Star Energy Group (LSE:STAR) — Investor Presentation

0:00 Good morning, and welcome to the iGas Energy PLC Investor Presentation. Throughout this recorded presentation, investors will be in listen only mode. Questions are encouraged and can be submitted at any time by the Q and A tab situated in the right hand corner of your screen. 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 will review all questions submitted today and publish responses where it is appropriate to do so. Before we begin, I'd like to make the following poll.

0:29 And I'd now like to hand you over to Chris Hopkinson, interim executive chairman. Good morning to you, sir. Good morning, and good morning, everybody, who has joined us this morning for this presentation on iGas Energy. Thank you very much for joining us. So we're gonna go through the presentation first, and then we are very much looking forward to an active discussion through the questions. And I have with me today Ross Glover, who is our development director, and we will start the presentation now. So going through the h one results to 06/30/2022.

1:18 We'll just skip over this first slide, Ross. So to give a little bit of an overview of the company, first of all, from the position of the board, I joined iGas Energy in January as nonexec chair. As you're all probably aware, couple of weeks ago, I moved into the position as interim executive chairman. Maybe just to give a little bit of background about myself, I'm a technical oil and gas guy with, what would it be, thirty five years experience in the industry, started my career with Shell.

2:04 I have a a mix of experience between the majors in executive positions and also in start ups and smaller dynamic companies such as iGas. I was CEO of Imperial Energy, which I'm sure quite a few of you will remember, which was initially an AIM listed company and then a FTSE two 50 successfully sold to ONGC in 2010. And I have a lot of experience in not only tail end production or brownfield production, which has been my specialty of my career, but also in fracking, which at the moment, is becoming, the hot topic of the day.

2:52 On the board, we also have Frances Ward who joined, shortly after me, and she has extensive experience in oil and gas.

3:06 Sorry. France didn't join shortly after me. France has just moved up to the board. She is our CFO. We also have Kate Coppinger who did join shortly after me. Sorry about that. Kate has a lot of experience. She was with Standard Chartered and knows the industry very well. And then Philip Jackson, who has been a director a nonexecutive director for a number of years and has been the Kerogen nominee. A little bit about the key shareholders, I think probably most of you are aware, Kerogen Capital is our largest shareholder and has Philip as a nominee at the moment. And then we have Bank of America, JPMorgan. OD Asset Management came in very recently and HSBC.

3:55 So the way I look at the company going forward is that it's, I guess, is a stool with three legs, and each of those legs are equally important at the moment. We have our conventional assets. And as I already mentioned, the conventional assets are tail end or late life producing assets spread across 28 fields, with a bit of a mix between the East Midlands and the Southeast. Two p reserves at a little bit under 16 mill million barrels of oil equivalent, with an NPV of approximately a $190,000,000. Net production forecast guidance, we reduced slightly, and I'll go into a bit more detail on that when we get to the conventional slides later, but we're currently sitting at about 1,900 to nineteen fifty barrels of oil equivalent per day.

4:52 Second and really exciting, leg to our chair, is or to our stool are our shale assets. Obviously, with the lifting of the moratorium, this has become, the topic of the day again, and we have significant licenses. Just under 300,000 acres net to us, estimated about 93 TCF of in place volumes, and we have a combined carry from INEOS of approximately $216,000,000, which significantly reduces our risk for the first phase of the shale and and the fracking program that we are envisaging carrying out as soon as possible.

5:43 The third leg to the stool is the geothermal. Geothermal is obviously a very exciting part of our transition story. It gives us a fantastic solution for renewable heat in The UK, and we're looking at 360 projects by 2050. We have the government funding and government support through the Green Heat Network Fund, and we Ross will talk more when we get onto the geothermal slides about what we're doing in Stoke and and how that green heat network fund is gonna again reduce our risk going forward and provide us with with a good portion of the CapEx that we need to develop the the geothermal.

6:31 And, obviously, as I said, that's in Stoke On Trent as the first, but we have many more in our pipeline. And and we're very excited about the geothermal projects because we see the pipeline growing materially as we speak. So moving on to the next slide, a little bit of an overview of what we're gonna be talking about. We'll be talking about improving cash flow and the reduction of debt, the fact that we are uniquely positioned as far as domestic energy supply is concerned in The UK. We'll talk more about this significant geothermal opportunity that I just mentioned, and we'll go into quite a bit of detail about the moratorium on shale and what the commitment that we are asking for from the government to reduce the regulatory overburden or to streamline the regulatory system to enable us to to act quickly as far as Shell is concerned.

