Enquest (LSE:ENQ) — Investor Presentation

0:01 Good morning, and welcome to the ENQUEST PLC investor presentation. Throughout this recording meeting, investors will be in listen only mode. Questions could be submitted at any time by the Q and A tab situated on the right hand corner of your screen. Just simply type in your question and press send. The company may not be in a position to answer every question received during the meeting itself. Have the company review questions submitted today and publish responses where appropriate to do so. Before we begin, we'd like to submit the following poll. And now let's hand you over to Amjad Bessayso, chief executive. Good morning, sir. Good morning. Thank you very much, Paul, and good morning, ladies and gentlemen. And thank you for joining us for what is really truly a seminal moment for ENQUST and our journey. My name is Angel Bessayso. I am the chief executive of ENQUEST. I'm also joined today by Jonathan Kopas, our chief financial officer, and Rasid Ahmed, our Southeast Asia general manager.

0:53 And as ever, Craig is with us today to help coordinate the session and to organize everything perfectly as he always does. Together with the exceptional team across ENQUEST, we're delighted to outline the strategic acquisition of participating interest in four fields in Malaysia from Petronas Charu Galli. And really, something that more than doubles our business and is the transformational deal that we've been talking about for a long, long time. In a region where we're talking about growing and in a region which is also a a high growth area, probably one of the highest growth areas in in the in the world. So we think we can create a lot of value for shareholders in this transaction. Over the past two years, we've been focused on scaling the business. And this time, we've delivered more than the production that we have and effectively 57,000 barrels a day of production over and above the 42 that we've done in 2025.

1:53 And we've delivered also diversification through the completion of these five transactions across Southeast Asia, including the last one of production, which is a new country entry in Vietnam and Indonesia and Brunei. The transactions provide production in Vietnam as well as our existing production in Seligie as well as the 1B project, which we completed last year and in nine months and got and has increased our production by double in Malaysia from 7,000 net to 14,000 net. We've also reminded you that we've executed the settlement of a very accretive transaction with Magnus contingent consideration in The UK, which helped us tremendously with our credit and is very value accretive, as you know, just before the oil price rise that you're aware of.

2:48 Just to also be clear on this transaction we've signed today, it's actually been a bid for over the last year, in the second half of last year, And we were chosen as a preferred party in December, and it's taken us six months to to negotiate all the agreements, which were quite complex for taking operations over in these four fields. The transaction takes our group revenue up to 1,800,000,000 and gives us an EBITDA roughly double from 500,000,000 to to 900,000,000, and this is based on $20.25 dollars. It also increases our production to over a 100,000 barrels a day, and that should continue throughout the decade. And over 2,000,000,000 barrels of two p reserves and two c reserves resource two c resources.

3:35 More importantly, it reduces our breakeven significantly. What we're buying has $10.10 dollars a barrel in operating costs, and it reduces our overall operating cost to about $16 a barrel as a as an entity. And it also has very limited CapEx in the present PSC, if not extended, of of about a $170,000,000. And that that is to deliver the two c resources that we're talking about. The two c resources is roughly a 138,000,000 barrels, just above our 163,000,000 barrels that we launched at the end of last year. So overall, this is a very high impact strategically aligned acquisition that drives material growth and maintains discipline in our balance sheet. I think the price of $5 a barrel equivalent is a very attractive price for this asset with very low downside risk.

4:33 This slide lays out the quality and strategic value of the target base, And this is all net numbers. So in package one, where we have a 90% interest, the net interest there will be 33,700 barrels a day and about 200,000,000 barrels of two p reserves. Those are over the period of the PSC expiration up to December 2036. So Bellingen by far is the most important asset that we're buying, and there is no preemption right on Bellingen, which is the majority of over the majority of the assets, almost two thirds of the assets that we're buying. SK eight PSC is part of this package one, which again with no preemption. We're buying a 100% operated interest. Our working interest reduction is 11,300 barrels a day, and it adds 15,000,000 barrels of reserves with a PSC expiry of 2039.

5:26 Package two, which is preemptible, has a 50% operated interest with a work our net 50% production share would be 7,000 barrels a day, and the reserves are around 18,000,000 barrels. Package three is in Peninsular Malaysia, the only nonoperated assets with 5,400 barrels a day, so less than 10% of the production and about 5,000,000 barrels, which is, again, about 4% of the total reserves that we're talking about. We're confident that there it is our operational excellence that has enabled us to be the front runner for these assets. Winning the operator award over the last two years in '24 and '25 clearly put us, I think, in a in in a light to to take over these assets.

6:15 And this fantastic performance has been recognized and has has enabled us to to really be in the bold position to take these assets. We're very excited about these assets because they're meaningful. They give us scale. They give us above a 100,000 barrels a day of production, and many of them have significant upside. So for example, the package one Bellingen PSC has only 19% recovery factor, and we are very keen on on continuing to increase the ability of the value of the additional assets and additional reserves that we can unlock in in all of these assets. But more importantly, these these assets really diversify the portfolio and give us significant downside protection and makes the company much more resilient with a much stronger balance sheet.

