Petro Matad (LSE:MATD) — Investor Presentation

0:02 Good morning, ladies and gentlemen, and welcome to the PETRO MATAD LIMITED investor presentation. Throughout this recorded presentation, investors will be in listen only mode. Questions are encouraged. They can be submitted at any time via the Q and A tab that's situated on the right hand corner of your screen. Please just simply type in your questions and press send. The company may not be in a position to answer every question it receives during the meeting itself. However, the company can review all questions submitted today, and we'll publish our responses where it's appropriate to do so on the Investor Meet company platform. Before we begin, we would just like to submit the following poll. And if you could

0:33 give that your kind attention, I'm sure the company would be most grateful. And I would now like to hand you over to the team from PETRO MATAD LIMITED. Mike, good morning, sir. Yeah. Good morning. Thank you very much, and good day to everybody from wherever you may be calling in from. I'm here in, Ulaanbata in our, in the PETRO MATAD head office, and I'm joined here by Humbers O'Toole, who is our corporate manager. And calling in from The UK is Jeremy Jeremy Smart or Jerry to his friends, and, he's our technical manager. Thank you all for joining this update, on the IMC platform from PETRO MATAD. We've got a hopefully fairly short presentation for you just to bring everybody up to speed, and I think the majority of the time today will be will be used for q and a. We have had a large number of questions submitted before this webinar, not surprisingly given what's been going on within the company just recently, and we are having live questions coming in as we speak. So we'll try and deal with as many of them as we as we can and hopefully try and get all this done with within an hour.

1:43 So, if I turn to the presentation first of all, what we're looking at here is a forward program in, sorry, somebody's controlling the slides for me. I didn't ask them to do that. So what we're doing is we we're we're we're here a work program in the latter part of 2025 and a look ahead to '26, in terms of oil optimization, the production, and increasing revenue, additions we can make to our, production in the short, short term, and also looking at some renewable energy projects that are now quite an important part of our portfolio, and I'd like to give some indication of what the value proposition for those is and how they can, bring benefit to the company to its shareholders.

2:32 So, if I turn to the slide on the Mongolian oil industry, just a very quick update on this, hopefully. The new government, when I say new, it's been in power for just over a year now, has been very, very focused on prioritizing energy independence for Mongolia in in all aspects, and, of course, that includes in oil production. So Mongolia is a company as a country is very focused on increasing its oil production and is not shying away from fossil fuels like has been the case in some other countries around the world. That said, the production chart on the top right hand side of the of the screen, shows that Mongolia's domestic crude production has been declining since 2015, and that's because the fields that are currently in production are in decline. And there has been a little bit of a lull over the last, let's say, decade in terms of people doing exploration and finding more oil. PETRO MATAD has not been a participant in that lull. We've been active throughout.

3:31 And as everybody knows, we made a discovery back in 2019 or two discoveries back in 2019, one of which has been declared commercial. And apart from a number of delays over the last few years, this new government was able to fix the problems we were having on land access, that had slowed us down for too long, then fixed some problems on construction permitting that actually allowed us to get on stream. And that's important for Mongolia because as you can see, there's a red horizontal line on this chart which shows the amount of feedstock required for the Mongol refinery, which is being built in Mongolia right now with a $1,700,000,000 loan from the, from from India, and that work is ongoing. Okay. The the refinery slips, and it's due online date, quite a lot, but they seem to be working hard now and committing to an online date in 2028.

4:24 Meanwhile, though, the production from Mongolia is shipped into China where it is refined, and that's always been the case, up until up until today. And the majority of that production comes from our neighbor in the East, PETRO China. They produce around about 95% of the country's oil at the moment, and they ship it in a very, very cost effective and efficient trucking operation into China where it is refined. Mongolia is then actually left to buy refined products from from Russia, And Mongolia's domestic need for refined products has gone up dramatically. But, of course, with a small population, it's it's, it's it's relatively small compared to,

5:04 to other countries in terms of its oil needs, but it's always going up. And as I say, the government is very, very focused on this, and they have made some pretty dramatic improvements in the oil investment environment in Mongolia to try and get more people to come, to try and improve exploration and production, and specifically for PETRO MATAD to allow us to get over the hurdles that were stopping us going into production. I think I've said probably all I need to say on the refinery at the moment. Work is going on, and once it's ready, we'll all be supplying to it. There's a very, very big gap currently between current production and the production needed, and it's our goal to be the ones to fill that. So that's our plan. The other thing to say is that there is a pipeline under construction funded by the Mongolian government to run from PETRO MATAD Field to, to the refinery site in in the, Southeast of the country.

6:00 That work is going very, well. The pipeline is 97% welded and 67% of it is buried. That's been a very, very efficient operation run by a Chinese contractor. So that that that infrastructure work is going on as we speak. In terms of block 20 where we have our Heron field discovery, our development plans and partnering are the things I'd like to address with with this slide. Just as a little bit of a reminder, we've got around about 200,000,000 barrels in place resource in the Heron discovery. We believe that is also borne out by a competent person's report. We think that a 30% plus recovery factor is achievable on that by analogy with what's been done elsewhere in the basin primarily by PETRO China.

6:48 We used to think the recovery factor was substantially lower, but we've got some new data and some ambiguous previous reports that had been published, are now better understood. So it looks like Heron should be able to produce around about 60,000,000 barrels plus of its in

7:05 place reserves without doing too much in the way of secondary or tertiary recovery. So a nice sized resource. It's just one we have to get after and get producing at a higher rate. What we want to do in terms of the development strategy is we will need to drill a few vertical wells, first of all, to tell us about the reservoir architecture.

7:25 Once we know where the sweet spots are, because this is a variable reservoir, once we know where the good reservoir is, then we can target that with slab wells or with horizontal wells. We can also do some low cost enhancements with the likes of radial drilling or fishbone completions. These are techniques that are used that increase the contact of your wells with the the reservoir and therefore improve flow rates and also ultimate well recovery. Those two things that I mentioned have not been deployed in Mongolia so far by other operators, although they are common within the industry. So we would certainly like to get to the stage where we are where we're doing that because that can reduce the the number of wells you need, and that's the main component of the development cost. And obviously improvement in in recovery per well and inefficiency is is is what we're really after.

8:16 What we are looking for right now, and this is strategic a change that I mentioned back in March at the AGM, the board has decided that given the improvement in the investment environment in the sector, we should step up our efforts to find partners. Because although we've done the hard yards in block 20 to find, the oil itself and to start production and to show it can be produced, with a commercial return, we want an injection of capital from somebody else, not our shareholders, not off our own balance sheet, not from production revenue, which is relatively slow to build out with these well rates. We want to bring in a farm in a who's going to invest their money on wells that will get us to a state where the production from the field is enough to fund the ongoing development of the of the reserves.

