Panoro Energy Aktie

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

That will conclude today's presentation. Thank you.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Thank you.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

First question is from Stephane Foucaud.

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

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

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

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

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

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

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

Thank you.

Thank you very much.

Thank you all.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

The next question is from David Messer.

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

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

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

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

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

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

The next question is from Ntebogang Segone.

Can you guys hear me?

We can.

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

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

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

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

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

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

Good morning, and welcome, everybody. Thank you for joining us. This is our second quarter first half year trading and results update. We have this morning released a press release and an accompanying presentation, which we'll go through now, which shows the progress we've made during the course of the year.

Joining me today on the call are our CFO, Qazi Qadeer; and our Head of Engineering, Kim Hansen. As a reminder, today's conference call contains certain statements. I just want to check if the presentation is live. I don't see it myself. There we go. Thank you. As a reminder, today's conference call contains certain statements that are or may be deemed to be forward-looking statements, which include all statements other than statements of historical fact. Forward-looking statements involve making certain assumptions based on the company's experience and perception of historical trends, current conditions, expected future developments and other factors that we believe are appropriate under the circumstances.

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

Next slide, please. I'll go through the slides. And afterwards, we can, as usual, answer some questions. You can either raise your hand and we will unmute you or else you can ask a question live or you can type a question in and we will endeavor to answer those questions to the extent that they have not already been answered or be relevant for the larger audience today. Any questions that we don't get to, we will endeavor to get back to by e-mail in due course.

Next slide, please. So the results highlights today. We're showing a first half of $86 million reported revenue, EBITDA of just under $51 million and CapEx of $26 million. A few comments around those numbers. Our lifting schedule is weighted towards the second half. So we will expect to see both on the revenue and EBITDA side, a skewing towards the second half. Capital expenditure is the inverse. Capital expenditure is heavier in the first half than it will be in the second half. So we expect that number to be within guidance as well.

On the balance sheet, we ended the quarter with the half year at June 30 of $55 million of cash, $146 million of gross debt and a net debt to trailing 12 months EBITDA of less than 1x. So very, very strong and good balance sheet.

On the right, today, we've announced a cash distribution of NOK 80 million, which will be paid as a return of paid-in capital. Again, there is a slight distinction between that and the dividend for those who follow these things. And that would bring us then to NOK 580 million of cash distributions and including the share buybacks of NOK 120 million, that takes us to about $700 million of shareholder distributions and buybacks. It's approximately just under 30% of our market capitalization. So I think we've shown a good -- demonstrated a very good track record of returning cash to shareholders through this past couple of years.

Next slide, please. So on the production side, we break it down by quarter, so everybody can see what's going on. We've got first half production of 11,500 barrels a day around guidance of 11,000 to 12,000 barrels a day. Our OpEx per barrel around $21 a barrel, so as guided and another $3, what we call nonrecurring project costs. These are operating costs dealing with the long-term maintenance of facilities we have. So around $24 of operating cost and the CapEx still at $40 million, which is as previously guided. You can see that Dussafu has continued to be strong. Tunisia in the orange has been quite steady actually. And the drop in production in the second half -- second quarter in Equatorial Guinea will touch on, but you can see that, that is lower than it was in the first quarter or indeed in the fourth quarter of last year.

Next slide, please. So shareholder returns. These are in line with our 2025 policy. Today, we've declared another NOK 80 million. We -- that brings NOK 240 million, including today's announcement. Year-to-date, we've also done $69 million of share buybacks through the 20th of August, yesterday. We've been out of the market buying shares for the past couple of weeks because of the close period. And then if you look to the right, we have the limit of NOK 500 million approximately. It's $45 million is the key number. It's a dollar number, although we distribute in kroner. And if all things go to plan, we expect, of course, another NOK 80 million share -- cash distribution in November-December when we come up with our third quarter results, leaving still some ample headroom there. So we are well on track here as guided. And today's announcement hopefully underlines that commitment to shareholder distributions.

Next slide, please. Crude liftings, we just try and show what's happened last year and some of the seasonality of the crude liftings. We lifted year-to-date, 1.1 million, 1.2 million barrels with the weighting sort of 1 to 2 relationship between the first half and the second half. So you will see additional liftings in the second half of this year. We've already preannounced a lifting in Equatorial Guinea in July, which achieved around $70 a barrel. That's lifting of 650,000 barrels. We announced that in the trading update recently.