7:05 So I'll hand over now to Jonathan who will take you through the deal specifics. Thanks very much, Anja. Great to be here at what is such an exciting moment for us as a business. As Anja just said, we've been preparing our business for some time building towards this moment. And that has been about building a a strong capital structure for the group, but also finding the right opportunity for us to deploy those operating expertise. And when we've spoken to investors about transacting, we've always been very clear about what we're targeting. What we've said is that what we want to buy is assets that are in production.

7:52 We've said that we want to buy assets with robust production profiles and also assets that are low CapEx, but of course, meaning that generally low cost as well. It's also important to us that we maintain operating control because that gives us control over how we spend our time and our capital. And we also want to maintain the tangibility of our portfolio. And it's very, very pleasing to be able to say that this transaction delivers on all of those points. It delivers a step change in terms of transaction. Anjad has described that this moves us to 100,000 BOE a day, and that is a 134% uplift in terms of production on twenty twenty five numbers.

8:40 He's also mentioned that that 100,000 barrels a day is maintained through to the end of the decade. So strong forward production profiles as well. It's a very material increase in reserves and resources, a 56% increase. And that places our 2p reserves and 2c resources at about a billion barrels of oil equivalent. And in terms of the cost base, these are low costs of production. So these will deliver a 35% reduction in terms of our operating costs, the group combined business operating costs coming in at $16 per BOE. Delivering tangibility and and a step change, though, is not just about volume. It's also, of course, about value.

9:29 And from these assets, on a 25 basis, we would see an 80% uplift in terms of our EBITDA in excess of $900,000,000 of EBITDA. And when we talk about low costs, it's not just about operating costs, it's about capital costs as well. And on a point forward basis, so from '27 to the end of the life of these assets, the our share of the CapEx to deliver those two p profiles is only a $170,000,000. And this is a deal, of course, that reshapes our business as well and diversifies our business. So it diversifies us our production across more assets. It diversifies our production across more geographies, and it also diversifies our production in terms of commodity mix.

10:22 So on a combined basis, Southeast Asia will be 69% of of the group, and we will be 63% liquids as a business as well. Moving to the next slide and talking about the consideration. So the total maximum consideration for the deal is $833,000,000, and that breaks down into three parts. An upfront payment of $554,000,000, a deferred consideration of $189,000,000 and a contingent consideration of $90,000,000 The deferred consideration is payable in three equal installments, and the first payment for that is on the anniversary of completion.

11:14 And the contingent consideration would be payable on taking FID across three projects. And those three projects are a subset of the contingent resources, which Razif will talk about in a moment. So if we look at these considerations on a unit basis, then we are transacting at an upfront consideration of about $4 per BOE and on a firm consideration of a little over $5 per BOE. So very compelling transaction metrics as well. We've also been focused very much on preparing our balance sheet for a transaction like this.

12:02 The work over the last two years has simplified our balance sheet, and we've also worked hard to have strong banking relationships. And through that, we've maximized group liquidity, and that has given us a capital structure that is fit for purpose to transact. You'll remember that in q four of twenty five, we refinanced our RBL. And as part of this transaction, we are increasing the loan tranche of that RBL from $400,000,000 to $700,000,000, and we're doing that by exercising a portion of the the accordion of the facility. Now that further enhances our strong liquidity position.

12:48 And there's no change to the letter of credits tranche because, of course, in Southeast Asia, decommissioning costs are prefunded through the CESS payments under the PSC structure. We also refinanced our bonds back in April. And since then, we have redeemed the retail bonds, simplifying our bond structure and increasing the liquidity of those bonds. And at the December 31, we had cash on the balance sheet of $269,000,000 So if we look to the capital structure under the enlarged group, and again, using the twenty twenty five numbers that is the basis of all the numbers in today's release.

13:36 12/31/2025 net debt was $434,000,000. The upfront consideration is $554,000,000, and that means that we have a combined entity net debt of $988,000,000. Now alongside that, we, of course, because we're buying assets in production, we have a significant increase in our EBITDA, which rises to in excess of $900,000,000. And that means on a combined basis, the net debt to EBITDA of the enlarged group would be about 1.1 times. And that compares to a stand alone net debt to EBITDA for ENQUEST of 0.9x at the thirty first of December twenty twenty five.

14:21 So this is very much in line with the guidance that we've given in terms of how we intend to use the balance sheet to grow. We, of course, have our mid cycle target of 0.5 times net debt to EBITDA. We have talked about using the flexibility in the balance sheet to transact and the net debt to EBITDA through transacting could rise to one to one and a half times. And this combined group net debt to EBITDA is at the lower end of that range. And of course, bringing these cash producing assets into the business, you know, our focus will also be on returning the group to our mid cycle leverage ratios in due course.

