Predator Oil & Gas Holdings (LSE:PRD) — Corporate Update

0:01 Good afternoon, ladies and gentlemen, and welcome to the PREDATOR OIL and GAS HOLDINGS PLC corporate update. Throughout this recorded meeting, investors will be in listen only mode. Questions are encouraged and can be submitted at any time using the Q and A tab situated on the right hand corner of your screen. Please simply type in your questions at any time and press send. Given the significant attendance on today's call, the company will not be in a position to answer all questions submitted today, but the company can review all questions submitted today and we'll publish those responses where it's appropriate to do so. Before we begin, we'd like to submit the following poll and I'm sure the company would be most grateful for your participation. And

0:32 I'd now like to hand over to CEO Paul Griffith. Good afternoon. Good afternoon everybody and thank you very much for giving up your time to join this presentation. So if we start here at slide three, and the first comment is shareholder aligned team. That's quite a cynical comment for some companies, but in this case, wanted to tell you why we are aligned with shareholders and our history basically of where the company came from. So those who founded PREDATOR are still directors and senior management of PREDATOR. We developed the Tendrara opportunity that was then subsequently gifted to Sound Energy, whose shareholders enjoyed a spectacular result after drilling my planned well for which I raised 13,000,000 for. That loss of potential value was a direct result of the public markets. We'd been a private company up until that point when we had brought Cosmos into Morocco, for example, and then when we reversed into a public company, things changed.

1:34 We never forget and we never forgive. That's our motto. If you don't like it, tough. That's why we will do whatever it takes to start drilling MAU5 next month, or what is the best risk reward opportunity any of us have ever seen. And we've been in the industry for forty years each of us. So that's why we're doing it. We want the opportunity to go a second time round and create another investment success which Tenderra was in the initial stages after it went to Sound Energy. So why are we so excited about if excitement's the right word to use in this business and in this market about what we have as a company.

2:22 So we have a risk value of 136p per share, and that was independently assessed by Research Note last year, and that's simply on Titanosaurus MOU five. We are the first mover on helium in Morocco. Helium was analyzed in MOU three. We didn't realize at the time the significance of it until we heard about the helium discoveries, for example, in Tanzania and East Africa and elsewhere. MOU5 may provide the volume and concentration for a very good helium result. We have an extended programme of testing to unlock the compressed natural gas contingent gas resources.

3:07 Sure, everybody is frustrated about the speed and the difficulty in meeting our targets on the testing programme. Look, I don't apologise to that. We have to do whatever we have to do on our learning curve to get the CNG development underway. We don't give up on resources just because the going gets tough. When the going gets tough, we get going and we continue going until we get a result. So that's not forgotten about. It's still there the table for 2025. There's the opportunity to add the high pressure zone in MOU3, which we encountered whilst drilling, and that has contingent resources and potential flow rates that could kick start an immediate CNG development plan.

3:57 And that's important because we have to go to an exploitation concession relatively quickly in order to secure isolation, if you like, of any MOU 5 discovery from proven resources around the contingent resources around MOU 3 and MOU 1, so we can secure that under an exploitation concession, which leaves us free to divest any elements of the MOU5 success in the future without divesting the whole block. So that obviously makes a lot of sense to do it in that direction. So we also have cash flow and production in Trinidad. Yes, it takes time to ramp up that cash flow and things come along that are unexpected, but also can add value to what you're proposing to do in 2025.

4:45 We've also scaled up our acquisitions. We've acquired and announced recently an acquisition in Trinidad and we're working on a second acquisition that will help them again with the production profile. And most importantly, during the latter part of last year, we negotiated the MOU for the wax treatment, which is a patented wax treatment that can increase flow by up to threefold based on Saudi Arabia Aramco examples over the last five or six years. And in Ireland, we're still at the table after eight years, seven years, well, it'll be eight years in May. We are still at the table with our successor authorization and right now, security of energy supply is the most important element of policy in Europe and Ireland.

