Seascape Energy Asia (LSE:SEA) — Full Year Results

0:01 Good morning, ladies and gentlemen, and welcome to the Longboat Energy PLC Full Year Results Investor Presentation. Throughout this recorded presentation, investors will be in listen only mode. Questions are encouraged and can be submitted at any time using the Q and A tab situated on the right hand corner of your screen. Just please simply type in your question and press send. The company may not be in a position to answer every question received during today's meeting. However, the company will review all questions submitted today and publish responses when it's appropriate to do so. These will be available via your Investor Meet company dashboard. Before we begin, we would like to submit the following poll. And if you

0:32 would give that your kind attention, I'm sure the company would be most grateful. And I'd now like to hand over to CEO, Helga Hammer. Good morning, sir. Thank you. Thank you, Mark, and good morning, everyone. Starting off with a bright sunny picture of Stavanger Harbor here. And, what we will do is we'll take you through a presentation, and then we'll can follow with the with the q and a.

0:59 We start off with a little reminder of the strategy. So Longwood strategy is to create a full cycle E and P company focused on the North Sea. We started off with an exploration deal, but the intention is not to remain an exploration company. We are we are gonna move into a full cycle E and P.

1:24 The just, also some points about being in Norway. We, we believe we are in the right, country at the right time. And, up in the corner, there you see, Norwegian, exploration results, which remain, very high. You know, the last year, there were 40 wells drilled, 20 discoveries were made, significant volumes were added. So we are in a business which is creating very significant value, and it's it's a good way to start an E and P company, and it's a good geography to be in. Second point on Norway is the point, below, the graph below. That's the ESG side of things. ESG remains very important, and having low carbon emissions is important.

2:14 And you see on that graph that Norway has, the ability to deliver gas to Europe and gas to The UK at very low, gas carbon emissions, lower than UK can itself, actually. So creating and and building a new E and P company in Norway is also an opportunity to become an excellent ESG performer. And, you know, with recent events, energy security is another really important aspect of of E and P business. And, again, being in Norway is, a the right place to be with the ability and and having having the infrastructure and ability to deliver, oil and gas, to Europe.

3:03 So, the and the last aspect is actually tax, and there is a tax change underway in Norway. Tax change that we, believe is going to be very good for us, and, we'll come back to that, shortly.

3:18 Moving on to the, to what we have done so far. So we did we did our first deals, less than a year ago in June of last year. We announced, three, farming deals, found into seven wells. We did that at the time when, exploration was available, because of the COVID situation and a lot of companies looking to save their exploration budgets. So a lot a lot of wells were available, and we we handpicked, used our very, skilled, G and G team and handpicked them and built a very bespoke drilling program. Completed the deals and, drilled started a drilling program.

4:05 Drilling program has so far been delivered, very much on time and budget. So drilling has been very efficient. And we've drilled four wells, so far out of seven of of those, four wells, we made three technical discoveries, three three of them found oil and gas. Mugnitin, unfortunately, was too small, so been written off as an uneconomic discovery. We made two discoveries that are commercial. Had a bit on a small side, and we we come back to that. And then Egyptian vulture is one of the most significant discoveries in Norway last year and, but needs appraisal, and we're coming back to that, shortly.

4:53 We have, started the year, this year's drilling program, and we have three wells, coming. First one is already drilling at Kvejka, if you'll come back to. And now we have two, very large gas prospects that will be drilled, later this spring and in the summer. I'll hand over to John now to take us through the financials. Thank you, Helga.

5:27 So starting with the balance sheet, we ended the year with £26,300,000 of cash, and that was after doing our initial fundraise, spending approximately 30,000,000 on expiration and appraisal, both through and carries, I. E. The consideration to get into the to get into these licenses. And that was after a tax raise tax refund under the temporary regime for 2020 and 2021 of £18,600,000. At the year end, we had a receivable of £8,100,000. There were no drawings under the EFF facility during 2021 because we're in the we're in the temporary tax regime, so we didn't need to use that. That was paid by way of these negative tax installments, which are paid on a regular basis.