9:08 And we are in that process at the moment. The development costs are relatively low. Drilling costs in in Mongolia are relatively low by world standards. But because well flow rates are hundreds of barrels a day rather than thousands of barrels a day, you do need a fair number of wells to get up to a decent level of production. So we are focused on that at the moment, and, I I always get criticized for being a little bit cagey about how is how are those negotiations going? Well, we have one counterparty that is very, very well advanced in their in their evaluation, and they do seem very keen. So we are pretty hopeful that that is going to generate at least one proposal. We've got two other parties we're talking to. Perhaps they're not quite as far forward, as as as the first, but we are very, confident that this is going to generate this is generating interest and that it's gonna generate some offers, that we will then be able to evaluate.

10:07 What we're looking for is a decent amount of capital to be injected to actually do the work that I just described and get us to a position where we can increase from our current level of production up to the level of production that allows us to go forward with an accelerated development, therefore, a creation of value. So on the Heron field itself, the picture shows what is currently set up at the Heron number one well. That well was completed in the second half of twenty twenty four in a very, very busy pro program that ran from August through until November, and we achieved first oil on the October 24. Since then, the well has produced about 46,000 barrels, for wells in the basin. This is a, from the data we have, which is reasonably extensive.

10:57 That's a pretty damn good performance, And the well is delivering at a stable rate at the moment between a 150 and a 160 barrels a day, on on pump production. And that oil is transported 25 kilometers to the PETRO China facilities and then onward to, to export. The operations in the field are run by PETRO MATAD. Once the oil gets to PETRO MATAD, they are under our oil sales agreement. They are then, the the the party that looks after it. Now we'll move to the oil sales agreement and some of the payment issues we're having and also the relationship with PETRO China because we do get asked a lot, you know, is PETRO China being cooperative, or are they being exactly the opposite and and trying to stymie or stand in a way or in some way obstruct our operations?

11:45 I'd like to ask Congo to address what's going on with PETRO China because she has been the lead person on our negotiations over the last many years. She's our best Chinese speaker, which gives her a good advantage here with the rest of us. And I think she can give you a a good update on where we stand on the oil sales agreement and the payment and and the the efforts we are making to get all of this streamlined. Over to you, Elizabeth. Thank you, Mike. Good morning, everyone. So the go to market for our crude is, of course, a very critical component to our operations, and we have been assessing our options on continual basis since we made the discovery. Based on our research on costs, permits, and logistics, the most efficient and cost effective and realistically, our only option is to piggyback on our neighbor, put to China's neighboring facility and the established export route.

12:43 So we deliver a block to the central facility where it is dewatered and stabilized and is delivered to the buyer to the buyer via such a China's very cost effective long distance tracking operation. Disarrangement for operators to share facilities is a unique one in Mongolia, both new to the oil sector here and even for the mining industry. So getting the authorities on board and our neighbor, PETRO China, to conceptually agree to this has been ongoing since we made the discovery in 2019. And we have had countless meetings over this to get to where we are today.

13:29 And, eventually, really only when production one from having one became a reality, we agreed on the terms of the oil sales contract with both PETRO MATAD quarter three of last year before we commence production. The crude is so I sold at the same prices, PETRO MATAD '21, which is touching benchmark minus $1. PETRO China charges us at cost for the processing and transportation with acceptable management fee on top as per industry norms. So at $70 per barrel of market price, PETRO MATAD nets $40 per barrel after the deductions of royalty and government share under the PSC terms.

14:24 Currently, we are our net revenue per month is between $150,000 to $200 at current prices. So having the having agreed to the ISS contract with the local Picture China entity before we started production, it took much longer for for their headquarter to approve and sign the contract than we were told than we we had thought. Eventually, we we received and the executed version of the contract in late April. So at the moment, there there are two parts to the ongoing process to to be able to be in a position to be receiving the full invoice amount as per contract on the scheduled dates.

15:11 To Thursday, PETRO MATAD internally introduced a new online payment system. And, clearly,

15:19 we are seeing that the back end process has not been sufficiently streamlined and tested, and it is holding up their their payments to all of their counterparties. This is this has been verified at base level within PETRO MATAD to separate communications and also with the other counterparties. So we we have been pushing hard for payments to be made on the outstanding month, which is China says they'll pay in August. And thereafter, they are setting up procedures within the payment system for for their monthly scheduled payments. On the second issue, we have been updating the market on the progress.

16:09 We got to the unleash to withhold certain part of the payments. This issue really arose after we signed the contract and after all the agreement aspects and the terms were agreed, including with the authorities. So it was very unexpected LIMITED and, of course, very unwelcome. But tax has become a very sensitive matter for PETRO China due to due to the issues in in their own business in Mongolia. And being aware of this, we had given a special attention in our negotiations with them. However, at the eleventh hour, they have placed another layer of scrutiny to this contract in terms of tax after they signed it, and they are now requesting additional confirmation from tax authorities.

17:00 And we have been working at fast pace to resolve this matter. So as I have mentioned, this type of contract arrangement is is very new for Mongolia. So a number of departments is needed to be brought up to speed. The law is very clear that no taxes are applicable on the oil sales revenue, and this is the the nature of a production check contract. There there is a possibility of a small amount of VAT and tax levied on on the handling fees they're charging us based on the contracting entity they're using. LIMITED, So we are now in discussion with PETRO and that will reduce anything like this.

17:49 In the meanwhile, the recent confirmation messaging from the authorities that we are pushing to be issued soon, we do call off removing the withholding amount and receiving

18:05 So in our dealing with the China, we do see a speed and level of cooperation on on a daily basis operationally and in our communications. And we do see their willingness to assist us when, really, in reality, they don't need to or have to do so. We are confident that they are sincere and genuine. The whole tax and payment and the tax sensitivity that has been brought up early in the day is is has been very frustrating, but they're they're not malicious. And we remain confident that we will get where we need to be. Thomas, thank you, Hamdasil. So that that summarizes the situation. I I would just say said there at the eleventh hour when they introduced their, the the the the tax question.

19:03 That was actually the thirteenth hour because I take the twelfth hour to be the one we signed the agreement at. That was that was most unwelcome. And, obviously, any jurisdiction you're in, when you ask the tax man, are you going to tax me? His his default answer is going to be yes. But we have got experts working on this in the proper way, and we're confident we'll be able to fix this. And we're also, as soon as we'll set dealing with PETRO MATAD make sure the small amount on the management fee and and and some of the processing costs, we can reduce or eliminate most of those to be able to get to a stage where we're being paid in full and hopefully on time. So I will now hand over to, Jerry to talk you through the technical aspects of the 2025 work program. Jerry, please. Thanks, Mike, and good morning, everybody.

