Q4 2025 Meren Energy Inc Earnings Call

February 25, 2026

Speaker #1: Today at this time I'd like to welcome everyone to the Marin's Fourth Quarter 2025 results presentation. After the speaker's remarks there'll be a question-and-answer session, please note that at any time participants on the webcast can submit the questions using the questions button on the webcast interface.

Operator: today. At this time, I'd like to welcome everyone to the Meren's Q4 2025 Results Presentation. After the speaker's remarks, there will be a question and answer session. Please note that at any time, participants on the webcast can submit the questions using the questions button on the webcast interface. This event is being recorded, and the recording will be available for playback on the company's website. I will now pass the meeting to Mr. Masana Chowdhury. Please go ahead, Mr. Chowdhury.

Speaker #1: This event is being recorded and the recording will be available for playback on the company's website. I will now pass the meeting to Mr. Masana Chowdhury; please go ahead, Mr. Chowdhury.

Speaker #2: Hello everyone, thank you for joining us today for Marin's Fourth Quarter 2025 results presentation. I'm Masana Chowdhury, part of the investor relations team here at Marin, and I'm joined today by Oliver Quinn, our Chief Executive Officer and Aldo Perracini, our Chief Financial Officer.

Shahin Amini: Hello, everyone. Thank you for joining us today for Meren's Q4 2025 results presentation. I'm Shahin Amini, part of the investor relations team here at Meren, and I'm joined today by Oliver Quinn, our Chief Executive Officer, and Pascal Nicodeme, our Chief Financial Officer. We'll begin today with prepared remarks and then open the floor to questions. Just before we get started, a quick reminder that today's presentation contains forward-looking statements. These reflect our current assumptions and expectations and are subject to risks and uncertainties that could cause actual results to differ materially. More detail on these risks can be found in our regulatory filings on SEDAR+ and on our website. With that, I'll now hand you over to Oliver. Oliver, please go ahead.

Mussannah Chowdhury: Hello, everyone. Thank you for joining us today for Meren's Q4 2025 results presentation. I'm Shahin Amini, part of the investor relations team here at Meren, and I'm joined today by Oliver Quinn, our Chief Executive Officer, and Pascal Nicodeme, our Chief Financial Officer. We'll begin today with prepared remarks and then open the floor to questions. Just before we get started, a quick reminder that today's presentation contains forward-looking statements. These reflect our current assumptions and expectations and are subject to risks and uncertainties that could cause actual results to differ materially. More detail on these risks can be found in our regulatory filings on SEDAR+ and on our website. With that, I'll now hand you over to Oliver. Oliver, please go ahead.

Speaker #2: We'll begin today with prepared remarks and then open the floor to questions. Just before we get started, a quick reminder that today's presentation contains forward-looking statements.

Speaker #2: These reflect our current assumptions and expectations on our subject to risks and uncertainties that could cause actual results to differ materially. More detail on these risks can be found in our regulatory filings on Cedar Plus and on our website.

Speaker #2: With that, I'll now hand you over to Oliver. Oliver, please go ahead.

Speaker #3: Thanks, Masana, and thank you everyone for joining us today. This is my first results presentation as Marin's CEO, and I'd like to begin by thanking my predecessor, Roger Tucker, for his strategic leadership and personal support over the past few years.

Oliver Quinn: Thanks, Masana. Thank you everyone for joining us today. This is my first results presentation as Meren's CEO, and I'd like to begin by thanking my predecessor, Roger Tucker, for his strategic leadership and personal support over the past few years. I'm proud to have been given the responsibility to steer the company through its next phase of growth, to lead a great team of professionals, and to continue working with our industry and government partners towards long-term value creation. Turning to slide 4 and an overview of 2025, I'm pleased to report on a year of strong delivery. To begin with, last March, we closed a transformational Prime consolidation deal, doubling our reserves and production from our high quality and high net back assets offshore Nigeria.

Speaker #3: I'm proud to have been given the responsibility to steer the company through its next phase of growth, to lead a great team of professionals, and to continue working with our industry and government partners towards long-term value creation.

Speaker #3: Turning to Slide 4 and an overview of 2025, I'm pleased to report on a year of strong delivery. To begin with, last March we closed a transformational prime consolidation deal doubling our reserves and production from our high-quality and high-net-back assets offshore Nigeria.

Speaker #3: This was a strategic transaction as we simplified the ownership structure of our core assets, enhancing day-to-day control and creating a strong platform for further growth.

Oliver Quinn: This was a strategic transaction as we simplified the ownership structure of our core assets, enhancing day-to-day control and creating a strong platform for further growth. Through 2025, we have successfully integrated Prime and have a lean and fit-for-purpose organization to manage our production assets, as well as progress our strong portfolio of growth opportunities. Underpinned by closing of the Prime amalgamation, we delivered strong shareholder returns with $100 million in base dividend and $8 million in share buybacks. Alongside shareholder returns, the balance sheet has been strengthened with the repayment of $420 million of the outstanding RBL facility, delivering both cost savings and a healthier year-end net debt to EBITDAX ratio of 0.4x, all whilst maintaining significant liquidity to cushion the business against market volatility.

Speaker #3: Through 2025 we have successfully integrated prime and have a lean and fit-for-purpose organization to manage our production assets, as well as progress our strong portfolio of growth opportunities.

Speaker #3: Underpinned by the closing of the Prime amalgamation, we delivered strong shareholder returns with $100 million in base dividend and $8 million in share buybacks.

Speaker #3: Alongside shareholder returns, the balance sheet has been strengthened with the repayment of $420 million of the outstanding RBL facility, delivering both cost savings and a healthy year-end net debt-to-EBIT tax ratio of 0.4x.

Speaker #3: All whilst maintaining significant liquidity to cushion the business against market volatility. Aldo will talk in more detail about the maintenance of a prudent leverage position and our broader approach to ensuring financial resilience through the cycle.

Oliver Quinn: Aldo will talk in more detail about the maintenance of a prudent leverage position and our broader approach to ensuring financial resilience through the cycle. 2025 was a year of transformation for Meren, but our focus today remains on continuing to maintain our balance sheet strength, enhancing the production profile through organic growth opportunities, and continuing to mature options to deliver long-term value to our shareholders. I'll now take you through our production performance on Slide 5. For 2025, we achieved working interest production of 30.8 thousand barrels of oil equivalent per day and 35.1 thousand BOEs per day on an entitlement basis, both in line with our full year guidance.

Speaker #3: 2025 was a year of transformation for Marin, but our focus today remains on continuing to maintain our balance sheet strength, enhancing the production profile through organic growth opportunities, and continuing to mature options to deliver long-term value to our shareholders.

Speaker #3: I'll now take you through our production performance on Slide 5. For 2025, we achieved working interest production of 30.8 thousand barrels of oil equivalent per day, and 35.1 thousand BOEs per day on an entitlement basis, both in line with our full-year guidance.

Speaker #3: During the first nine months of the year, the ACPO and AGINA infill drilling campaign supported steady average production of around 32,000 BOEs per day on a working interest basis, with production lower during the fourth quarter primarily due to planned maintenance shutdown on the Agbami field.

Oliver Quinn: During the first nine months of the year, the Akpo and Egina infield drilling campaign supported steady average production of around 32,000 BOEs per day on a working interest basis, with production lower during Q4, primarily due to planned maintenance shutdown on the Agbami field. Q4 production was also impacted by minor facility issues, including temporary shutdowns related to power supply, particularly during the second period of the quarter. These issues were actively managed through targeted operational interventions, enabling the fields to continue performing in line with expectation following resolution. As previously communicated, the Akpo and Egina drilling program was paused in Q3 to allow incorporation of positive early results from a recently acquired 4D seismic data set that will aid in the optimization of drilling locations.

Speaker #3: Q4 production was also impacted by minor facility issues, including temporary shutdowns related to power supply, particularly during the second period of the quarter. These issues were actively managed through targeted operational interventions enabling the fields to continue performing in line with expectation following resolution.

Speaker #3: As previously communicated, the ACPO and AGINA drilling program was paused in the third quarter to allow incorporation of positive early results from a recently acquired 4D seismic data set that will aid in the optimization of drilling locations.

Speaker #3: Due to the earlier finish of the 2025 drilling campaign, our full-year capital expenditure came in at the lower end of our guidance range. In 2026, we expect to see sustained drilling campaigns on each of ACPO, AGINA, and Agbami commencing later in the year.

Oliver Quinn: Due to the earlier finish of the 2025 drilling campaign, our full year CapEx came in at the lower end of our guidance range. In 2026, we expect to see sustained drilling campaigns on each of Akpo, Egina, and Agbami commencing later in the year. I'll now hand you over to Aldo to take you through the financials.

Speaker #3: I'll now hand you over to Aldo to take you through the financials.

Speaker #2: Thanks, Oliver. In the fourth quarter, Marin completed three oil liftings for around 3 million barrels at the realized all-wind sales price of 64.4 dollars per barrel.

Pascal Nicodeme: Thanks, Oliver. In Q4, Meren completed 3 oil liftings for around 3 million barrels at a realized all-in sales price of $64.4 per barrel. For 2025, we have completed 12 total liftings, totaling around 12 million barrels at an average all-in sales price of $72.2 per barrel, comparing favorably to Dated Brent at $69.1 per barrel. Meren has applied a variety of different hedging instruments to protect the downside, while also maintaining partial exposure to potential upside. This will include a mix of physical and financial hedges, such as swaps, callers, and puts, and you can find further details on this in our Q4 MD&A. Moving on to financial highlights.

Aldo Perracini: Thanks, Oliver. In Q4, Meren completed 3 oil liftings for around 3 million barrels at a realized all-in sales price of $64.4 per barrel. For 2025, we have completed 12 total liftings, totaling around 12 million barrels at an average all-in sales price of $72.2 per barrel, comparing favorably to Dated Brent at $69.1 per barrel. Meren has applied a variety of different hedging instruments to protect the downside, while also maintaining partial exposure to potential upside. This will include a mix of physical and financial hedges, such as swaps, callers, and puts, and you can find further details on this in our Q4 MD&A. Moving on to financial highlights.

Speaker #2: For 2025, we have completed 12 total liftings, totalling around 12 million barrels at an average all-wind sales price of 72.2 dollars per barrel. Comparing favorably to dated Brent at 69.1 dollars per barrel.

Speaker #2: Marin has applied a variety of different hedging instruments to protect the downside while also maintaining partial exposure to potential upside. This will include a mix of physical and financial hedges such as swaps, callers, and puts, and you can find further details on this in our Q4 MD&A.

Speaker #2: Moving on to financial highlights. Before going through our numbers, it is important to note that we have reported an impairment of $105.3 million this quarter in relation to the Agbami cash-generating unit.

Pascal Nicodeme: Before going through our numbers, it is important to note that we have reported an impairment of $105.3 million this quarter in relation to the Agbami cash generating unit. I must emphasize that this impairment is non-cash and it has no impact on our cash flows. This charge has come as a result of oil price volatility in 2025, an updated cost forecast relating to the Agbami field. More specifically, the updated cost forecast is mainly in relation to planned long-term life extension activities, allowing the FPSO to continue to operate reliably and safely through to the end of the license. This will also allow more flexibility on the FPSO to support future in-field drilling and tieback opportunities, which we will touch on shortly. Moving on to our highlights. For 2025, we delivered an EBITDAX of $441 million.

Aldo Perracini: Before going through our numbers, it is important to note that we have reported an impairment of $105.3 million this quarter in relation to the Agbami cash generating unit. I must emphasize that this impairment is non-cash and it has no impact on our cash flows. This charge has come as a result of oil price volatility in 2025, an updated cost forecast relating to the Agbami field. More specifically, the updated cost forecast is mainly in relation to planned long-term life extension activities, allowing the FPSO to continue to operate reliably and safely through to the end of the license. This will also allow more flexibility on the FPSO to support future in-field drilling and tieback opportunities, which we will touch on shortly. Moving on to our highlights. For 2025, we delivered an EBITDAX of $441 million.

Speaker #2: I must emphasize that this impairment is non-cash and it has no impact on our cash flows. This charge has come as a result of oil price volatility in 2025, an updated cost forecast relating to the Agbami field.

Speaker #2: More specifically, the updated cost forecast is mainly in relation to planned long-term life extension activities allowing the FPSO to continue to operate reliably and safely through to the end of the license.

Speaker #2: This will also allow more flexibility on the FPSO to support future infill drilling and tie back opportunities which we will touch on shortly. Moving on to our highlights.

Speaker #2: For 2025, we delivered an EBITDAX of $441 million. This fell just short of our full-year guidance, mostly due to a larger overleaf adjustment for the period relative to the estimates for the mid-point range of the revised guidance, and other smaller variations on AGINA royalties and levies.

Pascal Nicodeme: This fell just short of our full year guidance, mostly due to a larger overlay adjustment for the period relative to the estimates for the midpoint range of the revised guidance and other smaller variations on Nigerian royalties and levies. Cash flow from operations before working capital came in at $262 million for the year, with a reported CapEx of $100 million, largely driven by drilling activity in Akpo and Egina this year, and facility costs on Agbami, both of which have met our 2025 guidance. Free cash flow before debt service and shareholder distributions was $289 million. As Oliver mentioned earlier, we have significantly de-leveraged the business this year, paying down the RBL by $420 million, as well as distributing roughly $108 million in shareholder returns. Moving on to cash flow for the year.