Next slide, please. Here, we have a lot of information. I won't go through it all, but it's a useful slide for the records, showing the first half cash flow reconciliation with our cash at the end of last year and the cash now. On the lower left, we show our senior secured bond amortization schedule. We have no repayments to make this year other than interest payments with the first amortization due in the end of 2026.

And on the right, our capital expenditure guidance. As everybody knows, we had a very, very heavy year last year. This year is more around $40 million. We've just spent $26 million to date. That's principally been in and around the end of the Dussafu drilling program and the Bourdon discovery itself has taken up about half of that CapEx with the balance being in Equatorial Guinea, a little bit in Tunisia and our exploration portfolio as well. We've had some activity with the award of the new license, EG-23, which I'll touch on. So this is all going to plan.

Next slide, please. So Dussafu, this is now really our flagship asset. We've had really good strong production. The reservoir performance has been excellent. We've had very, very good uptime on the FPSO. For those who follow it, in detail. BW Energy took over the O&M contract on the FPSO. They took that over from BW Offshore. And they're doing a fantastic job, and that's really reflected in that uptime that we've had on that asset.

During the first half of the year as well, we made the Bourdon discovery, which initially looks like over 50 million in place and 25 million barrels recoverable. There are additional drilling targets that have been identified through the remapping of that drilling campaign. And there could be some further upside indeed around that Bourdon concept.

The next big thing to happen at the Dussafu license is 4 new development wells in the Hibiscus and the Hibiscus South fields. These are 2 distinct fields, but we will be approving together with partners a plan to drill 4 more development wells into this area. Again, the reservoir supports easily 4 more wells in this area with first oil targeted for the second half of next year. So we just need to finalize the rig contract and figure out exactly when it's going to get there. But I think that that's going to be the next big activity on Dussafu, which will start next summer sometime. Again, first new oil target 2026. What that will do is that will bring the production back up, up around the FPSO capacity. We have 4 available slots on the MaBoMo platform, so everything is set up for that.

Next slide, please. So we've talked about this before, but this is starting to get real and exciting. The award of these 2 new blocks, which has been pending for a while, has been fully ratified now by the government. You can see Dussafu there in the orange. Niosi and Guduma are the new blocks. We've joint ventured together with Vaalco, who operate the Etame field there to the northeast of Dussafu and with BW Energy, who are obviously the operator of the Dussafu area. And we've effectively got this large contiguous area here, which is full of existing oil production, existing oil discoveries and historical work with 3D seismic.

It's a great partnership because between the 3 of us, we probably understand this area better than anybody else. The next big planning underway is to acquire seismic on this. It's possible we may also see an early well into one of the blocks in due course, that's yet to be decided. But this is a prolific area where the Gamba reservoir and the Dentale are to be found with existing discoveries on these blocks. So in terms of the long-term continuation of the success story that we've had at Dussafu and Vaalco had at Etame, this really, I think, provides a runway for many, many years to come of continued success here in this area.

Next slide, please. In Equatorial Guinea, we have 2 fields here, the Ceiba field and the Okume Complex. The Okume Complex has been producing more or less in line with expectation. At Ceiba, we had, as announced back in the first quarter results and indeed in the most recent trading update since April, we've had some unplanned downtime issues, which have impacted production. By my estimates, we're probably about -- on a gross basis, about 5,000 barrels a day less than we should be producing. There are plans in place. It's not a reservoir issue. It's a subsea equipment issue. The operator is working extremely hard and diligently to turn this around. We expect to have that turnaround starting during the fourth quarter, so actually in the next couple of months.

So it's a temporary issue, but it has given us unplanned downtime on this asset, which, again, we anticipate to fully recover that production during the fourth quarter and into early next year. The next plans on this asset are considering an infill drilling campaign, perhaps the jackup on the shallower end of the Okume side of things, which may include looking at something in EG-01, which is the Panoro operator. We're in that with Kosmos-Panoro operated exploration block, which sits south of Okume. So I would expect more news on that campaign to be forthcoming during 2026.

Next slide, please. One of the interesting things that we have, the most interesting thing, I think, in our portfolio that we have right now is this new block EG-23. It's early stage. We're at the point now where we've just awarded a seismic reprocessing contract. So the geoscientists are busy working on it. But as you can see there in the blue, that's our block. And you don't, I think, have to be a geologist to see that we are in an extremely prolific fairway here. We've got the Niger Delta there. It's the southern part of the Niger Delta in Nigeria with multibillion barrel discovered reserves and resources, lots of production in there. We've got the Zafiro field, which has already produced over 1 billion barrels. We've got the Alba field just to the south of us, which is already produced in excess of 1 billion barrels.