6:18 Post the period, we've we drew 15,000,000 under the EFF just to demonstrate that it worked. There was we had clarification from the Norwegian government that there would be assurances that the pledge would be in place. So we we drew on that to make sure it all worked and worked with banks. It does. So that's great, and we will be drawing on on that this year. And the government will then repay us the amounts that were drawn under that effectively at the end of next year. So it's just a a working capital bridge. Now in terms of the operating loss, the loss of the period was £4,700,000, and that was after, as Helga says, we wrote off because it's subcommercial, and there was no further prospectivity on the license in our opinion. And there was a a tax credit of a noncash item of 6.9 leading to the loss of the period of 4.7.

7:13 As I mentioned, the the tax system in Norway has been changing. Yeah. The tax system has been incredibly supportive, so change changed in 2021 and 2020 for the better as a part of COVID to support the the industry. That was good. That meant there were no no sort of distress in in the industry, really. No balance sheet distress because people just claimed 78% of their losses back. It wasn't really designed for the oil companies. It was designed for the whole offshore service industry primarily, but, you know, we all benefited from that.

7:51 There are more changes afoot now. We're waiting for the detail on that. We're expecting that that that detail in q two. We've been given we've been involved in consultation. The whole industry has, and we have an idea of what that will look like. We think it's pretty positive in terms of what what it can do to cash flows for small companies, And Nick will take us through the detail on that. So, over to you, please, Nick. Thank you, John. And apologies upfront. I'm feeling a little bit under the weather, so, hopefully, you'll be able to hear me. So, as John was saying, the the Norwegian tax regime has been very stable for a very long time, and it continues to be so. But towards the end of last year, the Norwegian government proposed some changes to the tax regime, not to the headline rate, which will stay the same, marginal 78%, but actually to the way that the whole regime is structured.

8:51 And and for us, this was a deliberate move by the Norwegian government to nudge companies in a in a direction of trying to maximize the existing resource on the Norwegian continental shelf by developing it through existing infrastructure and really encouraging companies not only to explore, but also to to to develop those resources. That's important for a couple of reasons. One, it lowers overall costs. Unit operating costs come down the more barrels and molecules that go through existing infrastructure. You're utilizing all of the the existing resource during the energy transition. And, certainly, you're doing that at the most ESG friendly way because the more molecules and the more barrels that go over a a set of infrastructure that has a more or less fixed CO2 output, the lower CO2 output per per barrel or per BOE we see.

9:47 So the main change that has gone on here is is there's been a rejig between what's called the special tax and the corporate tax. But most importantly, what is happening now is that the instead of having a narrow bucket of refunds associated with your exploration costs, so all the costs are going to just doing an exploration well, The Norwegian government is moving to a situation where they are going to refund all of your costs, all of your losses incurred in in year one at the end of year two to the tune of 72%. So the way this works is that, currently, if you spend 100 on exploration in the year following that, you get 78 back from the government in the form of a cash deposit.

10:34 The new situation will be that if you have you spend 100 on anything, so that includes, you know, CapEx for development or or, you know, your overall running costs, you will receive 72 back in the year after that that happens. We believe there's gonna be a relatively smooth transition from the current regime in into that regime. And I think that the real benefit for someone like a longboat is, you know, which I would describe as a pre revenue company, is that that will significantly reduce the working capital requirement for for developments. On the chart in the chart on the right, we've tried to sort of demonstrate this with a a kind of a fictitious development. What you can see there is using the existing terms. You would spend, spend, spend, spend, spend. And then when the fields start producing, you start to recoup your your historic expenditure.

11:25 But under the proposed terms, you spend, and then you get a rebate from the government. You spend, you get a rebate from the government. So, actually, that trough is much, much shallower, which means financing, it becomes financing developments becomes much more realistic for a business like us. And in addition, we believe that that the changes will allow us to continue to use the sort of technology that we use with our exploration finance facility, but sort of repurpose that in order to in order to help finance developments going forward and and utilize the the rebate that comes back to you as sort of touching that in order to to raise further debt. So that reduces even further your equity requirement.