19:57 Good afternoon. So just a few slides to give some color around our forward program for this year, which we hope to execute well before

20:09 operating season when it gets a little bit chilly in the field and really impossible to operate at minus 13 temperatures, etcetera. So on the slide that so we're focusing on basically some low cost activity try and reduce some of the operating costs at Heron and also, obviously, to do some well testing, go back to Heron, Gazelle and Gobi Bear and do some well tests basically to add reserves and hopefully production in the near term. At Heron, we're looking to connect Heron to PETROMATAD's existing electric grid about six kilometers to the north of us. That project, we hope will hopefully, we can get done in August, early September, and that will have big impact on operating expenses by basically reducing it by 15% because we won't be burning two to 300 liters of diesel every day.

21:02 So that would be a positive thing and also obviously our carbon footprint will be diminished and reliability hopefully will also increase with that connection. We're also looking at tendering or re tendering, I should say, some of the contracts that we have currently in place in the field, again, with the aim of reducing some of those costs too to make us more efficient. When we started production at Heron, there was a discussion around possibly installing some sand screens because we did have a little bit of sand production at the time of the initial opening up of the well. That issue has gone away. There's no sound production at the moment, so running sandscreens is not something that's in our program at the moment going forward.

21:49 Heron two, obviously, that well drilled, by 800 meters to the Southeast of Heron, which is a spacing, far enough away for the well to produce had it been fully successful to produce without interfering with Heron one. If you drill too closely, the wells compete and you basically lose production between the wells. That well, again, that spacing is what PETRO China do, and all their experience. So it's it's it's the spacing that you use for this type of field, this type of reservoir. And we did some work on the cuttings that we got out the well and compared those to cuttings in HERON one regarding their mineral and chemical composition to try and see if we could see any difference, any significant differences in what the reservoirs, had in them in terms of their matrix, given the fact that actually the log motif of both sands and both wells look very similar, and it does look like the same sand extends or extends between the wells. So why Heron at Heron 2 of the reservoir didn't flow as well as it did in Heron 1 clearly is a bit of a puzzle.

22:58 That work on cuttings, basically x-ray diffraction work, has has illuminated a little difference between the wells in that at Heron 2, we see a little bit more carbonate cement in the form of calcite and dolomite and maybe a little bit more silica as well. So there's an indication that the reservoir mineral content is slightly different. And given it's carbonate that we're looking at, then obviously, one way to try and diminish or mitigate the the presence of that cement is to do what we call an acid wash, which is basically to to circulate, a strong acid around perforations around in the wellbore to try and obviously get into the wellbore a little bit and diminish that cementation, but also to try and, clear out any debris that might be around the perforations themselves.

23:50 And that could be, for example, a bit of the frack gel that we use when we stimulated the well. So that's the first thing we're gonna do. We're gonna do the acid wash and see if we can clean up the perforations and then do another, flow test to see if indeed that has been successful and if we can establish a commercial rate at Heron two, which would only need to be in regional 50 barrels a day given the fact we can obviously synergize with our production facilities at Heron one and all the rest of it. So that's that's the hope that we would do that. And, obviously, that would be a significant add to the production. Again, the well is far enough away, that it won't interfere with Heron production certainly in the near term if not medium term.

24:36 If that does not work and, and our expectation is clearly that might well, then we will then look at, heroin using HERON2 in a different way and that will be basically to complete it as an injection well, injecting water into the reservoir to support the pressure at heron one. This is what happens globally. Obviously, PETRO China are also using water injection in their field with success. So, again, the water injection test is just to make sure that we can actually inject at rates of water that are sufficient that we will actually get that waterfront or that pressurefront to HERON HERON ONE within a reasonable time. And if we do, we'd be looking at getting pressure support to Heron and hopefully seeing some response in terms of increased flow rate in the region of six to six to eight months, if not a year. So so three two things certainly at Heron we are we're looking to establish. Can we get it to flow properly and put it on stream? If that doesn't work, then we will use it as a water injection well to to support Heron one.

25:40 The other two things in the program this year is to go to Gazelle. I've got a few slides on both Gazelle and Gobi Bear following is to test both of those wells on the pay that we had indicated from logs and cuttings that we saw during drilling.

25:59 So starting with Gazelle, again, was drilled back in 2019, just after Heron, in fact. The well was suspended. We didn't have time to test the well at the time for various reasons, including weather. But as you can see on the log motif on the slide there, is basically the results of the petrophysics, if you will. So the yellow coloring is the sand, the gray coloring is more of a silty lithology and the brown is on my screen here is the shale. And you can see quite a good yellow or sand development in the well and you can see right at the top of the section there the little green coloring where we had good oil shows and petrophysical good oil saturations from logs, and that's right at the top of that section. So that's the interval that we're gonna go in and perforate the well across about an eight meter perforation across those sands and and hopefully see a good flow rate coming out of them. Now we did see at Heron, as you may recall, when we tested it, we got a very good rate and that was basically because the well, rather the oil, had quite a lot of dissolved gas in it, so it gives it quite a bit of energy. So that's why Heron itself was able to flow to surface by itself, you know, initially, up until March this year. And it's a little bit unusual base little bit unusual for the basin, so that's a positive thing, clearly.

27:23 And I'm hopeful that indeed these these reservoirs here also or the oil in them has has quite a lot of dissolved gas in them to give them energy that will flow flow at us quite quite, quite quickly and at good rates. And, again, clearly, if it if it's a positive, test, then it would it's going to be easy, to basically complete that into production well, put some, facilities on that site in terms of a tank and a and a pump and, and a generator already connected to the grid and get that on stream pretty quickly. Again, here, again, if we can get 30 to 50 barrels a day out of this well, then that's very commercial. That would be a significant value add to us. The other upside thing, and as you can see in the log motif, there's what's called sand sea. This is a very thick sand in the basin, 45 meters, which is one of the thickness sands that we've certainly seen from logs in the basin and good porosity at 14%.

28:20 It could be the well is quite down dip in the structure as the map shows you, going up dip and that's a green coloration in the map is where that 45 meter sand come gets shallower than the oil water contact in those A and B sands. And so there could be quite a lot of reserves up dip of the well, but clearly to access that would need an additional well. But clearly a positive test from the two upper sands would give us a lot of confidence to go up dip to test both those up dip and also that thick and sea sand, which we think we have a potential of about 5,000,000 barrels plus resource there. So that, again, that will be a significant add to our resource base.

29:05 So with this test, just a just a bit of detail in this test, we are going to be running a full, if you like, drill stone test string, which will have, downhole gauges in it to measure pressures. And with those data, we would hope to be able to see the connected volume, I. E. How thick these sands might be and where they go in terms of away from the wellbore, and that will give us confidence with future, decisions whether to test up it with a positive, sorry, drill up it with a positive test. Moving on to Gobi Bear, a similar look motif there with the CPI, the sand, with the silt and the shale, and then a little cross section they can show going from Heron one through to Gazelle, we've just talked about, then up dip to Gobi Bear was drilled right on the south eastern margin of the basin looking at a looking at the pinch out of the the sands and trying to get a proven oil stratigraphic trap to work at that location.