And then in Cameroon, which is just above us, there are multiple oil and gas fields historically. So we feel like we're in a very, very exciting area. We have 80% of this block. So we have lots of room to eventually bring in some partners. The commercialization of -- there are discoveries on this block. The commercialization of any production though is reasonably straightforward as there is a large LNG plant there in Punta Europa. I think you can see that maybe just on the island there. That is an LNG facility operated by ConocoPhillips. And so this is an area that is full of oil, gas and condensate. And we think we've got one of the most exciting blocks in the country. So this is going to be one to watch for us.

Next slide, please. Tunisia, gross production was 3,100 barrels a day. We've had some good success on recent workovers. We've had some volatility, obviously, in production and operations in Tunisia over the past couple of years, as you follow us will know. But at the moment, touchwood things are pretty steady and going reasonably well. We have some activities planned for early next year as well, which could see production increase further and that predominantly is around the Rhemoura field, where we're awaiting the final ratification of the license renewal. So that's one to watch early next year.

Next slide, please. So a slide just showing the portfolio that we've built here. We've shown versions of this slide before, but I think it's an important one to note with our reserve position -- strong 2P reserve position at 42. That doesn't include the Bourdon discovery, which initially looks like it's around [indiscernible] around 4 million barrels. Our contingent resource base currently around 26 million barrels.

EG-23, which I've touched on in Equatorial Guinea, we don't have a Competent Person's Report on that yet, but there have been over 100 million barrels of contingent resource identified there through previous owners. We still have lots of infrastructure-led exploration at Dussafu itself, all the remaining prospects there. And then we have a portfolio of other assets in Niosi-Guduma EG-01 and some other projects as well. So we think that we've set up a company that has a very, very strong organic upside to exploit over the coming years on top of our existing production and 2P reserves.

Next slide, please. So just some key messages for the half year and corporately. On the production side, our first half production is in line, up 26% year-on-year. We announced earlier this year a greater than 300% reserve replacement ratio. That's a very high in our industry. If you can get 100%, you're doing really well, but we had a particularly good year. That was before the Bordon calculation as well. So hopefully, we will be able to report some good reserve replacement next year as well. And that gives us based on current production rates around a 10-year 2P reserve life, 16 years on a 2P plus 2C basis. So again, getting back to the point that we have a very long-term business on our hands.

On the exploration and appraisal side, we've made the Bourdon discovery. We have the new blocks. We basically secured this entire southern part of Gabon, chasing this Gamba, this prolific Gamba reservoir. We know that there's going to be additional discoveries there in due course. And I've touched on EG-23 already, which is, I think, one of the most exciting things we have in the portfolio right now.

On the financial side, we think that we're in line with guidance there so far. Our bond issue, which was a big success has really strengthened our liquidity position, gives us strength vis-a-vis the market as well. And our CapEx guidance is materially lower than last year and in line with guidance.

And finally, on the shareholder returns, we think the shareholder returns we've shown that through our exploration drilling and our reserve and production growth. These are very, very accretive things. We've used shareholder funds to grow our net asset value. But we've also had a quarterly cash distribution and share buybacks. This is also -- all of these things together have given us really an enhanced ability, we believe, to capitalize on new venture, both opportunistic, but we're also very focused on value and making sure that anything new that we would do would be accretive to the current business that we have.

So with that, I'm going to finish and open up the line for questions. [Operator Instructions]. And so my colleague, Andy is going to take over from here and see if we have any questions.

Thank you, John. We'll start the Q&A with Stephane Foucaud.

I've got 3. The first one is around Rhemoura and Guebiba. So drilling program, you're starting to define the drilling program. Could you maybe give us an idea of timing, materiality and so forth? Is it '26, I guess, even '27. Then a similar question for EG-23. So as you said, this is an extremely material block for Panoro. You talk about a Competent Person's Report and maybe potential development and exploration drilling. Likewise, any sense of timing of this Competent Person's Report, [indiscernible]? And lastly, on the financial, on the CapEx in '26. So I expect it will be more than '25, but [Technical Difficulty] it was, I think, much higher?

