Eco (Atlantic) Oil & Gas (TSXV:EOG) — Investor Update

0:00 Good afternoon, and welcome to the ECO Atlantic Oil and Gas Investor Presentation. Throughout this recorded presentation, investors will be in listen only mode. Questions are encouraged and can be spent 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 in the meeting itself. However, the company can review all the questions submitted today and publish responses where it's appropriate to do so. Before we begin, I'd like to submit the following poll. I'd now like to hand you over to Gil Holzman, president and CEO. Good afternoon to you, sir. Good afternoon, Alessandro. Thank you very much for having me. And, you know, I cannot see the audience, but thank thank you everyone for for joining, those who find ECO (ATLANTIC) of interest. I'm sure that I know many of you, our dedicated followers.

0:50 So welcome, and thank you for joining. And those I don't know, then special welcome to our short presentation and and and q and a. One of the reasons that we

1:01 wanted to address our our our dedicated shareholders and audience is because we announced a very big deal last week. Actually, the biggest in the company's history and one of the biggest pharma deals in recent years. And I would like to speak a bit more about it, but let me start. For those who don't know the company, let me start with just giving you a quick brief of the company. So we are ECO (ATLANTIC) is a is a is a is a dedicated, proven, and focused exploration company, oil and gas exploration company focusing on the hottest basins prospective basins for oil around the world. Please read the disclaimer. This is an important notice. I know you will get the presentation afterwards, so make sure you read it.

1:52 In terms of our group overview, as I said, oil and gas focused exploration company focusing on the three hottest basins or two of the hottest areas for oil exploration and oil production in the world, the Guyana Suriname Basin and Namibia and South Africa Orange Basin. We have a materially derisked and prospective high impact exploration assets in those in those jurisdictions. We have a very experienced management team and mainly a board with proven track record of obtaining licenses, exploring for oil, discovering oil, and producing. We have very strong relations in all the areas that we work in. We were early comers, early early movers into Namibia more than fourteen years ago. We were one of the first companies entering Guyana Suriname Basin before any discovery was ever made back in 2014, and we maintain very good relations.

2:49 We have quite a diversified ownership structure. 15% of the company is held by Africa Oil Corp. Many of you know the company. They are fully cashed up, very good company. They are producing oil of Nigeria, and they're exploring oil in South Africa, in Equatorial Guinea, and elsewhere. We have the likes of Fidelity Management, Canaccord Genuity, still up to 15% almost 15% of the company is held by the founders and the and the and the executives. And we have additional funds from South Africa and and elsewhere. The rest is retail. Our market cap at the moment is is quite small, relative small very small relatively to to our to our to our true value. We are traded at around 60,000,000 Canadian dollars or £35,000,000.

3:45 And we have 370,000,000 shares in issue, six staff six employees, and eight exploration licenses spread around those jurisdictions. In terms of our board and management, I take it as a special pride to be able to attract to our company the likes of Peter Nicol, our known executive chairman, a very seasoned oil and gas research analyst and a banker. We have Keith Hill, the former CEO of Africa Oil. Today, he's a nonexecutive independent director. He sits on many, many boards, including Africa Energy, TAG Oil, previously, Chamoran Petroleum, and Impact. We have Oliver Quinn who joined us recently from Africa Oil. He's the vice president for business development from Africa Oil. Again, he's coming from Kosmos, a very seasoned and experienced business development guy. We have two ladies that we take a special pride of, Alice Carroll, our head of corporate sustainability, and we have Selma Ucicu, who's a Namibian Namibian lady, and she is a geologist. Overall, a very diversified and very strong board and management team.

4:58 In terms of our portfolio, as I said, we are focused on the three hottest areas for exploration and production in the world right now. Guyana, a proven basin already with more than 13,000,000,000 barrels of oil discovered, currently producing at 625,000 barrels a day, and will ramp up to over 1,000,000 next year in 2025. Exxon is the operator of the biggest block in the center of the basin, and we have two blocks right adjacent to to the to the Golden Pathway over there. In terms of South Africa, we had we have two blocks, Block 2 B, which is very close to shallow shallow block, which we drilled a year and a half ago. Unfortunately, we've no commercial discovery, but we proved that we can actually operate and drill offshore South Africa with no with no hurdles on time, on budget, and and very safely.