5:35 It's not renewable energy anymore, it's security of energy supply when the wind doesn't blow and the sun doesn't shine, and finally they're getting the message. So, we have no debt. After eight years of building this portfolio and operating it in three different continents, we have no debt. We have our running costs of 950,000 sterling a year. These are the running costs for the company at corporate level and include something like 230,000 for auditors and company secretary and accountants. These are the costs that you have to be faced with as a public company. This is the public market. We're regulated by the FCA. We are not an AIM company. We're a main list company integrated on the main list now after the reorganisation last year, and we are regulated by the FCA, which means there's a different set of controls for us compared to AIM, which is regulated by NOMATs.

6:36 Lastly, we have an experienced technical managers, over forty years experience, most of us. And our job is to make sure our assets are in a condition where we can look at a divestment programme. That's very different from the market valuing our assets. The industry values our assets based on legal title, funds spent on developing the assets, and resources, exploration potential, all these other good things that the market currently gives no value for. The market only gives value for, oh, you've flowed 100 barrels a day today, you know, or you flowed a million cubic feet of gas. That won't get us over the line with our divestment.

7:21 So I make no apology whatsoever for focusing on securing the assets in a way that allows us to divest them. Anyway, so that's that's the that's the introduction, a long introduction. You have all probably had a chance to read the presentation. Next slide is just where the assets are. And then summary of investment. So we are called PREDATOR and the name arose out of the inability to stay in on the Tendrara opportunity back in 2014. So one thing is about scale.

8:07 Scale of MOU five, we're looking at a structure that is 187 square kilometres. That's Greater London for perspective. You're looking at vertical relief on it, which is like 20 times higher than a Titanosaurus Rex. You're looking at 2P gas resources of 4.4 TCF net to PREDATOR. You're looking at 1,300,000,000 un risked, the undiscounted annual gross revenues net to PREDATOR in a success upside 2P case at a gas sales price of $7 an Mcf. You're looking at 2P helium resources net to PRD of 74.6 BCF. You're looking at $30,500,000,000 gross un risked, undiscounted $2,000,000,000 Helium revenues, because Helium is priced averagely at $400 an MCF.

9:00 That's a conservative 136% pence per share with a 12% risk factor for gas and 6% for heating. Much discussion in the questions about the risking and I'll deal with that in the questions. Q1 twenty five is fully funded work programme and that same would also at de risking the MOU3 gas flow. Again, that can deliver in 2026 cash flow. 300 barrels a day production by Q2, Q3 twenty twenty five. That's fully funded for production startup. Complete the farm out divestment of Corribs South, well that's subject to award of a successful authorization and I'm not sure, but as of yesterday, the Irish government was still arguing over the procedure to in the Doyle to elect the tea shop.

9:50 And then acquisition of production and monetizing these assets through divestment is an important part of the policy. But let's not forget the top line bullet points. Where else in the world onshore at present can you have this kind of risk reward ratio for 2,400,000 well where PREDATOR has 75% and Onin Estate 25%, vast potential prospective gas resources, and three kilometers from infrastructure linked to Europe, linked to the Moroccan power stations, which is completely underutilized at present, because Morocco only imports about 100,000,000 cubic feet a day at present from gas from Europe. When Europe is crying out for gas, and we're sitting on one of the best structures to be drilled onshore this year, without a doubt, and in the best fiscal regime.

10:50 No corporation tax for ten years. And a gas price lower than European prices, but sustained to, for example, the gas to power at $8.67 per Mcf. That's what's been muted and averaged in in the last eighteen months. So don't tell me that this isn't worth a run. And that is the reason why management is totally aligned to delivering MOU five no matter what anybody else says by our deadline which we've quoted in the recent RNS. Everything is in place to do that and that's what we're working towards. So, I don't understand why people think that we simply say that are we going to drill MEV five then we don't. There are reasons we can be firm on commitment times and there's reasons where we can't because of variability in the supply of equipment and services.