Sure. So on the drilling plans for Rhemoura and Guebiba, these are -- I wouldn't say necessarily new wells. These are principally workovers at this point. So it's not new drilling. It's kind of low-cost interventions. On Rhemoura, we have one well, which is currently shut in pending workover, but it's also pending the ratification of the extension, which we're working on with the Tunisian authorities. And as soon as we receive that, I think you'll see us go in as quickly as possible. I anticipate what can probably in the first quarter to reenter that well. The materiality of that well is probably 300 to 500 barrels a day range on a gross basis. We have half of that.

And in Guebiba, there are a number of -- there's always things going on there. At the current moment, we don't have plans for actual new material -- new drills. That will come principally in Rhemoura in due course. In Rhemoura, we have a beautiful looking new target to drill, but that's going to require a fresh well rather than a workover. But that's an activity that's a little bit off in the future. So I think you're going to expect some smaller incremental workovers, which could move the needle in aggregate. But obviously, Tunisia being our smallest production asset at the moment. In the wider group, they are not hugely material, but very important nonetheless to get right.

In EG-23, I think the plan now is we've just awarded the reprocessing contract. So there's been a lot of historical 2D and 3D. Marathon used to operate this block and previous operators, there's lots and lots of good data on this. And indeed, there are a number of discoveries already on the block. And it's our task now to kind of throw the best of the new technology at that. Nobody has really done anything on that asset for quite a long time. So we've just awarded a contract to an external party to reprocess the seismic there.

And I think once we've reprocessed that seismic and the geoscientists have had a chance to kind of interpret that, look at the drilling prospects, I think you would probably see us at that point looking to maybe validate some of that through an external CPR as we call it. And we might also seek to identify relevant partners to bring in at that point. It's not Panoro's intention to run with super high equity levels in exploration blocks, particularly when it comes to the heavier spend. So this is a light spend at the moment. But in due course, this is the kind of thing that we believe larger oil companies will be quite interested in. So I think that's a 2026 -- I think the onion will start getting peeled back in 2026 on that one.

And your last question on CapEx '26, it's a little too early to give you anything definitive, Stephane, as we haven't had our annual joint venture meetings budgets. As you know, usually get set September, October, November. So those are all coming up. We might be able to give you a better and clearer answer by the third quarter results in November. However, when asked that question by analysts, what we typically have said is, look, why don't you earmark something around the 2025 levels if you need to put something in your model for now. I don't think it's going to be wildly off. So I hope that answers your question, at least as an answer.

The next question is from Ntebogang Segone.

Just I think 2 questions for me. I mean if I look at your EBITDA from a segmental level, the biggest downside comes from the Equatorial Guinea side, where EBITDA has gone down from $30 million to $6 million. Outside of just sales being the impact, how much from a cost perspective did the EBITDA get impacted by? And then I think the other question is, could you please just break down the OpEx per barrel cost, what are your consolidated first and then also cost on each asset for me?

Suggest, if you don't mind for the purposes of efficiency is let's get after your EBITDA question. In terms of getting into the segmentals, maybe we can take that one together with Andy offline and try and get you so granular. I don't want to get too caught up in going back through the back pages of the report, if you don't mind. Qazi, on the EBITDA and the segmental?

So the EBITDA on the segmental, I think what would happen is that it's largely driven by liftings. And if you think about it, there is no liftings in the current quarter for Equatorial Guinea. So as we announced, there's going to be a lifting or there was a lifting in July in the third quarter, which is going to be included in our results for the third quarter. And that is when all the cost that is accumulated in the inventory is going to show up as a cost of sales. So I think it would be a better description of the EBITDA contribution of EG at that point of time.

Great. And Andy, do you mind following up on the remaining questions, and I'm happy to have a conversation separately on that one.

Absolutely. Thank you. And the next questions have been submitted online, John. One is, we are substantially unhedged. There are views in the market with risk skewed to the downside in regards to oil price looking forward. Can you please comment on the basis for our hedging strategy and what you see and how you may see that evolving looking forward? And secondly is, obviously, the share is trading as is much of the sector at a significant discount to NAV. What do you see the company can be doing to address that discount to NAV and narrow it?

So hedging is both a very technical subject and a philosophical one. Many investors don't like oil companies to be hedged because one of the reasons they invest in them is to enjoy the upside that they -- in that particular investment thesis, believe that oil is too low and will go up and the shares should rerate off the back of that. Obviously, in times of lower oil prices, I think everybody loves hedges and hopes that some companies have put them in place.