5:55 Block three b four b, the subject of our recent big deal with Total Total Energies and Qatar Energies is a very big block, which is exactly in the middle of the Orange Basin just south of the biggest discovery of the big discoveries that were made on the Namibian bow the side of the border in the past two years, the Graf, the Yonker, the Venus, the Mangeti, and the Mopani discoveries. We are right on trend, the same kind of place, same kind of geology, same type same water depth, and this will be the subject of our next drilling catalyst. In Namibia itself, in the Walevis Basin, which is a bit north of the Orange Basin, we have four blocks surrounding an historic oil discovery, not not commercial, but an oil discovery, the wing at one well.

6:47 We have four blocks stretching from very shallow water to midrange kind of water to deep water over 1,000 meters, and to ultra deepwater over 2,000 meters. So we have a diversity within the basin as well that can attract and can and can feed a different type of of players. In terms of our two hottest, let's say, two hottest areas of of of activity and catalyst in the coming twelve months, we have let's start with the Orindweb blog Orindweb blog in in Guyana. We are the operator. We currently hold 100% of the block under two entities, a 60% entity, which we bought from Taloil that that went out of exploration and decided simply to sell us the the entity in return for future proceeds upon discovery and upon production.

7:43 So we are the operator. We have 100% off the block, so that gives us a lot of running room for a farm out in terms of what we can actually offer to a new a new entrant in terms of working interest and in terms of future collaboration. Block three before b, again, this was just announced last week. We we farm down 57% of this block through the three previous owners, ourselves, Africa Oil, and RicoCo. We found down 57% to to to Total Energies and Qatar Energies. The net cash and carry consideration for ECO is over $32,000,000, 20 of which will come in the form of cash and the rest in the in the form of of carry going forward.

8:35 Total will be is the designated operator. Once we get the government approval, Total will be will be appointed as the operator. And, obviously, they have the biggest experience in the basin. They have the the the the technical horsepower. They have the big pockets, and they have a rig in the area. And that's exactly all the ingredients that we needed in a in a farming partner. There was a competition from others on this block. We will hold we will remain with a six and a and a and a quarter working interest, fully carried work interest for the first two wells that will be drilled in the next drilling in the next drilling campaign that Total is planning. And and this is a very good amount of working interest for us given that the block has potential for 4,000,000,000 barrels.

9:30 The Orange Basin, South Africa, and Namibia will see a lot of activity in the coming two years. It was very active in the past two years, but it will ramp up to additional to more activity. If you look at the map, block number one or the the well, it says number one, that's the that's the Total Qatar and impact block where they have the big Venus discovery and the Mangetti light oil discoveries. This will be subject to feed by the end of this year according to Total's plans. They will announce development, and they will start development that will obviously, will increase the the the the the total activity in the area and the interest around the area. Block Number 2 is block of a special important and interest to us.

10:23 This block named Deepwater Orange Basin. It's operated by Total, owned by Total as well. It lies exactly to the west of Block 3 B 4 B. Actually, we we can see some joint prospects going across the border between the two blocks. That was one of the main reasons why Total and Qatar really wanted to farm into 3 B 4 B. They are more advanced on Block D Wop than on 3 B 4 B, obviously. We just strike the deal last week. So we anticipate the block Deepwater Orange Basin is earmarked to drill by the end of this year by Total. And that will be a very strong and telling catalyst for us as well.

11:11 Block number three down there, down south of 3 B 4 B, the extension of 3 B 4 B down south, that's block five six seven Total, Shell, and Petros a applied for at least one well exploration well. Also sequenced under the same rig sequence that Total are planning for the entire basin. They applied for one exploration well, and if successful, up to additional four wells. We had additional discoveries, light oil discoveries just announced in the past few months by GALP, Goustos, Namco, block two eight one three a or PEL eighty three in the Orange Basin on the Namibian side. Again, another light oil discovery that brings the amount of light oil discoveries in the basin already in the past two years to five.