Aldo Perracini: This fell just short of our full year guidance, mostly due to a larger overlay adjustment for the period relative to the estimates for the midpoint range of the revised guidance and other smaller variations on Nigerian royalties and levies. Cash flow from operations before working capital came in at $262 million for the year, with a reported CapEx of $100 million, largely driven by drilling activity in Akpo and Egina this year, and facility costs on Agbami, both of which have met our 2025 guidance. Free cash flow before debt service and shareholder distributions was $289 million. As Oliver mentioned earlier, we have significantly de-leveraged the business this year, paying down the RBL by $420 million, as well as distributing roughly $108 million in shareholder returns. Moving on to cash flow for the year.

Speaker #2: Cash flow from operations before working capital came in at 262 million for the year, with a reported CAPEX of 100 million. Largely driven by drilling activity in ACPO and AGINA this year, and facility costs on Agbami.

Speaker #2: Both of which have met our 2025 guidance. Free cash flow before debt service and shareholder distributions was 289 million. As Oliver mentioned earlier, we have significantly deleveraged the business this year, paying down the RBL by 420 million as well as distributing roughly 108 million Moving on to cash flow for the year.

Speaker #2: This slide shows the 2025 movements and year-end 2024 cash balance on a constructed basis as if the prime amalgamation had closed on 1st of January 2025.

Pascal Nicodeme: This slide shows the 2025 movements and year-end 2024 cash balance on a constructed basis, as if the Prime amalgamation had closed on 1 January 2025. We ended 2025 with a cash balance of $175 million, compared to an opening cash balance of $461 million. Net cash generated in operating activities for the year was $348 million, which included a positive working capital movement of $86 million, primarily driven by the receipt of oil sale receivables, driven by the timing of cargo liftings. The cash outlay of $420 million post-consolidation was for the repayments of the RBL, clearly demonstrating our intention to optimize our capital structure and resulted in about $12 million savings in reduction of financing costs.

Aldo Perracini: This slide shows the 2025 movements and year-end 2024 cash balance on a constructed basis, as if the Prime amalgamation had closed on 1 January 2025. We ended 2025 with a cash balance of $175 million, compared to an opening cash balance of $461 million. Net cash generated in operating activities for the year was $348 million, which included a positive working capital movement of $86 million, primarily driven by the receipt of oil sale receivables, driven by the timing of cargo liftings. The cash outlay of $420 million post-consolidation was for the repayments of the RBL, clearly demonstrating our intention to optimize our capital structure and resulted in about $12 million savings in reduction of financing costs.

Speaker #2: We ended 2025 with a cash balance of 175 million. Compared to an opening cash balance of 461 million. Net cash generated in operating activities for the year was 348 million, which included a positive working capital movement of 86 million, primarily driven by the receipt of oil sale receivables driven by the timing of cargo liftings.

Speaker #2: The cash outlay of 420 million post-consolidation was for the repayments of the RBL, clearly demonstrating our intention to optimize our capital structure and resulted in about 12 million savings in reduction of financing costs.

Speaker #2: We also distributed a little bit over 108 million during 2025, comprised of about 100 million in base dividends and 8 million in share buybacks.

Pascal Nicodeme: We also distributed a little bit over $108 million during 2025, comprised of about $100 million in base dividends and $8 million in share buybacks. Overall, through disciplined cash management, we have materially reduced our debt, strengthened the balance sheet, and established a solid platform for sustainable growth and value creation. We are also pleased to announce our first quarterly dividend of 2026 of $25 million, which will be paid next month. Moving on to the next slide. At year-end 2025, our amount drawn under the RBL stood at $330 million, with a net debt position of $155 million and net debt to EBITDAX of 0.4x, significantly below our target of 1x.

Aldo Perracini: We also distributed a little bit over $108 million during 2025, comprised of about $100 million in base dividends and $8 million in share buybacks. Overall, through disciplined cash management, we have materially reduced our debt, strengthened the balance sheet, and established a solid platform for sustainable growth and value creation. We are also pleased to announce our first quarterly dividend of 2026 of $25 million, which will be paid next month. Moving on to the next slide. At year-end 2025, our amount drawn under the RBL stood at $330 million, with a net debt position of $155 million and net debt to EBITDAX of 0.4x, significantly below our target of 1x.

Speaker #2: Overall, through disciplined cash management, we have materially reduced our debt, strengthened the balance sheet, and established a solid platform for sustainable growth and value creation.

Speaker #2: We are also pleased to announce our first quarterly dividend of 2026 of $25 million, which will be paid next month. Moving on to the next slide.

Speaker #2: At year-end 2025, our amount drawn under the RBL is stood at 330 million, with a net debt position of 155 million and net debt to EBITDAX of 0.4 times.

Speaker #2: Significantly below our target of one time. The chart on the right demonstrates our consistent and prudent approach over the last few years, towards debt management with continuous efforts to optimize liquidity, while minimizing borrowing costs.

Pascal Nicodeme: The chart on the right demonstrates our consistent and prudent approach over the last few years towards debt management, with continuous efforts to optimize liquidity while minimizing borrowing costs. It is worth recalling that post-Prime amalgamation, we canceled an undrawn $65 million marine corporate facility to eliminate standby fees. As a post-Q4 update, we drew down an additional $40 million under the RBL due to normal working capital timing related to liftings and short-term liquidity positioning within the group. We have very good flexibility under the RBL revolver facility at competitive borrowing costs. We are currently in the process of refinancing the RBL debt facility, which will allow us to save more on borrowing costs and to enhance our debt amortization profile. In the meantime, as shown on the right-hand side, we do retain an ample liquidity headroom. Moving on to the next slide.

Aldo Perracini: The chart on the right demonstrates our consistent and prudent approach over the last few years towards debt management, with continuous efforts to optimize liquidity while minimizing borrowing costs. It is worth recalling that post-Prime amalgamation, we canceled an undrawn $65 million marine corporate facility to eliminate standby fees. As a post-Q4 update, we drew down an additional $40 million under the RBL due to normal working capital timing related to liftings and short-term liquidity positioning within the group. We have very good flexibility under the RBL revolver facility at competitive borrowing costs. We are currently in the process of refinancing the RBL debt facility, which will allow us to save more on borrowing costs and to enhance our debt amortization profile. In the meantime, as shown on the right-hand side, we do retain an ample liquidity headroom. Moving on to the next slide.

Speaker #2: It is worth recalling that post-prime amalgamation, we canceled an undrawn 65 million Marin corporate facility to eliminate standby fees. As a post-fourth-quarter update, we drilled down on additional 40 million, under the RBL, due to normal working capital timing related to liftings and short-term liquidity positioning within the group.

Speaker #2: So we have very good flexibility under the RBL, revolver facility, at competitive borrowing costs. We are currently in the process of refinancing the RBL debt facility which will allow us to save more on borrowing costs end to enhance our debt amortization profile.

Speaker #2: In the meantime, as shown on the right-hand side, we do retain an ample liquidity headroom. Moving on to the next slide. With our full-year results, we have also announced our full-year management guidance.

Pascal Nicodeme: With our full year results, we have also announced our full year management guidance. Our work in interest production guidance comparing to 2025 actuals reflects the timing for the commencement of in-field drilling campaign, which is currently expected to start towards Q4 of the year. Our EBITDAX and cash flow from operation guidance relative to 2025 actuals reflect the lower production base and accounts for a lower full year Brent oil price at $63 per barrel, compared to the actual Brent average of $69 per barrel for 2025. Moving on to the next slide. Before handing back to Oliver to take you through our organic growth opportunities, I will briefly highlight the positive developments in Nigeria.

Aldo Perracini: With our full year results, we have also announced our full year management guidance. Our work in interest production guidance comparing to 2025 actuals reflects the timing for the commencement of in-field drilling campaign, which is currently expected to start towards Q4 of the year. Our EBITDAX and cash flow from operation guidance relative to 2025 actuals reflect the lower production base and accounts for a lower full year Brent oil price at $63 per barrel, compared to the actual Brent average of $69 per barrel for 2025. Moving on to the next slide. Before handing back to Oliver to take you through our organic growth opportunities, I will briefly highlight the positive developments in Nigeria.

Speaker #2: Our working interest production guidance, compared to 2025 actuals, reflects the timing for the recommencement of the infill drilling campaign, which is currently expected to start towards the last quarter of the year.

Speaker #2: Our EBITDAX and cash flow from operation guidance relative to 2025 actuals reflect the lower production base and account for a lower full-year brent oil price at 63 dollars per barrel, compared to the actual brent average of 69 dollars per barrel for 2025.

Speaker #2: Moving on to the next slide. And before handing back to Oliver to take you through our organic growth opportunities, I will briefly highlight the positive developments in Nigeria.

Speaker #2: The implementation of the PIA was supported to our business and this positive development has been followed by a number of presidential executive orders aiming at facilitating investment in Nigeria's oil and gas sector and tackle project execution risks such as cost inflation and schedule delays.

Pascal Nicodeme: The implementation of the PIA was supportive to our business. This positive development has been followed by a number of presidential executive orders aiming at facilitating investment in Nigeria's oil and gas sector and tackle project execution risks, such as cost inflation and schedule delays. We are seeing greater fiscal clarity, stronger government engagement, and targeted incentives aimed at supporting upstream investments. Recent final investment decisions on projects such as Bonga North, the Umba Gas Project, and the HI Offshore Gas Project, demonstrate renewed capital commitment and growing confidence in Nigeria as a long-term energy investment destination. For us, a more stable and predictable operating environment is constructive for both capital allocation and valuation across our Nigerian portfolio. We are also seeing Nigeria's USD credit spreads tightening significantly from peak levels, reflecting a meaningful reduction in the market's perceived sovereign risk and improving investor confidence in the country.

Aldo Perracini: The implementation of the PIA was supportive to our business. This positive development has been followed by a number of presidential executive orders aiming at facilitating investment in Nigeria's oil and gas sector and tackle project execution risks, such as cost inflation and schedule delays. We are seeing greater fiscal clarity, stronger government engagement, and targeted incentives aimed at supporting upstream investments. Recent final investment decisions on projects such as Bonga North, the Umba Gas Project, and the HI Offshore Gas Project, demonstrate renewed capital commitment and growing confidence in Nigeria as a long-term energy investment destination. For us, a more stable and predictable operating environment is constructive for both capital allocation and valuation across our Nigerian portfolio. We are also seeing Nigeria's USD credit spreads tightening significantly from peak levels, reflecting a meaningful reduction in the market's perceived sovereign risk and improving investor confidence in the country.

Speaker #2: So we are seeing greater fiscal clarity, stronger government engagement, and targeted incentives aimed at supporting upstream investments. Recent final investment decisions on projects such as Bonga North, Diubeta Gas Project, and the HI Offshore Gas Project demonstrate renewed capital commitment and growing confidence in Nigeria as a long-term energy investment destination.

Speaker #2: For us, a more stable and predictable operating environment is constructive for both capital allocation evaluation across our Nigerian portfolio. We are also seeing Nigeria's USD credit spreads tightening significantly from peak levels, reflecting a meaningful reduction in the market's perceived sovereign risk and improving investor confidence in the country.

Speaker #2: This has also been reinforced by recent positive credit rating developments in recent months. We are very pleased to see these positive developments and continue to have high confidence in Nigeria and its oil and gas sector, with clear fiscal and regulatory frameworks supporting our core business and key assets.

Pascal Nicodeme: This has also been reinforced by recent positive credit rating developments in recent months. We are very pleased to see these positive developments and continue to have high confidence in Nigeria and its oil and gas sector, with clear fiscal and regulatory frameworks supporting our core business and key assets. I will now hand over to Oliver to take you through our portfolio outlook.

Aldo Perracini: This has also been reinforced by recent positive credit rating developments in recent months. We are very pleased to see these positive developments and continue to have high confidence in Nigeria and its oil and gas sector, with clear fiscal and regulatory frameworks supporting our core business and key assets. I will now hand over to Oliver to take you through our portfolio outlook.

Speaker #2: I will now hand over to Oliver to take you through our portfolio outlook.

Speaker #1: Thanks, Aldo. Turning to slide 12 on our business outlook, I want to focus on the organic growth opportunities in the portfolio, starting with our production hubs in Deepwater Nigeria.

Oliver Quinn: Thanks, Aldo. Turning to slide 12 and our business outlook, I want to focus on the organic growth opportunities in the portfolio, starting with our production hubs in deep water Nigeria. For Akpo and Egina, we are planning to recommend drilling in late 2026 with the Akpo Far East exploration well. Akpo Far East is a near field prospect, located just 5km from existing production facilities, and represents the test of a fast cycle, infrastructure-led tieback opportunity with around 23 million barrels unrisked mean recoverable resource net to Marin. In a success case, first oil could be achieved through the Akpo FPSO in less than 2 years. The drilling campaign will then move toward infill drilling across both Akpo and Egina from late 2026 and into 2027. This will add new production as we move through 2027.

Speaker #1: For ACPO and AGINA, we are planning to recommence drilling in late 2026 with the ACPO Far East Exploration Well. ACPO Far East is a near-field prospect located just five kilometers from existing production facilities and represents the test of a fast-cycle, infrastructure-led tie-back opportunity with around 23 million barrels unrisked mean recoverable resource net to Marin.

Speaker #1: In a success case, first oil could be achieved through the ACPO FPSO in less than two years. The drilling campaign will then move toward infill drilling across both ACPO and AGINA from late 2026 and into 2027, and this will add new production as we move through 2027.

Speaker #1: Beyond that, we have made progress around our undeveloped discoveries, PREOI, AGINA South, and EKIJA, all located within 20 to 30 kilometers of existing Marin production hubs.

