Harbour Energy (LSE:HBR) — Investor Presentation

0:01 Good morning, ladies and gentlemen, and welcome to the HARBOUR ENERGY PLC investor presentation. Questions can be submitted at any time via the q and a tab that's just situated on the right hand corner of your screen. Please just simply type in your questions and press send. The company may not be in a position to answer every question it receives during the meeting itself. However, the company can review all questions submitted today and will publish our responses where it's appropriate to do so on the Investor Meet company platform. Before we begin, we would just like to submit the following poll. And if you could give that your kind attention, I'm sure the company would be most grateful. And I would now like to hand you over to CEO,

0:32 Linda Zed Cook. Linda, good morning. Hey. Thanks, Jake. Good morning, everyone, and thanks for joining the call. Before we get started, maybe just a few words on the events going on in The Middle East. I mean, the conflict, I think as most people are now aware, has seen more than 20% of global crude oil and LNG exports disrupted. That's really unprecedented. It's led to extreme market volatility and, of course, increased concerned over concerns over physical oil and gas supplies and including phosphates and other things as well. So quite an event that we're experiencing now. We're now a couple weeks into a ceasefire, but, of course, still waiting for the safe restart of traffic through the Strait.

1:21 We do hope that the ceasefire holds and that hopefully imminent negotiations or further discussions can lead to a return to peace and stability in the region. But against this uncertain backdrop, HARBOUR has to continue operating, of course, And we remain focused on continuing to execute our strategy and controlling what we can. And we have a strong track record when it comes to strategic, operational, and financial delivery supported by active portfolio management. And of course, I'm proud to say a world class team. Our consistent strategy together with that delivery means that today we're benefiting from a large scale diverse production base with a competitive cost structure and material exposure to both Brent oil prices and European gas prices.

2:15 We also have investment grade credit ratings, and that's supported by our prudent financial policy. And in particular, we do take a rather systematic approach to hedging. So we look to protect our downside exposure while preserving meaningful upside participation and have continued to hedge through the recent volatility securing in particular some attractively priced European gas collars. So we'll turn now to the presentation and to the second slide. And for those not so familiar with us, a quick introduction to how we got to where we are today. Over the last ten years, we've grown rapidly from zero to half a million barrels per day of production driven by fairly disciplined m and a and also reinvesting in the assets that we acquire to add value as we've sought to build a global diverse independent oil and gas company.

3:13 Since our first acquisition in 2017, we repeatedly demonstrated our ability to identify and secure strategic value enhancing transactions. Early acquisitions were focused on building scale in our first region, which was The UK. Then it was about diversifying and adding positions of scale in other countries, in particular, through the Winter Chaudea acquisition in 2024. Our more recent transactions, were announced late last year, have been targeted towards refining and strengthening the portfolio, making it more resilient and enhancing our longevity. And a good example of this is, of course, the log transaction in The US Gulf Of America, which completed ahead of schedule already in February.

4:02 The log assets that we acquired through that transaction are oil weighted. They're fully operated, which we like, and they have a compelling growth profile and a long reserves life. So this acquisition helps secure our overall production at a level between 475,500 barrels per day through to the end of the decade. And while overall production stays broadly stable, what we'll see is a significant increase in our cash flow through to 2030 as we have declining UK production, and we're replacing that with growth in The US and over time, in Mexico, both lower tax, rate jurisdictions. If we go to the next slide, in addition to the log transaction, we announced two other transactions at the end of twenty twenty five.

4:55 We agreed the divestment of most of our Indonesia assets, including our mature and subscale producing assets for $215,000,000 That divestment will improve the overall quality of our portfolio and accelerate the value from those assets. The transaction's expected to close in the coming weeks, and that will nearly complete our exit from Southeast Asia after our divestment from Vietnam mid last year. We also announced the $170,000,000 acquisition of Waldorf, which is a small UK producer that is in administration. Once complete, that acquisition will bring significant financial synergies and materially enhance our UK cash flow.

5:44 The proceeds from the sale of Indonesia along with the near term cash uplift we're expecting from Waldorf will help fund the entry into The US Gulf through the $3,000,000,000 acquisition of LOG. As just mentioned, through LOG, we establish a strategic position in The US deepwater, acquiring a high quality portfolio in one of the world's most prolific oil and gas producing basins. So taken together, these three transactions materially increase HARBOUR's free cash flow outlook to the end of the decade. Turning to the next slide. At our full year results last month, we updated our 2026 guidance to reflect these transactions, log completion in February, and the expected closing of Waldorf and Indonesia transactions by the middle of the year. For 2026, we now expect production to be between 475,500 barrels per day.