15:10 Turning to the timeline. This deal, because of its size, is classed as a reverse takeover. And today, we are announcing the signature of these three farm out agreements. Now because it's a reverse takeover, that means that we have shareholder prospectus, and we'll hold an EGM on this transaction. Amgen also mentioned that there is a preemption right on package two, and the parties that that relates to have thirty days to act on that. The publication of the prospectus and shareholder circular will follow that preemption decision, and that will then set the clock towards the shareholder vote, which we expect to happen in August.

16:06 After that, we will proceed towards completion, and completion is scheduled for the 12/31/2026. And as is normal for reverse takeover, at that point of completion, our shares will be delisted, canceled, delisted and then almost straightaway readmitted, and we expect that to happen in the early days of January 2027. So now I'm gonna pass over to Razif, who is our general manager in Southeast Asia. And Razif will walk you through some more details in terms of the assets that are related to the FOAs that we're signing today.

16:54 Thank you, Jonathan, and good morning, ladies and gentlemen. It's my pleasure to be here to talk to you through these assets that we have just acquired. And this basically is a very transformational acquisition for us, which has been made possible by our twelve years of successful operations in Malaysia. I'm just mentioned about how we've been operator of the year twice in a row in 2024 and 2025, And that's also built on the relationship we've had with Petronas and Petronas Cheregali who's been a partner with us in PMSLE all those years. Malaysia still remains a jurisdiction in which we operate very well, and we look to continue to build our excellence and relationships here with many more years to come.

17:41 And this strategic partnership right now is what really makes the difference between why we were selected because we have demonstrated our capability to operate production producing assets, mature fields, and also late life. And these are not these are not new fields. These fields have been producing for a number of years. And this is why I think ENQUEST has been selected. So this slide basically provides a forward view and demonstrates how the step change in our production is delivered by these proposed transactions. With the enlarged group production now is above 100,000 barrels to the end of the decade. It adds meaningful scale and is predominantly 2P and which represents a very resilient long production outlook for the group.

18:33 If you look at the insert at the bottom of the chart, you will see that there is also a significant 2C resource in the enlarged portfolio both in The UK and across Southeast Asia. And we are definitely focused on finding ways to converting this into material contingent volumes to two p in the coming years. This includes the contingent consideration that that Jonathan mentioned that, you know, there's three projects that I mentioned as part of the contingent consideration that we are going to focus on in terms of FID over the over the next six months to a year. And but those are not just the only continued considerations we have. In total, I think we have another possible 10 to 15 other projects that we need to work on.

19:24 This slide also highlights the shift in balance within the portfolio, with Southeast Asia now becoming increasingly more important alongside our stable production in The UK from Magnus and Kraken. Based on twenty twenty five actual productions, the contribution from Southeast Asia will increase to almost 70% and the North Sea about 30%. When considered alongside the increased weightage of gas production, which is now 37%, this transaction now delivers internationalization and diversification of our portfolio. If we move on to the next slide, this gives you a bit more color on the assets that we are acquiring.

20:11 And you can see that the quality of the assets from a 2P reserves is significant. So we have a 138,000,000 barrels of 2P reserves that we can exploit, and that's the one that, you know, we mentioned on the low CapEx side. And there's another 208,000,000 barrels of 2C resource plus another up to a 100,000,000 barrels of upside potential. And this was alluded to by Amjad when we said the current recovery factor in Balinjian, for example, is only 19%. And because the oil in place is there's the oil in place is about 2,000,000,000 barrels. And a small increase in recovery factor will result in much higher recoveries from the field.

21:01 The base itself is underpinned by existing wells and also sanctioned projects. And we aim to deliver as well additional value from well defined development opportunities and any further upside associated with the recovery factors. We are buying a very high value tangible reserve foundation for our growth and there is multiple pathways for us to create more value. We are looking at the things that we've done in Sliggy PMA over the last twelve years to be the basis of how we can grow the business in these assets as well. Thank you. And now I'll hand back to Amjad to conclude. Thank you very much, Razif and and Jonathan.

21:48 And, again, Razif led the team there, which worked tirelessly to get this done. So thank you and the team for for this great achievement. And as you've heard, really, this is a great achievement. This transaction not only represents a massive step change in scale for the group, more than doubling the group, it is transformational, pivoting us into many more assets and creating more diversified and resilient production base with much lower costs. Importantly, also, it gets us above a very important threshold of a 100,000 barrels a day and combined reserves of about two p reserves of 300,000,000 barrels and two c plus two p reserves and resources of over a billion barrels. And and, again, that is a a very big threshold to to be at.

22:36 All this while maintaining a massive amount of operating control, And 96 of the of the new reserves are operated by us. Then this control actually is what empowers us to be differentiated and operate differentially. And and the ability and it allows us the ability and the capability to utilize our expertise across the asset base drawing really on two decades of work from the genesis of the company and almost a decade in in Malaysia where we've optimized assets very successfully and and and have been seen to be the best operator of these late life assets whilst while delivering good share value to our shareholders.