So we at Panora, what we try and do is we try and find a balance there because we do recognize that the vast majority of shareholders of people investing in shares in the E&P market investing for the oil price upside as well as the -- each company's individual prospects. But we do try to make sure that when we have our liftings, and that's really the key here is that we don't get a nasty surprise. So what we tend to do is we operationally hedge. So we look at our lifting schedules, and we try and identify months in which we believe we have significant liftings.

Now those liftings can shift by a month or 2, as everybody knows. So it is a little tricky sometimes to nail down the month. And what we tend to do is we put in costless collars. So as an example, year-to-date, you'll see some little noise through the P&L on hedging gains or losses. We've had good hedging outcome, I think, so far this year. We, like everybody, got quite scared when oil dropped down to $60, I think through Liberation Day and all these things. I think what we've seen there is the market kind of tested $60 and it bounced back, obviously. We're sitting at around, what, $66 at the moment, something like that.

These levels are okay for Panora. We have a very profitable business at current levels. But obviously, we'd like higher oil prices. So year-to-date, we've done a bunch of hedging that protected $60 and protected $70 on a portfolio basis. Those hedges have worked well for us. Our realizations to date are around $66, $67 a barrel. And when you see those numbers, you have to remember that there's also discounts usually to the crude. So we don't trade necessarily -- our crude doesn't always trade at Brent. Sometimes it trades above it, sometimes below it. And the other thing is that the Brent prices you see on the screen are different from the dated Brent prices that we realize. And usually, dated Brent is a little bit higher.

So in our hedging, what we really try and address is that when we lift in, say, November, we already know we're going to lift in November, for instance, this year. We think that's the date for a very big lifting for us in Gabon. We'll start looking at that and building up protections on that cargo to make sure that if for whatever reason, there's a few days in November where the oil price drops that we don't get left hanging. So there's that.

Discount to NAV, yes, the sector trades at a discount to NAV. We trade at discount to NAV. Sometimes we trade at a bigger discount to NAV than our peers. Sometimes we trade at a better discount to NAV. And that discount to NAV is kind of always, always there, unfortunately. And over the past years, we've had a lot of ESG that's been keeping a lot of the big institutional investors out of oil and gas. We're seeing that change. So we're seeing institutional investors recognizing again, the energy transition is a process, not an event. It will take a long time. So we're all seeing a better influx of institutional capital into E&P shares. Panoro itself has obviously managed to attract a number of very large institutional shareholders in the past couple of years.

But it is a valid question. How do we continue to close that gap? At Panoro, we -- obviously, we were trying to do as we said we're going to do in terms of the distributions and keeping those going. We believe we have an attractive profile in that respect. We also believe that size is important that when you're a smaller to midsized company, you're getting less institutional attention than you are if you're a bigger company. So that's why we had a track record of doing accretive deals. We continue to look at finding accretive deals. And the prize in finding those accretive deals are obviously, a, doing a smart deal, but b, getting bigger.

So I think one of the principal ways that we can close that discount to NAV is to continue to try and find the right deals for the company going forward. And I think starting to bring forward some of the excitement around our exploration portfolio, which doesn't get any value in the market and -- that's just the way the market is at the moment. Sometimes the market values exploration, sometimes it doesn't. But we are putting the tools in place as we bring these exploration blocks forward and mature them for drilling and for Competent Person's Reports and contingent resources and eventually reserves that will continue to fill that hopper. And then we just have to continue to get out there and find additional investors. That's always something we do and -- try to do, and we'll keep doing it. So I think that probably deals with that one, Andy?

Yes. Thank you very much, John. The next question is from David [indiscernible].

Two questions from me. First, John, just on the Dussafu permit. I mean, if I look at the numbers quarter-on-quarter, you seem to have peaked production in Q1. There seems to be somewhat of a 5% decline or thereabouts in Q2. Is that operational? Or is that reservoir based? Do you expect that to continue until you drill the new wells in early 2026? And just secondly, on Equatorial Guinea and the license there. Obviously, the obvious outlet for any discovery would be the [ Island ] LNG facility. But there's a number of other explorers looking for new gas resources in and around that area. How competitive do you feel that any new discovery that you made would place you above those other companies and any discoveries they would make?