Oliver Quinn: Beyond that, we have made progress around our undeveloped discoveries, Preowei, Egina South, and Ikija, all located within 20 to 30 km of existing Meren Energy production hubs. That proximity is important, as it offers a growth portfolio of short cycle, capital efficient, and lower risk developments that utilize our existing brownfield infrastructure and together consist of around 42 million barrels of resource net to Meren Energy. At Agbami, drilling also recommends us in late 2026, with a campaign including appraisal of the adjacent Ikija discovery and 6 infill wells within the field. We are excited to get back to drilling in 2026, the combination of testing new low-cost resource and short-term production growth through infill drilling presents a series of low risk, high return opportunities to bolster our production profile and in turn, supports long-term value for shareholders.

Speaker #1: That proximity is important as it offers a growth portfolio of short cycle capital-efficient and lower-risk developments that utilize our existing brownfield infrastructure and together consist of around 42 million barrels of resource net to Marin.

Speaker #1: At AGBAMI, drilling also recommences in late 2026 with a campaign including appraisal of the adjacent EKIJA discovery and six infill wells within the field.

Speaker #1: We are excited to get back to drilling in 2026 and the combination of testing new low-cost resource and short-term production growth through infill drilling presents a series of low-risk, high-return opportunities to bolster our production profile and in turn supports long-term value for shareholders.

Speaker #1: On slide 13, let's turn to another key growth area for Meren, the Orange Basin. Beginning with Namibia, the joint venture continues to progress the Venus development project, which remains on track for final investment decision this year.

Oliver Quinn: On Slide 13, let's turn to another key growth area for Meren Energy, the Orange Basin. Beginning with Namibia, the joint venture continues to progress the Venus Development Project, which remains on track for final investment decision this year. According to the operator, TotalEnergies, FID is targeted for mid-2026, with the environmental and social impact assessment now published and the environmental clearance certificate application submitted, marking a key regulatory step towards FID. As a reminder, front-end engineering and design, FEED, is progressing with a plan for 40 subsea wells tied back to an FPSO with a peak capacity of 160,000 barrels of oil per day and a production life of 20 years plus, delivering significant and sustained cash flow to Meren Energy. As we get closer to the final investment decision, we anticipate scope for us to include Venus in our annual reserves reporting process.

Speaker #1: According to the operator TotalEnergies, FID is targeted for mid-2026 with the environmental and social impact assessment now published and the environmental clearance certificate application submitted marking a key FID.

Speaker #1: As a reminder, front-end engineering and design, FEED, is progressing with a plan for 40 subsea wells tied back to an FPSO with a peak capacity of 160,000 barrels of oil per day and a production life of 20 years plus, delivering significant and sustained cash flow to Marin.

Speaker #1: As we get closer to the final investment decision, we anticipate scope for us to include Venus in our annual reserves reporting process. Beyond Venus, several material exploration prospects remain to be tested on the license with planning in progress.

Oliver Quinn: Beyond Venus, several material exploration prospects remain to be tested on the license, with planning in progress. Importantly, we retain full exposure to these high impact opportunities with no upfront cost, as all exploration and development spending is carried through to first commercial production. In Block 3B/4B in South Africa, the legislative notification and appeals process remains suspended pending the Supreme Court of Appeal judgment for Blocks V, VI, and VII. From a project perspective, the identified lead prospect, Nayla, is drill ready, and the operator, TotalEnergies, is ready to commence drilling once the appeals process is concluded. To remind you, the cost exposure to Marin in South Africa is limited, with the transaction completed with TotalEnergies and QatarEnergy, including a capped exploration carry.

Speaker #1: And importantly, we retain full exposure to these high-impact opportunities with no upfront cost as all exploration and development spending is carried through to first commercial production.

Speaker #1: In Block 3B4B in South Africa, the legislative notification and appeals process remains suspended pending the Supreme Court of Appeals judgment for Blocks 5, 6, and 7.

Speaker #1: From a project perspective, the identified lead prospect, Nyla, is drill-ready and the operator TotalEnergies is ready to commence drilling once the appeals process is concluded.

Speaker #1: To remind you, the cost exposure to Marin in South Africa is limited with the transaction completed with TotalEnergies in Qatar Energy including a capped expiration carry.

Speaker #1: Whilst the regulatory issues elsewhere in South Africa, of course, delay, our 18% carried interest combined with the scale of the prospects identified means we remain excited about the potential for the block and its ability to act as a transformational catalyst for Marin.

Oliver Quinn: Whilst the regulatory issues elsewhere in South Africa have caused delay, our 18% carried interest, combined with the scale of the prospects identified, means we remain excited about the potential for the block and its ability to act as a transformational catalyst for Marin. Turning to Equatorial Guinea on slide 14, we hold two operated licenses that offer another set of organic growth options within the portfolio. Starting with EG-31, this is a shallow water gas position, close to existing infrastructure and situated around 30 kilometers from the Punta Europa LNG facility. Through 2025, our evaluation is focused on maturation of the existing Gardenia gas discovery that represents a circa 200BCF gross resource, with the potential to be developed as a low CapEx, low unit cost, short cycle project that utilizes capacity in the adjacent LNG facility.

Speaker #1: Now turning to equatorial Guinea on slide 14, we hold two operated licenses that offer another set of organic growth options within the portfolio. Starting with EG31, this is a shallow-water gas position close to existing infrastructure and situated around 30 kilometers from the Punta Europa LNG facility.

Speaker #1: Through 2025, our evaluation is focused on maturation of the existing Gardenia gas discovery that represents a circa 200 Bcf gross resource, with the potential to be developed as a low-capex, low-unit-cost, short-cycle project that utilizes capacity in the adjacent LNG facility.

Speaker #1: Beyond Gardenia, several nearby gas prospects, Massif and Whistler, offer material longer-term growth potential with unrisked gross prospective resource estimates of around 5 TCF. As part of our wider organic growth options, EG31 provides an attractive right-sized LNG opportunity with low-capex exposure through utilization of existing gas and LNG infrastructure.

Oliver Quinn: Beyond Gardenia, several nearby gas prospects, Massif and Whistler, offer material longer term growth potential with unrisked gross prospective resource estimates of around 5 TCF. As part of our wider organic growth options, EG-31 provides an attractive, right-sized LNG opportunity with low CapEx exposure through utilization of existing gas and LNG infrastructure. Moving to EG-18, a deepwater exploration block with oil prospectivity, we have identified basin floor fan targets with multibillion barrel potential and a series of stacked prospects. Across both blocks, we have been running a farm down process, and whilst the 2 opportunities offer differing investment profiles, industry interest has been encouraging and we are now in active discussions with potential partners. Importantly, we have secured 2-year license extensions for both blocks, giving us additional flexibility as we progress partnership discussions and align next steps with the government.

Speaker #1: Moving to EG18, a deep-water exploration block with oil prospectivity, we have identified basin floor fan targets with multi-billion barrel potential in a series of stacked prospects.

Speaker #1: Across both blocks, we have been running a farm-down process and whilst the two opportunities offer differing investment profiles, industry interest has been encouraging and we are now in active discussions with potential partners.

Speaker #1: Importantly, we have secured two-year license extensions for both blocks, giving us additional flexibility as we progress partnership discussions and align next steps with the government.

Speaker #1: With the right partners in place, drilling activity could take place in the next couple of years. Moving to slide 15, I want to bring together these catalysts to outline the breadth and scope of our organic growth portfolio set across four countries and multiple basins.

Oliver Quinn: With the right partners in place, drilling activity could take place in the next couple of years. Moving to slide 15, I want to bring together these catalysts to outline the breadth and scope of our organic growth portfolio set across four countries and multiple basins. Whilst delivering corporate transformation for Meren Energy in 2025, we have remained focused and active in deepening our evaluation of organic growth options, and are confident as we move through 2026, that we are building a strong portfolio that offers compelling growth through choice, and most crucially, whilst remaining within our disciplined approach to the balance sheet and financial frame. I'll conclude on slide 16 and revisit our capital allocation priorities. Disciplined capital allocation underpins our business plan and the execution of our long-term strategy. Firstly, our balance sheet remains a core pillar of the business.

Speaker #1: Whilst delivering corporate transformation for Marin in 2025, we have remained focused and active in deepening our evaluation of organic growth options and are confident as we move through 2026 that we are building a strong portfolio that offers compelling growth through choice and, most crucially, whilst remaining within our disciplined approach to the balance sheet and financial frame.

Speaker #1: I'll conclude on slide 16 and revisit our capital allocation priorities. Disciplined capital allocation underpins our business plan and the execution of our long-term strategy.

Speaker #1: Firstly, our balance sheet remains a core pillar of the business. Throughout 2025, we have demonstrated that discipline and we will continue to maintain a minimum liquidity position of 150 million dollars and a net debt-to-EBITDAX target ratio less.

Oliver Quinn: Throughout 2025, we have demonstrated that discipline, we will continue to maintain a minimum liquidity position of $150 million and a net debt to EBITDAX target ratio of 1x or less. Secondly, we see compelling value creation in our organic growth portfolio. Our Nigerian assets provide multiple pathways to grow production through infill drilling and subsea tiebacks. These low-risk, short investment cycle opportunities leverage existing infrastructure, generate capital efficient returns, and help build a durable foundation for long-term value creation. With a streamlined business firmly in place and a strong balance sheet, we continue to selectively screen inorganic opportunities that meet our strict strategic and financial criteria, ensuring they are accretive and complement our existing business and priorities. Thank you, I will now pass you back to the operator for Q&A.

Speaker #1: Secondly, we see compelling value creation in our organic growth portfolio. Our Nigerian assets provide multiple pathways to grow production through infill drilling and subsea tie-backs.

Speaker #1: These low-risk, short investment cycle opportunities leverage existing infrastructure, generate capital-efficient returns, and help build a durable foundation for long-term value creation. With a streamlined business firmly in place and a strong balance sheet, we continue to selectively screen inorganic opportunities that meet our strict strategic and financial criteria, ensuring they are accretive and complement our existing business and priorities.

Speaker #1: Thank you, and I will now pass you back to the operator for Q&A.

Speaker #2: Thank you, Dr. Quinn. We will now begin our Q&A session. If you have a question, we ask that you please use the raise hand function at the bottom of your Zoom screen.

Operator: Thank you, Dr. Quinn. We will now begin our Q&A session. If you have a question, we ask that you please use the Raise Hand function at the bottom of your Zoom screen. Once your name has been announced, you can ask a question. If you want to withdraw your question, please lower your hand using the Raise Hand function. If you would like to submit a written question, please use the Ask a Question tab on the right-hand side of the player window. Thank you, and a moment for the first question, please. First question comes from Jeff Robertson with Water Tower Research. Please unmute your line and ask your question.

Speaker #2: Once your name has been announced, you can ask a question. If you want to withdraw your question, please lower your hand using the raise hand function.

Speaker #2: If you would like to submit a written question, please use the 'Ask a Question' tab on the right-hand side of the player window. Thank you, and a moment for the first question, please.

Speaker #2: First question comes from Jeff Robertson with Watertown Research. Please unmute your line and ask your question.

Speaker #3: Thank you. Good morning. Aldo, can you talk a little bit about the timing of the liftings you anticipate in 2026?

Jeff Robertson [Managing Director: Thank you. Good morning. Aldo, can you talk a little bit about the timing of the liftings that you anticipate in 2026?

Jeff Robertson: Thank you. Good morning. Aldo, can you talk a little bit about the timing of the liftings that you anticipate in 2026?

Speaker #4: Hi. Good morning. Yes. So for we have to look at the liftings as per FPSO, right? You know that it's a discretionary and debt creates the timing difference in relation to the liftings.

Pascal Nicodeme: Hi. Good morning. Yes, we have to look at the liftings as per FPSO, right? You know, that it's the discretionary, and that creates the timing difference in relation to the liftings. For 2026, we're expecting around 8 cargos spread throughout the year. I think it's safely to assume they are evenly spread throughout the year just for simplification purpose.

Aldo Perracini: Hi. Good morning. Yes, we have to look at the liftings as per FPSO, right? You know, that it's the discretionary, and that creates the timing difference in relation to the liftings. For 2026, we're expecting around 8 cargos spread throughout the year. I think it's safely to assume they are evenly spread throughout the year just for simplification purpose.

Speaker #4: So for 2026, we're expecting around eight cargos, spread throughout the year. So I think it's safe to assume they are evenly spread throughout the year, just for simplification purposes.

Speaker #3: And Oliver, with respect to EG, does the two-year license extension give the potential partners that you have had discussions with time to get an exploration well drilled on EG18?

Jeff Robertson [Managing Director: Oliver, with respect to EG, does the 2-year license extension give the potential partners that you have had discussions with time to get an exploration well drilled on EG 18?

Jeff Robertson: Oliver, with respect to EG, does the 2-year license extension give the potential partners that you have had discussions with time to get an exploration well drilled on EG 18?

Speaker #5: Yeah. Hi, Jeff. Yeah. I think the two years is important in the sense of, as you said in the presentation, we are an active conversations on both positions, and they're very different things, of course.

Oliver Quinn: Yeah. Hi, Jeff. Yeah, I think the two years is important in the sense of, you know, as you said in the presentation, we are in active conversations on both positions, and they're very different things, of course. What that two years does is, it just gives us a runway to complete those conversations and see where we get to without license time pressure, if you like, which is good. To the specifics, yeah, I think, look, it depends exactly when we might close a transaction, you know, and who it's with. I think it's sufficient time to mature and drill a well.