23:34 So with this increase in our position in Malaysia, which we feel is a very high quality operating jurisdiction with a strong economy, and it is the hub of oil and gas in Southeast Asia. This gives us a great platform for additional growth in Southeast Asia, but also in The UK. We still have a significant tax asset in The UK, and we will utilize we are unable to utilize that ourselves, and we will we will continue to look diligently. Maybe even more importantly, the the one thing that now has changed is our strengthened even further balance sheet and our portfolio's ability to withstand downside scenarios is will will give us the ability to to look at much more attractive assets even in The UK.

24:23 It's also worth reflecting on the impact of this acquisition on our on the company going forward. We've talked about our next four phase of growth both in Asia, but also in The UK, and I'm delighted to see that this transaction for our shareholders and our colleagues gives us the needed scale that moves us up to the top four and would allow us to be in a FTSE two fifty type peer group. This slide highlights a transformational uplift in both production and EBITDA delivered by the acquisition and firmly in establishes us in this enlarged group of the FTSE two fifty peer group. Importantly, we remain clear that the group needs to even be more effective and have a more effective platform to deliver disciplined, value enhancing growth to keep the capability that we've had that has allowed us to add value over this period and differentiates ENQUEST from all the other businesses.

25:25 Now while we enjoy this transaction for a few days, we have a long heavy lifting period in the next six months to make sure we take over the operations correctly and close this transaction by the end of the year. So this last slide is normally used to introduce the company to new audiences, but it is fitting now to conclude by with this slide, by introducing the new ENQUEST with a pivoted group with the that's diversified, internationalized operator, delivering value accretive scale that we've been pursuing. The group's metrics are all well enhanced, as Jonathan mentioned, by this transaction, and it's clear that this is not growth for growth's sakes. It is disciplined expansion built on mature, high quality assets where ENQUEST's operating model and differentiated capability can unlock significant additional value even more than the assets that we have because the recovery factors are so low.

26:24 And as we embark on the next phase of ENQUEST journey with production of over a 100,000 barrels a day and 1,000,000,000 barrels of reserves and resources, I'm extremely excited and energized by the challenges ahead and motivated to convert this potential great asset base into further significant shareholder value. Thank you for your time and attention this morning, and I will now hand back to Craig or hand over to Craig to lead the q and a, please. Fantastic, Andrew. Thank you and the team for the presentation today. Just before handing over to Craig, I'd just like to remind ladies and gentlemen, please do continue to submit your questions just using the q and a tab situated on the right hand corner of the screen. Just while Craig and the team take a few moments to review those questions submitted today, I'd also like to remind you the recording of the presentation along with a copy of the slides and the published Q and A can be accessed via your investor dashboard.

27:16 Craig, as you can see, we've had a number of questions both presubmitted and throughout today's presentation. I'll just bring the rest of the team's cameras and mics up. If I may just ask you where appropriate to do so to read out the question and direct it to the team, and we'll pick up from you at the end. Yeah. Absolutely. Thanks very much, Paul, and thanks, Gerald, for the the presentation this morning. So, obviously, it's a huge step for ENQUEST. We've had a lot of questions that you can imagine. I'm gonna do my best to focus the questions on on the transaction and how it changes the group. We've had some business usual questions that I I would suggest I maybe take offline and and answer separately. So, I'm just I'll come to first. So, obviously, this is a big step change for the group, big step change in our Southeast Asia business, which has been growing over the last couple of years.

28:03 Can you say a few words on what it might mean for the group as a whole in terms of North Sea transactions and whether this precludes us from doing any growth acquisitions in the North Sea? Not at all. Absolutely not. I think this this transaction allows us even more latitude in The UK. As I mentioned, our, you know, our our balance sheet is further strengthened and and our resilience is is further. But we also now can focus on the right transactions in The UK that continue to be around. And, again, we are the probably the last remaining company with as large tax assets as anyone else. I think that all the, you know, all the other companies with significant tax assets or bigger than us tax assets have merged or have have had the deals.

28:59 And so we will now be able to focus, especially with this higher oil price, which, again, a lot of these companies that are paying tax are burning through whatever tax asset they have, but paying even significant more tax in these higher oil prices. And I believe these higher oil prices may may subside, but I do feel this there there will continue to be significant risk in terms of the volatility risk that now does did not exist a year ago when we and two years ago when we when we had oil prices around 60 or 65. So so I I think it'll give us even more ability to transact in the future. And I think Rajiv's plate is very full now. Right? I think we will continue to selectively look at the assets in the in in Southeast Asia. But at present, I think his focus and his team's focus will be on, on getting these assets to in the in our hands rightly and in our capability rightly.