7:32 Quick financial overview. Obviously, operating cash flow at the moment. Oil prices are up. So, you know, we we're doing very well there. Realized hedges at 6,400,000. Maybe to say a few words about hedging at this point, we are hedging as a requirement under the BMO. It's the reserve based lending. It is a requirement. And although we recognize we might not necessarily necessarily have have done as well as we could have done in this high oil price environment, we are actively discussing with BMO at the moment the opportunity to reduce our hedging and expect to be able to do something about that in the near term.

8:19 Revenue is up. Obviously, again, high oil prices. Operating costs, $42 a barrel, are high. This is something that we are focusing on very, very much. Part of this operating cost increase, of course, is related to higher energy costs at the moment, which is linked to the fact that our fields are spread out over a fairly large area. And so those energy costs basically just fall straight through onto our operating costs, but it is something where we have a laser focus at the moment to try and reduce that. Net g and a of 2,800,000, slight increase there. We had an impairment of one of our assets of $6,500,000, which was the Elsmir Port.

9:10 But we also equally on the flip side had a reserved a a reverse impairment of 10,800,000 related to the higher commodity prices at the moment. Net debt has been reduced, which everybody likes to see, by 2,500,000, and we'll continue to reduce that net debt while we are in this advantageous price situation. And we have ring fenced tech loss tax losses of 263,000,000 as of December 2021. So going on to the first leg of our stool, which is the conventional production. As you can see on the right hand side, we have two key areas. We have the East Midlands where we're over a 45 kilometer sort of distance. We have we're we're fairly well compacted as far as our fields are concerned.

10:04 And then in the Southeast, fields are a little bit more spread out, and that comes back to what I was talking about about the difficulty with OpEx. We have to move operators between all of these fields. But that that's basically where we're at. Interestingly, our main shale assets are in the East Midlands. So the most attractive shale assets are in the East Midlands, and they sit pretty much under where our current operations are. So this is an area that we've been operating in for thirty years. So net production averaged at 1,865 barrels of oil a day in h one two thousand twenty two. We had a bit of an impact at the beginning of this year, which is partly bad luck and partly related to global supply supply chain issues at the end of the COVID pandemic.

10:55 So we took delivery of a large batch of pump rods that we use for workovers on our wells, and we had a problem basically with the material. So there was a steel problem with those steel quality problem with those pumps. Wasn't visually obvious to us, so we only really noticed that we had the problems when we ran the pumps, and they failed in the first twenty four to forty eight hours. And this has created a problem that we've been living with for the whole of the year. We've been struggling to catch up with what we missed and what we lost in that first quarter. We've done a very good job of it, but we took the decision to reduce the guidance to 1,900 to nineteen fifty for the year end. This gives us an opportunity to under promise and over deliver. We have a number of projects in our hopper that we are currently executing, which gives us confidence we're going to reach that target, including some that are gonna give us 70 to a 100 barrels of oil production in the near term.

12:01 Going forward from that, we have two main projects as far as developing 2P reserves, and those are Corringham infill project, which will give us an additional 100 barrels a day of production from 2P reserves. We have planning permission for that. We're just discharging some of the conditions. And then we have the Glenworth project, which is a two phase project. We'll be drilling the first well, developing about a million barrels of 2P, giving us 200 barrels a day of production. And then phase two would be a number of horizontal wells developing a further 500 giving us 500 barrels a day of production and developing another 2,000,000 barrels of 2p. We are putting in planning permission applications for that in this quarter.

12:49 And we are also monetizing our stranded gas. So we have two projects, six and two megawatts, so totaling eight megawatts of power generation, which we are in the process of monetizing. So conventional, you know, it's it's traditional oil and gas. It's late late life. It's hard work, but we are very good at doing it. And it provides us with the cash flow, which supports the other two legs and supports us growing into the geothermal and the fracking or or shale gas side of the business where we see the major growth going forwards.

13:31 So moving on, I'll ask Ross now to take us through the geothermal and the shale gas slides. Thanks, Chris. Right. So I suppose moving on to the first of our growth areas, which is our geothermal business. As you'll be aware, we acquired GT Energy in September 2020. We're now moving the material the business forward in a in a very material way. It's really capitalizing on two factors. The first of which is increased commodity prices, principally gas, leading to vastly increased costs of heat and very volatile costs around heat. So there's there's a demand for what we can supply from geothermal, which is a much less volatile, predictable cost of heat.