12:13 So what does this mean for us overall?

12:15 Well, overall, it means it gives us an opportunity to take our discoveries all the way through to development if we were to choose to do that. And it also allows us to potentially look at interesting developments as a way of growing the business through actually investing and and and getting into new developments because of this ability to finance that was not available to us previously. We believe that these changes will be ratified during the first half of of twenty two by a Norwegian government, and we see it as a real positive and a lot of a lot more optionality for a business like us. Now perhaps I'll hand back to you, Hagos, so can go through some of the discoveries you made so far. Thanks thanks, Nick. Yes. Let's look at the assets.

13:01 The, first, on Egyptian vulture. This was a significant discovery we announced back in December. This well came in on prognosis. I found what what had been mapped as a as a very large seismic anomaly. Did we did actually prove that to be a 30 meter net sand hydrocarbon filled. And it was filled with a very light oil light volatile oil with a high high gas content. So that that's that's a beautiful discovery. You see the the map there. It's a very large area, covers something like 80 square kilometers, all having the same seismic amplitude visible on on a map.

13:57 The thing with it being so laterally extensive means that it does need to have some appraisal. It needs to be mapped out properly before there is confidence enough to take it forward as a development project. You look, on the map there, this is sitting in Norwegian Sea outside of Trondheim, where you have, some very large oil and gas fields. The big the big facilities in this area is Osgard, Kristine And Hadron, big floating facilities and all operated by Equinor. Equinor used to be called, a very big player in Norway, is also the operator of Egyptian vulture, which is great news because they will have the ability to take this forward and develop it as as a subsea satellite.

14:54 It's has a very large in place volume.

14:59 The next step is to decide on an appraisal well. And you see the schedule for that at the bottom there as as proposed by Equinor. We we are not in control of this. You know, when you have Equinor as an operator, it's great for for business because they do a really proper job. But being a small company, we don't really control the timing. The timing, as indicated by them, is that we would make a decision on an appraisal well, before the summer so that in the summer, we can, acquire a site survey. Site survey is the first step towards the well. And then next year, we can come in and drill an appraisal well to derisk this potential development project.

15:49 So I'm very excited about this and and looking forward to the next step. The the second discovery that we did, which is commercial, is Redheta, which is sitting in the Hammerfest Basin outside of Hammerfest in the Barents Sea. This one is operated by Vor and Agui. Vor and Agui is ENI owned company, which listed on the Oslo Stock Exchange month and a half ago. And that that company, in their IPO materials, described Roadhat as a, potential development, in this area. They they have a field called Goliath, and they have another field called Alkia that

16:39 that they are planning a way on the development. And so there will be a gathering system for oil and gas and then a solution for the gas export, which could be around LNG or hydrogen or, or ammonia. The significant amount of potential, both discoveries like, Tonoroos and but also exploration, still very active in this area. So that one, fortunately, didn't come in as big as we'd hoped for, but big enough to form part of this future project. Then we will move on to the this year's program, which has just started. And the Queija well, been drilling for a bit over a week.

17:33 It's a quick well, again, operated by Equinor using the Deep Sea Stavanger, extremely efficient drilling rig. There are the main target here is paleocene injectite. An injectite is a reworked sand, so cleaned up sand, which which makes these really high quality reservoir sands. And examples are, for example, catcher field in The UK, and there are also, several in, Norway, like Frosk. This one has a high chance of success. That's because it's very visible on seismic.

18:19 The expected size is 36,000,000 with an upside up to 79,000,000. And there are also secondary targets, deeper and one shallower. And the we're getting close to the target, so we expect to announce the results here very soon. If this one comes in, it could be developed together with a string of discoveries that have been made during the last couple of years. You see the all the blue boxes on the map there

18:56 are all Equinor operated. And combined, they they make up, you know, a few 100,000,000 barrels and and which means there will be significant economy of scale. And and if trade share could become part of that, that would be fantastic.