29:57 Thanks, Hamdan. And I'll stick with the theme of future growth. Obviously, we're talking here about big growth step. But, Jonathan, you you talked a little bit about the the steps that we've taken on on the balance sheet. So can you just give I know you kinda touched on this in your in your section. Can you please just give, and there's a number of questions, but what what does liquidity headroom look like post deal, and and then how is the balance sheet set up for for the future? Yeah. So thanks, Craig. So I think the key point right here is that we have, you know, if I sort of rewind the clock, say, two years ago. Right? We had a more complicated balance sheet. You know, we've done great jobs in terms of, you know, reducing the size of the balance sheet, but we still have a lot of moving parts. And in the last two years, we've simplified that down to our our bonds and our RBL.

30:49 And as has been demonstrated by the refinancing of both the RBL and the bonds, you know, we have strong backing and strong knowledgeable backing through our credit investors as well. And one of the things that is tremendous to see on this deal is that we are able to utilize the flexibility of our RBL. And our existing lenders have, you know, stepped up and supported the accordion, which as I said, you know, we've used you know, we're we're we're exercising $300,000,000 of the $400,000,000, you know, accordion capacity. Now what that means is is that through this transaction and, you know, because we're buying cash producing assets, we are, you know, going through a sort of temporary excursion in terms of, you know, net debt to EBITDA ratio, but it only takes us to 1.1 times on the kind of 25 combined entity basis, which is, you know, at the lower end of the range that we've discussed in the past, and it's not that much different from the point nine that we're at as a standalone group at the end of twenty twenty five.

32:03 Now beyond that, we still have significant liquidity as a group. And that means that we will have significant liquidity, you know, to hand to also exercise other growth opportunities. And I think that this is a huge step for us. It's a fundamentally transformative, you know, transaction. But I think we've always said the same thing, right, which is that what we are looking to do is build deal momentum. So this is not about delivering one deal. You know, we have a mindset that you are a small oil and gas company until you get to a 100,000 barrels a day, and then you kind of grow from there. And so, you know, we have a balance sheet that, you know, can comfortably support this transaction.

32:53 We have, you know, we've ticked the boxes in terms of, you know, the cash producing nature of the assets that we're buying. That means that we don't lose you know, balance sheet, you know, discipline either today or going forward. But it still leaves us significant liquidity and capacity to go on and and, you know, grow, you know, other opportunities as well. And and I think if if there's one thing that really should, you know, strike home in terms of what we've said on this, you know, this call today and what Razif was was outlining is that, you know, we're looking here at profiles that are effectively, you know, two p profiles and the capital requirements to live those two p profiles, you know, are are are low.

33:39 And that means that, you know, we can retain that capacity to deliver more growth to the group. So I think it's a really exciting time. I think it's great to be able to be, you know, utilizing that balance sheet structure that we've been putting in place. You know, we have demonstrated over the year very strong, you know, focus on capital discipline. We'll continue to do that. And, you know, we'll continue to be looking to build, you know, value growth for our our investors as well. Thanks, John. John, if I could just stay with you, and I promise I'll give you a rest after this one. We've obviously acknowledged we're we're operating under some restrictions in terms of what we're able to see going about, you know, forward looking statements, etcetera. We've had a number of questions with which which point out, of course, we we provided an EBITDA figure for for the transaction.

34:39 But it's a question, like, can you give us any help in moving towards the cash generation and of these assets? Yeah. Absolutely. So, you know, yes, you're right. We have, you know, certain parameters we have to operate within. You know, we can't give any, you know, forward looking data that be could be construed as, you know, a profit forecast. But as ever, what we look to do is to provide building blocks that help, you know, investors understand us as a business and this transaction better. The data that is in this announcement and that will be in the prospectus is all based off twenty twenty five numbers.

35:24 And those are derived from asset level PSC accounts because we're buying you know, we're we're, you know, we're we're buying participate paying interests in in those assets. And that means that, you know, we have to focus on certain key metrics. Now if we take the 2025, you know, EBITDA, which of course is a proxy for, you know, pretax operating, you know, cash flow. We've highlighted that this is, you know, in excess of $400,000,000 in 2025. And from there, to get to those free cash flow numbers, you know, obviously, the things you gotta deduct here are, you know, tax and CapEx.

36:11 In Malaysia, the tax that we're talking about is is PISA, the petroleum in income tax, and that sits at the corporate level, so above the PSC accounts. And it's levied at 38%, and the calculation of it is subject to certain, you know, deductions and allowance on expenditure items. But what we can do is is we can, like, build some, you know, put some building blocks together, and I'm sure, Craig, you'll, you know, be very happy to help people with that. But when we look at these assets, you know, on a kind of pre on a post tax, but pre CapEx basis, you know, these assets have been throwing off $2,300,000,000 of of cash flow.

37:01 And it's really important, you know, at historic commodity prices, but it's also really important to then place that in the context of what we're saying about CapEx as well, which is that to deliver those very, very significant two p reserve profiles, there's only a $170,000,000 of CapEx, you know, ahead of us. So, you know, these are very robust and cash generative additions to the enlarged, you know, group portfolio. Thanks. Thanks very much, Sean. And, Adam, I'll come back to you for me, please. And so so you mentioned that the deal will be in the pipeline for sort of the past year or so. And is there anything you can say about the the the the process itself and how how we interacted with with the counterparty, particularly if you're period of volatile, you know, macro conditions and and and certainly oil and gas prices?