6:43 We set we set our unit operating cost guidance at around $14.50 per barrel, while total capital expenditures this year are expected to be between 2,200,000,000 and $2,400,000,000. That's about $13 per barrel on a unit of production basis. With about 80% of our production exposed to Brent and European gas prices then, that means our margins will continue to be strong. In fact, post completion of the LOG acquisition, we're now more sensitive to oil prices. So we have a with a $5 move in the average oil price for the full year that will impact this year's free cash flow by $170,000,000 and a $1 change in European gas price impacts free cash flow by $150,000,000 So hopefully those rules of thumb are helpful as we navigate this quite volatile period of prices.

7:42 At our outlook pricing that we used in March of $65 dated Brent and $11 European gas, we had expected to generate $600,000,000 in free cash flow this year. If we now update that and assume higher commodity prices of, say, $80 Brent and $13 European gas, in particular, that Brent number could be conservative. I think where we are now is higher than $95. But at $80 Brent, $13 European gas, we expect free cash flow this year to be at close to $1,400,000,000, so more than two times kind of the estimate in early March, which was, of course at a lower oil and gas price outlook.

8:29 The next slide provides a snapshot of HARBOUR today as a result of the portfolio actions taken over the last few years, including the Wintershall Dea acquisition, which gave us material positions in Norway, Mexico, and Argentina, and also the divestment that I mentioned to Vietnam and Indonesia. The center of gravity of the portfolio is now shifting to the West to lower tax jurisdictions with significant running room. Like in the past, if we don't see a route to scale or assets can compete for capital in our portfolio, they do become divestment targets. We have quite active portfolio management, will be an ongoing feature of what we do in HARBOUR. And with the LOG acquisition, the bar to compete internally for capital has got that much higher.

9:21 If we look at the next slide, while we have a global portfolio, it's really five key countries that we focus on, Norway, The UK, Argentina, Mexico, The US. And as you can see, these account for around 90% of our company no matter how you slice it, so, whether it's production or you're looking at cash flow, reserves, or resources. And each of the countries has an important role to play. So let me walk through each one of them, and we'll start on the next slide with Norway. It's our largest producer today at 170,000 barrels per day. That accounts for 35% of our overall production in HARBOUR. In the country, we have a strong pipeline of infrastructure led developments that we expect will sustain production in the country well into the next decade.

10:15 This includes four subsea tieback projects that we're bringing on stream over the next twenty four months, including Duvalin North. This is due on stream at the middle of this year. And we're also maturing our next set of projects to final investment decisions and that will help sustain production even longer. And and those projects include the Goa subsea tiebacks and our operated Kuvet discovery. And we continue to explore, and just last month announced the Omega SOAR discovery where we have a 35% stake, so we were happy to see that. Next slide. We talked about The UK. Here, the team continues to do a great job despite the difficult fiscal environment. This includes maintaining high reliability, structurally lowering our cost base, including, unfortunately, through continued headcount reductions.

11:09 They've been delivering best in class drilling performance and executing selective very selectively some high return short cycle investment opportunities that will somewhat offset the production decline. As a result of these actions and we if we take them together with the Waldorf acquisition and its financial synergies, it come mainly in the form of tax loss that will be tax losses that we'll be able to use against our earnings. We'll be transforming the cash flow outlook from our UK business. And, of course, we have to say a few words probably about the energy profits levy or what's called the EPL in the country. This was, there was genuine optimism, I think, at the end of February that the chancellor might be announcing the early removal of the EPL, which current which today doesn't expire until 2030, and, hoping that it would be replaced with a more sensible windfall profits tax structure.

12:09 At the government's request, we had, alongside wider industry, provided some detailed evidence on the scale of investment that early removal of the EPL could potentially unlock. In aggregate, this equated to $17,000,000,000 of pounds seven sorry. £17,000,000,000 of investment across the sector in The UK North Sea that, that would directly support jobs, growth, of course, domestic energy security. However, with the oil prices spiking at the outbreak of the war, I think the decision just became too politically difficult for the chancellor to to take, at least for the time being. We continue to believe, however, that this is precisely the moment to signal early removal of the EPL given the heightened concerns around energy security.