Speaker #5: But what that two years does is, it just gives us a runway to complete those conversations and see where we get to, without license time pressure, if you like.

Speaker #5: Which is good. It signals strong support from the government for the ongoing process. And to the specifics, yeah, I think it depends exactly when we might close a transaction.

Speaker #5: And who it's with. But I think it's sufficient time to mature and drill a well. I think when you look at 31, we're very focused on Gardenia because that's a discovery.

Oliver Quinn: I think when you look at 31, you know, we're very focused on Gardenia because that's a discovery, so that's kind of appraisal development, you know, straight away. It's shallow water, so, you know, technically not challenging, quick to do. 18 is deep water, but again, you know, we have one very high-graded prospect. I think people that have looked at it take different views, of course, but they see the same prospect. So therefore, you know what you're going after. It's not a matter of saying, Well, hey, let's get a partner and then, you know, rework the whole block. Yeah, there's a reasonable timeline there.

Speaker #5: So that's kind of appraisal development straight away. And the shallow waters, so technically not challenging. Quick to do. And 18 is deep water. But again, we have one very, very high-graded prospect.

Speaker #5: I think people that have looked at it take different views, of course, but they see the same prospect. And so therefore, you know what you're going after.

Speaker #5: It's not a matter of saying, "Well, hey, let's get a partner and then rework the whole block." So yeah, there's a reasonable timeline there.

Speaker #5: I think next key step is kind of as we go through the first few months of the year here, where do we get to on the commercial front and can we get the right partnership in place so we get the right funding structure to unlock both opportunities?

Oliver Quinn: I think, you know, next key step is kind of as we go through the first few months of the year here, where do we get to on the commercial front, and can we get the right partnership in place so we get the right funding structure to unlock both opportunities?

Speaker #3: Under the timing of the extension for Block 18, would the permitting of an exploration well add any time to the extension? So such that a group could consider the results of the well?

Jeff Robertson [Managing Director: Under the timing of the extension for Block 18, would the permitting of an exploration well add any time to the extension, such that a group could consider the results of the well?

Jeff Robertson: Under the timing of the extension for Block 18, would the permitting of an exploration well add any time to the extension, such that a group could consider the results of the well?

Speaker #4: Yeah. So I think in the detail of it, you've got the two-year well, whatever license period you've got, say two years in this case.

Oliver Quinn: I think, I think in the, in the detail of it, you know, you've got the 2-year, well, whatever license period you've got, say, 2 years in this case. You drill a, you drill a well, you make a discovery, let's say, and then you move in the contract, it defines kind of appraisal periods, you know, commercial evaluation periods before you would declare commerciality, and that brings time to do that. That makes sense. The first period is, in summary, really for the first primary activity. Depending on, you know, success and how clear it is from the first well, there is a period for appraisal there where you can come and put an appraisal plan together.

Speaker #4: You drill a well, you make a discovery, let's say, and then you move in in the contract to define kind of appraisal periods commercial evaluation periods before you would declare commerciality.

Speaker #4: And that brings time to do that. That makes sense. So the first period is in summary really for the first primary activity. And then depending on success and how clear it is from the first well, there is a period for appraisal there where you can come and put an appraisal plan together.

Speaker #4: That could be more appraisal drilling. It could say, 'Well, hey, I'm going to test a well or whatever.' But you have that period to do that.

Oliver Quinn: That could be more appraisal drilling, it could say, Well, hey, I'm gonna test a well or whatever, you have that period to do that.

Speaker #3: And lastly, for now, with respect to inorganic growth, Oliver, when you think about Maren's current opportunity set over the next couple of years, which would require capital dollars, what type of asset fits best in the portfolio, do you think?

Jeff Robertson [Managing Director: Lastly, for now, with respect to inorganic growth, Oliver, when you think about.

Jeff Robertson: Lastly, for now, with respect to inorganic growth, Oliver, when you think about.

[Analyst] (Water Tower Research): ... current opportunity set over the next couple of years, which would require capital dollars. What type of asset fits best in the portfolio, do you think?

Jeff Robertson: ... current opportunity set over the next couple of years, which would require capital dollars. What type of asset fits best in the portfolio, do you think?

Speaker #5: Yeah. Good question. So I think if I start with what we have today, and I think hopefully you saw that in the presentation, that I'll take a step back really.

Oliver Quinn: Yeah, good question. I think, you know, if I start with, you know, what we have today, and I think hopefully you saw that in the presentation, that, you know, I'll take a step back, really. When we completed the Prime amalgamation, of course, we were doubling down on production reserves, cash flow that we knew well, 'cause we'd been a co-owner. We also knew there was a lot of organic growth opportunity in there. Exploration resource, contingent resource, you know, high value stuff. I think as we've moved through putting the two organizations together with a bit more capacity over the last six months, we're more excited about that. I think we see a lot more opportunity around that portfolio for tiebacks to the three FPSOs.

Speaker #5: When we completed the prime amalgamation, of course, we were doubling down cash flow that we knew well because we'd been a co-owner. We also knew there was a lot of organic growth opportunity in there.

Speaker #5: So exploration resource, contingent resource, high-value stuff. I think as we've moved through putting the two organizations together with a bit more capacity over the last six months, we're more excited about that.

Speaker #5: So I think we see a lot more opportunity around that portfolio for tiebacks to the 3 FPSOs. EG, as we've just talked about, we've matured that very well.

Oliver Quinn: EG, as we've just talked about, we've matured that very well, and that's come a long way and looks exciting. I think that set of opportunities in the company today is exciting and I think has emerged in a very strong way as a set of options. The other backdrop there, and Aldo Pericini touched on this in the presentation, is the Nigeria landscape has drastically improved. I think both fiscally, politically, support, you see production rising there quite quickly. You see investment dollars coming back from international firms as well as local companies. You know, there's a better landscape there beyond the technical for maturing things in Nigeria. In sum, we're really excited about what's in the current portfolio.

Speaker #5: And that's come a long way and looks exciting. So I think that set of opportunities in the company today is exciting. And I think has emerged in a very strong way as a set of options.

Speaker #5: The other backdrop there—and Aldo touched on this in the presentation—is the Nigeria landscape has drastically improved. I think both fiscally, politically, support.

Speaker #5: You see production rising there quite quickly. You see investment dollars coming back from international firms as well as local companies. So there's a better landscape there beyond the technical for maturing things in Nigeria.

Speaker #5: So in sum, we're really excited about what's in the current portfolio. When you look at the character of that, it's high-value contingent resource coming into production short period, but infill drilling next couple of years, new kind of tiebacks, end of the decade.

Oliver Quinn: When you look at the character of that, it's high value contingent resource coming into production, short period, but, you know, infill drilling next couple of years, new kind of tiebacks end of the decade. That's great, and that delivers a lot of value. What it does mean when we look at the inorganic space is we say: Well, look, are there opportunities out there that could add production, cash flow, scale up the business in that respect, in the shorter term? They would complement the growth that's in the current portfolio, but they would kind of build the balance sheet, build the operating cash flow, let's say, and help us kind of fund some of those organic opportunities. Again, as we've shown our kind of capital allocation, you know, we're not going to overlever the business to do that stuff, right?

Speaker #5: So, that's great and that delivers a lot of value. What it does mean when we look at the inorganic space is we say, 'Well, look, are there opportunities out there that could add production, cash flow, scale up the business in that respect in the shorter term?' So, they would complement the growth that's in the current portfolio, but they would kind of build the balance sheet, build the operating cash flow, let's say, and help us kind of fund some of those organic opportunities.

Speaker #5: Because again, as we show in our kind of capital allocation, we're not going to overlevel the business to do that stuff, right? We develop a series of options, but we're choosing which ones to do in the context of that disciplined balance sheet.

Oliver Quinn: We develop a series of options, but we're choosing which ones to do in the context of that disciplined balance sheet. Again, some inorganic growth, if it's the right opportunity, and again, we're very, very disciplined on that, could help unlock some of those barrels as well.

Speaker #5: So again, some inorganic growth, if it's the right opportunity—and again, we're very, very disciplined on that—could help unlock some of those barrels as well.

Speaker #3: Thank you.

[Analyst] (Water Tower Research): Thank you. Thanks, Jeff.

Jeff Robertson: Thank you.

Speaker #4: Thanks, Jeff.

Oliver Quinn: Thanks, Jeff.

Speaker #1: As a reminder, to ask a question, please use the Raise Hand function at the bottom of your Zoom screen. Our next question is from David Round with Stifel.

Operator: As a reminder, to ask a question, please use the Raise Hand function at the bottom of your Zoom screen. Our next question is from David Round with Stifel. Please unmute your line and ask your question. David Round, your line is open. Please unmute and ask your question.

Speaker #1: Please unmute your line and ask your question. David Round, your line is open. Please unmute and ask your question.

Speaker #4: Can you hear me?

David Round: Can you hear me?

Speaker #3: Hey, David. Cut you now. Yeah.

Oliver Quinn: Hey, David. Got you now. Yeah.

Speaker #4: perfect. Sorry about that. Few questions for me, please. The first one is on the gas sales agreement. I read something about that this morning.

David Round: Perfect. Sorry about that. A few questions from me, please. The first one is on the gas sales agreement. I read something about that this morning. Just wondering if you can give us a sense of how meaningful that may or may not be. The second question for me, please, is you've mentioned Akpo Far East and Ikija as specific targets. Just wondering how quickly those could be tied back in a success case. I suppose if that is going to take a few years, you know, how many infill wells should we be assuming each year to support production in the meantime? Actually, I'll sneak in just a follow-on to that. You've got a 2026 CapEx budget of $100 to $140 million, I think.

Speaker #4: Just wondering if you can give us a sense of how meaningful that may or may not be. The second question for me, please, is you've mentioned ACPO Far East and Akija as a specific target.

Speaker #4: Just wondering, how quickly could those be tied back in a success case? And I suppose if that is going to take a few years, how many infill wells should we be assuming each year to support production in the meantime?

Speaker #4: And if I actually—I'll sneak just a follow-on to that. You've got a '26 capex budget of $100 to $140 million, I think. Are you able to just break that down for us, please?

David Round: Are you able to just break that down for us, please? You know, just in terms of, you know, how many wells are assumed in that? Is it all just long lead items, please?

Speaker #4: Just in terms of how many wells are assumed in that? Is it all just long-lead items, please?

Speaker #5: Yeah. Thanks, David. I'll let Aldo take the first one on the gas, and then I can come back on the second one, and then we can get to the third.

Oliver Quinn: Yeah. Thanks, David. I'll let Aldo take the first one on the gas, and then I can come back on the second one, and then we can get to the third. Okay.

Speaker #4: Okay.

Speaker #5: Yeah. Okay. So in relation to the gas sales agreement, it was a result of a prolonged negotiation that we were having to revise the index.

Pascal Nicodeme: Yes. Okay. In relation to the gas sales agreements, it was a result of a prolonged negotiation that we were having to revise the index. That's based on the contract that we signed back in 2018. Given that it took some time to get that result, there will be a couple, you know, few impacts that you're going to see through cash flow and P&L in the coming period. There will be, first one, lump sum payments that we're gonna receive now in Q1 2026. Second, there will be an increased price coming from the revised index, which will flow through, you know, all the periods as we produce and export the gas from Akpo and Egina.

Aldo Perracini: Yes. Okay. In relation to the gas sales agreements, it was a result of a prolonged negotiation that we were having to revise the index. That's based on the contract that we signed back in 2018. Given that it took some time to get that result, there will be a couple, you know, few impacts that you're going to see through cash flow and P&L in the coming period. There will be, first one, lump sum payments that we're gonna receive now in Q1 2026. Second, there will be an increased price coming from the revised index, which will flow through, you know, all the periods as we produce and export the gas from Akpo and Egina.

Speaker #5: That's based on the contract that we signed back in 2018. Given that it took some time to get that result, there will be a couple of impacts that you're going to see through cash flow and P&L in the coming period.

Speaker #5: So there will be, first, one lump sum payment that we're going to receive now in the first quarter of 2026. Second, there will be an increased price coming from the revised index, which will flow through all the periods as we produce and export the gas from ACPO Energina.

Speaker #5: And there is a third component, which is the recovery of the arrears, right, the difference between what we should have received back from 2020 compared to what we have received and that delta we will receive also in time, through a reduction of the handling fee.

Pascal Nicodeme: There is a third component, which is the recovery of the arrears, right. The difference between what we should have received back from 2020, compared with what we have received. That delta we will receive also in time, through a reduction of the handling fee. You should expect a larger impact in 2026, given to the, you know, the resolution of the contract. Let's say on an ongoing basis, we're talking maybe something about, let's say, doubling the gas revenues that we have compared, you know, with the last 2 to 3 years. It should be meaningful, especially in the first year.

Aldo Perracini: There is a third component, which is the recovery of the arrears, right. The difference between what we should have received back from 2020, compared with what we have received. That delta we will receive also in time, through a reduction of the handling fee. You should expect a larger impact in 2026, given to the, you know, the resolution of the contract. Let's say on an ongoing basis, we're talking maybe something about, let's say, doubling the gas revenues that we have compared, you know, with the last 2 to 3 years. It should be meaningful, especially in the first year.

Speaker #5: So you should expect a larger impact in 2026, given the resolution of the contract. And let's say, on an ongoing basis, we're talking maybe something like, let's say, doubling the gas revenues that we have compared with the last two to three years. So it should be meaningful, especially in the first year.

Speaker #5: Okay, okay. I think on the second one, David, it's a good question on Nigeria. So maybe I'll just take a step back. We're getting two rigs back end of this year.