38:00 Yeah. So, mean, I I think our relationship with with Petronas and Cheregali is is excellent. And I think the you you know, I think we are viewed very much as part of the fabric here. I mean, Malaysia has always been our second home. And I think that is very important to recognize. So I I I do think that it's been it's been a lengthy exercise, but it's been a very constructive exercise where we had to finalize format agreements and the operator transfer agreements and all key key term agreements. So so even though the deal was done really last year, the bids were due last year In in the second half, we were picked as a preferred partner towards the end of the second half of last year. I think we both acted in in in in great cohesion to come up with a deal that worked out well, recognizing the volatility, recognizing that we had to adjust for some of these issues, and and recognizing that, you know, that we have a common goal, which is this these assets are better in ENQUEST's hands than in PETRONAS, which is a a massive large company with a large overhead. And so because we had a common goal, I think we were able to to probably navigate some very difficult discussions because, we've had oil price going up 60% or so during that period, but we're still able to navigate the the discussions in a very constructive way. Thanks thanks, Amjad. That that's

39:30 excellent. Radzik, I'll come to you. Probably quite a tired man with all the work that's been going on over the last few days, but come to you with a couple of questions, if I may. So and Radzik, obviously, Amjad's point is the fact that you have a lot on your plate. Does this transaction in in influence your thinking on, you know, the other projects you've got in the slate, like like, DEWA, for example? Thanks, Greg. No. I think what we have is is a portfolio of project portfolio now. We have producing assets, which is like payments, Lige, Chim Sao in Vietnam, and now the this transact this producing fields that we've taken. We have development assets, which like Dewa and Brunei Block C.

40:18 And we also have the exploration potential we have in Indonesia with guidance. So we have a very good mix in terms of a portfolio that that will support us both short term and also longer term. So I think the the challenges for each one is different to get to, you know, to continue production for mature field and mature field and their life is what we do well. It's what Jonathan alluded. We wanted to get producing barrels. That supports the development that we wanna do with Dewa, which is also predominantly gas and Block C Brunei, which is also gas. And then the potential exploration success if we have in in Gaia, which is a multi TCF exploration potential where we are partnering with BP.

41:03 So I think you will see that, you know, what we have is a portfolio of opportunities underpinned by the strong production numbers that we will see in in Southeast Asia and the diversification between gas and oil. So and liquid. So I think that is the crux of the matter is we're building a strong basis for growth in Southeast Asia going forward for the next decade. Thanks very much, Raz. And if if if if I may, I'm gonna stay with you just for a couple of short short quick fire questions. So one Sure. Can you describe a little bit the the decommissioning obligations and costs here? Obviously, The UK, decommissioning is a very big subject, and it'd be interesting to get your view on how it differs in in in these in these PSCs.

41:49 And also, second question, that's it. We're obviously we haven't completed yet, but we've got some questions around, you know, how might the PSC renewal process work here and and what would be the key triggers to extend the lives of of of these assets? Taking the decommissioning, just all the PSCs in Malaysia basically right now have what we call a payment says, a betterment says that we pay into a fund. And this fund is accumulated by PSC. So the the fact that we we are farming into the existing PSCs, just like we did in Sliggy when we took over, there is an existing fund, and then we continue to contribute towards that fund for decommissioning. So similar for for Sliggy what we have, these these assets also have a decommissioning fund that's been contributed by Cherry Gully over the last few years, and that fund will be available to us when we do the decommissioning.

42:45 Now we do an annual work pro abandonment work program and budget to to determine the cost of abandonment, and that decommissioning fund is suggested according to that cost that we that we estimate on a yearly basis. And that's worked together between partners and also patroners. So the the beauty of it is when we have to decom I'll give you an example. When we are doing p and a's in Sileggi right now, the cost of the p and a is being, you know, paid for from that decomp fund. So when we p and a the wells in in Silegi, we call on that fund that's being managed by Petronas to pay for the decommissioning cost. And that's the similar example that you will see. So what's already been paid and already been cost recovered will be available to us for the future decommissioning work. And this includes not just wells, but depending on what we contributed, but also mainly for the pipelines and the top sides. So this is this is, I think, a very effective way of managing because you are contributing on a yearly basis, and that fund will be available to you.

43:53 So that's the first question. The second question is is what are the triggers? Right? Obviously, working the asset is important and making sure that we have economic value from the developments that we're looking at. So one of the beauties of working in Malaysia with Petronas is Petronas understands the concept and and of economic value. So to develop contingent resources, to develop them effectively, We have to present those projects and the capability for us to develop those. And if there are things that we need to do in terms of adjusting the fiscal terms regimes, there's always a negotiation.