12:59 And the smart thing to do would be to replace it with the government's windfall profits tax, the the new design. And that's set out to reduce oil and gas companies' profits from unusually high oil and gas prices, but still incentivizes the important investment needed to utilize the country's domestic resources and enhance domestic energy security. So we remain in dialogue with the government and hope that someday we will see early removal of that of the EPL tax. Next slide. Now we move on to Argentina. Today here, we're producing 70,000 barrels per day, and most of that's coming from our conventional gas fields in the CMA one license offshore Tierra del Fuego province.

13:47 At CMA one, we have a series of potential developments that will keep the infrastructure at capacity at more than 40,000 barrels per day through to 2040. Perhaps more exciting though is our significant position in the huge world class unconventional Vaca Muerta play. Here we have a 24% interest in two of the largest licenses in the Vaca Muerta. We have Sanroque in the oil window and Ape in the gas window. At Sanroquet, we're progressing our application for the unconventional license with the 16 well drilling program, which is expected to start around the end of this year or early next. At Ape, we're currently producing about 20,000 barrels per day with production constrained by the domestic gas market.

14:39 So what we need here is access to additional gas markets, international ones, and that's why we're participating in Southern Energy, which is a 6,000,000 ton per annum phased LNG project. Export permits and incentives under the new rigging infrastructure regulation in the country have been secured, and major pipeline and EPC contracts are in the process of being awarded. We also recently contracted about 80% of the first vessel's offtake to Cefe, the German utility gas buyer.

15:13 And we're starting to and we're now seeing significant interest in the offtake of the second vessel as buyers on the world's LNG market are looking to diversify sources of supply away from The Middle East, and in some cases, The US. So start up from the first LNG vessel remains on track around the end of next year and from the second vessel at the end of twenty twenty eight. So with our Vaca Muerta acreage and interest in Southern Energy, I think you can maybe see why we're really excited about the potential of Argentina. Turning now to the next slide and our newest core business unit, The Gulf Of America, which came through the LOG transaction. First, with hindsight, you know, we feel good about having agreed this transaction when oil prices were around $65 per barrel.

16:08 Looks like with a bit of luck on on that regard, we might have got the timing just right there. The acquired assets are oil weighted. They give us scale and growth through to the end of the decade in this important oil and gas producing region. It's a 100% operated centered around three deepwater hubs called Hudat, Buckskin, and Leon Castile. Production's expected to increase to around 65 to 70,000 barrels per day by 2028, supported by investment in high IRR drilling targets that are all near existing hubs and the continued ramp up at Leon Castile, which started up last year. With the existing cost structure and attractive fiscal terms, we're adding high margin barrels to the portfolio that will help fuel our free cash flow free cash flow growth through to the end of the decade.

17:05 And with more than three fifty million barrels of 2P reserves and 2C resources, plus half a billion barrels of prospective resources and success in recent licensing rounds in The Gulf. We believe we have substantial running room. And we have a great team. The log team are responsible for about a third of all discoveries made in The Gulf since 2014, and they have a proven track record of converting resources to production, ranking best in class among peers when it comes to development cycle time. So our new Gulf Of America business unit really is transformative for HARBOUR, and it raises the bar for capital competition within the company.

17:52 Finally, Mexico on the next slide, our fifth core business unit. This represents our most material long term growth opportunity. Through the Zama and Cannes shallow water hubs where where we have existing discoveries, we're building a scaled advantaged business with a diff with additional exploration potential.

18:14 At SAMA, where operatorship was transferred from Pemex to HARBOUR in December of last year, which was a significant milestone, Our focus is on optimizing the development concept to lower the breakeven cost, improve returns, and lower the execution risk ahead of entering FEED later this year. At our operated Kahn discovery to the Southwest of Zama, last year, we upgraded our resource estimates by 50% to 150,000,000 barrels gross. And like with Zama, our focus is on optimizing the development concept ahead of entering FEED. So together, Zama and Khan have the potential to deliver reserves equivalent to more than two years of the company's production.

18:59 And as operator of both of these hubs, we have the opportunity to capture synergies across design, drilling, and operations. As I mentioned, both projects are expected to enter FEED this year, and we're targeting both to be FID ready within the next eighteen months or so. We'll also see additional upside through alignment with our Gulf Of America business unit just across the border using key capabilities and talent we acquired through LOG and also leveraging relationships with key suppliers across the broader Gulf to successfully help us deliver both of those Mexico projects. This next slide then puts everything together showing our expected CapEx and production outlook to the year 2030.