David Round: Okay.

Oliver Quinn: Okay, I think on the second one, Dave, it's a good question on Nigeria, so maybe I'll just take a step back. You know, we're getting 2 rigs back end of this year, which we'll come onto on timing, and your CapEx question. Actually what has happened is we've had the longest drilling break across the 3 fields since kind of first oil. When you look at our 2026 guidance, it's effectively that's what it reflects. You know, there's of course, natural decline, as you'd expect, but we've had this long drilling gap that again, we haven't really had before, and that's probably, you know, what's underpinning that decline. You know, we turn to how do you firstly arrest that decline, and then how do you grow from the base, if you like?

Speaker #5: We'll come on to timing and your capex question, but actually, what has happened is we've had the longest drilling break across the three fields since kind of first oil.

Speaker #5: So, when you look at our '26 guidance, it's effectively what that reflects. There's, of course, natural decline, as you'd expect. But we've had this long drilling gap that, again, we haven't really had before.

Speaker #5: And that's probably what's underpinning that decline. So we turn to, how do you firstly arrest that decline? And then how do you grow from the base, if you like?

Speaker #5: So, I think, in terms of arresting the decline, as you said—the infill drilling. So, when we look at that next program, if I start with Agbami, the rig will come somewhere at the end of this year.

Oliver Quinn: I think in terms of arresting the decline, it's, as you said, the infill drilling. When we look at that next program, and to start with Agbami, you know, rig will come somewhere at the end of this year. I mean, there's operational uncertainty on, you know, exactly what time the rig arrives, but nevertheless, you know, it's firm, it's coming. There are 16 wells planned on Agbami through 2027 across the year. When you, when you look at that, I mean, that's quite, for a field of that age, it's quite positive, it's quite sustained. There's a relatively big infill drilling campaign there, which will arrest natural decline. We go across to Egina and Akpo with TotalEnergies operating. Again, in parallel, if you like, TotalEnergies are contracting for a rig.

Speaker #5: I mean, operational uncertainty on exactly what time the rig arrives. But nevertheless, it's firm. It's coming. And there are six infill wells planned on Agbami through 27.

Speaker #5: Across the year. So, when you look at that, I mean, that's quite—for a field of that age, it's quite positive. It's quite sustained.

Speaker #5: So there's a relatively big infill drilling campaign there, which will arrest natural decline. And then we go across to Agina and ACPO, with TotalEnergies operating.

Speaker #5: And again, in parallel, if you like, TotalEnergies are contracting for a rig. The plan is to bring the rig in, again, towards the end of this year.

Oliver Quinn: The plan is to bring the rig in again towards the end of this year. We're kind of guiding Q4 ± operational kind of issues on where the rig's coming from. Again, interestingly, there's two buckets of opportunity there. One is the kind of Akpo Far East, testing growth, either prospective resource that's near field, contingent resource. As we move into 2027, the focus will be on infill drilling, Egina and Akpo, three wells there. That gives us in the kind of near term, if you like, the end of this year, the kind of barrels that are coming on stream. It'll be early 2027. Barrels come back on stream, arrest a natural decline, and equally gives us some more certainty on prospective resource, contingent resource, and how that may play out.

Speaker #5: So we're kind of guiding Q4 plus or minus operational kind of issues on whether it's coming from. And again, interestingly, there's two buckets of opportunity there.

Speaker #5: One is the kind of ACPO Far East. So testing growth, either prospective resource that's near field, contingent resource. And then as we move into '27, the focus will be on infill drilling Agina and ACPO.

Speaker #5: So, three wells there. So that gives us, in the kind of near term—if you like, the end of this year—a kind of barrels that are coming on stream.

Speaker #5: It'll be early 27, but barrels come back on stream, arrest a natural decline. And equally, gives us some more certainty on prospective resource contingent resource and how that may play out.

Speaker #5: On the latter, I think reality for the tie-backs is ACPO Far East is quick because it's five kilometers from the FPSO. So we hope to get first oil from that in the success case in less than two years.

Oliver Quinn: On the latter, I think, you know, reality for the tiebacks is Akpo Far East is quick because it's 5 kilometers from the FPSO. We hope to get first oil from that in the success case in less than 2 years. I think the wider tieback opportunity set, we didn't talk about it today really, but Preowei near Egina. There's Egina South, which is a similar size discovery to the south of Egina. You know, those things are kind of 3-year cycle. Again, we are optimistic of making project progress on those this year, and then that would be, you know, Preowei first oil 2029. Egina South, a bit more uncertain, but again, 3-year cycles, so kind of end of the decade. Ikija, which we did mention, is a potential tieback to Agbami, and again, similar.

Speaker #5: And I think the wider tie-back opportunity set—we didn't talk about it today, really—but Priori, near Agina, there's Agina South, which is a similar size discovery to the south of Agina.

Speaker #5: Those things are kind of a three-year cycle. And again, we are optimistic of making project progress on those this year. And then that would be Priori first oil '29, Agina South a bit more uncertain.

Speaker #5: But again, three-year cycle, so kind of end of the decade. Akidja, which we did mention, is a potential tie-back to Agbami. And again, similar.

Speaker #5: So the well that we will drill probably end of this year, early next year. That's an appraisal well. So again, it's discovery, contingent resource.

Oliver Quinn: The well that we will drill probably end of this year or early next year, that's an appraisal well. Again, it's discovery contingent resource, and depending on what we find in that appraisal well, that's again, circa three-year cycle tieback to Agbami. I think I'd characterize it, good campaign of infill drills coming in the short term, kind of end of this year. Good testing of contingent resource that gives us kind of a lot of options for growth barrels end of the decade. That leaves us kind of one more gap, which is, well, what more infill drilling is there to do before the end of the decade to keep production up in the fields? I think there, you know, look, we see two or three options at least in Egina and Akpo, so potentially 28, 29.

Speaker #5: And depending on what we find in that appraisal well, that's, again, circa a three-year cycle tie-back to Agbami. So I think it characterizes it—a good campaign of infill drills coming in the short term, kind of end of this year.

Speaker #5: Good testing of contingent resource that gives us kind of a lot of options for growth barrels end of the decade. And then that leaves us kind of one more gap, which is, well, what more infill drilling is there to do before the end of the decade to keep production up in the fields?

Speaker #5: And so I think there, we see two or three options at least in Agina and ACPO. So, potentially '28, '29. And in Agbami, six-well campaign is pretty big anyway.

Oliver Quinn: In Agbami, you know, 6-well campaign is pretty big anyway, but, you know, we're working there on, is there another similar campaign a year or so later? I think we'll be on and off active on the infill drilling, in summary, through to 2029, 2030, with the aim of sustaining base production. Again, in parallel, that keeps us going while we grow the kind of contingent resource projects, and prioritize which of those are the best to do.

Speaker #5: But we’re working there on— is there another similar campaign a year or so later? So I think we’ll be on and off active on the infill drilling, in summary, through to ’29, ’30, with the aim of sustaining base production. And again, in parallel, that keeps us going while we grow the kind of contingent resource projects.

Speaker #5: And prioritize which of those are the best to do. Okay. That's really helpful. But thank you. And sorry, just the final one, just around capex for this year.

[Analyst] (Stifel): Okay. That's really helpful, but thank you. Sorry, just a final one, just around CapEx for this year. I mean, is that mostly long lead items?

David Round: Okay. That's really helpful, but thank you. Sorry, just a final one, just around CapEx for this year. I mean, is that mostly long lead items?

Speaker #5: I mean, is that mostly long-lead items? There's some long leads in there. I think the range that you see is really the timing of rigs arriving.

Oliver Quinn: There's some long leads in there. I think the range that you see is really the timing of rigs arriving, so it's a classic, you know, year-end issue. We're planning on Q4, but those rigs could arrive just contractually, operationally, possibly Q3, and they could equally arrive late Q4. It gives us a bit of range on that number. It's primarily, you know, we're assuming the wells are drilling Q4, so it's CapEx in the ground, as it were. We did put some numbers in, some CapEx into long leads last year for Agbami, for example, so that was done kind of 2025 mainly.

Aldo Perracini: There's some long leads in there. I think the range that you see is really the timing of rigs arriving, so it's a classic, you know, year-end issue. We're planning on Q4, but those rigs could arrive just contractually, operationally, possibly Q3, and they could equally arrive late Q4. It gives us a bit of range on that number. It's primarily, you know, we're assuming the wells are drilling Q4, so it's CapEx in the ground, as it were. We did put some numbers in, some CapEx into long leads last year for Agbami, for example, so that was done kind of 2025 mainly.

Speaker #5: So it's a classic year-end issue. So we're planning on Q4, but those rigs could arrive—just contractually, operationally—possibly Q3, and they could equally arrive late Q4.

Speaker #5: So it gives us a bit of range on that number. But it's primarily we're assuming the wells are drilling Q4. So it's capex in the ground, as it were.

Speaker #5: We did put some numbers in, some capex into long leads last year for Agbami, for example. So that was done kind of 25 mainly.

Speaker #5: Okay. Really helpful. Thank you.

[Analyst] (Stifel): Okay. Really helpful. Thank you.

David Round: Okay. Really helpful. Thank you.

Speaker #4: Thanks, David.

Oliver Quinn: Thanks, David.

Speaker #1: Our last question comes from David Mozai with SP Angel. Please unmute your line and ask your question.

Operator: Our last question comes from David Mirzai with SP Angel. Please unmute your line and ask your question.

Speaker #6: Hi there. Thanks, Jens. One on expiration, one on appraisal. One on scale. Firstly, on expiration. You've got both Far East. Oh, sorry. ACPO Far East Deep.

David Mirzai: Hi there, thanks, James. One on exploration, one on appraisal, one on scale, I suppose. Firstly, on exploration, you've got Far East, oh, sorry, Akpo Far East Peak. You've got Egina South Peak, you've got Ikija Peak. Is this in reference to deeper reservoirs, or downstream faults? Have you intercepted them? What's the reservoir like? What's the kind of risk, both around volumes and deliverability, in regards to these prospects? Secondly, appraisal. You pointed out your contingent resource base on Preowei, on Ikija, on Egina South in Nigeria, but also the existing Gardenia discovery in Equatorial Guinea. Obviously, these discoveries have been around for a while. You've had capacity in nearby facilities, and they haven't been developed.

Speaker #6: You've got Agina South Deep. You've got Akidja Deep. Is this in reference to deeper reservoirs? Or downstream faults? Have you intercepted them? What's the reservoir like?

Speaker #6: What's the kind of risk both around volumes and deliverability in regards to these prospects? Secondly, appraisal—you pointed out your contingent resources on Priori, on Akidja, on Agina South in Nigeria.

Speaker #6: But also, the existing Gardenia discovery in ACPO Guinea. Obviously, these discoveries have been around for a while. You've had capacity in nearby facilities. And they haven't been developed.

Speaker #6: What's the key holdup, the key contingent reason behind these resources not being developed to fully utilize their respective FPSOs? And just lastly, on scale.

David Mirzai: What's the key hold up, the key contingent reason behind these resources not being developed to fully utilize their respective FPSOs? Just lastly, in scale, I mean, it's quite kinda observable to any E&P and necessarily investor that the market wants fewer oil and gas companies with greater scale, broader portfolios, more ability to finance their own developments, and that they reward effectively higher cash flow with lower debt levels and with greater liquidity. Now, having gone through the process of combining in Prime, that's clearly the next step forward for you.

Speaker #6: I mean, it's quite kind of observable to any EPA analyst, any investor, that the market wants fewer oil and gas companies with greater scale.

Speaker #6: Broader portfolios. More ability to finance their own developments. And that they reward, effectively, higher cash flow with lower debt levels, and with greater liquidity.

Speaker #6: Now, having gone through the process of combining in prime that's clearly the next step forward for you. And I just want to kind of get your thoughts around what scale is enough or what you're investor base is really looking for you to bring you up to the next level.

David Mirzai: I just want to kind of get your thoughts around what scale is enough, or what your investor base is really looking for you to bring you up to the next level. Thanks.

Speaker #6: Thanks.

Speaker #2: That is a great point.

[Analyst] (Stifel): It is a great-

Speaker #4: Yeah. No, thanks for the questions.

Oliver Quinn: Yeah, no, thanks for the questions.

Speaker #2: Have you been there before?

[Analyst] (Stifel): Have you been there before?

Speaker #4: I think, look, to start with the first one, the expiration point. I kind of split that up. So ACPO Far East is expiration. So that is prospective resource, let's say, so kind of one-in-three, one-in-four chance of success geologically.

Oliver Quinn: I think, look, to start with the first one, the exploration point, I'd kinda split that up.

[Analyst] (Stifel): Yeah, yeah.

Oliver Quinn: Akpo Far East is exploration. That is, you know, prospective resource. Let's say, you know, it's a kind of 1 in 3, 1 in 4 chance of success geologically. I think the commercial chance of success on the back of that is extremely high because it's very close to the existing infrastructure. It's within the kind of field, fiscal ring fence, if you like. The economics are extremely compelling. It wouldn't take a huge volume there to reach commerciality. That one is about geological chance of success. I think the others, just to segue that, Akpo, Egina South are appraisal. Those are contingent resource for us today. They're discoveries that we think again are strong candidates for tieback and development, but they do need some appraisal drilling to confirm volumes and technical parameters.