11:50 In Morocco everything has to be imported. Morocco is not like Trinidad. It has a tiny oil and gas industry and very little services and the demand for services is not great. So the international companies don't want to bring things into Morocco unless it's a longer term contract. That always hits us when we're trying to plan a programme and trying to plan schedules. And that isn't going to change in the short term. We are the only company drilling at present in Morocco onshore or actually even offshore. And that isn't likely to change for the next six to eight months. Okay, so moving on. Hopefully. So this is a news flow over the next twelve months. Q1, we're drilling MOU to five.

12:43 Q2, we're evaluating the potential for divestment in a success case. We want to retain the helium rights, and we're going to do some more work on satellite remote sensing for, see if there are any other additional helium opportunities in and around the MOU5 area. Divestment can only occur if we have a successful well and the results are unambiguous. There's a good chance that that will be the case, and therefore we've got to be prepared for a divestment. We will continue with perforating the shallow high pressure gas in MAB3. This is easier, believe it or not, now to produce because it doesn't have the same reservoir character as the character of the reservoir that is causing us problems in MoV3 in order to find the best way of evaluating and producing that reservoir.

13:38 You have to remember that of all the entities operating in Northern Morocco at present, we are the only entity that didn't inherit an existing gas discovery. Everything we do is creating a new learning curve. So, we can't rely on we thought we could rely on, for example, Raft Basin, but in hindsight, after drilling, it's not possible for us to rely on their mud systems and the way those wells were drilled. So, it's a plus and it's a minus, but in the end it's an overall positive, because the volumes have not gone away, the potential to flow the reservoirs have not gone away, but it takes time and that time has to be spaced out, because it's not easy, despite what some of the questions seem to think or imply, to bring equipment in at the right time for when you want to develop a potential asset or operation.

14:40 We will also progress and are progressing the workovers in Trinidad, And the target there is up to 300 barrels a day full production by the end of Q2. Now the reason why some of that has been delayed is because last year we entered into an MOU with a wax treatment, a patented wax treatment used by Aramco in Saudi Arabia through a local company Earth. It's never been rolled out in Trinidad before. It meant that one of the chemicals had to be effectively approved by the environmental ministry, because it had never been used in Morocco before. So that delayed things a little bit.

15:31 But on the other hand, we also progressed the acquisition of Caribbean REX, the 51% controlling interest in Caribbean REX, which gave us access to the oil tanks that we need to store oil. We can't just produce oil and truck it every day to the end of a pipeline somewhere else because the costs are significant. You have to store the oil and truck it in a bigger truck all at the same time to reduce the actual cost per barrel of oil and moving that oil around. But the wax treatment is vital. If that proves successful, it can increase oil productivity for up to threefold. If we started earlier in in terms of the the workovers, we wouldn't have been able to done or carried out the wax treatment, so we would have not known fast enough whether the wax treatment was going to be as successful as we fully expect it to be. And there's a question on the wax treatment which I'll answer.

16:30 We completed the first acquisition of Trinidad Field and we're working on a second acquisition that again could increase our production over and above the 300 barrels a day to 330 barrels a day. And we're evaluating undeveloped field also, from which is 400 barrels a day, tested 400 barrels a day from two existing wells. And that would be potentially towards the end of the year, an application for a new license. So it's not a case that we sit back as some people seem to imply and do nothing. We do everything that we have to do to move our projects along. And we have three core areas or two core areas which are Morocco and Trinidad.

17:18 And we have, if you like, the candle on the cake, which is Ireland, which could bring us value that we would not have anticipated a year ago. So the key catalyst for near term growth obviously it's Titanosaurus, the testing programme, the Korymuruga workovers. The only reason to dwell on this slide is in the research note, there was the 12% chance of success is based on a certain percent a certain gas price, for example, $7 in MCF, which is conservative because industry is $12 but gas to power for Titanosaurus is about $8.67 and for helium the 6% chance of success depends on your helium concentration. Now we can't give you a helium concentration that would be anywhere near accurate at this point in time, because we found helium in Mau3, we weren't looking for helium. It was in a gas sample that we had analyzed, and we were very pleased that that gas was biogenic gas, and it had some bit of helium in it, which we didn't register with us at the time.