19:19 Then once we finished on Kvejia, the rig same rig, Deep Sea Bergen will move just next door where we have the Cambusola license. Cambusola is a huge gas prospect. The last two wells are very large gas prospects. You see the, the map, there is from WoodMac. WoodMac is well known, oil and gas consultancy firm, and they highlight here that Camposola and Copernicus are, wells to watch. So on the wells to watch list for Norway 2022, and we are in both of them. The Camposola will take some time to drill because it's an HPHT well.

20:07 That will drill during April and May.

20:11 And then Copernicus, is expected to spud in July July or July August time. So that's, to look forward to. And then we continue to, chase opportunities in the m and a market, and I'll I'll hand back to Nick to to give us an update. Thank you, Helga. So just a sort of a brief update on what we're seeing in the market. And I think probably in our last updates to the market, we were talking about seeing signs of of increased activity in the second half of

20:53 twenty one. And going into '22, we saw there would be an increased level of activity. And that was very much beginning to play out with the increased sort of processes being run and and increased conversations going on between companies. Unfortunately, it would seem that the recent volatility that we've seen in the commodity price markets following the events in in Russia and Ukraine is likely to put a a dampener on the ability to to transact The delta between buyer and seller expectations when you have volatility like this kind of widens considerably, and it becomes very challenging to actually transact. In fact, we have recently heard of a number of processes being canceled because of failure to sort of agree between buyers and sellers.

21:42 Prior to that point, what we were seeing was was the continued sort of dominance of private companies transacting. These are mainly private equity backed businesses, many of them, you know, very large

21:55 looking to sort of bulk up and create what I would describe almost as European super independence as we see in North America. And we've also seen a little bit of that in the public space as well with the merger of of Aker BP and Lundin at the back end of last year, one of the largest corporate transactions globally in the oil and gas space last year. We continue to believe that that mid market deals, you know, sort of things that are under $300,000,000 is is kind of the best hunting ground for us. These deals tend to be kind of too small for the larger players and and too big for the smaller players. That said, we've definitely seen an an increase in in competition recently for those

22:44 as as sort of companies are are looking to expand and looking for sort of opportunities, especially in Norway. As Helga was mentioning, the attractiveness of Norway, think people have woken up to. The good news is is that Longboat is one of only about 30 companies active in in Norway. The barriers for entry are actually quite high in Norway versus somewhere like The UK where you have something more like a 130 active companies owning licenses. And and the good news is is that we've got an excellent in house team following the transactions last year, which allow us to do sort of quick and and consistent evaluations of opportunities,

23:24 and that leaves that allows us to kinda leave no stones unturned. You know, like that said, we maintain a very disciplined approach to to valuation and and our evaluation of opportunities. We ourselves are are big holders in in Longboat, and we really are looking for value accretive deals, not just dealing for dealing's sake. And so we'll continue to to to be very sharp on on how we evaluate, you know, potential transactions. We've talked a lot in the past about using our discoveries as a sort of swap currency, and we still continue to think that that remains a possibility even in in these sort of volatile markets.

24:07 But we will always look to ensure that that we have sort of maximum value for for these discoveries ahead of any monetization. So if that means taking through to an appraisal phase, such as an an Egyptian vulture, we'll do that. It's all about where we see the best value. And then, you know, just to reiterate that the tax change, I think, has has helped us considerably. This allows us to look at a wider range of transactions and also in a negotiating stance in terms of any sort of swaps. It allows us to to potentially bring forward

24:41 our own discoveries through the development, and we're working quite closely with a number of banks to see if we can work on on putting in place a a facility that will will make the most of that. So our plan remains to build a long boat into a full cycle E and P company, but very much on a a sort of value driven basis. I think back to you, Hager, to to close this up. Thanks. Thanks, Nick. Yes. Just to summarize, the strategy is unchanged. We are on track to build a full cycle E and P business in the North Sea. We are, replicating what Federal Petroleum did. Federal Petroleum was sold, you remember, in 2019, some of you.