Aldo Perracini: Akpo Far East is exploration. That is, you know, prospective resource. Let's say, you know, it's a kind of 1 in 3, 1 in 4 chance of success geologically. I think the commercial chance of success on the back of that is extremely high because it's very close to the existing infrastructure. It's within the kind of field, fiscal ring fence, if you like. The economics are extremely compelling. It wouldn't take a huge volume there to reach commerciality. That one is about geological chance of success. I think the others, just to segue that, Akpo, Egina South are appraisal. Those are contingent resource for us today. They're discoveries that we think again are strong candidates for tieback and development, but they do need some appraisal drilling to confirm volumes and technical parameters.

Speaker #4: I think the commercial chance of success on the back of that is extremely high because it's very close to the existing infrastructure. It's within the kind of field physical ring fence, if you like.

Speaker #4: So the economics are extremely compelling. So it wouldn't take the huge volume there to reach commerciality. So that one is about geological chance of success.

Speaker #4: I think the others, just to segue that, so Akidja Agina South are appraisal. So those are contingent resource for us today. So the discoveries that we think, again, are strong candidates for tie-back and development, but they do need some appraisal drilling to confirm volumes and technical parameters.

Speaker #4: And then Priori is slightly different again because that is actually reserves for us. That's 2P reserves. And that really reflects the fact that Priori has been very advanced as a project.

Oliver Quinn: Preowei is slightly different again because that is actually reserves for us. That's 2P reserves. That really reflects the fact that Preowei has been very advanced as a project. It was delayed in COVID, you know, as many things in terms of CapEx contracting costs, but it stayed in 2P reserves for us because it's very advanced as a tieback to Egina, and that's a project that we are pushing with the operator and our partners to mature this year towards a final decision. They're all slightly different. I think the only pure exploration one in that set is Akpo Far East. The others are really about appraisal, and again, just right sizing, improving commercial volumes.

Aldo Perracini: Preowei is slightly different again because that is actually reserves for us. That's 2P reserves. That really reflects the fact that Preowei has been very advanced as a project. It was delayed in COVID, you know, as many things in terms of CapEx contracting costs, but it stayed in 2P reserves for us because it's very advanced as a tieback to Egina, and that's a project that we are pushing with the operator and our partners to mature this year towards a final decision. They're all slightly different. I think the only pure exploration one in that set is Akpo Far East. The others are really about appraisal, and again, just right sizing, improving commercial volumes.

Speaker #4: It was delayed in COVID, as were many things, in terms of capex and contracting costs. But it stayed in 2P reserves for us because it's very advanced as a tie-back to Agina.

Speaker #4: And that's a project that we are pushing with the operator and our partners to mature this year towards a final decision. So they're all slightly different.

Speaker #4: I think the only pure exploration one in that set is ACPO Far East. The others are really about appraisal and, again, just right-sizing, improving commercial volumes.

Speaker #4: I think the second question, the wider point on Gardenia and some of the other resources. I think there's a timing point to a lot of this stuff.

Oliver Quinn: I think you know, the second question, the wider point on Gardenia and some of the other resources, like, I think there's a timing point to a lot of this stuff in two respects. One, the projects themselves, and actually the second one, the market, which I'll come back to, because I think it also addresses your third point. You know, if you look at our three FPSOs in Nigeria, you know, huge, fantastic facilities, huge capacity. They've been full for most of their life, of course, in their varying ages. They are in this natural decline phase, which you see in the base production.

Speaker #4: So, in two respects. One, the projects themselves, and actually the second one, the market—which I'll come back to, because I think it also addresses your third point.

Speaker #4: But if you look at our three FPSOs in Nigeria—huge, fantastic facilities, huge capacity—they've been full for most of their life, of course, and they're varying ages.

Speaker #4: They are in its natural decline phase, which you see in the base production. But what that means is there's an optimal timing point here of saying, "Well, actually, when is the right time to develop resource, to backfill those facilities?" And that's now because you don't just want to be able to bring a small amount of resource in.

Oliver Quinn: What that means is, there's an optimal timing point here of saying, Well, actually, when is the right time to develop resource to backfill those facilities? That's now, because you don't just wanna be able to bring a small amount of resource in. Of course, you want to, for the economic development, you wanna be able to maximum development of something like Preowei. I think the timing point is partly on the infrastructure, then when is that infrastructure available? When is the right time to backfill? I think specifically again, on EG, look, we've had that block for a couple of years, 31, but, you know, having worked that through, matured it, particularly Gardenia as a discovery, again, that's a timing point in that the monetization is through the existing EG LNG brownfield facility.

Speaker #4: Of course, you want to, for the economic development, you want to be able to maximize the development of something like a priori. So I think the timing point is partly on the infrastructure then.

Speaker #4: When is that infrastructure available? When is the right time to specifically, again, on EG, look, we've had that block for a couple of years, '31.

Speaker #4: But having worked that through, matured it, particularly Gardenia as a discovery, again, that's a timing point in that the demonetization is through the existing EG LNG brownfield facility.

Speaker #4: And so it's the optimal timing of doing the project, knowing that there's capacity in the brownfield infrastructure, which you will use to produce LNG off the back of it.

Oliver Quinn: It's the optimal timing of doing the project, knowing that there's this capacity in the brownfield infrastructure, which you will use to produce LNG off the back of it. You know, I think that timing is now. Again, we'll make decisions on all of those through the coming period, in terms of are they the right thing for capital allocation, but certainly the project aspect has unlocked. I think more broadly, again, the second point on that, you know, where is the industry? I think you alluded to it again in your third question, but the industry's back in a kinda growth mode. I think a lot of bigger companies are short of resource. There's a lot more support for the right type of project, the right type of CapEx.

Speaker #4: So, I think that timing is now. So again, we'll make decisions on all of those through the coming period, in terms of whether they're the right thing for capital allocation, but certainly the project aspect has unlocked.

Speaker #4: I think more broadly, again, the second point on that, where is the industry? And I think you alluded to it again in your third question.

Speaker #4: But the industry is back in a kind of growth mode. I think a lot of bigger companies are short of resource. And so there's a lot more support for the right type of project, the right type of capex.

Speaker #4: Now, again, from our perspective, we are super disciplined on the balance sheet. So, lots of good opportunities. But what we're not going to do is overleverage the balance sheet or expose ourselves to capex overruns, etc.

Oliver Quinn: Again, from our perspective, we are super disciplined on the balance sheet, so you know, lots of good opportunities, but what we're not gonna do is overleverage the balance sheet, expose ourselves to CapEx overruns, et cetera. We'll do it in a prudent way, but I think it's a good time to be maturing contingent resource and pushing that into reserves and, ultimately monetization. There's a macro backdrop, I think, is important there as well. I can move on to the third question, David, or if that covers your first two?

Speaker #4: So we'll do it in a prudent way. But I think it's a good time to be maturing contingent resource and pushing that into reserves and ultimately monetization.

Speaker #4: So there's a macro backdrop I think is important there as well. I can move on to the third question, David, or if that covers your first two.

Speaker #5: Sorry, I was just being unmuted there. Yeah, no, just to dig down on ACPO Far East, what is the geological risk? Sorry.

David Mirzai: Sorry, I was just being unmuted there. Yeah, no, just to dig down on Akpo Far East, what is the geological risk, sorry?

Speaker #4: It's a 1 and 3, 1 and 4 geological. Oh, sorry, specifics. Yeah, it's trapped, really. So the reservoir is same as the ACPO field.

Oliver Quinn: It's a 1 in 3, 1 in 4 geological.

David Mirzai: And-

Oliver Quinn: Oh, sorry, specifics. Yeah, it's trap, really. The reservoir is the same as the Akpo field, so we understand it well. It's a phenomenal, you know, in the detail, kind of Darcy-type permeability reservoir, super good fluids. The thing on Akpo Far East is the trap. You know, is there an update trap that works. I think there's a secondary, more commercial risk on fluid. You know, that's secondary in two senses. One, that we have a good handle on the seismic, so, you know, we think we understand that fluid, and it's oily, and we can characterize that.

Speaker #4: So we understand it well. It's phenomenal in the detailed, kind of Darcy-type permeability reservoir. Super good fluids. So the thing on ACPO Far East is the trap.

Speaker #4: Is there an update trap that works? And then I think there's a secondary, more commercial risk on fluid. But that's secondary in two senses.

Speaker #4: One that we have a good handle on the seismic. So we think we understand that fluid. And it's oily. And we can characterize that.

Oliver Quinn: Actually, the second part of that, Akpo, of course, is, you know, a very gassy field, and we export that gas, and as Aldo just talked about earlier, we've got improved pricing on that gas as well. I'd say that's a secondary risk. The fundamental geological risk is trap. Yeah.

Speaker #4: And actually, the second part of that, ACPO, of course, is a very gassy field. And we export that gas. And as Aldo just talked about earlier, we've got improved pricing on that gas as well.

Speaker #4: So I'd say that's a secondary risk. But the geological—fundamental geological—risk is trapped, yeah.

Speaker #5: Oh, no, that's great. And the first two, obviously. Question three, around scale—you've talked in your first two answers that you're being prudent with the balance sheet.

Pascal Nicodeme: No, that's great. In the first two. Obviously, question three, around scale. You know, you've talked to your first two answers, that you'll be prudent with the balance sheet, because you don't want cost overruns. Obviously, there's that argument that if you were twice as large as you are now, you,

David Mirzai: No, that's great. In the first two. Obviously, question three, around scale. You know, you've talked to your first two answers, that you'll be prudent with the balance sheet, because you don't want cost overruns. Obviously, there's that argument that if you were twice as large as you are now, you,

Speaker #5: Because cost overruns, obviously, there's that argument that if you were twice as large as you are now, you have to be a lot less risk-averse.

Oliver Quinn: Yeah.

Pascal Nicodeme: Have to be a lot less risk-averse.

David Mirzai: Have to be a lot less risk-averse.

Speaker #4: Yeah, no, I think it's a great question. And I think, in terms of the strategic position of the company—again, I'll take a step back.

Oliver Quinn: Yeah. No, I think it's a great question, and I think, you know, in terms of the strategic position of the company, You know, again, I'll take a step back. two and a half years ago, you know, we were Africa Oil, as it was, completely different company. much smaller in scale. You roll forward through that period, you know, we've doubled reserves, production, et cetera, which has been a big step forward in the scale sense. I think that has allowed us to mature some of these projects in a better way, with more confidence because of the scale, so I think it speaks to your point. As we then look forward, look, I think there's a balance here because I recognize and agree with the points you make about the industry.

Speaker #4: Two and a half years ago, we were Africa Oil, as it was, completely different company. Much, much smaller in scale. You roll forward through that period.

Speaker #4: We've doubled reserves, production, etc., which has been a big step forward in the scale sense. I think that has allowed us to mature some of these projects in a better way, with more confidence because of the scale.

Speaker #4: So I think it speaks to your point. As we then look forward, look, I think there's a balance here because I recognize and agree with the points you make about the industry.

Speaker #4: I think it is overdue. This space within the industry, let's say, the international independence, it is overdue some consolidation, some capital efficiency, GNA efficiency, etc.

Oliver Quinn: I think, you know, it is overdue, this space in, within the industry, let's say, the international independence, it is overdue, some consolidation, some capital efficiency, G&A efficiency, et cetera. Absolutely. You know, we see that. I think when you come to execute around that, I think, again, our message is discipline. Yes, the ultimate prize does all the things that you describe. Again, agree with that. For us, it's not so much that fundamental principle, it's the pathway to get there. Again, we look at the business today, it's incredibly strong balance sheet. We have some natural decline in production this year, but it's arrested, and we go back into kind of growth through the end of the decade.

Speaker #4: Absolutely. And we see that. I think when you come to execute around that, I think, again, our message is discipline. So yes, the ultimate prize does all the things that you describe.

Speaker #4: Again, agree with that. So for us, it's not so much that fundamental principle. It's the pathway to get there. So again, we look at the business today.

Speaker #4: It's an incredibly strong balance sheet. We have some natural decline in production this year, but it's arrested, and we go back into kind of growth through the end of the decade.

Speaker #4: We didn't, for example, in this call, talk about Venus and Namibia. But Total have signaled very publicly that it's FID this year—that adds barrels for us in 2030, on their timeline.

Oliver Quinn: We didn't, for example, in this call, talk about Venus and Namibia, but, you know, Total have signaled very publicly that it's FID this year. That adds barrels for us in 2030 on their timeline. We go back into that mode. I think, great, but what we're saying is, look, we protect that. That's always the number one job, is to protect that business, make sure it's robust, equally go and look at inorganic transactions that are accretive to that. They really have to be. You know, we don't wanna dilute that business just for the sake of scale. We recognize there are steps that we could make that give us both scale and are accretive, and those are the things that we are kind of narrowing our focus to.

Speaker #4: So we go back into that mode. So I think, great. But what we're saying is, look, we protect that. That's always the number one job, is to protect that business, make sure it's robust.

Speaker #4: But equally, go and look at inorganic transactions that are accretive to that. And they really have to be we don't want to dilute that business just for the sake of scale.

Speaker #4: But we recognize there are steps that we could take that give us both scale and are accretive. And those are the things that we are kind of narrowing our focus to.

Speaker #4: But I think the short answer is yes, we are still active in that world. We still look at things. But again, we do it with rigor and discipline.

Oliver Quinn: I think short answer is, yes, we are still active in that world. We still look at things, but again, we do it with rigor and discipline.

Speaker #5: Thanks. Thanks, Oliver.

Pascal Nicodeme: Thanks. Thanks, Oliver.

David Mirzai: Thanks. Thanks, Oliver.

Speaker #4: Thanks.