12:00 All all of them are very big structures, great oil, very light. And as I said, it will be subject for additional m and a activity and subject to development in the in the coming years. There are other blocks, as I mentioned, five and six, but the most important for us are blocks two, three, and obviously three before b, which is our block that we just found out to Total and Qatar. In terms of Guyana, we have a, basically, a drill ready block. We drilled back in 2019 together with Talo. We drilled two discoveries, somewhat heavy oil, 13 to 18 API. Still, it can be developed and produced by the right partner. So that's a part of the offering that we offer as a farmer. The block comes with two discoveries that might be of interest to potential big companies that would like to develop it.

12:58 But in any case, we are targeting the the sweet spots of the light oil on the southeast corner of of the block, very close by to the to the big discoveries made on on Stabroek. We are currently we we currently, as I said, we have a 100% working interest. We are looking for a big farming partner to come, drill at least one well on this section of the block with us, and we hope to conclude this process in in the in 2024 and to be drill ready by the end of the year, and it just then a decision of the then operator or our partner who went to exactly to spud the well. We have time, but the plan is definitely to spud the well in the next twelve to maximum eighteen months over there.

13:50 This is two of the potential targets that we are looking in. Both are stacked stacked pay targets that can hold over 700,000,000 barrels in total. There are two the the light blue the light brown ones are the are the two potential well locations that we are that we are currently planning. We are currently the operator, so there is a lot of work underway in terms of planning, terms of getting the EIA permits, which we got them. We got the environmental approvals to drill, so we we are drill ready, basically. And and you can see the sequence of the discoveries made across the basin, the Liza the Liza, Hammerhead, Jethro, our discovery, Joe, and Carapa on the on the block just behind us.

14:39 The area is extremely prospective. We sit on the right on the same channel, and we as I said, we just need to conclude the Farmo deal and to go ahead and drill these these prospects. In terms of Namibia, we have four blocks in Namibia. As I said, they'll they'll diversify in the sense that they have each one has a different has a different water depth. One is shallow, one is midrange, one is deep, and one is ultra deep. That gives the the the the sufficient diversity within the basin for potential farm in East. There's no official process over there for us at the moment. However, we got an inbound interest from few very big companies that we are currently in discussions.

15:25 They do a technical evaluation. We are starting to discuss potential potential collaboration. We have more than twenty twenty five thousand square kilometers of blocks over there. We are the operator with 85% working interest. So, again, just like in Guyana, there's a lot to to to trade for. We can our sweet spot is anything from, you know, 20 to 25% when when we when we when we actually drilling a well. So there's a lot of working interest to trade. We see more and more activity around the orange the the Waleves Basin. The Orange Basin is now fully occupied, and people are now starting to look at Namibia not from a north to south kind of perspective. So Waleves Basin is in the in the North and and Orange Basin is in the South. But people are now looking at Namibia a bit differently. They look it from an east to west kind of perspective.

16:23 They're looking for similarities in terms of water

16:26 depth and structures and channels and tubulite fence just as could be found in the Orange Basin. So people are now looking to some of the deepwater stuff that we have in the Guaravis Basin. And I think, and I have a good reason to think that we will see some farm out m and a activity in the very near future starting in the wall of this basin that eventually will also effect be a very good effect on us. To summarize, in terms of our high activity level and catalyst for the next eighteen months, in South Africa, we announced the the the the the deal with Total and Qatar last week.

17:14 Again, one of the biggest pharma deals of of of past around the world. A very big consideration of cash upfront and a carry of up to $220,000,000 that put the block value at around $300,000,000 as as of today without any well-being drilled.

17:38 We are in the process of finalizing the EIA in in order to get the drilling permit. Total will assume operatorship the minute we close the deal in the next couple of months, and then we will meet the first the first tranche of cash, obviously. And they will assume operatorship. As I said, they have the key to the vault in the Orange Basin. They know exactly what they're looking for. They come in to drill. The block is fully covered with three d seismic reprocess. The targets are already selected. So Total come came in to drill. They didn't come in to hang around and just to have a look. They came in to drill. They have a rig in the area. Actually, they operate their own rig at the moment. They bought a rig two months ago. Their more than half of their exploration budget globally is earmarked for Orange Basin.