19:49 As you can see from the chart on the left, we expect to spend between $2,000,000,000 and $2,300,000,000 per year from 2027, which we think is the right level of expenditure given the size of our portfolio and our opportunity set. And it allows us to sustain production between 475,500

20:09 barrels per day through to the end of the decade. With The US assets and our projects in Mexico, we'll have increased operational control over our spending levels, and that gives us more flexibility, to adjust spending if we need it up or down. And with over 3,000,000,000 barrels of reserves and resources, we'll be able to prioritize the most competitive projects continuing to high grade the portfolio. The next slide now. So while overall production is remaining stable, we're replacing the declining higher cost UK production with higher margin barrels in The US and, over time, Mexico. As a result, as we look through to 2030, we expect to deliver materially growing free cash flow.

20:59 So this strategic shift in production towards lower tax jurisdictions mean we expect our effective tax rate to fall significantly as we move through the decade. And in parallel, we expect CapEx to reduce to around 2,000,000,000 to $2,300,000,000 from 2027, as I just mentioned. That reflects the continued portfolio high grading and disciplined capital allocation. So as a result of all of that, free cash flow is expected to materially improve in 2028 at flat oil and gas pricing, and that's supported by increasing production in The US Gulf and the significant financial synergies from The UK Waldorf acquisition starting from 2027.

21:47 Beyond that, we see further cash flow margin upside towards the end of the decade driven by continued growth in The US and as our Mexico projects start to come on stream. This next slide sets out our three capital allocation priorities which we look to balance through the commodity price cycles. First, we're committed to maintaining an investment grade balance sheet. Following every major transaction, we've consistently prioritized debt reduction. And with the additional leverage from our recent transactions, we intend to do the same again. Second, we aim to maintain a robust and diverse portfolio by investing 2,000,000,000 to $2,300,000,000 per annum. We expect to be able to deliver stable production with improved margins as we move through the coming years.

22:40 Third, we'll continue to deliver attractive shareholder returns through the cycle. We recently updated our distribution policy by moving to a payout ratio. This aims to return to shareholders between 4575% of our free cash flow with a base dividend of $300,000,000 When leverage is greater than one times, we expect the payout to be towards the lower end of the payout range. That enables us to prioritize debt reduction when leverage is high. And then when leverage is less than one times, we'd expect the payout ratio to move towards the higher end. This policy allows us to invest in our high return growth projects and to delever through the cycle.

23:27 And it also ensures our shareholders are able to benefit from our growth growth in free cash flow and also to share in the upside from higher commodity prices like we're experiencing at the moment. As mentioned for 2026, we said we expected to generate $600,000,000 of free cash flow. That was based on $65 oil and $11 European gas. Given where leverage is following the log transaction, we would pay out at the lower end of our payout range. So this would mean shareholder distributions of $300,000,000 or our base dividend for 2026. At $80 oil and $13 gas, however, we expect to generate $1,400,000,000 of free cash flow. At a 45 percent payout, that would result in shareholder distributions to doubling to at least $600,000,000.

24:26 And with the $800,000,000 balance then going towards the balance sheet, and that will help us materially accelerate our ability to reduce debt this year. Final slide then in summary, 2025, excellent year for HARBOUR ENERGY operationally, financially, and strategically. We've carried that momentum into 2026 with the completion of the LOG acquisition, and production's off to a good start this year averaging more than 500,000 barrels per day for the first two months of the year. Our portfolio actions continue to transform the outlook for HARBOUR, and we're seeing the benefits already of our increased scale and resilience.

25:12 Further, our organic opportunity set within the portfolio today mean that we can sustain production and deliver free cash flow growth through the end of the decade and possibly beyond. So we feel well positioned, in the current in today's current environment. And with that, we will open it up to questions. Over to you, Jake. Perfect, Linda. That's great. And thank you very much indeed for your presentation this morning. Ladies and gentlemen, please do continue to submit your questions just by using the q and a tab there on the right hand side of your screen. But, Linda, we have received a number of questions, so perhaps if we dive straight into it. The first question that we have here asks, can you provide some more color around the impact of the events of The Middle East on HARBOUR and how you're responding to this? Yeah. Thanks. Of course, it's a good and topical question. I think the first thing to say is that we, thankfully, at this point, don't have operations in The Middle East.