14:23 And the second area is really this this continued drive to decarbonize heat, something that's very prevalent in the public sector, but it's also most noticeable in in industry or or in the corporate side of side of of of the of the world. This is coupled with a growing understanding that the geothermal, which is what we do, is really only the is is the only utility form scale of renewable heat that is out there. So, really, those two those are those are two drivers that we're capitalizing on, and we're seeing really good pipeline growth project pipeline growth, which I'll come to. First, our Stoke project.

15:08 It's our flagship project supplying heat into a district heating network up in Stoke On Trent. In late August, we applied for a grant from the gov government's green heat network fund. This fund is a as I say, it's a government grant. Importantly for us, that grant will fund the first 50% of any CapEx that really allows us to derisk the project using grant money. I mean, that's the principal purpose of it, but it's very, very helpful from from our perspective perspective in in helping this sort of really relatively early stage sector emerge. The second sort of area of progression in our STOKE project is our discussions with SSE.

15:56 SSE are the is the utility that is proposed to operate the district heat network, distribute the heat, sell it, build people, and all of that side of the business. We are progressing our discussions with the offtake agreement, the thermal purchase agreement. Those discussions will conclude after the outcome of the grant application, and that outcome is expected within the next few months. As well as Stoke, we're building a very significant pipeline of of early stage projects. We're in active discussions with 15 off takers across different sites, and it's a really good mix of of public sector and large corporate off takers.

16:47 With the with we're we're getting really good traction with with some some public sector off takers, principally NHS trusts, so supplying heat to hospitals. And there, we are looking to access the £1,400,000,000 public sector decarbonization scheme. That's a scheme that provides grant funding towards general pubs public sector decarbonization.

17:13 And we submitted six applications to that scheme last week, and that is to effectively push forward the development of six different geothermal schemes, each supplying heat to a different NHS trust. So to sum up on geothermal, you know, it's a very material and significant growth area for us.

17:39 You know, as a part of the the energy regulation review that was announced by the prime minister a couple of weeks ago, you know, this the the announcement was that the government will examine sort of streamlining regulation. One of the one of our kiosks out there is how do we how can how can the government help facilitate us deploying these these projects quicker? You know, there is a huge pent up demand,

18:04 and we're looking for a streamlining of of of some regulation around this area. And secondly, we need a longer term sort of financial support system for the sector. So at the moment, there are a number of different, I suppose, pots of grant money which support these these projects, and they're extremely helpful. But we would like to see in due course this whole sector moving on to some form of revenue supports scheme,

18:32 which is very prevalent around the renewable energy industry in the form of things like renewable obligation certificates, contracts for difference, those types of things. I will now turn to our shale assets. So as we're all aware, there's a written ministerial statement last week,

18:56 which is the government was the government announcing its intention to lift the the moratorium on fracking. So we now have a presumption we do not have a presumption against the issue of new hydraulic fracture consents.

19:12 We've said to the government that we can deliver five production wells, ultimately supplying, you know, 3,000,000 homes with gas as an initial pilot development. However, our ability to deliver that is very, very dependent on a vastly streamlined regulatory regime.

19:31 And we continue to have discussions with government around that streamlining of of the regime. We need to be in a place where we can see a a a clear path to being able to drill multiple wells, frac multiple wells, and really, you know, deploy capital capsule in the same way that capital can be deployed in The US with with very large back to back drilling campaigns, etcetera, etcetera.

20:02 I think as Chris had said, it's worth reiterating our our our our shale position our acreage position. It's the second largest in The UK, and the development of that acreage is supported by a very significant carried work program in partnership with ENERGY.

20:23 So we've said to the government that we can deliver, you know, fairly significant gas within a fairly short time frame with streamlined regulation. Where does that need to happen?