Shahin Amini: Thanks.

Oliver Quinn: Thanks.

Speaker #1: There are no further questions at this time. I will now hand back to Masana to read through your written questions.

Oliver Quinn: Thanks.

Operator: There are no further questions at this time. I will now hand back to Masana to read through your written questions.

Speaker #6: Thank you, Operator. And thank you once again, everyone, for joining today and submitting your questions. I will go straight into the questions. So I think one for you, Oliver, is: given the transformative potential of the Venus discovery, we currently have a 3.8% effective interest for us through our stake in Impact.

Shahin Amini: Thank you, operator, and thank you once again, everyone, for joining me today and submitting your questions. I'll go straight into the questions. I think one for you, Oliver, is: Given the transformative potential of the Venus discovery, we currently have 3.8% effective interest through our stake in Impact. While this free option and structure is highly capital efficient, does management view this level of exposure as sufficient to capture the full value creation potential of the Orange Basin? Is there potentially a pathway or world where we increase that exposure?

Mussannah Chowdhury: Thank you, operator, and thank you once again, everyone, for joining me today and submitting your questions. I'll go straight into the questions. I think one for you, Oliver, is: Given the transformative potential of the Venus discovery, we currently have 3.8% effective interest through our stake in Impact. While this free option and structure is highly capital efficient, does management view this level of exposure as sufficient to capture the full value creation potential of the Orange Basin? Is there potentially a pathway or world where we increase that exposure?

Speaker #6: While this free option and structure is highly capital efficient, does management view this level of exposure as sufficient to capture the full value creation potential of the Orange Basin?

Speaker #6: And is there potentially a pathway, or a world, where we increase that exposure?

Speaker #4: Yeah, look, I think it's an obvious question on Namibia and impact. And again, for the third time on this call, take a step back. I mean, if you go to where we were a few years ago with this, Impact had done a fantastic job.

Oliver Quinn: Yeah. Look, I think it's an obvious question on maybe on Impact. Again, I'll, for the third time on this call, take a step back. I mean, if you go to where we were a few years ago with this, Impact had done a fantastic job, you know, over a decade of driving Venus as a target, that play, attracted TotalEnergies in, got the well drilled, made a great discovery. As co-owners of Impact, we were faced with a kind of, you know, interesting dilemma here: that, you know, this huge world-class discovery. Of course, it quickly needs capital funding and capital funding of a big scale. I think as we've outlined many times on these calls, you know, we've got a funding solution in place. We're not exposed to the capital.

Speaker #4: Over a decade of driving Venus as a target, that play attracted TotalEnergies in, got the well drilled, made a great discovery. As co-owners of Impact, we were faced with a kind of interesting dilemma here—this huge, world-class discovery, but of course, it quickly needs capital funding.

Speaker #4: And capital funding of a big scale. I think as we've outlined many times on these calls, we've got a funding solution in place where not exposed to the capital.

Speaker #4: And we transformed that into a kind of CapEx demand that we couldn't fulfill into one that becomes a growth op, or is a growth opportunity.

Oliver Quinn: We transformed that into a kind of, you know, CapEx demand that we couldn't fulfill into one that becomes a growth opportunity, adding barrels in 2029 and 2030. I think that takes you to a place that says, Well, you know, it looks great. We'd like to have more. I think, you know, with respect, we have, you know, another large shareholder at Impact. There's really the two of us own kind of 97%, 98% of that company now. We both see that. I think, yes, in principle, of course, we'd like more exposure to a project with no CapEx or risk exposure and lots of barrels coming. You know, recognize that, you know, equally our fellow shareholder also sees the same attraction.

Speaker #4: Adding barrels in 2930. I think that then takes you to a place that says, well, it looks great. We'd like to have more. But I think with respect, we have another large shareholder at impact.

Speaker #4: There's really the two of us own kind of 97, 98 percent of that company now. And so we both see that. So I think, yes, in principle, of course, we'd like more exposure to a project with no CapEx or risk exposure, and lots of barrels coming.

Speaker #4: But recognize that equally, our fellow shareholder also sees the same attraction. So, yeah, yes is the short answer. But the execution path on those things is a bit trickier.

Oliver Quinn: You know, yeah. Yes, is the short answer, but, you know, the execution path on those things is a bit trickier.

Speaker #6: Thank you. And then one for Aldo. Aldo, could you please give some more detail on the Agbami impairment and the increased costs expected going forward?

Shahin Amini: Thank you. One for Aldo. Aldo, could you please give some more detail on the Agbami impairment and the increased costs expected going forward?

Mussannah Chowdhury: Thank you. One for Aldo. Aldo, could you please give some more detail on the Agbami impairment and the increased costs expected going forward?

Speaker #7: Yes. Of course, I think in Agbami was what we tried to explain throughout the materials that was not just related to one single item, right?

Pascal Nicodeme: Yes, of course. I think the in Agbami was what we tried to explain throughout the materials, that was not just related to one single item, right? It was a combination of lower oil price and increasing costs, mainly in relation to the life extension of the FPSO. In terms of oil prices, I think that's obvious, right, throughout 2025 in relation to the decline. Then more specifically in relation to the Agbami FPSO life extension, Agbami will continue to produce, you know, beyond 2044, which is currently our license, the next license renewal period. There's a significant amount of reserves already as 2P to be recovered from the field.

Aldo Perracini: Yes, of course. I think the in Agbami was what we tried to explain throughout the materials, that was not just related to one single item, right? It was a combination of lower oil price and increasing costs, mainly in relation to the life extension of the FPSO. In terms of oil prices, I think that's obvious, right, throughout 2025 in relation to the decline. Then more specifically in relation to the Agbami FPSO life extension, Agbami will continue to produce, you know, beyond 2044, which is currently our license, the next license renewal period. There's a significant amount of reserves already as 2P to be recovered from the field.

Speaker #7: So, it was a combination of lowering your price, and increasing costs, mainly in relation to the life extension of the FPSO. So in terms of oil prices, I think that's obvious, right, throughout 2025 in relation to the decline.

Speaker #7: And then more specifically, in relation to the Agbami FPSO life extension, Agbami will continue to produce beyond 2044, which is currently our license next license renewal period.

Speaker #7: So there's a significant amount of reserves already as 2P. 2P recovered from the field. However, what the life extension allowed us to do, not only to recover this additional reserves in a safe and reliable way, but at the same time, allow us to continue to invest or to develop or to plan for bringing contingent resources as 2P, right, and 2P numbers are the ones we use for the impairment calculation, the recoverable value.

Pascal Nicodeme: However, what the life extension allow us to do, not only to recover these additional reserves in a, in a safe and reliable way, but at the same time, allow us to continue to invest or to develop or to plan for bringing contingent resources as 2P, right? 2P, the 2P numbers are the ones we use for the impairment calculation, the recoverable value, but the 2C numbers, so the additional few wells that Oliver mentioned beyond the campaign 27, 28, Ikija, which is a tie-in to the Agbami FPSO, as well as other nearby opportunities outside our blocks. Those will all, you know, would all be produced through the Agbami FPSO.

Aldo Perracini: However, what the life extension allow us to do, not only to recover these additional reserves in a, in a safe and reliable way, but at the same time, allow us to continue to invest or to develop or to plan for bringing contingent resources as 2P, right? 2P, the 2P numbers are the ones we use for the impairment calculation, the recoverable value, but the 2C numbers, so the additional few wells that Oliver mentioned beyond the campaign 27, 28, Ikija, which is a tie-in to the Agbami FPSO, as well as other nearby opportunities outside our blocks. Those will all, you know, would all be produced through the Agbami FPSO.

Speaker #7: But the 2C numbers—so the additional, if you will, that Oliver mentioned beyond the campaign in 2027/28 in Ikeja, which is a tie-in to the Agbami FPSO, as well as other nearby opportunities outside our blocks—those would all be produced through the Agbami FPSO.

Speaker #7: However, we need to make this investment upfront to extend the life of the facility and make sure that we comply with all the requirements and certification, as well as having a reliable FPSO.

Pascal Nicodeme: We need to make this investment up front to extend the life of the facility and make sure that we comply, you know, with all the requirements and certification, as well as having a reliable FPSO. I think it's just a reflection of that, and, you know, when we get to mature mid-life fields that we have to go through this exercise. That's the detail behind the impairments on Agbami.

Aldo Perracini: We need to make this investment up front to extend the life of the facility and make sure that we comply, you know, with all the requirements and certification, as well as having a reliable FPSO. I think it's just a reflection of that, and, you know, when we get to mature mid-life fields that we have to go through this exercise. That's the detail behind the impairments on Agbami.

Speaker #7: So, I think it's just a reflection of that. And when we get to mature, mid-life fields, we have to go through this exercise.

Speaker #7: So that's the detail behind the impairment on Agbami.

Speaker #6: Thanks, Aldo. And just two more, I suppose, for you. Can you give us some thoughts on the percentage of total hedging for 2026? And I think the second from this investor was, can you just give us some color on our plans for the RBL going forward?

Shahin Amini: Thanks, Aldo. Just 2 more, I suppose, for you is, can you give us some thoughts on the percentage of total hedging for 2026? I think the second from this investor was, can you just give us some color on our plans for the RBL going forward?

Mussannah Chowdhury: Thanks, Aldo. Just 2 more, I suppose, for you is, can you give us some thoughts on the percentage of total hedging for 2026? I think the second from this investor was, can you just give us some color on our plans for the RBL going forward?

Speaker #7: Yeah, so first of all, in relation to hedging, we have a policy where we hedge between 70% to 100% of our post-tax net entitlement production, on a rolling 12-month basis.

Pascal Nicodeme: Yes. First of all, in relation to hedging, we have a policy where we hedge between 70% to 100% of our post-tax net entitlement production on a rolling 12-month basis. What does that mean? It means that we check first the amount of barrels that are exposed to oil prices, right? As we have cost recovery, for example, in our agreements in Nigeria. That means that not all barrels are exposed to oil prices, right? We first calculate the post-tax net entitlement, and out of that, we hedge between 70% to 100% on a rolling 12-month basis.

Aldo Perracini: Yes. First of all, in relation to hedging, we have a policy where we hedge between 70% to 100% of our post-tax net entitlement production on a rolling 12-month basis. What does that mean? It means that we check first the amount of barrels that are exposed to oil prices, right? As we have cost recovery, for example, in our agreements in Nigeria. That means that not all barrels are exposed to oil prices, right? We first calculate the post-tax net entitlement, and out of that, we hedge between 70% to 100% on a rolling 12-month basis.

Speaker #7: So what does that mean? It means that we check first the amount of barrels that are exposed to oil prices, right, as we have cost recovery, for example, in our agreements in Nigeria.

Speaker #7: That means that not all barrels are exposed to oil prices, right? So we first calculate the post-tax net entitlement. And out of that, we hedge between 70% to 100% on a rolling 12-month basis.

Speaker #7: Now, we make a combination of either physical forward sales or swaps, where we lock in the price that's close to the forward curve at the moment that we enter into the hedge.

Pascal Nicodeme: Now, we make a combination of, you know, either physical forward sales or swaps, where we lock in, you know, a price that's close to the forward curve at the moment that we enter into the hedge. We also have a mix of collar and put structures, where we keep some participation on the upside as well, for a certain percentage of these hedges. That being said, at the end of 2025, we had approximately 3.5 million barrels of oil for 2026 sales that were hedged through a combination of physical and financial instruments.

Aldo Perracini: Now, we make a combination of, you know, either physical forward sales or swaps, where we lock in, you know, a price that's close to the forward curve at the moment that we enter into the hedge. We also have a mix of collar and put structures, where we keep some participation on the upside as well, for a certain percentage of these hedges. That being said, at the end of 2025, we had approximately 3.5 million barrels of oil for 2026 sales that were hedged through a combination of physical and financial instruments.

Speaker #7: But we also have a mix of taller and put structures where we keep some participation on the upside as well, for a certain percentage of this hedge.

Speaker #7: So that being said, at the end of 2025, we had approximately three and a half million barrels of oil for 2026 sales that were hedged.

Speaker #7: Through a combination of physical and financial instruments. Out of that, 2.3 million are on the first half of 2026, which those are primarily hedged through the physical forward sales, so through the physical off-take agreements, with an average floor price of around $62 per barrel.

Pascal Nicodeme: Out of that, 2.3 million are on the first half of 2026, which those are primarily hedged through the physical for sales, so through the physical offtake agreements, with an average floor price of around $62 per barrel. And in the second half of the year, we have 1.3 million barrels hedged using a mix of swaps and collar structures. We provide, you know, good downside protection, but we also retain some exposure to the upside. That's in relation to the hedging part. For the RBL, I mean, as we saw through the presentation, our numbers, it was very important for us in 2025 to pay down substantial amount of the RBL facility, right?

Aldo Perracini: Out of that, 2.3 million are on the first half of 2026, which those are primarily hedged through the physical for sales, so through the physical offtake agreements, with an average floor price of around $62 per barrel. And in the second half of the year, we have 1.3 million barrels hedged using a mix of swaps and collar structures. We provide, you know, good downside protection, but we also retain some exposure to the upside. That's in relation to the hedging part. For the RBL, I mean, as we saw through the presentation, our numbers, it was very important for us in 2025 to pay down substantial amount of the RBL facility, right?

Speaker #7: And in the second half of the year, we have 1.3 million barrels hedged using a mix of swaps and collar structures. So we provide good downside protection, but we also retain some exposure to the upside.