26:08 So from a physical operations standpoint, we're not impacted directly impacted. Our closest operations are in Egypt, and and there everything, continues normally. Of course, the the big and immediate impact it has are the higher commodity prices, which I've talked about through this presentation just gave you a flavor, I think, of the sensitivity of the HARBOUR free cash flow outlook to those higher prices. So you'll you already have a feel for that. I think longer term, we're we're starting to look at the supply chain and trying to understand where we might have vulnerabilities if the conflict continues and and the closure of the Strait continues for some time.

26:53 So, for example, watching for signs of things like fuel shortages for our supply boats and offshore drilling rigs and things in The UK. Just one thing we're keeping a close eye on so far. We haven't seen any of those manifest, but, of course, we're doing planning in case things take a turn for the worse or continue for a very long period of time. From a capital investment standpoint, you know, we're this is a long term business for us. We've seen multiple cycles over the years of prices going up and down. So, certainly, we're not counting on prices staying high forever. So I think it's a pretty steady hand on the steering wheel when it comes to capital allocation and the projects that we're investing in, that many of which, if we're investing in them today, you know, won't start up until next year at the earliest or beyond that.

27:47 So we have to take a longer term view. And then from a hedging standpoint, we have taken the opportunity where we've seen it to execute some, I think, pretty attractive collars. So we're putting in place a floor you know, floors, for example, for oil that might be in the seventies, but capturing upside up to a $100 per barrel. So pretty wide ranges Where we see those opportunities, we're feeling good about capturing those and, locking in, some or reducing any downside that we might have in the portfolio, but, still capturing a lot of the upside. So those are few things that we're doing. Thanks, Linda. And just turning to the next question. We have someone asking, good to see the LOG transaction complete in February.

28:33 Can you talk us through the strategic rationale for the acquisition? Why this particular US transaction and really how HARBOUR came to be the successful bidder? Yeah. Thank you. Yeah. We're really excited, as I've already said, about the transaction and our entry into The US. Since we started HARBOUR, now almost ten years ago, we had always had the aim and it always made sense for us as a conventional, mostly offshore producer to be in The US Gulf. And so we have tracked opportunities for entry there for many, many years. And as we kind of held our wish list internally of of what might be attractive, log was always in the top one or two on on that priority list, but it just, unfortunately, wasn't available until just last fall.

29:23 It was privately held, and the owners just weren't motivated to sell. Unfortunate sadly, the the founder of the company passed away now about a couple years ago. And following that, the the family it was now in the hands of the family in a trust. They decided to proceed with a divestment following the receipt of an unsolicited offer they received from another party. So they kicked off a fairly limited process. It was invitation only. I think you could count the number of companies invited to that process on one hand. So while we don't necessarily like competitive processes, this was a fairly limited one. In addition to in addition to price, what was really important for the family was that they found a good home for the company, one that would, continue to to honor the company's reputation and, in particular, would need all, most, if not all, of the team, which they had a close relationship with. And with, with HARBOUR, given that we have no had at the time no existing US operations or Gulf operations or any any any employees based in The US, I think we could give them some real reassurance that we were in fact going to need all of their team and that our our commitment would be to continue to invest in that business

30:55 and and try to grow the company. So they got very, very comfortable with us from that standpoint and then generally culturally as well. So we felt good about the outcome of the transaction. It was a competitive process. We if we look at we paid $3,200,000,000. If you look at independent third party valuations, they're mostly closer to four. So we felt good about that. And, of course, at the time when we were buying, oil prices were in their sixties. And with, since we completed in February, oil prices have been much higher, and so we're now benefiting, of course, from the higher prices as well. So I feel good about the transaction, and so far, so good.

31:43 Perfect. Thank you. We've had a number of questions come in on M and A, but perhaps if we take this one as I think it speaks to the others as well. You've got hit today by M and A. What's next? Is the plan for more transformational acquisitions? And how do you think about portfolio management more generally? Yeah. I think our thinking about M and A has evolved with the evolution of the company. So, of course, we started and built the company through M and A. We have a really good M and A toolkit and skill set and, really proud of everything that the team's delivered on that front. But today, we're at 500,000 barrels a day, so half a million barrels per day. The size of the company feels good to me. So half a million barrels a day, over 3,000,000,000 barrels of reserves and resources.