30:05 So we drilled it last year. Again, its casing is running and it's suspended. Now we did have good oil shows across the reservoir, although patchy in its development. So, clearly, we thought there are hydrocarbons there, but the log analysis was more complex here. It was shallower, the water salinity has changed, etcetera. So whilst we've got indication from the petrophysics, there was some oil saturation here or rather, let's say, less water saturation, which which basically means oil, and the shows, were a little bit patchy. We did some, geochemistry on the cuttings which indeed did prove that there's migrated oil in the cuttings that were looked at, as well as perhaps a little bit of in situ generated hydrocarbon from some very good source rocks indeed in the well, but that's very immature. But certainly there seems to be a migration front of hydrocarbon through the well and the question is,

31:03 has has has the trap worked at this location to capture that migrating oil? There is a zone in the lower zone of the of the log there. You can that has better lower SWs or salt water saturation, and that's across about a 10 meter interval, and that's the interval that we would look to go and put a test across and and open it up with through perforations and monitor if we get any flow out of the out of the formation at all. So this would be a more simpler well test and the cheaper well test just to prove or rather answer the question, is is there is there a pool of migrated hydrocarbon trapped at this location? It's pretty low. It's a pretty low cost activity. We'll have the rig obviously from Gazelle, so the move is quite cheap and the operation itself is quite cheap.

31:49 So that's what hopefully we can do at the end of the season if we get time for the, before the weather window shuts us down. Moving on now to block seven. So this is our new block in South Mongolia, that we signed in January this year. It's an absolutely enormous block, 41,000 square kilometers, some of which is is not prospective. I mean, we are working with the government to reduce that that size just to keep the respective areas. But, nevertheless, what the important thing about this block is that it abuts the basins in China. And in the lower map shows you the sort of that green motif. That's that's the Yinney Basin in within which there are several, wells and accumulations of hydrocarbon in basins that clearly extend into Block 7.

32:41 And importantly, again, there are Paleozoic proven proven Paleozoic pays in that Chinese basin. So oil in the Permian, oil and gas in the Carboniferous, which we think or see no reason why it shouldn't extend into Block 7, which should be the first actually to my knowledge. There's no older, hydrocarbon system proven in Mongolia, I. Older than the Mesozoic where everything comes from, in Mongolia. So this will be a real exciting test to see if we can get these other players extended into our block. And we're doing a lot of research on on, Chinese literature to try and understand how these plays work. Okay. But getting back to the block itself, good fiscal terms, eight year expiration period, two times two years extensions, and very low cost initial work program commitment of $450,000.

33:34 And that will be spent doing, fieldwork, geochemical sampling of field, field samples. As you can see on the map, in the bottom map, there's a little bit of seismic there. There was a well drilled, although that didn't reach its object. It had to be junked because the casing collapsed. But we have, we hope, located the cuttings from that well. And, if they're still usable, we can that we can do some geochemistry and also some dating work on those samples to find out actually how deep in the section the well actually got and also what kind of hydrocarbons, if any, that well saw. There are no logs, unfortunately, so we we can't do any petrophysics on that well. So we'll do that kind of geochemical sampling at both field outcrop and the well location.

34:21 We will also look at the seismic tapes, which we have now have access to and see if they're in a state to reread and potentially reprocess to try and clean up the imaging a little bit. But to be honest with you, the seismic data doesn't look that bad anyway, so our task will be to interpret those data ourselves and really address the leads and the prospects that a previous operator, generated while whilst they were interpreting those data. I'd like to go in and clearly check that and do our own work to see what we feel about those those possible needs that they identified. And that could materialize actually into a valid drilling location actually where those seismic lines actually are. But, clearly, from my perspective, I'd like to, go in go closer to the Chinese border and evaluate, the extension of those basins into the block.

35:10 And we might well try and do that with, looking at, gravity data that we've got and try and do some, quite complex gravity modeling work to see if we can see some deeper deeper sections than the than the mesozoic section in the basin sort of butt block seven. So where we are right now, a part of the having the exploration. Basically, we have to do a baseline environmental study. We've done that, and we have to do various technical things, set up a subsidiary company and all the rest. And that's that's completed, I think. So in terms of the exploration license itself being awarded, that then allows us to go into the field and do our work. That's act actually, I think that's done. So we can now start. There is a trip planned to my colleague who's gonna go into the field the next couple of weeks and and retrieve those cuttings from the well and also scout around the bottom part of the block and looking for outcrop samples to sample.

36:17 And, clearly, we are seeking partners. I I attend the there are scout, what we call industry meetings every other month in London. Likewise, same meetings in Singapore. Both of those meetings, we we subscribe to, and we present our, biweekly bimonthly reports, and we continuously, request people to come and talk to us about, farming in and joining us in Mongolia. And, that that those conversations and with those people are still ongoing every time I attend those meetings. So we are actively trying to market this to try and attract a partner. Mike, I think that's all I had to say, I think. So I think it's over to you. Alright, Jerry. Thanks very much.

37:04 So, yes, I think there's just two more slides to go. I'll try and get through them quickly. So a slide on Sunstep Renewable Energy. This is our joint venture looking at renewable projects in Mongolia. As I said, the new government has has done great things for the oil sector. We're also doing great things for the renewable sector. They really are pushing this hard, working with the Chinese government on export to China, projects, trying to make sure that those can be signed up for by both governments, trying to attract investors, big investors for those very, big projects, particularly from the Gulf countries. So the government has made trips to to Saudi, to The Emirates, to Bahrain, etcetera. So there's a lot going on here. And they've also the government has taken some, politically courageous decisions, and reforms have been implemented. They've reduced subsidies.

37:56 They are improving the investor environment very much, and they're pushing their 2050 plan, which has been in existence for a while, but, really, they're going after it now. They wanna meet a 100% of domestic power demand by 2030. They currently don't. They they have to import power from China and Russia in peak hours, and then they have to basically give away power in off peak hours. They want to be an energy exporter, particularly renewables, and they have a net zero target. And the export to China projects are of particular interest to these global players. The the once again, the domestic market in Mongolia is relatively small, but the Chinese market is seemingly insatiable. So I think the setting up of our joint venture was pretty well timed, and in the in the two years plus that it's been going, we've managed to get hold of four projects exclusively.