20:37 We firmly believe that that needs to happen in an area called the Gainsborough Trough. It's an area between Doncaster and Lincoln. We have existing operations in the area. As Chris said, our our our conventional production overlaps with with quite a large area here,

20:56 and we've been operating in the area for decades. We are part of the community. As well as that, we've got a very deep understanding of the regional geology, and we know from the data that we've we've collected that the area is significantly less structurally complex than other areas in The UK. And by inference, sig there's significantly less chance of seismicity or significant seismicity. Our Springs Road well, which we drilled in the first quarter of two thousand nineteen, shows that we've got a very big world class resource in that in the Gainsborough Trough. And from a geographic perspective, the area can supply hydrocarbons in the short term to large offtakers such as West Burton Gasfire Power Station or the industrial cluster in The Humber. It's all relatively close. And actually, the longer term as well, we've got zero carbon Humber

21:57 under development, which is a huge blue hydrogen project. Now one of the key things with blue hydrogen is where do you get the gas?

22:07 And we we believe we have an abundance of that in the Gainsborough trough. Yeah. So we are we've we've firmly convinced that the that there is a one a world class very large resource, but we also believe that domestic gas is a is a crucial component of our of our energy mix going forward. And that brings in investment into the area. It brings tax revenues. It brings thousands of of highly skilled, well paid jobs. And importantly, it brings gas to the country at a vastly reduced carbon footprint when you compare it with LNG, which is where we get much of our gas at the moment.

22:46 So we're ready to deliver. We have told government that. We have also told government that we can only deliver with a vastly streamlined regulate regulatory regime. I would say that we're getting good feedback on that, and we continue to to have good discussions with government around that.

23:09 I think with that, I'll hand back to Chris. Unmuting. So in summary, we are continuing to pay down our debt.

23:23 We have the conventional leg of the stool, which underpins our growth opportunities going forward. We are working very, very hard on increasing or improving the efficiency of those assets. We are in a unique position as far as our onshore production capability is concerned, which sort of goes all the way through from the conventional into the shale. And, obviously, in geothermal, it's the same skill set that is required to be excellent at geothermal as it is to be excellent at conventional or shale.

24:02 We can rapidly bring on this additional resource, as Ross has said, as long as we get the right government support. And, you know, what what we can say is that we the the door is now open.

24:14 The government is speaking to us on almost a daily basis. We're no longer having to knock on their door. They're knocking on our door, which it's it's exciting, and it's it's a very nice position to be in. Geothermal, again, as Ross said, very exciting growth opportunity for us. We are we we have a a large pipeline. We have one project, which is almost in execution phase, and it's a huge carbon reducer going forward. And last but definitely not least, shale is a huge economic prize for us and for the country.

24:57 It provides tax income into the coffers. It is environmentally sound compared to importing LNG, and it's vitally important in any net zero scenario that we look at well beyond 2050. And we are very, very well positioned with our Gainsborough Trough assets to deliver in the short term. And, again, we just reiterate with the right regulatory support. And that regulatory support, by the way, goes all the way through geothermal, excuse me, through geothermal as well. You know, it's it's across all development industries that this regulatory support is required if we're going to deliver quickly at a time when we are in an energy crisis, and that speedy delivery is about of the utmost importance.

25:52 So thank you very much for listening. That brings us to the end of the formal presentation part of this. Yes. Chris, Ross, thank you very much for your presentation. Ladies and gentlemen, please do continue to submit your questions just using the q and a tab situated in the right corner of your screen. But just while the company take a few moments to review those questions submitted today, I'd like to remind you that recording of this presentation along with a copy of the slides and the published q and a can be accessed via your investor dashboard. As you can see, we've received a number of questions throughout today's presentation. And, Ross, if I could just ask you to read out those questions and either take them or pose them to Chris, I'll then pick up from you at the end. Yeah. Thank you. Okay. So the first question, is the company planning to complete a farm out to finance the development of the shale assets?

26:39 If not, how will this be funded? I think I'll take that. I think that well, the answer to that is we have already. We do have, as we've said in the presentation, a very significant carried position, and that is funded by INEOS. And as Chris said, that covers us for the derisking of our shale assets. Okay. I'll move on to the second question. Have you planned how to obtain the funds to expedite the process of bringing back to production all the previous drills? Could a sale of some of these assets be realistic? So maybe I'll I'll take that. I mean, most of our current well stock, which is economic, is currently producing already.

27:28 Obviously, like any oil company, we do occasionally have wells that go down. We have our own workover rigs, so we bring those back online as quickly as possible, and that is funded all from within our our own resources. As far as sale as sale of assets are concerned, we, at the current time, have no plans to. Our current asset base provides us, as I said, with an excellent cash flow to allow us to or to put to work on the growth of the other two legs of the stool. But it's not something that we're saying we would never do. But at the moment, it's not in our plans. K.

