost operator you have around here. And we noticed that when we took the trip out to the Wassana yard that's building the Wassana platform last week, there is a suite of PTTEP gas platforms sitting there, half constructed, fully constructed, all ready to go. They are installing these things continually. So it's like a conveyor belt that they're doing there.

So that's really the way that you get the highest efficiency in both your contracting and delivery. So very pleased for them to be our operator in the gas. Now on the oil, like we emphasized, they're looking for us to do -- to bring the oil opportunities here and work it out. We're kind of sharing the load there on the work. But what I can tell you is with the work that we've done even around Nong Yao, there's a lot of enthusiasm for their management is to bring that forward, show those opportunities, show that we can accelerate it.

While the volumes are smaller for them, there's still very good economic opportunities that are development of Thailand's assets, which are very much in line with what PTTEP, as the NOC is trying to achieve. And the other thing is the agreements we have with them also allow that if they look at an oil opportunity and say, look at that's too small for us to consider, we still have the ability to move forward on those.

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

Yes, the average was about 10 million BOEs.

Yes. So about the, say, 60 million would be kind of a discrete additional one of these tie-in development. Yes, so that's the 10,000 BOE per day equivalent in that range.

Yes. So they will vary depending on also how many wells you have on them, but kind of that range of 30, 60, that sort of range where you start lower and work it up. But yes, that's kind of the size of production that you're looking for. But then again, the thing to emphasize to people, and again, I'll bring it back to our visit to the yard last week is that this is one of the most active areas in the world for the installation of these platforms. Like we were talking with the yard last week and saying, where in the world do you have these facilities being built? And the only thing we could really come up with was around Saudi Arabia and the drilling that they're doing offshore. It's this continual number of platforms being installed.

So I can tell you that PTTEP doesn't look at it and say, well, we're going to install 2 platforms here. They look at it, we're going to install 2, and then when are the next 2 and when are the next 2. How do we get these things daisy-chain together? And that's how you really build up the volume of production and you build up that longer-term future for the company.

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

Okay. So in terms of history, so when we did the deal with KrisEnergy, KrisEnergy's piece came with tax losses around USD 400 million. And when we did the acquisitions with Mubadala, which was cash-generative portfolio, we put them together. And by putting them together, we have access to the $400 million of tax losses. Now worth highlighting that these tax losses are ring-fenced on the Thai III regime. So they apply effectively to Wassana, Nong Yao and Manora. Jasmine is outside this scope, so Jasmine, we will pay taxes on it.

And to your second question, Robin, honestly, all question of what oil price are you assuming. I think at the softer oil price like we see today, we're probably going to be talking -- I think what we think is around like 2 -- so around 3 years till we consume all of these taxes, tax losses. However, at a higher oil price, obviously, that period -- that window will get shorter.

Okay, very good. While we're talking about cash payments, just switching back to G1/G3, and the question is, what do you anticipate would be your cash payment for G1/G3 at the time of FID? So I'm assuming this question means anticipated 40% of the total spend up to that point, what would that cash outlay look like for us?

Yes. We don't have the final numbers on that now. We're still working them up. But to give an idea like we see the platform is probably about 1/3 the cost, 1/4 to 1/3 the cost of our oil platform on Wassana. And then again, remembering that we're at a 40% level of those, right? So again, the Wassana redevelopment, the whole new field there, that is a central processing platform, oil development, high-power requirements, those are quite expensive. Gas tieback platforms tend to be quite cheap. So yes, we're working about 1/4 to 1/3 of the cost, but we'll have details on that again once we have the numbers next year, early next year.

Okay. Very good. [Operator Instructions]

I've got one more question here. On M&A, it appears the majors are returning to Southeast Asia, at least a little bit in Indonesia and Malaysia perhaps. What does this mean for competition in the region?

Yes, very good question because it's a good observation. It is happening. We saw a lot of the retreat companies, particularly someone like [ Total ] who are really almost completely left production in Asia. And now they've come back with a vengeance into Malaysia.

But what I can say is the assets that those guys are looking for are extremely different to the ones that we are. And we still see the cases of -- if you're doing 50,000 barrels a day, that sort of level, it is not material for these guys. They need to be looking at gas and they need to be looking at big gas. That's what's drawing them back into the region, not modest levels of oil production.

You can see when Chevron closed their deal to acquire Hess, almost immediately, they sold some of Hess' acreage in the joint development area, and we continue to watch to see what else will come now that Chevron have that deal closed.

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

So with that, I'll hand over to you, Sean, to wrap up.

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

Thanks, everyone. That concludes our call for today.