38:47 The OT project, a green hydrogen demonstration project, That's that is advancing, and that's got Japanese government grant money that goes with it. The Chubbattery Storage Project is a grid link project and, is moving a little bit slow, as a as a result, but batteries are something that the Mongolian grid really does need. So we're we're happy to be first in line on that one. And two big new projects came our way during this this period. A 200 megawatt hybrid, plant replacing coal as a as a power source for wind and solar. It's already got a very competitively priced power purchase agreement in place, which makes this one particularly attractive and potentially could be ready to build status quite quickly because the PPA is usually the thing that takes the time. So the fact that there already is one, it just needs to be amended to be renewable rather than coal. It's a big advantage to that particular project.

39:45 And, of course, the, we we have an agreement with a big Chinese utility. We've mentioned it before, 1.5 gigawatt project with a 1.5 gigawatt project contingent within the agreement, so, the chance to double up. But, China is talking about wanting many, many gigawatts from Mongolia, and Mongolia is very keen to be able to supply that. And that's what got the global investors really quite excited about this. Our own CEO of our renewables joint venture is actually an adviser to the Mongolian government on on matters related to export to China. And and that's very very useful because at least we get to see firsthand exactly what's going on between the governments and know how enthusiastic they are. The next steps we have well, I I can say that the OT and the battery storage projects, they're funded through already to ready to build stages. It's just a matter of getting them there, so that's chasing purchasing the progress we need from the counterparties.

40:40 But we did want to make sure one of the major components of the of the raise we just did was to get the the money we need for the development work to be done on the 200 megawatt project in particular and also on the 1.5 Gigawatt export project. We need to start gathering, wind data, and for the export project. We already have quite an extensive land bank, but we'd like to get some more land closer to the border. So we're looking at doing that. So I'm I'm glad that we're able to move those forward now. And the model at the moment is that Sunstep will remain the the the developer, which in in renewable energy parlance means we will be the local partner of potentially big investors. We will bring things to ready to build status, then we will bring in those investors, and we will potentially sell in its entirety our interest in the project for a development premium, or we will get a development premium plus some sweat equity, a small amount of carried interest.

41:40 Ideally, in the long term, we'd like to be a participant in renewable energy generation in Mongolia, but these are gonna be expensive projects. And although they can be debt funded, majority debt funded, the equity tickets are quite large. So until such time as we see a way to fund an equity ticket in that way, then we will rely on being a developer. We have, been looking around, and from our own Sunstep team, we've been able to glean that in the past or or in the recent past as well, development premia in Mongolia have been paid between 50,000 and a $100,000 per megawatt for commercially attractive projects that are ready to build a stage. And we currently have, I would say, in terms of near term projects, we have 274 megawatts. That's the first three projects I mentioned.

42:29 And we got 1.5 gigawatts plus another 1.5 of contingent that we we originally talked about as being longer term. Well, with the enthusiasm of the two governments involved, that may not be longer term. That may be coming forward. So, basically, we can see a scenario under which we get, ready to build status on these projects, and then the injection of capital that be could be coming our way is quite significant. So if we can combine that, and this is the strategy the board developed earlier in the year, combine that kind of, arrival of large amounts of capital from development premier on renewables at the same time as somebody else who's paying for, an exciting work program of the oil and gas, that's an ideal scenario.

43:15 I I I would dream to be in that situation where we can start to pay dividends to our shareholders. I would also hope that this kind of thing is going to move the share the share price in an upward direction, and so everybody can benefit in both ways. So in terms of the in terms of the schedule then, I mean, Jerry's explained to you what the, what the the oil and gas program looks like. This looks very busy. The the green the green parts are the firm program. The gray parts are contingent upon results in the in the in the green part of the of the schedule. We did actually a busier, program in 2024, the second half, so we have no doubt that we can do this, and we can also do it with our entirely Mongolian team. So I'm very, very pleased and very, very proud that we have that team working so well. And you can see there at the bottom, work to continue on, throughout on what '7 and on, the renewables projects all the way through twenty three five and into 2026 and beyond. And our production operation, obviously, continuing on on Heron One, and hopefully, we'll add to it with the with the wells we're testing.

44:22 So I think that brings us to the end of the presentation. So, I'll hand over to IMC for a quick reminder. Perfect, guys. That's great. If I may just jump back in there. Thank you very much indeed for your presentation this morning. Ladies and gentlemen, please do continue to submit your questions just by using the q and a tab that's situated on the right hand corner of your screen. But just while the company take a few moments to review those questions that have been submitted already, just like to remind you that a recording of this presentation along with a copy of the slides and the published q and a can all be accessed via your investor dashboards. Guys, obviously, we have received a number of questions that were both presubmitted ahead of today's event as well as those that have made their way through in this morning as well. So thank you to all of those on the call for taking the time to submit their questions. And, guys, at this point, if I may just hand back to you just to read out those questions and give your responses where it's appropriate to do so. And I pick up from you at the end, that'd be great. Thank you.

45:16 Alright. Thanks very much. Yeah. There are quite a large number of pre submitted questions, and I'm glad to see quite a few coming in live as well. I will try and address these, and I've certainly, the ones that were pre received are kind of grouped and where there was some, perhaps repetition, then I'll I'll hopefully be answering one question, but that will also answer a number of others that were received on the same theme. So let's start with the ones that were related to the recent, raise that we announced. So first question, actually, couple of statements first. We've raised cash at historically low prices. Timing was very poor. Every day of delay in releasing an RNS update and scope of work program, which the raise was supposed to pay for, is in my eye my eyes, and this is the question, a deliberate act of self harm. Yeah.

46:04 We did do a raise at historically low prices, and it was a a matter of need to get the money through the door for the renewables projects. They can be very, very valuable and add a lot to our portfolio. And we also whilst we are, hopeful and confident of getting in a partner, a farming partner, we want to be able to do work to demonstrate that our production can be added to to increase revenue, and so that was the that was the need for the money. The announcement at the time of the raise did actually include a description of what the raise was for, but it was lost in about another 30 pages of of text. So I hope that today's RNS and today's presentation will, satisfy people that they do actually know what we are planning to do.

46:52 Secondly, does it ever bother mister Buck that following the recent capital raise, every single investor ever in PETRO MATAD is now sitting on huge losses. Will he ever do the honorable thing and give back his huge salary, as he has literally delivered not an iota of value to a single solitary shareholder in the company? I get it. I get the criticism. I don't like the share price being where it is, and I'm sitting on a huge loss as well. But we are looking to turn this around, and we are working every day to turn this around. And we think we've got a strategy that will allow us to do that. On a similar theme, can you please can you tell me why the CEO has not done the decent thing and resigned yet? Obviously, I serve at the pleasure of the board and the pleasure of the shareholders. The pleasure of the shareholders is perhaps slightly diluted at the moment, to put it mildly.