25:25 The, first step has been exploration in Norway. We are very confident that that has been the right step and is the right step to take. We've drilled four wells so far. We drilled two two discoveries. One has significant potential upside potential, and we have three wells coming, and and remain very confident, that that will deliver value. And and we continue to to chase opportunity in the M and A market and very confident that we'll also deliver on that. So thanks, everyone, and I think we are over to a Q and A session. That's great, Helga, Jonathan, Nick, thank you very much indeed for your time and for updating investors this morning.

26:14 Ladies and gentlemen, please do continue to submit your questions using the Q and A tab on the right hand corner of your screen. Just please simply type in your question and press send. But just while the company take a few moments to review questions submitted already, I'd like to remind you that the recording of this presentation along with a copy of

26:27 the slides and the published Q and A can be accessed via your Investor Meet company dashboard. Helga, Jonathan and Nick, as you know, we received a number of pre submitted questions. And if I may, I'd like to start off the Q and A with those. The first one, if I can condense it because it was kind of long winded, is can you offer shareholders any comfort that your strategy to become a full cycle E and P company can be still successful?

26:51 Yes. I think I think we have covered that in the presentation. I think we are we're very happy with with, say, what we've done so far. We we've drilled wells. We've made we've added intrinsic value with the drill bit even if that hasn't been reflected in the share price yet. We're very confident that that will come through. Egyptian, Virchow, and Roadhat are two good discoveries. We have, three more wells that are really, really the right wells to be in and and also confident that we can can do deals. We remain disciplined. We remain focused on quality. And but and we are in a very unique spot, you know, with not that many companies in in Norway that can can do what we can and have the the competence and abilities that we have. So we remain very confident.

27:51 That's great. Thank you, Helga. If I may turn to the next question that we received, Longboat Energy has employed a team of senior experts, which is necessary for the Norwegian licensing, but very expensive for shareholders. The question goes into a little bit more detail. But in short, are shareholders getting value? Yes. I think the the I mean, the the the it is an important part of Norwegian industry to to have a team and and to have the qualifications. But it's also a team that is delivering significant value. We have the ability to screen both m and a opportunities and and any exploration opportunities that that could come through license drawings, what have you. So so I I'm I'm very happy with the team. We have some real quality and really, really skilled and competent people.

28:48 It's not not a very large team. And and also remember the Norwegian tax system where you only pay, say, the the after tax amount of that g and a costs.

29:01 But but, also, it's a requirement, Halvi. You have a c two duty in Norway. You won't operate without one. You get audited by the petroleum safety authority. You have to demonstrate you have the skill set. It's it's not it's not an option. It's never been an option. Yep. And and we have a very high quality team. Alright. Thank thank you very much indeed. Turning to the to the next question again, it was a a paragraph or two. But but in short, Longboat Longboat have consistently said throughout previous reports that the environment for m and a deals is improving and then potentially subsequently gives reasons why it's not been possible. You know, can you give a little bit more clarity? I think they go on to say that other companies have done done so and propelled the share price. Yeah. I mean yeah. It it yeah. That's correct. You know?

29:51 We I think there's nothing better. I think Nick explained it. There's nothing better than a kind of a stable market. So prices up and down is not good for doing transactions. But we we we remain kinda focused. We also, with Farrow, used discoveries as trading chips. So that was also a, an important part of that. It always, in hindsight, would have been good to do, some acquisitions before prices go sky high, of course. I mean, that that's pretty obvious. We we haven't done that. But I don't know, Nick, if you want to Yeah. Yeah. Look. I rest assured, we're we're very, very active.

30:37 We are constantly screening things. We are constantly in dialogue with people, and we've been very sort of active in in sort of pursuing opportunities. But I I just wanted to reiterate that that is it's only the sort of the right opportunities, and we're not willing to pay anything at any price just to buy, you know, production because people think we need production. It's got to demonstrate a return to shareholders. It can't be value destructive. And one thing we've noticed is that if you look outside the sort of jumps in commodity prices of late, not every single transaction is met with an increasing share price. In fact, there have been some that have been announced that that have not not really sort of made any impact on on some of these businesses. So it's really a value over growth thing for us, And I remain confident that despite all the things going on, that M and A will play an important part of helping grow the long story.