Thanks, David. Yes. Dussafu, yes, it's -- as we all know, wells decline. The decline you note is just natural decline. BW Energy is the operator. That profile is more or less as guided by BW to the market and therefore, by us as well. So I think that you'll continue to kind of see a natural decline there in Dussafu until such time as we come with the new campaign, which will be about a year from now, let's call it, where 4 new wells will come on.

So I think the bigger picture for me, the way I like to look at it with Dussafu is I think Dussafu is a 30,000 or 40,000 barrel a day production asset for the next as many years you can really count on looking at E&P, let's call, in the next 5 years or so with the ability to manage that decline by introducing new wells. And every time we put one of these new wells in, they're very, very cheap. I mean they are less than $10 a barrel to bring on and extremely good operating cost in those areas.

So it's really a matter of continuing to replace that natural reservoir decline by adding the new wells to it. But I think what you'll see there is that natural decline. I think that's -- as I think we've said in BW, it's in line with expectation and guidance on that one. On Bioko Island, the issue there, for those of you who don't know, there's an LNG plant there, which is managed by ConocoPhillips. It's owned by Chevron as well as well as the government of Equatorial Guinea. And that has been a very, very profitable LNG plant for ConocoPhillips and Chevron over the years.

Chevron has some gas fields, oil fields to the Southeast with ConocoPhillips just directly to the north and the Alba field. But both of those assets are in -- they've been producing for a long time and are in decline. There is some infill drilling on the Chevron side of things. There are currently 2 other E&P companies, so Meren Energy, the old Africa Oil, and another small private company that have assets in the area that are also looking for things that might be able to go into that LNG plant. But the LNG plant has lots and lots of haulage on it. It can handle lots more gas. It's producing at way below its capacity.

So I would say that there's room for everybody. I would say that we might have a slight advantage in the sense that our field on commercialization of any discovery drilling there can just tie straight into the Alba system and come straight onshore. Other blocks may not quite have that same advantage. There have to be some infrastructure considerations there that might be slightly more complicated. But I think all of those companies are chasing very interesting blocks. I'm not going to say anything bad about those. I think that -- we think we've got the best one though. And again, we can cooperate with ConocoPhillips, who is just to the south of us with their Alba infrastructure there. So I don't personally see at this point that competition is a bad thing in terms of that gas.

Yes. And just one last question for me, John. You've obviously improved your capital structure dramatically over the last 12 months, certainly.

Sorry, can you say that again?

Sorry -- yes, pardon me. You've been able to improve your capital structure at Panoro quite significantly following higher production levels, being able to improve your cash flow, issue a bond, start paying out a regular dividend and do the share buyback. If we're looking for the next stage of growth -- as you say, larger companies tend to get a smaller discount or smaller discount rate than smaller companies. What would be the next stage in your capital structure evolution? Do you think that, for example, if you're able to double your production, new avenues of debt would be made available to you? Or what's the real pickup from getting larger in terms of capital structure?

Well, I think the first part of it is getting back to that original question that came in online around the discount to NAV. I think just being bigger, having more assets, that diversification of assets, we've really kind of benefited from that. And sometimes in the oil and gas business, there can often be issues associated with one asset or another and having that diversification matters. So I think us adding additional assets to the portfolio, I think, is a way of addressing some of that discount to NAV. The size being bigger attracts more funds.

And in terms of the ability to tap the debt markets, yes, I think the bigger you get, the more competitive those rates are and the better avenues that you can find into the fixed income market. We had a very successful, we believe, a bond issue was well received. It's trading well. I think the credit in the market is strong. But we think that we now have that platform through that bond issue, as you say, through our capital structure, through the diversification we have to continue to grow the company. Both inorganically, if we can find something that makes sense for shareholders, we'll do it. And we think we've got the platform to do that.

And obviously, to the extent we can't find the right deals and those are not attractive from a capital allocation perspective, we'll continue to grow our organic portfolio. But certainly, I'd agree with you that being bigger is going to help us close that discount to NAV.

The next question is from Christoffer Bachke.

Okay. We can come back to that one. And if -- Christopher, let us know if you're about. Otherwise, John, final question to wrap up today comes in online. Obviously, it doesn't feature prominently in our materials, but could you please elaborate a little bit on activity at the helium play exploration rights onshore South Africa?