28:14 Please, could we have an update on the CEO and the reason behind why mister Bola left iGas? As the new executive chair, I think I should probably take that question. The company felt and the board felt that it was time for a change, particularly as we are as you can see from the geothermal project and the shale gas project that we are about to enter into a highly technical phase and a growth phase of the company where the technical knowledge of the oil and gas business, particularly related to things like, speed of execution, drilling at a low cost, etcetera, etcetera. I mean, all of these things really lend to the fact that it was time for the company to have a technical lead, and that is that that is essentially one of the main reasons behind the changes that we've made.

29:25 K. You mentioned that the operating cost of the, presumed, conventional assets should be improved. What should a good operator be at versus your current OpEx of over $40 per barrel? Okay. So that that's that's a very good question. We do, by the way, within our portfolio, if we look at the fields separately, we have some of our fields operating at 10 to $15 a barrel. At the other end of the scale, we have some wells, which is, you know, a single well in a field that are producing at an OpEx of way above the the $40 a barrel, and they tend to swing or or skew our overall average OpEx numbers to this higher $40 a barrel level.

30:15 What would be a a good target and how would we get there? You know, I think we would like to see us incrementally bring that OpEx number down closer to the 32 that we had before the price increases, and we can do that through efficiencies in our workover planning, in the amount of time that our equipment or what we call mean time between failure. So making sure that equipment that we put in the wells lasts for longer. We can do it through selective abandonment of wells, which are have very high OpEx and then, therefore, very quickly move our OpEx numbers down. And these are all things that we're currently addressing. We have a dedicated abandonment group who's looking at which wells we should be abandoning in order to bring this OpEx down, and we will continue to abandon wells as per and as and when required.

31:11 K. Of the of the current CapEx being deployed in the business, please could you provide a split of that between your three legs to the stool, conventional shale and geothermal? Well, I mean, most of our CapEx is currently deployed on our conventional. As Ross has indicated, the bulk of CapEx going forward on the geothermal side will be initially through through the the grant funding. Obviously, we have some g and a there as well, which is supported through the conventional side. And on shale, we have, at the moment, minimal CapEx. But once we get the go ahead as far as the regulatory streamlining is concerned or it it gets to a stage where we're satisfied, the initial funding for that will also be through our carry.

32:03 So, you know, going forward further than that, I think once we're derisked on the geothermal and the the the shell projects, then we will be looking at funding those through there's a variety of means, but we'll be derisked, and we don't envisage any issues with funding those going forwards. In terms of fracking, the company has prior has has set initial production within twelve to eighteen months. How do you assess that timeline today within the framework of necessary further regulatory changes from the UK government? Ross, do wanna say something about that one? You're starting? Yeah. Yep. Give you a go. Yeah. So I think what we said to the government is, yes, we can absolutely do it, but it needs vastly streamlined regulation.

32:55 And that really falls into three areas. That's planning, permitting, and then seismicity regulation. You know, I think it it's it's will be of no surprise to anybody on this call is that the the planning system doesn't work for development, and that's development across any form of infrastructure in The UK at the moment. It takes too long. It's far too politicized in many instances. And, fundamentally, that's that is possibly why we find ourselves where we are now as a country in an energy crisis. So planning takes too long. Permitting takes too long and is far too this comes back to Chris' regulatory overburden. We are not asking for regulation to be done away with. We are asking for regulation to be made fit for purpose and for regulation to be to be made a facilitator of of of good development.

33:54 What we have now is we we report the same thing to multiple different bodies in different formats. This contributes also, as as Chris said, this is throughout our our conventional, and and it applies to both geothermal and shell, less to geothermal. But, again, we need a a an acceleration of permitting timelines and and a a and permitting needs to be made fit for purpose. So we're not reporting the same thing to multiple organizations. And lastly, seismicity regulation in terms of Shell. The traffic light system, we believe that we need to be moving away from that. We need to be moving onto a a regulatory system that's been established for decades, and that's surface vibration, and that is established within quarrying, within construction, and other extractive industries.