18:29 That include the Venus appraisal, obviously, and the three blocks that I mentioned earlier, Deepwater Orange Basin, three before being and five six seven. So the the plan in three b four b

18:41 is to to transfer the operator ship and let Total run the show and to drill the first well as soon as practically possible according to their plans, according to their rig sequence. Over there, there's not much for us left to do. As I said, we are fully carried for the first two wells. We will see a big amount of cash coming into our bank account, which eliminate the need to go to the market to raise any any cash. And and this is an automatic pilot for us. We just wait for Total to drill well and to be successful. In Guyana, we closed the Talo transaction at the last at the end of the last quarter last year. We entered the second exploration phase. We are actively we have an active farm down process. We have more than nine companies at the moment that we are discussing with.

19:31 We are planning to finalize this process hopefully in the next couple of months

19:37 depend on the level of interest, depend of the potential commercial terms that we can achieve, and that will open the door for the next well for us in Guyana targeting light oil in the Cretaceous. Again, this is a catalyst when if we are successful. If and when successful, this is a very big catalyst for the company, another farm out. There is another block that we have an interest in Guyana, the Kanji block. We're not very active over there. We just have an indirect interest for a company that we hold there, that we are shareholders. This is subject to Total and Exxon decision when they want to drill the next the next exploration well. The target is more or less identified, but, again, it's up to Exxon to decide what they want to do there. We are we are simply passive a passive we have a passive interest over them. In Namibia, as I said, we don't have an official farm out process, but we see more and more interest in the Walavis Basin, especially in the deepwater stuff.

20:35 We have two blocks in the deepwater stuff. And I have a very good reason to believe that Wallavies Basin will be a subject of big pharma deals, m and a deals in in 2024, including us. In terms of business development, we keep on evaluating additional asset and corporate opportunities. We are currently looking at additional at least one more very prospective exploration license,

21:02 not not dissimilar to the ones we already have on our portfolio in the same areas. We have a high focus on business development. Personally, I have a very high focus on creating shareholders' value and making sure that our share price is in the right place. At the moment, it's not. And we work very hard, and we will continue to work very hard in order for the market to absorb, understand, and and and give the true value of the company, which is much, much higher than than than today. As as I said, we managed to deal to do four deals last year or three last year, one this year. The Total Qatar farm out, the acquisition of Tallow. We did a small farm out with Africa Oil on three b four b, and we

21:51 acquired the group, which eventually ended up with our South African blocks. And there's a very clear intention in the management team to keep on doing good deals for the benefit of our shareholder going forward. So in an in a nutshell, 2024 is a year of partnerships on all our portfolio in preparations for high impact drilling towards, hopefully, the end of the year or beginning of next. Basically, this is it, and I will be happy to take questions. I don't know how we're gonna run it, Alessandro, but you tell me. Perfect. Gil, thank you very much for your presentation.

22:37 Gil, perhaps we'll start with the presubmitted questions. And then perhaps if we have time, I'll ask you to go into some live ones after the after that. The first presubmitted question here reads as follows. What is the long term strategy to generate shareholder value?

22:53 Sell well interest once producing or on discovery? Is the plan to retain any production interest in block to fund future drilling? Okay. That's that's that's a good question. The the bespoke strategy and the plans of the company never changed. We are an exploration focused. We will not be a producer. We're not looking for small production assets, for example. Although it's a good mean to generate some cash, it's not our forte. Our forte is to identify high impact prospective opportunities. Our forte is to partner. We know how to partner. We we done numerous formal deals throughout the history of the company. We always managed to attract big companies to come and partner with us. We are a very small company, but we always managed to end up with the likes of Total, Qatar, Talo, Africa Oil, and we are considered to be very good partners to work with.