Yes. And apologies for not putting it in our report. It is a very, very interesting project for those of you who followed our entry into the helium and methane gas play in South Africa. South Africa is a country that is very reliant on coal for its electricity generation. And in our commitment towards transition, we've always been looking for ways that we can use our subsurface skills to try to show that commitment to the transition. It's never meant to be a big capital outlay for us, but more to demonstrate that we're doing things in Africa to assist with the transition.

The project is a very interesting one. It sits in the sweet spot of this basin, which has got proven helium and very shallow methane gas. So there is one project there, which is up and running, which basically produces gas. They strip out the helium, which sells for a crazy rates of $1,000 an Mcf, that kind of thing. And then the gas is then used either for local CNG or small-scale LNG going into the transportation sector, again, displacing fuel, displacing eventually coal into the power sector.

The process in South Africa is long, the sort of environmental approvals. So we're in the middle of the environmental approvals for that. So we've submitted everything to do with that, and we're basically waiting on what is a little bit of a lengthy process in South Africa. It's a very competent process, but it's a lengthy process in South Africa to get the full environmental approvals for the next stage of the project. The next stage of the project will involve probably getting some gravity data over the area. So that's FTG. It doesn't cost much money, but it would give you a really good indication of the underlying subsurface and where best to focus any initial exploratory drilling.

I think it's a project that we feel strategically, probably could form part of another company, maybe we can create a separate business around it. It's not going to be something that chews up a lot of capital in Panoro, but it's something we feel very strongly about. And so we'll continue to try and nurture it along and incubate it and hopefully, put it in a good place in due course that the project really can flourish and Panoro and its shareholders can benefit directly or indirectly from that.

Thank you very much, John. And there's a further question from Stephane Foucaud.

I'm back on Gabon. And in light of what you said, John, about bolt-on, the potential explorations upside around it. I was wondering how current is this 25 million barrel overall prospective resources net to Panoro or in Dussafu?

Sorry, how current did you say?

I mean, yes, by this, I mean -- so I think the 25 million prospective resources was, I think, some time ago. Then of course, we had the bolt-on discovery, but you were talking about further upside around the bolt-on discovery. And I was wondering whether it was in the 25 million barrel prospective resources or whether that number could now have become larger since it was first estimated.

I see. No, I think for the moment, we're sticking together with BW around that range. We talked about in the Dussafu slide, the 4-well development drilling campaign in Hibiscus/Hibiscus South field. What's going to happen most likely -- again, it needs to be agreed between the joint venture. But what will happen most likely is we will come and drill those 4 development wells, which will increase production again.

And when the rig is there, we may do some more exploratory drilling in that Bourdon area. We -- having drilled the well on a couple of sidetracks, we now have 3 now different bits of well control there. That's given the geoscientists the chance to kind of remap that whole area. It was different than expected, but we found a lot of oil. And what we're seeing there is there are 2 or 3 other areas, satellites, if I can call them that, to this Bourdon discovery we've made that look very interesting. We believe 25 million barrels is commercial itself and justifies a small platform development there tied back into the pipeline. However, it's always nice to find more.

And I think the debate in the joint venture will be what do we do when the rig comes back? Should we look around a little bit more and just see whether some of those satellites might hold additional oil. Some of them are smaller, some of them are quite big. So it's a little early. I think we kind of stick with the number we've got at the moment though.

I was not so much talking about what has been discovered at Bourdon, but the remaining prospectivity on the license, which I think you're carrying currently. It's the same figure as Bourdon, 22 million barrel prospective resources outside of what has been discovered. And I was wondering whether that has grown following, particularly the discovery of Bourdon and finding a new play, remapping and so forth?

No. I think it's too early to say that, Stephane. I think the -- that prospect inventory is -- needs to be entirely refreshed following the Bourdon discovery. So we've been really focusing on the Bourdon area. But with the new seismic coming in on the new blocks, we're going to also have a quick look at what that seismic tells us about Dussafu. So still to come. Those numbers are still valid and have not been updated as yet.

But we do have -- what is it, something like 88% drilling success in this area, that post-salt -- sort of the pre-salt Gamba prospects we see, we kind of can now, not with 100% certainty, but with a high degree of certainty, really identifying where the traps are here. So we've got a good track record there of finding more oil. There's going to be a lot more oil to be found here. Just -- we don't have a new number for you other than the historical one that's there.

Thank you, John. And that will conclude today's Q&A. Thank you.

Thanks, everybody, and I look forward to keeping you updated. Thank you.