31:34 That's great. Thank you very much indeed, Nick. If I may turn to the next question, when is the data analysis on the Egyptian vulture gonna be ready? I think we did answer that during the presentation. The the the answer is in the first half of this year so that we can shoot the site survey in the summer. The work that is ongoing is is is a a very technical. We work very closely with Equinor on, you know, site seismic updates, seismic reputations. So all of that is, time consuming, but it's, it's progressing well. And, you know, we we are not entire as I said also in the presentation, we're not entirely in control of the of the schedule ourselves.

32:22 It's one of the aspects of working with big big oil companies. Thank you. And and again, obviously, these questions were somewhat presubmitted. But if there's any further clarity you could give around the next one, how is the drilling going to date at the Quehuy Vega? Yeah. No. Thanks for that. It's the same same. I think we also replied to that question. It's it's going very well operationally. The well the the rig has, it's an efficient rig, and, the well spudded only a bit over a week ago. And as we said in our update, we are, we will we expect to announce the results very soon. So so I I think, you can read from that that it's going pretty well. That's great. And then the final presubmitted question, if I may. Out of all the seven drilling programs, what one is the most exciting in payback terms?

33:17 Yeah. I think, I I think for us, it's a balanced program, always. And that was I mean, that was important. You know? It it has a good risk reward spread. But I think that in terms of success coming in, Cambusola, you know, we have 25% of Cambusola and is a very large prospect with also very large follow-up potential within the license that we we all we all sit on. So Cambusola will be a real a real company maker if it if it comes in good. Well, that's great. Well, thank you very much indeed, and that takes care of those presubmitted questions. Helbert, Jonathan, Nick, you'll see investors have submitted a number of questions throughout today's live presentation.

34:07 I wonder if I may just ask you to read out the questions and give a response, of course, where it's appropriate to do so, and then I'll pick up from you at the end. Okay. Thanks, Mark. Yeah. We can go through. I'll I'll and and then I I can pass them on and some of them. The first one is what's your view on the potential for future dividend payments? I think that's one for you, John, too. Yeah. I mean, at the moment, you know, we we need you would we would need production dividends. You know, we got close to paying dividends in in Ferro. We were just reaching that stage where we're generating free cash flow to pay dividends, and that was on the cards. We're way off it as an explorer at the moment. K. I'll take the next one as well Yes. Mark, if you wanna read it out.

34:57 Yeah. And any potential impact on the company from the situation in Ukraine? Yeah. I think we don't have I mean, I think there's there's a lot of interesting things going going on there, and it's a real tragic situation that I think caught the world by surprise, really. We don't have any contracts with any sanctioned Russian companies. We don't have any contracts with Russian companies. And I think the the sort of the latter comment there is an important one because a lot of companies are being put under pressure to cut their contracts with Russian companies. We've seen IAG cut its offtake with Gazprom. I think that that's gonna end up in or Gazprom Trading and Marketing. Alexei Miller is sanctioned, obviously, but Gazprom trading and marketing is not. That will, no doubt, result in in in in in in some sort of potential issue. I think, you know, there's there's a lot of issues around around this. But for us, fortunately, we don't have contracts with any Russian companies. I think we're seeing a lot of oil and gas price volatility.

36:01 I think we're seeing financial exchange volatility. I think the the yeah. We've we've seen the the pound strength the the dollar strengthen against the pound a little bit. Yeah. We changed a lot of our pounds into dollars at at at at better rates. So we we have a few more to do, but we'll we'll make our average targets that we set out when we when we raise the money to do this these to farm into these seven wells. So our FX targets, so that's good. And I think the we've already talked about what the oil price volatility is doing to the m and a market. You know, you're getting getting a big delta or people just sitting there going, actually, I'll I'll I'll I'll take cash. So, yeah, I think we're, yeah, we're we're we're less affected than most. We don't have Russian assets.