23:47 The strategy, basically, in terms of shareholders' value is to be able to attract these big partners to let them drill

23:56 on their expense, not on our expense or not on our shareholders' money, to come up to a discovery and then to decide. And the basically, the decision will be will be taken upon the the commercial merits of what one of these partners they're not only good to explore and drill. They're also very good to take you out eventually and to develop it by themselves. They don't need us for development. But it's a question of of a good deal coming along our way. The first the first milestone, obviously, is to partner. The second one is to drill and discover. And then the the third will be to sell the discovery to either one of the existing partners of the block or to someone else that want to come in. And this is how we're going to create value. Obviously, any discovery on any of our block is a game changer, is a company maker. We are a small company, £40,000,000 or £50,000,000.

24:51 Any discovery will bring us to over 200 easily. We already you know, I don't speak out of out of turn. We we we made it happen back in 2018. We had a discovery in in in in Guyana, and you could see the share price. Our share price went over £2 back then. So we have all the intentions to duplicate it, then shareholders can sell out. This is why we are public, and we can monetize by selling discoveries.

25:25 Perfect. That's great. Thank you very much. When do you hope to farm that Oroondook block buy? When do I hope? I hope tomorrow, but it's not a question of hope. It's a question of, you know, of of of technical evaluation, of commercial discussions, of someone agreeing to our terms, or we agreed to to their terms. You know, that's that's that's the intention to farm it out. We have nine potential partners that we're currently discussing with. I can only hope that we will be able to close a deal. We proved that we can do that. We found out three before last week, or we announced last week that we found out three b, four b to Total and Qatar. So we know how to do it.

26:13 The plan is to do it during 2024. That's for sure. And to drill immediately after. Great. Thanks very much. Are you actively looking at any prospective blocks, not on the books at present?

26:27 We are an opportunistic company. Okay. We have our hands full at the moment with the blocks that we have. We have eight blocks more than our employees. We have six employees, eight blocks, and we are the operator of most. But we have a very good position in in those basins that we are we are focused on. But we are opportunistic. And if the right opportunity comes along like we did when we acquired Asinam, like we did when we acquired Talo last year, then definitely, we might add a block of somewhat same profile into our into our portfolio once this opportunity will present itself. Perfect. Thank you very much. The next question here reads as follows. What percentage of the ORLANDUC block are you looking to retain post farm out?

27:12 As I said in my presentation, first of all, we we we find it the most important for us is, first of all, to partner. Okay? We need a big partner next to us. I don't see us drilling a well 100% sole risk. As the operator, we can we can act we can operate. We did it in the past, but we will not spend 100% sole risk on our of our shareholders' money on drilling a well. So the first and foremost is to find a suitable partner that will come and drill with us. And then it's a it's a question of commercial discussions. We we feel comfortable anything from ten, fifteen, 25%, that's a sweet spot for us. It's small enough for someone to agree to carry us, and it's big enough for us to enjoy the a a big discovery.

28:06 So, again, if we're looking at at at Torinduik, we're talking about 4,000,000,000 barrels of prospective oil. The first target is around 700,000,000. If you have 10% or 20% of it, let's say, on average, 100,000,000 barrels at 3 or $4 a barrel in the ground, that's a company maker. So we feel comfortable anything from 10 to 25% or let's call it twenty, twenty five percent. That's more or less what we're looking to end up with in Guyana. We currently have 100%. So still that gives someone 80% of a block with two existing heavy oil discoveries and at least one well to drill. So I think there's there might be a good

28:44 deal there. Perfect. Thank you very much. Next question here. Are you actively pursuing Oroondook Pharma with Exxon, Hess, Chevron, and CNOOC? We are under confidentiality with with few companies. As I said, more than nine or nine. I think it's 10, actually. It doesn't matter. Let's let's call it nine. I will not name the companies, but I can say that we only speak with very big companies. It's a it's a play for big companies. It's not only about coming in drill one exploration well. One needs to know that he can actually develop a big discovery also Guyana, and that's for the big boys. You know, Exxon, Hess, and Sinuk are in the basin. They understand Guyana better than others.