34:50 We're not asking to be an exception. We're actually asking to just to be the same as everybody else on that one. And that's how we get to that twelve to eighteen months with the the combination of those those three elements being being resolved. Chris, do wanna add to that? No. I think that was that was fine. Okay. Excuse me. On conventional, your slide showed potential to get production towards two and a half thousand barrels a day. Could this be achieved on a three year view? And if you could discuss the CapEx that that growth may require. Okay. So, obviously, some of those numbers are related to Corringham, where we already have planning permission.

35:39 That should going ahead relatively quickly. It comes back to the planning and permitting that Ross has just been talking about. You'll probably notice there's a theme running through what we're both talking about, and we wanna keep on banging the drum about this. Yes. Within three years, we would hope that this could go through. We have experience which shows that some of these things do not get done within three years, and, you know, it it's frankly unacceptable. But we have we are as far as our internal work is concerned, we are very advanced in all of these projects. And the CapEx related to the main production projects is just north of 10,000,000 spread over Caringham, Glenworth, and Leicester. So about 10,000,000 CapEx, which we will fund, and, yes, within three years, and it could be quicker if we streamline the planning.

36:31 So I'll say it again. K. Given the lackluster share performance in in recent years, what are your expectations for the share price in three years' time? Our expectation is it's gonna increase. You know? And that's the goal. That's always the goal. Yep. And as I said, we're gonna be laser focused on the three legs of the stool. We want to make sure that we can demonstrate that we are an excellent operator on our conventional assets and and, yes, keep on plugging away and reducing that OpEx, working on our abandonment program to make sure that we're focusing all of our attention on the wells that produce the most at the at the best return on investment.

37:17 And, you know, I think with that combined with the fantastic opportunity we have in geothermal, which is progressing well, where we have excellent support and funding. And with the move towards getting back into shale, I can't see any reason why our share price would not increase. I I think the what's in in our court, it's we just have to deliver on time. Now there's the element of that delivering on time, which is down to us, and the there's the element of it which until now has been out of our control, but we've made the decision to be far more vocal about that whole side of things. And as you can see, we're we're talking about talking about it a lot today, but it's not just talking to people like yourselves.

38:02 We are talking very vehemently with the government about this as well. And I think down to the last question now. Could any enhanced recovery techniques like horizontal drills combined with water, c o two, or polymer injection work with some of your permits? So, I mean, very good question. I it it really depends on the field. In any of these techniques, you're talking about getting the best result if you have enough wells to perform a flood of some sort. You know, primarily, we would be looking at water flood. We you know, our our major concern at the moment actually tends to be in water disposal.

38:49 And when we're doing water disposal, if we have the opportunity to increase pressure in the reservoir and give ourselves a better production from the producing wells, of course, we will do so. But we will look at opportunities to flood where we can. Obviously, you're you're absolutely correct. We're late stage, so bypassed oil is one of the things that we should be looking at accessing. The main issue that we have, though, is the number of wells we have in these fields and their suitability to an actual effective flood. And if you don't have an effective flood, the economics become very, very difficult. Ross, Chris, thank you very much for that.

39:34 I think we've addressed those questions from investors. And, of course, the company will review all questions submitted today, and we'll publish those responses on the Investor Meet company platform. But just before redirecting investors to provide you with their feedback, which I know is particularly important to you both, Chris, could I just ask you for a few closing comments? Yes. And, yeah, I don't wanna go just back to the summary that I've already spoken about. I think closing comments are that we are at an inflection point for the company at the moment. We've worked very hard over the last few years to build and to get ourselves to a stage on geothermal that would allow us to grow rapidly as Ross has explained. And we have, believe it or not, in the background, continued to work very hard on the shale story, always with a hope that at some point we would get to where we are today, which is where we have an opportunity to provide energy at low cost and at lower carbon footprint as part of the transition towards net zero in 2050.

40:42 So, you know, as a team, we put a lot of effort into this. We're very excited about where we're where we are today. We have a lot of work to do, but we are motivated to do so. And, you know, this is something that we have worked on, as I said, for a long time, and we're ready to do it and excited to go on that journey with you as our investors. Chris, thanks very much for that. And, Ross, thanks thanks for updating investors today. Could I please ask investors not to close the session as you'll now be automatically redirected to provide your feedback in order that the management team can better understand your views and expectations. This will only take a few moments to complete, but I'm sure be greatly valued by the company. On behalf of the management team, Vigas Energy PLC, we'd like to thank you for attending today's presentation, and good morning to you all.