47:40 If I thought I couldn't do the job and wasn't the right guy for the job, then I wouldn't be doing it, but I'm striving every day. I promise you, I'm striving every day to get this damn thing moving and to be able to put out the uncaveated good news that we are all hoping for, and, that ties in with the strategy we've described. Next one. This raise should have been done at a premium rather than a discount. Well, I would certainly tell you all that the, contribution of PETROMAD, our largest shareholder, and the contribution contribution of the CEO, we both said we were happy to do it at the share price of the day or indeed a premium. That didn't seem to convince others. It's probably a little bit associated with where we are. Mongolia sounds far away and a difficult place to do business.

48:25 So when we do raise money, it's always a fight in terms of it being done at a discount. I wonder if somebody is deliberately acting against shareholder interests. This raise is exactly at the point the company is an all time low, and the amount raised is nowhere near enough when we're heading towards the winter shutdown. Is the raise just to keep the lights on? Well, I think you've heard that we're trying to do a fair bit of work before the winter shutdown. And in terms of the raise to keep the lights on, these days, production revenue is keeping the lights on, which is a position the company's not been in before. I'd like it to be doing more. That's why we're focusing on some production ads. But, no, we didn't raise money for g and a and just to be here. We actually raised money for a program to make sure we're not running on fumes when we're negotiating with, with potential, farming partners who might think we're in distress, and we've got some big renewables projects that that, needed funding. So, so, no, it is not just to keep the lights on.

49:27 Can you advise if PETRO MATAD have any concerns about manipulation of the share price? We have reviewed this because this has been raised a number of times. We've reviewed this with our advisers and experts in in London and on on market matters. They tell us there is no evidence of manipulation of the of the share price. Obviously, there has been, I think, probably since the middle of two thousand and twenty four, even the what would be termed the good news RNSs have not sparked the kind of run on the share price that we used to see. That may be a bit of Mongolia fatigue because it seems that as we solve one problem, another one crooks up or is lurking in the way that's waiting to spring out. Now that may be the reason, but no. We do not see any evidence nor has anything anything presented to us of manipulation.

50:16 What is the plan for the company to return value to shareholders? I hope I've just explained that in terms of the new strategy that we are pursuing. Next on corporate or more general matters, shareholder demands an update on an explanation of the disconnect between operational news and the share price going down. Yeah. It's a fair question. We don't see manipulation. And as I said just now, maybe maybe there is, some, fatigue therein, but we don't see any, manipulation. It's just our job and particularly my job to try and turn it around and make it go the other way. A clear outline of the forward strategy, think we've given commercial terms to, did actually describe some of those and the timelines.

51:03 We've set that out, in this presentation and in previous RNSs, I think. And clarification on revenue. Yeah. Well, I think I think if you look back at some of the RNSs we, submitted after the, the well came on stream, there was quite a decent and detailed description therein. It would appear that by by far the highest financial cost of the company is salaries. What efforts are being made to reduce this? In particular, will the directors be taking reduced salary to demonstrate commitment? How about a 20% reduction in base salary, even if reimbursed when a farm out is is concluded? Well, you have seen in the IRS today, if you've read it, that we have been monitoring our costs very, very closely even though we are now revenue generating.

51:54 Cash is a very, very precious resource. The expatriate staff within PETRO MATAD, which is only three people, have all volunteered to take a 70% pay cuts. We're looking at some form of incentive program whereby they can perhaps recoup some of that. The CEO is one of them, by the way. We haven't come up with any plans for that at the moment, but I can say those three individuals are putting in the amount of effort and more that they have always put in, and I'm grateful to my colleagues for their willingness to to contribute in that way. Suggestion that the CEO should buy shares on the open market. I'll take that under advisement. On communications, the constant r and s releases containing caveat after caveat spreading doubt has clearly destroyed the share price. There's no engagement to stir interest or create positivity. Well, hopefully, what we're doing now, will will answer the second one. We are trying to generate interest and some positivity.

52:52 On the caveats, we're in a risk business. We're in a location that is very, used to the mining industry, but not used to the oil industry, and problems do come up. But, yeah, take the point. We don't want to overcaveat everything. I don't want to be overhyping either, but it's a it's a fine line to draw between the two, and we will definitely focus on the positives, wherever we can. The market needs clarification that company is doing a farm out and not a JV. Yeah. Well, that's an interesting distinction. Yes. We are trying to do a farm out, and as I've said, the idea is to get a capital injection of somebody else's money that we can spend on an exciting work program to get production up. On operations, I think Jerry has addressed some of these, but let's have a look.

53:40 I'm not the only long term investor that has doubts about the integrity of PETRO MATAD should ensure a technically competent engineer monitors all DQA activities during the forthcoming operations. We do and we always have done, and, actually, I think DQE grudgingly appreciates it. When they are working for their parent company, they tend to left they tend to be left to their own devices. We don't do that. We supervise them very, very closely, and they rise to the challenge, but we always have very, very competent people in the field, and and I'm proud of the work they do. Jerry's answered the question on sunscreens. Now, hopefully, mister Buck now realizes that PETROMATAD cannot be trusted to do the right thing.

54:29 It's quite obvious that they will try any and all tactics to hinder our progress. I think the same could be said for DQE. Hence, my question previously that MATD should invest in its own rig and cruise, and we we should not be should we be using DQE for the forthcoming test? Hopefully, has allayed some people's fears here. Obviously, from the outside, it's different. It's you don't see the day to day cooperation from, PETRO China that we get. The frustration that we get when they, basically start doing the, you know, want want to suddenly reopen a long negotiation on tax or when they're late to pay when it was them that put in the agreement when they would pay by makes you want to scream. But as they are currently our only mechanism to get to market, one doesn't want to call them names or or or or basically have them turn around and say, well, I'm sorry. It's not worth the hassle. So we have to be careful when we're dealing with PETROMA. They are currently our only option, and on a day to day basis, they are cooperating. We do not see any malice.

55:38 We definitely do not see any malice. So, hopefully, that can help lay some fears. And we have recently got cooperation from them on our connection to the grid, and we have told them we might need new equipment new second hand equipment from them for Heron two and for Gazelle, and they've already started looking around for it. So we do get that kind of cooperation. In 2019, the company reported Heron One of flow rates of eight twenty one barrels a day, choke back to 200. Are you able to advise why the current flow rate is lower than 200 and what steps have you taken to improve? Well, without getting unnecessary technical, as the pressure decreases, once you start producing from the from the reservoir, as it generally always does in this particular basin, then the the pressure decreases downhole. Gas can come out of solution, and then you end up not having, oil flow to surface all by itself at an enthusiastic rate, but then you have to pump it. When you're pumping gassy oil close to the wellbore, it sometimes doesn't pump very efficiently.