Speaker #7: So that's in relation to the hedging part. For the RBL, I mean, as we saw through the presentation, our numbers—it was very important for us in 2025 to pay down substantial amounts of the RBL facility, right?

Speaker #7: We had we started the year 2025 with substantial large cash position. And to reduce financing costs, it made total sense for us to pay that down and reduce the financing costs.

Pascal Nicodeme: We started the year 2025 with substantial large cash position, and to reduce financing costs, it, you know, made total sense for us to pay that down and reduce the financing costs. As we mentioned throughout the presentation, we estimated that we save around $12 million we in financing costs just by doing that. Now, the next step in relation to debt management, the last time we refined the RBL was in 2023, on the back of the license extensions in Nigeria. We are now getting to that period where to keep a substantial headroom in the RBL facility, not necessary to utilize the money, but to have the flexibility to do so.

Aldo Perracini: We started the year 2025 with substantial large cash position, and to reduce financing costs, it, you know, made total sense for us to pay that down and reduce the financing costs. As we mentioned throughout the presentation, we estimated that we save around $12 million we in financing costs just by doing that. Now, the next step in relation to debt management, the last time we refined the RBL was in 2023, on the back of the license extensions in Nigeria. We are now getting to that period where to keep a substantial headroom in the RBL facility, not necessary to utilize the money, but to have the flexibility to do so.

Speaker #7: As we mentioned throughout the presentation, we estimated that we save around $12 million in financing costs just by doing that. Now, the next step in relation to that management, the last time we were financed the RBL was in 2023 on the back of the license extensions in Nigeria.

Speaker #7: So we are now getting to that period where, to keep a substantial headroom in the RBL facility—not necessarily to utilize the money, but to have the flexibility to do so—we are in the process of refinancing the current RBL.

Pascal Nicodeme: We are in the process of refinancing the current RBL, and we expect to finalize that sometime soon in the first half of 2026. With that, we increase the RBL capability, but at the same time, we'll continue to be very disciplined of how much we draw from the facility to reduce financing costs.

Aldo Perracini: We are in the process of refinancing the current RBL, and we expect to finalize that sometime soon in the first half of 2026. With that, we increase the RBL capability, but at the same time, we'll continue to be very disciplined of how much we draw from the facility to reduce financing costs.

Speaker #7: And we expect to finalize that sometime soon in the first half of 2026. So with that, we increased the RBL capability, but at the same time, we'll continue to be very disciplined on how much we draw from the facility to reduce financing costs.

Speaker #6: Thanks, Aldo. And Oliver, I'll put this one to you. It's something you briefly touched on a little earlier, but how much risk do you see when it comes to securing the Nigeria drill rigs this year?

Shahin Amini: Thanks, Aldo. Oliver, I'll put this one to you, and it's something you briefly touched on a little earlier. How much risks do you see when it comes to securing the Nigeria drill rigs this year? Yeah, if you could just give us some more color on that.

Mussannah Chowdhury: Thanks, Aldo. Oliver, I'll put this one to you, and it's something you briefly touched on a little earlier. How much risks do you see when it comes to securing the Nigeria drill rigs this year? Yeah, if you could just give us some more color on that.

Speaker #6: And yeah, if you could just give us some more color on that.

Speaker #5: Yeah, no, I think we're not concerned about that. I think we're very advanced, both in joint ventures and the recontacting process. So I think we'll be very confident those rigs will come this year, that we'll get back to drilling. And again, I think it's been a quiet period for us, and that reflects our production, but actually, we're going to turn that around with those rigs coming towards the end of the year.

Oliver Quinn: Yeah. No, I think we're not, we're not concerned about that. I think we're very advanced, both joint ventures in the recontracting process. I think we'll, you know, we're very confident those rigs will come this year, that we'll get back to drilling. Again, I think, you know, what's been a quiet period for us, and that reflects our production, but actually, we're gonna turn that round with those rigs coming towards the end of the year. Again, combination of infill drilling, short-term barrels, and getting back to testing some contingent resource and long-term growth and value.

Speaker #5: And again, combination of infield drilling, short-term barrels, and getting back to testing some contingent resource and long-term growth and value. So, look, I think first part of the operation is quiet while we finalize the campaign.

Oliver Quinn: Look, I think, you know, first part of the year, operation is quiet while we finalize the campaign. As we move into the latter half, it's pretty exciting for us to have 2 drill rigs again active for a prolonged period on our major assets. I think that's quite a positive view to the year overall.

Speaker #5: But then, as we move into the latter half, it's pretty exciting for us to have two drill rigs active again for a prolonged period on our major assets.

Speaker #5: So I think that's quite a positive view to the year overall.

Speaker #6: Thanks, Oliver. And just keeping on Nigeria, there's a question: our reserves have dropped from 2024 to 2025. Of course, there's been a portion of production in there as well.

Shahin Amini: Thanks, Oliver. Just keeping on Nigeria, there's a question, our reserves have dropped from 2024 to 2025. Of course, there's been a portion of production in that as well, maybe you can give some color on that and how we're arresting that decline.

Mussannah Chowdhury: Thanks, Oliver. Just keeping on Nigeria, there's a question, our reserves have dropped from 2024 to 2025. Of course, there's been a portion of production in that as well, maybe you can give some color on that and how we're arresting that decline.

Speaker #6: But maybe you can give some color on that, and how we're arresting that decline.

Speaker #5: Yeah. And again, I think if you look at the shift in 2P, that is dominantly the produced resource. I mean, every year, you're going to get some minor ups and downs on your kind of existing well stock and fields.

Oliver Quinn: Yeah, again, I think if you look at the shift in 2P, that is dominantly the produced resource. I mean, every year you're gonna get some minor ups and downs on your kind of existing well stock and fields based on, you know, latest performance. Again, when you look at the year, it's really around the fact that we've had this, again, longest period in the kind of history of the fields without active drilling and adding new wells. You see that in the sense that you know, produce 2P reserves faster than you do replacing it in that context. I think, again, 2 key points are, you know, you look at our contingent resource, that has grown significantly through 2025.

Speaker #5: Based on latest performance, but again, when you look at the year, it's really around the fact that we've had this again, longest period in the kind of history of the fields without active drilling and adding new wells.

Speaker #5: And so you see that in the sense that you produce 2P reserves faster than you're replacing it in that context. But again, the two key points are you look at our contingent resource.

Speaker #5: That has grown significantly through '25. So again, in terms of options for future value and growth of the business, that's good. And secondly, again to the prior question, we're very confident that we're getting back to drilling here, not just with one rig, but with two.

Oliver Quinn: Again, in terms of options for future value and growth of the business, that's good. And secondly, again, to the prior question, we're very confident that we're getting back to drilling here, you know, not just with 1 rig, but with 2, and sustained campaigns starting end of 2026 through 2027. Therefore, we'll start to grow again on that time period, which I think is really positive as we, as we look at the cycle, oil price cycle in particular.

Speaker #5: And sustained campaigns starting end of '26 through '27. And therefore, we'll start to grow again in that time period, which I think is really positive as we look at the cycle, oil price cycle in particular.

Speaker #6: Thanks. And just two more before we close off. So, when we speak about capital allocation, balance sheet strength and organic opportunities are the first two that we speak about.

Shahin Amini: Thanks. Just two more before we close off. When we speak about capital allocation, balance sheet strength and organic opportunities are the first two that we speak about. Just what should everyone read from this? Then shareholder returns, of course, and M&A coming third, or inorganic opportunities, I should say.

Mussannah Chowdhury: Thanks. Just two more before we close off. When we speak about capital allocation, balance sheet strength and organic opportunities are the first two that we speak about. Just what should everyone read from this? Then shareholder returns, of course, and M&A coming third, or inorganic opportunities, I should say.

Speaker #6: Just, what should everyone read from this—and then shareholder returns, of course, and M&A coming third, or inorganic opportunities, I should say.

Speaker #5: Yeah, I think we've been very focused on the balance sheet, and we've talked about that a lot on this call. And I think, again, that's important as a base to the business.

Oliver Quinn: Yeah, I think we've been, you know, very focused on the balance sheet, and we talked about that a lot on this call. I think again, that's important as a base to the business. You know, Aldo's talked about the moves we made last year. We paid down debt. We've got a lot of liquidity. We've got low leverage, I think the way people should look at that is, it's prudent. You know, it's of course, a volatile world, I think our view is it will remain so, we just have to deal with that. Starting with a strong balance sheet opens up a lot of options for us. It opens up options to allocate capital for organic growth, options to, as we are doing, returning cash to shareholders.

Speaker #5: And Aldo's talked about the moves we made last year. We paid down debt. We've got a lot of liquidity. We've got low leverage. And I think the way people should look at that is prudent.

Speaker #5: It's, of course, a volatile world, and I think our view is it will remain so. So we just have to deal with that. But starting with a strong balance sheet opens up a lot of options for us.

Speaker #5: It opens up options to allocate capital for organic growth, options to, as we are doing, returning cash to shareholders, and again, we've touched on it, the inorganic growth.

Oliver Quinn: Again, we've touched on it, the inorganic growth, it puts us in a very strong position to test from a, from that kind of balance sheet, you know, is there an organic transaction out there that makes sense for us? Is it better than the kind of organic growth, capital allocation options we've got in the portfolio today? That balance sheet gives us choices, and I think that's what's really key in this message: strong balance sheet, strong hedging in place for this year, very, very good foundation to grow the business, right? There are a number of choices to do that, and we're always seeking to have those choices.

Speaker #5: It puts us in a very strong position to test from that kind of balance sheet is there an organic transaction out there that makes sense for us?

Speaker #5: And is it better than the kind of organic growth capital allocation options we've got in the portfolio today? But that balance sheet gives us choices.

Speaker #5: And I think that's what's really key in this message: strong balance sheet, strong hedging in place for this year. Very, very good foundation to grow the business, right?

Speaker #5: And there are a number of choices to do that. And we're always seeking to have those choices. And in parallel, again, we've been very strong on shareholder returns to recognize that we want to grow the business, but equally, we're not going to grow it at any cost.

Oliver Quinn: In parallel, again, we've been very strong on shareholder returns to recognize that, you know, we wanna grow the business, but equally, we're not gonna grow it at any cost.

Speaker #6: Perfect, thanks. And just lastly, one on EG. Given the size of the prospects in EG, would it be possible to go into EG-31 alone?

Shahin Amini: Perfect. Thanks. Just, lastly, and one on EG. Given the size of the prospects in EG, would it be possible to go into EG-31 alone? How much are we willing to give away in the farming to a partner?

Mussannah Chowdhury: Perfect. Thanks. Just, lastly, and one on EG. Given the size of the prospects in EG, would it be possible to go into EG-31 alone? How much are we willing to give away in the farming to a partner?

Speaker #6: Or, how much are we willing to give away in the farming to a partner?

Speaker #5: We're definitely not going to give anything away. If I've got my commercial hat on. But look, I think we're 100% in those licenses. Our partner is Jeep Patrol Estate National Oil Company.

Oliver Quinn: We're definitely not gonna give anything away, if I've got my commercial hat on. Look, I think we're, you know, we're 100% in those licenses. Our partner is Jupiter Oil, the state national oil company. They have 20%, but they're carried in the early stages here, so it's 100% funding. Look, it's just a risk allocation and capital allocation that, you know, we're not gonna do a project at 100%. That's not a statement of a view of risk or value on the project at all. It's a point of saying, again, it's portfolio effect, it's risk-sharing, and it's bringing in strong partners helps any project, and that's our focus.

Speaker #5: And so they have 20%, but they're carried in the early stages here. So it's 100% funding. So look, it's a risk allocation of capital allocation that we're not going to do a project at 100%.

Speaker #5: That's not a statement of view of risk or value on the project at all. It's a point of saying, again, it's a portfolio effect.

Speaker #5: It's risk sharing. And it's bringing in strong partners helps any project. And that's our focus. I think the important point on 31 is, again, we need to be really clear that the Gardenia discovery itself is something that could become a short-cycle, fast-track development with the right partnership in place.

Oliver Quinn: I think the important point on 31 is, again, you know, we need to be really clear that the Gardenia discovery itself is something that could become a short-cycle, fast-track development with the right partnership in place. It's not high-risk exploration dollars. It's lower risk, short cycle, brownfield LNG, which could be incredibly low-cost resource for us as a company. Look, we wouldn't do it 100%, but equally, we want to hold a material position in the project, recognizing the potential value it can bring to us. Again, I'll go back to the theme of, you know, that surrounds prudent capital allocation and discipline within that, you know. Great growth options, we'll pursue them, but we'll do it in the right way that doesn't jeopardize the company.

Speaker #5: So it's not high-risk exploration dollars. It's lower-risk short-cycle brownfield LNG, which could be incredibly low-cost resource for us as a company. So look, we wouldn't do it 100%, but equally, we want to hold a material position in the project, recognizing the potential value it can bring to us.

Speaker #5: And again, I'll go back to the theme of—it's around prudent capital allocation and discipline within that. Great growth options, we'll pursue them, but we'll do it in the right way that doesn't jeopardize the company.

Speaker #6: Perfect. Thanks, Oliver. That's all the questions we have for today. So, operator, I hand back to you to bring us to a close.

Shahin Amini: Perfect. Thanks, Oliver. That's all the questions we have for today. Operator, I'll hand back to you to bring us to a close.

Mussannah Chowdhury: Perfect. Thanks, Oliver. That's all the questions we have for today. Operator, I'll hand back to you to bring us to a close.

Operator: This concludes today's call. Thank you for joining. You may now disconnect.

Q4 2025 Meren Energy Inc Earnings Call

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