36:48 Thanks, John. Next question. Why why do you think the market isn't reflecting the excellent assets and success to date? Well, first of all, I think, we we are equally frustrated that that many of you, our shareholders are that and we are shareholders ourselves. So it's frustrating when you when you make discoveries not to see it coming right through the share price. But from experience, and and I think we saw this many times with FARO as well, you know, sometimes, it it does take a little bit of work, and it does sometimes take an appraisal well before, before the the value comes through. And sometimes also a deal, you know, and and, we, we did swap deals with, with FARO that was excellent. And I think that those were real value demonstration.

37:46 So so, you know, we we we would just keep doing drill good wells and do good deals, focus on quality, and and focus on growing the business. And then the we are strong believers that the value will come through. The next question is, with the Ukraine situation, its impact on commodity prices, how has this changed either your approach or or the approach or others in the m and a process? Maybe I think we've I think we've done that, Helga. I think we've done this one, but I think just just quickly about production versus development, Nick, and and the tax. I think that's kind of a point we've made, but we could maybe do that again.

38:32 The Yeah. I mean, so clearly that volatility, becomes a real issue when people are trying to agree things. Like I said, we've we've seen, transactions getting pulled recently because of of the inability of buyer sellers to agree things. But that, you know, tends to be at the front end of the curve. So if you look at at what oil is selling at in in, you know, '23, '24, '25, sort of out further in time. And, actually, it's it's not far off where people thought it was or or would be. The whole curve has moved up a bit, but at the most dramatic moves have been at the front end. So ironically, you know, agreeing things on on on assets that aren't currently producing may actually be easier or things that are gonna be developed over the next couple of years and be producing in a couple of years. You might actually be able to see some better value.

39:20 So we're sort of keeping an eye on on on everything at the moment to make sure that we're not missing anything. So we're really trying to leave no stone unturned. And like we said, we've been working with the banks to try and and and think through and look to structure a debt facility that could both facilitate, you know, production or development or a combination of the two, which leaves us, you know, flexible. And and in my experience, being flexible in terms of where you see the best value at any one point is usually the the the best way to to get the share price up in the longer term. Thanks. Thanks, Nick. So we we take one we have one last question. How how many wells do you think would be required to delineate Egyptian vulture? And is there any concern that the rest of the quality is moderate to poor?

40:10 That those are are are good questions. I think the what what we are likely to do with the is typically with an appraisal well on a fee like Egyptian voucher, it's about demonstrating, an economic case. I'd say the smallest economic case. So it would typically be a well, that is there enough to prove that you have an economic case. And, proving the reservoir producibility is is an important part of that. You see the recovery factor used so far is quite low. So and with a new well, demonstrating that, rest of our producibility, could could have a very big impact on the recovery factor.

40:58 So so I think that that's kind of the main delineation, and then you could possibly see a larger step out well to demonstrate the upside. So I think the the the answer then is either one or two, clearly. Thanks. That's great. Helga, Jonathan, Nick, I think you've taken every question from investors this morning. So thank you to everybody who submitted questions this morning. And of course, if any further questions do come through, guys, we'll make those available to you post this meeting. I know investor feedback is important to you guys, and I'll shortly redirect investors to give you their thoughts and expectations. But before doing so, I wondered, Helg, if I could ask you for a few closing comments. No. Thank you for attending, and thank you for good questions. And we are very excited and feel very confident at this point. So looking forward to kind of the rest of the year. Thanks a lot.

41:52 That's great. Heather, Nick, Jonathan, thank you very much indeed for updating investors this morning. Can I please ask investors not to close this session as we'll now automatically redirect you for the opportunity to provide your feedback in order that the company can better understand your views and expectations? This might 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 Longboat Energy, we'd like to thank you for attending today's meeting. That now concludes today's session, and good morning to you.