44:42 So I think where the intent is always to exploit and develop the resources that you have, there's always a will to make sure that the the contractors like us, the PSC holders, the operators are able to do it in a manner that is cost effective and also economically valuable to us as as would be for the country as well. So I think that's the that's the to answer their question there. Thanks very much, Radziv. And coming to you now, a couple of bigger bigger picture questions. So in your in your view, does this transaction kind of give us more opportunity for for growth within within Malaysia and Southeast Asia? Or and I know you've talked about, you know, our plate's quite full, Stag, but how do you think it sets us up for for for future growth in the region?

45:33 Well well, I I mean, I I think the reality is the scale of a 100,000 and the diversity of assets that we have makes us much more robust as a company, both both financially, but also operationally. And I think that's extremely important to recognize. So in in the in the last decade, I think we've had less and less companies with operating capability and that are independent companies. There there's been mostly major companies. The independent companies in The US and Canada have pretty much retreated back to The US and Canada. The the unfortunately and sadly, I mean, sadly, The UK independent companies have withered away, and there's only a handful, a very small handful of them now. And and again, I think with this transaction, we differentiate ourselves in Southeast Asia. I think we're in the top two or three in terms of independence in Southeast Asia.

46:29 And we we also are very focused on the world in terms of other other areas that we can enter into. So I think it will give us it it has a a a almost a turbo charge effect for growth. And and I, you know, I do agree. I I do think we have plenty in Southeast Asia. You know, we have done we've entered four countries and and have now bought four producing assets, producing fields in in Southeast Asia, which I think is is plenty to to digest over the next six to twelve months. But I do think other areas, especially The UK, are would, you know, would be would be great grounds for us to look at growth. I think this opens up even more areas because there are very few independents like I I said now that operate with our type of capability.

47:19 And and I think that even opens even a third leg for possibly for ENQUEST in the future. Excellent. Thanks, Adam. And then it would it wouldn't be an ENQUEST presentation if we weren't asked the question about the ENQUEST producer and whether there could be any potential deployment for for that piece of infrastructure in Southeast Asia now that our business has grown so much there. So, I mean, the ENQEST producer was slated for the Bresse field, and we submitted the field development plan with the Bresse field in 2023. And and, again, I think we have not been able to move that forward at present. We're looking at options where we have tiebacks into Kraken. So I I think we will I mean, the the we will look at redeploying ENQEST PLC, and Asia would be an ideal place. We obviously it's, you know, it's part of the asset.

48:10 We have partners there, and we have to both unanimously agree on on redeployment. But I mean, there's nothing in the works, but we obviously, with our footprint being much larger and with us having so many more assets in in Southeast Asia that that we can see and and analyze, I think this would be the the the probably the first port of call, but we don't have anything fixed at present. Thanks, Andrew. And I'm go go to Jonathan for one final question for him, and then I'll come back to you with the with the the closing question, if I may. So so, Jonathan, I I know you've touched on this subject quite a lot, but this is it's it's a big deal, and and we need to make sure that, you know, people are are clear on it. So there's a couple of extra questions that come in just around so after now that we've agreed the upfront consideration and and we're also looking to integrate the assets, can you can you elaborate a little bit on what ENQUEST expected market need capital market needs are over the next two to three years? And also just a reiteration of the way in which we're we're we're looking to to fund the the the the consideration, particularly upfront consideration.

49:16 Sure. And I'll sort of do them in, like, reverse order. So Yeah. Sorry. I thought I would drop it out. Yeah. So now, I mean, as we say in the announcement today, you know, the the the funding pathway for this is is utilizing our existing, you know, capacity under the RBL. You know? You remember that, you know, you know, the RBL has been undrawn, and we've exercised, you know, the accordion. Now, you know, these assets are, you know, very cash generative. You know, you see that through the net debt to EBITDA multiples. And so using that flexibility, it, you know, makes sense. Yep. And and and, you know, alongside that, we have cash resources, you know, on the balance sheet as well. But but, you know, the important point is is that by exercising the accordion, you know, it gives us, you know, ample, you know, more than ample liquidity, you know, as a business to, you know, still be throwing the net wide in terms of, you know, growth opportunities. So we can digest this transaction, but, you know, we still have a lot of, you know, capacity to do other things.

50:28 And, you know, growth momentum, you know, is is something that is really central to us as an executive team, but also the board as well. In terms of, I think you said capital market needs. Yeah. You know, we've just been through two really important steps. Right? In q four, we refinanced the RBL. Right? The process of refinancing that RBL is an absolute, you know, ironclad statement of belief and support in ENQUEST and how we operate and how we create value. And we are strong believers that, you know, the best way to pursue business opportunities or commercial opportunities is through clarity and understanding. Right? And, you know, we have a banking group that understands us, that is in line with growth.