56:44 What we are looking at doing, we we looked at a number of things, but now that the well has settled down from a stable production, there is a certain case of it that ain't broke don't fix it. We would like it to be doing more, as Jerry said, pressure support from somewhere nearby. Perhaps Heron two could do that and could help Heron one with its production and its ultimate recovery, but I'd actually rather have Heron two as a producer, and that is that's certainly our goal. What else is in this one? Noting that, the RNS about Heron one was almost six years ago. How many additional wells have in fact been drilled to date? Well, obviously, we've only drilled Heron two on the structure as a as a follow-up so far, but we are, looking for a farm out to make sure that we can use somebody else's money to drill a large amount, a number of other wells very, very quickly.

57:37 On a similar theme, it's now obviously the game PETRO China is playing. Now I think we've we've dealt with that one. Regards to the 30% currently with being withheld from payments, has the royalty and government share already been paid? The answer to that is no. If we are suffering withholding, we don't see why other people shouldn't suffer withholding. So we're holding on to that until it it is fixed. Am I correct in understanding that invoices for production are submitted on the tenth of the month, the payment by month end? Yes. That's what PETRO China put in the agreement and then signed it. In that case, a further payment should have been received recently. Surely, you should RNS about it. We RNS this morning that the May and June payments are late.

58:24 Obviously, we were pushing very, very hard to get those paid in July, which is at least when June should have been paid. And when it became obvious that PETRO China was not gonna do that, but they promised they would pay in August, we then issued an RNS. I would have preferred to official and say the money had come through the door, but there we are. We've we've we've stated what the situation actually is. How can VAT and tax not have been discussed during all that time? This isn't the negotiation of the of the agreement. Of course, it was. The problem was that on the PETROMA side of the table, there was somebody who was very, concerned about what this agreement had in it, and he wasn't there. He wasn't there until the day they were supposed to be paying a month after they signed the agreement. So that really didn't help.

59:10 HumbleZel has given you an update on, what's, what's happening to alleviate these these particular problems. In terms of the PSC, are you able to confirm that no tax on the sale of oil is, is clearly stated in the contract? And in that view, why can't a suitable certificate of certification be requested and provided by the government? Well, as Hong has always told you, that is very clear. Getting a bureaucrat to give you a letter saying that what the law obviously states is true, is is sometimes quite a hard thing to do. PETRO China have basically asked us to get that. We're confident we'll get it. But it's it's it's not quick because there are a number of departments involved, but we're confident that we'll get it.

59:56 What is the current dollar level of expenditure recorded and acknowledged by the Mongolian government for block 20. It's, $60.63, $64,000,000,000. Has this been acquired against current sales under the PSC? It's being accounted for exactly as the PSC requires. For the first many years of production from Heron will be in full cost recovery, which will give us roughly between 7580% of the, of the revenue stream whilst cost recovery is is is underway. A couple of questions here on the farm out. Are some of the farm out candidates from India? Yes. There has been speculation about ONGC. No. They're not. Why is the company consistently cagey about providing meaningful updates on the JV? Not a JV.

1:00:45 It's a farm out. And we are cagey because we have agreements that say things are confidential. We're also cagey. We don't want people to know how many interested parties we've got, how interested they are, because ideally, we will be playing them off one against the other. So so that's why, hopefully, we've told you a little bit more today that will give you some confidence that things are definitely moving in the right direction. On the renewables, the scale and upside of the renewable business needs to explain. Hopefully, I've done that, especially the large export to China projects. Is there potential for more, and is Aqua interested? Aqua is a Saudi Arabia primary investment vehicle for global renewables. They have recently been in Mongolia, and they have recently made press statements about how they want to work in this country, which is really good news for the renewable sector.

1:01:39 So that's very, very positive. Of course, Aqua's interest is in multi gigawatts. Small projects don't do it for them. They want to do, you know, real game changes. So the fact they're interested, I think, leads to the answer to the other question. Is there potential for more? Yes. There is. As I said earlier on, China has an insatiable appetite, and the Mongolian government is is keen to help translate that. Okay. On the renewables as well, what is PETRO MATAD's percentage of this joint venture? Fifty fifty. What dollar levels of investment have been put into the project so far? The team cost us about 300, $350,000 a year to have have the the team dedicated to our our joint venture. And we've we've done, let's see, probably about $1,500,000 in development cost on three projects so far, and we're planning if we can spend it all this year, maybe $500,000 this year on the 200 megawatt project. Hopefully, we'll be able to move that quickly and similarly a similar amount for 2026, and that's the money we got through the door in the recent raise.

1:02:48 When is this project expected to become cash flow positive? Well, certainly, when we get ready to build on those projects, that's when we can start to attract the development premium. We're targeting, we were previously on one project targeting this year. Delays at government level slowed that down, unfortunately. Now we're talking about 2026. 2027 for the 200 megawatt project, but we didn't like to bring that forward. So I think that deals with the pre asked questions, hopefully to people's satisfaction. And we've got some others here that have come in live. Am I looking at the right ones? Yes, sir. Okay. The expected capital allocation to growing production, will this be through borrowing or through cash flow? As I said, we'd like to get over the hump of an early investment in drilling using somebody else's money, get the production level up to a rate where it at least can partially, fund the development and then borrow the rest. And the lenders will want to see a track record of reliable production and reliable revenue. So that is that is our goal there.

1:03:54 What level of PETROMATAD production barrels per day will be supplied to the oil refinery once it opens up? My answer to that would be much as is needed to fill the gap between other people's production on our own, and more. We're not gonna be shy about this. Heron at 60,000,000 barrels recoverable, could be doing a plateau rate of perhaps 10,000 barrels a day, and that doesn't fill the gap. So we want to find more. We want Gazelle to come in. We want Gobi Bear to come in, and we want some other other prospects to come in because we want to be first in the queue to fill that to fill that gap that is evident on the on the chart I showed you. What revenue is expected for the current renewables project? When will the revenue be realized? Okay.

1:04:42 Well, I kind of just answered that one. We're targeting development premia as soon as we can get to ready to build and get those investors in through the door. And so 2026, 2027 is our goal. Revenue from the projects themselves, yes, if we can stay involved through the construction phase, find a way, you know, maybe sweat equity, then we would get potentially a small carried interest. But a small carried interest on a big, on a big project could actually be quite valuable. Next one. Can you give some guidance on the chance of commercial success at all three wells being revisited this summer? Heron two wasn't far short of a commercial rate when we were swabbing it during the well test.

1:05:27 It took a long time for it to come in, but when it came in, it wasn't far short of the thirty, thirty five barrels a day it needs to wash its face. We're obviously hoping for 50 barrels a day as a relatively conservative assessment, and I'd like it to do more than that. I think with the acid wash, we stand a good chance. So I put that at, personally, I haven't discussed this with anybody, but I'd put that at 75%. On Gazelle, those those sands look really good. They're, on logs anyway. They're a bit, they're a bit thinner than I'd like them to be, but we have potential for about 40 meters of vertical standoff from where we can identify water in the well itself. So if those sands, extend laterally down down the slope, then they, then they should produce for a long time.