29:31 They understand the the the the they have good relations with the with the the the government over there. So they are immediate suspects, but I cannot name exactly who we speak with. Perfect. Thanks very much. Does ECO intend to remain the operator for our block in Guyana? We can. Again, we will not drill 100% sole risk. But if someone comes in, a big company, and say, listen. For us to assume operatorship to get to mobilize all our teams to transfer operatorship, and to drill a well in time, it might be better that ECO, as a very small, flexible, and nimble company, can do it. We can operate. It's we we we drilled wells in the past as operator. It's it's a question of who is farming in and what will be their preference. We can operate for someone.

30:23 We are cheaper, obviously. We know the environment. We we we've been in Guyana for the past ten years, so we know exactly how to operate over there. We were partners to two wells that we drilled over there already in 2018. So we can operate, but it depends on on the farm on the farming partner. If they want to assume operatorship, no problem. If they want us to operate, no problem. But we will not drill 100% sole risk. Perfect. Thank you very much, Gil. In the recent format, the company seems to have prioritized cash over ownership. Why? Do I actually need to explain it? There's no need for us to go to the market. There's no need for us to raise any more money. It it it it it will it will be enough for all our needs.

31:11 We don't know to we don't need to dilute shareholders anymore. And on the one hand, we get around $20,000,000 worth of cash when in milestones, which is five times what we have today. So we are we are we are multiple our cash position five times in one deal, and we still maintain a very good interest, six and a quarter percent in a 4,000,000,000 barrels prospective block. It's small enough for some it's it's big enough. It's it's interesting enough for someone to buy us out upon discovery, but it's small enough for us even to decide that we are staying for development. Not that that's the plan. But at 6% development after a discovery, a big discovery, we can actually chip in our our our our part.

31:59 So we maintain the very sweet spot of our working interest while scooping cash out of the table that will ensure the long sustainability of the company without the need to go to the market and raise any more cash. And I think that's very important to our shareholders. The only way to play is in the market. There's no need for us, and we will we are not planning to go and do any fundraise. Perfect. Just turning to the next question. The stock reaction to this week's farm down news has been a bit disappointing. Do you think the market expected a little more upfront cash in the deal, or do you consider other reasons? The markets are broken. Okay? It's not it's not it's not just us. I've seen another deal. Did a great deal with energy and few few months ago, and the share price went down. I cannot explain the market, and we cannot control the market.

32:54 What we are here to do is to educate the market, to explain what is the huge value in this big deal that we did last week, and to work hard in order to educate investors, to bring in fresh blood, and to put the share price where it should be, in my mind, at least two times where it is today after the announcement. You know? We were at ten p last week when we announced we're at nine and a half p today. It doesn't make any sense for a company that actually multiply its cash position five times and have a partner like Total and Qatar to carry it for a very high impact well exploration well. So something is broken there, but to be depressed or depression is not a working is not a work program. So I do take it personally, and I don't like what I see, but we are here to work hard in order to fix it. We are here to work hard in order to educate the market. One of the reasons I'm doing this this webinar with you guys, and I keep on going and meeting investors.

33:54 People will eventually understand the big value of of of last week deal. People eventually will understand the very high impact catalyst that are expected for us in 2024 on our blocks and in surrounding blocks, and the share price will will will fix itself. I remember times when we were at very low share price. As I said, depression is not a work program. We simply work hard, and we fix it. This time, we will do it once again. I have all the reasons to believe that, let's say, towards the end of twenty twenty four, we are at completely, completely a different share share price level. I'm talking about up, not down. Perfect. Thank you very much. And final pre submitted question we've got here is if Total failed on the drill near three b, four b at the end of the year, will they still drill three b, four b?

34:48 I'm not sure that that's the right question. What do you mean if they fell in three b, four b? Yes. Yes. You mean near three b, four b? In in what I mentioned is the the other blocks that they are planning to drill, Deepwater, Orange Basin, and 567. I don't think it related. The reason they come into 3 B, 4 B is because they like what they see there in terms of prospects. It's not like a a placeholder for them. So you know what? In in many cases, if they fail on drilling somewhere else around, they might be more motivated to go and drill free before before its own prospects. So I'm not I'm not sure it's related. In any case, according to our deal, they they are committed to drill the first well.