32:38 From that standpoint, we no longer feel the need to to necessarily grow the overall size of the company. So we're at we have a scale that we think is sustainable, and viable and large enough to be competitive and of interest to investors today. So going forward, I think the the objective of any m and a that we may do will be like the transactions we announced at the end of last year, continuing to just strengthen and refine the overall quality of the portfolio. So divesting positions in countries that are subscale, replacing those by strengthening acquisitions in countries where we're currently present and have a core core strategic position to continue to strengthen those going forward. So probably a bit more tactical rather than transformational going forward.

33:37 Thank you. At these prices, you're generating significant free cash flow. In this context, how are you thinking about debt reduction, and where do you want to get leverage to versus additional shareholder distributions? And then the second part of the question asks, how are you thinking about additional distributions in terms of dividends versus buybacks? Yeah. Good question. And I think the timing was fortunate with our shift to a payout ratio. Of course, those decisions were made before we entered this volatile oil and gas price environment. But I think the new policy will be a good tool for us, and it's good timing to now have it in place. Because what it'll enable us to do is when leverage is high, which we feel it is today following the log transaction, and that's happened after each of our major acquisitions, our priority at that point in time is to get, is to strengthen the balance sheet.

34:34 Now we've been able to, just, at all three rating agencies, reiterate our investment grade credit rating, which was great, but, we still feel like we need to get leverage down. And so since leverage is greater than one times, our our framework says that we will pay out at the low end of the range. So that's 45%. And so as I mentioned in the presentation, at $1,400,000,000 of cash flow this year at the $80 Brent, $13 gas, that'll give us about $800,000,000 to pay down against debt, which will make a big difference in our balance sheet. And then we've said when leverage is less than one, which has always been our target to have on average leverage less than one times, that'll enable us to start moving up towards the higher end of the payout range as we move beyond this year.

35:35 Of course, everything will depend on continued operational delivery, which we feel confident about. And then, of course, what commodity prices do as well in there. It's really anyone's guess probably. What will we do with the additional distribution? So at $1,400,000,000 and 45% payout, that's about $600,000,000 of distributions. Our commitment is a minimum dividend of $300,000,000. And then what we do with the other 300,000,000, of course, will be a decision for the board to make, and we'll make it as after we move through the end of this year and see what actual cash flow really is. I think there's big rationale for us to, use the excess distributions as buybacks.

36:20 It's what we've done in the past actually beyond our base dividend. So that's been our track record. And I think the the reason why it makes sense for us is we do do still have, you know, at least one large investor in BASF who continues to you know, they're they're it's a financial investment for them. They have the shares as a result of the Winnerschau Deya transaction. They were the the large partner as in the selling group, on the other side of that transaction. And their stated intention is to continue to exit over time. They've taken the opportunity to exit over the past few weeks, a large part of their of their stake, but they they still have quite a position. And so having the ability to have buybacks out there, I think, is helpful given that situation.

37:08 Perfect. Thank you. And we have perhaps one final question here. Someone asking, you talk about having five core business units, Norway, The UK, Argentina, Mexico, and now The US Gulf Of America. But really, which is your favorite or are you most excited about? Yeah. I could ask that question a lot, and it's always hard. Right? And it's like asking which of your children is your favorite. It's it's always hard. And as I tried to, explain in the presentation, they each play a different role for us. So Norway, steady production, good margins, exposure to European gas pricing, lots of running room, stable fiscal environment. So just a ton to like there. And in The UK, in particular with the Waldorf transaction, the things we've been the team there has been able to do to improve our margins and reliability and operating costs.

38:01 You know, they they're throwing off a lot of cash flow for us over the coming few years even though production's declining. US, lots of running room now with our new position in the Gulf Of Mexico. Argentina, you know, we really love our position in the Vaca Muerta and that LNG project giving us exposure to long life reserves and international gas markets. And then finally, Mexico, that's really the long term opportunity for us with the big developments there. So really, really hard to pick one. Sorry. I'm not gonna be able to answer the question. No problem. But, Linda, thank you very much indeed for answering all of those questions that came in today, and that brings us to the end of the session. So thank you very much indeed for updating investors this morning. I please ask investors not to close this session as you'll now be automatically redirected for the opportunity to provide your feedback in order the management team can really better understand your views and expectations.

38:57 This will only take a few moments to complete, but I'm sure it'll be greatly valued by the company. On behalf of the management team of HARBOUR ENERGY PLC, we would like to thank you for attending today's presentation. That now concludes today's session. So good morning to you all.