1:06:17 So I think there's a very high chance that we'll get oil out of Gazelle one, and I'm very hopeful that that production will continue and won't water out. So, yeah, I put that at a better than 50% chance of success. Go be bare. My my my heart tells me we have to test that well. The indications we got from the work we have done since we drilled and then suspended the well are positive. The log motif can't be made to go away, so damn it. We're going to test it. I don't want to curse it by putting a chance of success on it, but, but I'm very enthusiastic for, for doing that. I'm not sure what's happening here. People might be deleting questions as I ask them. Mhmm. How are negotiations progressing with China state utility company for energy export mega project. It was a MOU stage when we when we can we expect a firm contract.

1:07:11 Yep. Good question. China and Mongolia as governments are looking to sign agreements between them, and we're told those are coming soon. We haven't been told how soon soon is. We think moving forward with SPIC on on the agreements themselves, will follow that. But at the moment, we're quite happy to operate, and they're quite happy to, cooperate with us ahead of that ahead of that signing. The things we're trying to do, gathering wind data and getting our land bank up to speed will work for us whether whether it's them or somebody else, but we're very, very happy to have them. How much has been spent so far in your renewables work? I've answered that one. On the raise money put into some step of the 200 megawatt project, is that met equally by the other owners?

1:08:04 No. We are funding this 100%, and the negotiations are ongoing as to how that impacts the share of the project when it reaches ready to build status. Let me see what else. Okay. Sorry. I just got, slightly lost again. What happens to the generator once Heron one is connected to the grid? Well, there will still be a few little power uses of need. It could move to Heron two, Gazelle one, or Gobi Bear as and when they come in. And we have another generator set set up if we have to do a remote connection until such time as we can extend the grid to our other prospective wells. So, that's that's what would happen to that.

1:08:53 Okay. Can we please put figures on the renewables project expected revenue rather than refer to them as very valuable? I think I've done that. So if you take development premium between 50 and $100,000 per megawatt, and we've got 1.7 1.2 1.7 1.774 gigawatts, then it's a multiplication. I wouldn't value the export to China that way at the moment, don't get too carried away because it may be a little bit in the future. But I think we've given some, some some figures around that. Does production production of under 60 barrels a day cover the cost of wages, salaries, and g and a on a monthly basis? It does.

1:09:39 We've been, as I said, cost controlling to make sure it does, and that's where we're at. Can you confirm that with a 5,000 to 9,000 barrel a day full field development, we'll be looking for annual revenue before pharma partner share of around 72,000,000,130,000,000 at a $40 netback. I guess this questioner has actually done that calculation. Yeah. The the netback at $70 a barrel should remain at least for the period of full cost recovery, which, as I've said, is to recover $6,060,000,000 dollars plus. That will last a long time. So that netback will last throughout that, and then the fiscal terms for the air for the period where we'll be in profit oil and the sharing of that with the government, those fiscal terms are quite favorable too.

1:10:30 So, yeah, don't hold me to it, but your math sounds okay. How does that potentially impact on heroin asset value? How would you value the heroin asset now? I think we gave some indication a couple of years ago shortly after we've made the discovery when we were talking about a a 30% recovery factor that we would be looking at a net present value dependent on oil price of a 150,000,000, plus at a 10% discount rate. There's no real reason to change that at the moment given that the oil price is in around about the same place except for the fact that we have now done that work that tells us double the recovery factor would be analogous with what's been done in the basin, which we didn't think at the time. We thought that PETRO China's recovery was substantially lower than actually it is.

1:11:23 So, potentially, we could see a doubling of that. We haven't rerun our economics recently. We've been too busy on other stuff. Just been wanting to make sure that the oil we get through the door is paid for in full, and, it will, satisfy the needs of the company to run itself plus a little bit more if we can get, production up. Have I reached the end of the questions? It looks like I have oh, no. There isn't one here. Does PETRO MATAD intend to claim interest and late payment charges against PETRO CHINA? Well, you know, if the wheels completely fell off and, we decided that it was time to play hardball because we didn't care if they shut us down, then we would pull absolutely every lever.

1:12:08 They're in contravention of an agreement that was negotiated over a long period between the two parties and then signed by the two parties. So I think we would have very, very good leg to stand on to do all that. So, sometimes, you know, I reach for that particular lever. But right now, we believe in their good intentions even if the demonstration of that on a monthly payment basis is not exactly where I'd like it to be. So, yes, there is a scenario where we could try to charge that, but we're not doing it at the moment. That seems to be the last one that we have received. So Absolutely, guys. And thank you very much indeed for being so generous of your time then addressing all of those questions that came in for investors. And, of course, if there are any further questions that do come through, we'll make these available to you immediately after the presentation has ended. But, Mike, perhaps before really now just looking to redirect those on the call to provide you with their feedback, which I know is particularly important to yourself and the company, If I could please just ask you for a few closing comments just to wrap up with, that'd be great.

1:13:12 Yeah. Okay. Thanks very much. I hope we've been able to answer a number of the questions that have been asked, I would say, since the raise and, you know, before that. People were people were asking clever and informed questions before, and they always do. We want to make sure that our, reporting to you guys is is open and honest, and we don't want to overhype, but we certainly don't want to undersell. We're working really hard to get this moving, to make this work, to get production revenue up, to get a partner in, to be able to move things forward rapidly, have good news flow, have good things to spark up with rising share price. And on the oil side of things, we've got a fantastic little team here that does a brilliant job in the field. We don't need to bring in expat expensive expats to oversee their work. They do they do it very, very well, and we're very, very proud of them. I'm very glad that we did the renewables when we did.

1:14:08 Our decision was at the time of the the latter end of the pandemic. At the time, it felt like a bit of a hit and hope because the track record of renewables in Mongolia was not very good. There had been stagnation for a number of years. It looks like our move was well timed. It looks like we can actually get through the doors of seriously large development premium as and when these projects come to fruition. So, I I'm very glad that we've got that second string to the bow, and we are working hard every day. We will try and improve our communications. I know I've said this before, and people will probably tend not to believe me. But I'm saying it again, we will try and improve our communications, keep everybody up to date as much as we can, and, I certainly thank you all for your attention.

1:14:58 Perfect, Mike. That's great. Thank you all, once again for updating investors this morning. Could I please ask investors not to close this session? You'll now be automatically redirected for the opportunity to provide your feedback in order the management team can really better understand your views and expectations. This will only take a few moments to complete, but I'm sure it'll be greatly valued by the company. On behalf of the management team of PETRO MATAD LIMITED, we would like to thank you for attending today's presentation. That now concludes today's session, so good morning to you all.