51:23 And as I said, we've all stepped up, you know, to support this this transaction. The other point is that alongside that, you know, the other bit of the capital structure now is is the bonds. Right? And the very successful bond refi that we went through a month or two ago, you know, we were not only able to upscale that go through to price tight means. But through that upscaling, we've been able to consolidate our bonds into a single instrument, which now is of a scale, which means it's much more liquid in terms of trading and demand and and and appetite. So we have a very strong and, again, knowledgeable support base in terms of, you know, the bonds too. So we have two, you know, really great and effective instruments. And in my mind, having a simple capital structure built around two things is far better than a very fragmented, you know, capital structure. So we are very well positioned in both markets.

52:30 We have, you know you know, a very clear runway. You know, we have no you know, obviously, all of our maturities are now, you know, you know, very distant. And, you know, we have a capital structure which is not only fit for purpose to support this transaction, but it's fit for purpose to support other transactions, you know, if they, you know, should come. And and then, you know, beyond that, our base business program of investment is as it has always been. Right? It is a program of investments where we're saying where can we see fast payback opportunities that, you know, payback in the next, you know, twelve to eighteen months. They're highly capital efficient.

53:17 And as importantly, they are discretionary. So we have you know, it goes back to this point of operatorship. We have, you know, strong control over how we spend our time and and how we spend our capital. And alongside that, you know, very supportive balance sheet partners as well. So, you know, I think we're in a great place. Thanks very much on that. Totally clear. And that's come to me to to finish with the the q and a. And and just to recognize, well, there have been some questions on kind of normal business as usual ops, which I'm happy to to to take offline, and we'll we'll we'll answer. And, obviously, we're here to to focus on the transaction. So so so in terms of that, obviously, you would a lot this has generated a lot of excitement, obviously, among ENQUEST shareholders, some of whom have obviously been with us a long time. I I guess just sort of summarizing some of the questions we've had, and just a bit of a a view from you on what this this should mean for shareholders and shareholder returns and and you know, just just what what this means for the the the the next coming years for for the business and our and our shareholders, please.

54:19 Yeah. I mean, again, this is a seminal moment for us. I think this scales, number one, diversifies. Number two, gives us much more downside protection and downside resilience. Number three, it gives us also a a level where I think is the target level for independent companies to to kind of get into position of of almost takeoff or, you know, or escape velocity. So I'm hoping that, you know, that all these things will crystallize in into us being able to to to move into a higher gear for for growth in shareholder value, first and foremost, and also in in terms of adding more assets and adding more growth. Now we have committed to shareholder returns, and we will that will continue to feature in our in our future. And as we grow, you know, that will continue to grow with with our with our continuing growth. Because again, I I do feel that we've had a significant period of, you know, where, you know, changes in fiscal regimes in The UK over the last five years have slowed down our ability to grow and indeed return shareholder value. And and I think that now is is time we that we can see that we have now pivoted outside The UK sadly.

55:45 And and again, it's it's not because of our volition, but it's because of The UK, you know, The UK's change in fiscal regimes being so volatile, but also being so punitive. And and so with this change and with this pivot, our assets will be much more robust to be able to return return value to shareholders and increase value to shareholders. Fantastic. Thanks, Hamjad. So that that concludes the the the q and a session. I'll I'll hand back to to Paul, please. Thank you. Thank you for for taking those questions. And just to remind investors, of course, the company can review all questions submitted, and we publish those responses where appropriate to do so on the Investor Meet company platform. Just before redirecting investors to provide you their feedback, particularly important to the team, Amjed, if I may, just a couple of closing comments just on top of what you've just said would be fantastic, and then we'll redirect investors to get you that feedback.

56:36 Yeah. So I just wanna kind of thank the long term investors for being with us for a long time, and the loyalty that we've had is has been has been remarkable and and I think has been exceptional. So I I wanna thank our long term shareholders. Our top register has had five shareholders of which four have been with us for for over a decade, and I think that's that's excellent. And and I know there are many investors also in of the retail that have been with us and and institutional with us. So so I just want to really thank them for that. And I I'm extremely pleased that we are able to to now repivot the company in a way which which has we've not been able to. We almost were able to pivot the company in 2022 coming out of COVID, you know, post the difficult time with the prices being low and post COVID.

57:28 But with the, you know, with the government increase in taxes, that has where we are now in 2026. But so I'm grateful for the for the share to be with us and for and for especially for our long term shareholders. And I also am am very pleased that this is you know, they they're able to enjoy this this seminal moment with us. And I'm yeah. We are working with even higher energy levels to to try and make sure that we, we we get shareholder value and we get shareholder accretion in the future. And just thank you so much, and thank you to the team for presenting today. Congratulations on the transaction. Please ask investors not to close the session. You will now be automatically redirected to provide your feedback in order the team can better understand your views and expectations.

58:14 This will only take a few moments to complete unless greatly valued by the company. Behalf of the management team of ENQUEST PLC, we'd like to thank you for attending today's presentation. That concludes today's session, and good morning to you all. Thank you, everyone.