35:34 If they don't drill the first well for whatever reason, they need to pass a fine, and and and we maintain the working interest. But, again, it it's not, you know I'm not talking about even the legal stuff. They are here to drill. I don't think it has any any relations to what they found or not found in in adjacent blocks. And as I said, if they if they fail on one block, it might give them a better motivation to drill our own prospects. That's why they'll that's why they they came into the deal for. Perfect. Thank you very much, Gil. Just turning to a question that's coming live. How does the company's cash position compare to its historic cash position? How big is the risk of running out of cash? That's a very good question. We had more cash in the past. But for example, in 2022, we raised $30,000,000 in total in order to drill a well that we were a 50% operator, and we had to pay 75% of the cost of the well. So back then, we raised $30,000,000.

36:39 We had $30,000,000 in the bank account, but it was all earmarked to drill a well. This time, we are carried for these two wells in three before we. We're not planning to drill a well in Guyana without a farming partner, so we're not gonna spend this money on on drilling a well. And if and when a farming partner in Guyana will come, he will most likely carry us for the well, so no need for extra cash there. So in terms of the ongoing cash burn of the company, which is quite minimal, $20,000,000 should be sufficient for eight years. Perfect. I've got another question here that's coming live. Can you say something about the existing resources on on the Oroondook? Potential volumes on Jethro and Joe, plus if you have any expectations on unitization related to Starbrook discovery straddling Oroondook.

37:33 Oh, that's a very good question. I cannot speak to numbers. I can tell you that that according to the studies that we made with third parties such as wood make. The current the existing discoveries, especially JEFRO, is producible. We have enough oil oil to recover that, to make it to make it profitable, to make it producible. It's not utilization. It's maybe maybe the world is to is to combine existing discoveries in Starbuck that are still not developed with the current existing with the existing discoveries that we have on on on the Ringwit block.

38:27 There are many ways to play it. Okay? Our focus is to find a partner, let him enjoy and break his head on the on the existing discoveries, but we want a partner to come and drill into the light oil. As I said, the the existing discoveries, which are enough to produce and to recover, and there's a very big need for heavy oil in the Gulf Of Mexico refineries and elsewhere, you know, companies like Petrobras, Exxon, and others, they'll they they need, you know, they need heavy oil for their refineries. You have a lot of very light oil in the Permian, but someone needs also heavy oil to feed the refineries. So, again, our focus is to find a partner that will drill the next well for us into the light oil targets, but the heavy oil discoveries can definitely be a bonus. Without speaking about volumes, etcetera, they are producible.

39:24 Perfect, Gil. I think that that's the end of the questions. Obviously, the company can review all the questions submitted today, and we'll publish those responses on the investor me company platform. But just before redirecting investors to provide you with their feedback, which I know is particularly important to yourself and the company, Gil, could I just ask you for a few closing comments? I was not prepared for that. Yes. Again, thank you very much for having me. I hope I don't know, but I hope we have good audience and and a big turnout. I'm here to explain to the market, to our investors, the the the the the extreme undervaluation of the company at the moment, giving what we have and what we are going to have or planning to have.

40:11 I think it's a mutual work of us and the market to fix the share price going up. And we have very big plans for the near term and for the next twelve to eighteen months. And as I said, we're a company that our goal is to partner, to drill, to have a discovery, which any any one of it on across our portfolio is a game changer. So many of the people here are in for the excitement and for the upside potential, and we hope to deliver. Perfect. Gil, thank you very much for updating investors today. Could I please ask investors not to close this session as you now be automatically redirected to provide your feedback in order that the management team can better understand your views and expectations.

40:56 This phone take a few moments to complete, but some shall be greatly valued by the company. On behalf of the management team of ECO (ATLANTIC) OIL AND GAS, we'd like to thank you for attending today's presentation, and good afternoon to you all.