18:40 So we can't be absolutely certain what that percentage is, but what we can be certain of, that was the only gas sample that found helium. So it wasn't as if this was like a renegade value over the entire well. This was concentrated at a point in what we call the millivia fan at one point at the top of the fan, not even in the best part of the fan. So there's plenty of upside in terms of de risking this. But if we were to de risk it to 50%, the numbers would be for a pence per share. The numbers obviously would be much larger. Some people also forget that we already have two c contingent resources of 1,400,000 barrels in Snowcap One, and we have over 12,000,000 barrels of additional prospective resources in Corimaruca.

19:34 So our value is also underpinned by our production, our oil assets in Trinidad.

19:46 So our corporate strategy is one, we're fully funded to drill MOU five and we're fully funded for production enhancement onshore Trinidad. Production is important because it forms a safety net so that we don't have to go to the market for corporate overhead, for example. And it also means it's a hedge for us. Right now, sterling is relatively weak against the dollar, whereas we get paid the equivalent of US dollars in Trinidad and Trinidad's currency is is linked to the US dollar. So it gives us some protection against raising money in in sterling, and the exchange rate risk that might exist and going forward under the new administration in The United States.

20:32 We've always maintained a debt free status for the last few years. And that's unusual for a company of our size with our breadth of portfolio of assets, and the fact that we've drilled already four wells, made at least one acquisition, and kept all our assets intact 100% in terms of our equity, original equity percentages. We always maintain cash balances 4,350,000,000 as of twenty four nine twenty four, and another 2,000,000 in November last year. People say, oh, what did you spend the 10,000,000 on? Well, we haven't spent the 10,000,000. Someone said we spent 10,000,000 on testing. We haven't spent 10,000,000,000 on testing. Otherwise, we wouldn't be drilling MOU five.

21:20 The other thing is people say, well, why do you need to raise money for this? Why do you raise need raise money for that? Well, at the end of the day, it's all about having the money on the balance sheet, because at the end of the year, you have to go through a company audit. That audit has to demonstrate that you're going that you're a going concern. For companies of our size, and other companies smaller than us, it's a critical critical item to tick. If you don't get through your audit, you can be suspended. And that has happened quite often in the last year, companies being suspended. So we are not going to sleepwalk into a situation where we get suspended because our auditors say, well, you don't have enough working capital for twelve to eighteen months, even allowing for a Trinidad production, which some orders will take into account, others won't.

22:17 So that's the reason we're maintaining healthy balances with the flexibility to do things. It's no good to shareholders if we're not trading. You don't have a, you know, an asset to trade. And there are plenty examples in the last twelve months where you can see that. Someone said that, you know, practicing financial discipline, we didn't do it. Well, I can assure you every single item that we spend has to be approved by me. We do practice financial discipline. That's why after eight years we have no debt. That's why after eight years we still have all our licenses intact at the same equity interest. That's why the governments we work with welcome us in their jurisdictions.

23:04 That's why ministry asked us in Trinidad to contribute to COP twenty nine in November, which we did. So we do whatever we have to do in terms of financial discipline. And I won't take any argument whatsoever that we don't practice financial discipline. Go and invest in some of the companies that are in the situation they are at present, because they did not practice financial discipline. So manage poor exorics. We have explained how we are going to do that in Trinidad by getting alignment with The United States dollars and production revenues. We had no employees. Someone asked whether I was an employee of the company and why didn't I take a pay cut, because I was the employee of the company. I don't live in the Victorian age. I founded this company, I brought every single asset into this company, I financed this company in the very beginning, and I'm not going to be treated as an employee by anyone.

24:04 You don't like that? Call an EGM, remove me, and if you've got so much experience in this business, appoint yourself as the next CEO of the company. Because you obviously know more about us in this sector than I do. Europe and UK. We don't invest in Europe and The UK, except for Ireland, which is a special inherited asset where the security of energy supply gives us a competitive edge. Frankly, the energy transition policy is flawed in Europe and UK. They've downplayed the importance of gas. So what happens when the wind doesn't blow and sun don't shine? They have to rely on gas and they end up paying astronomical costs for gas fired power electricity because they're buying gas in the peak demand period of the market, normally the winter market.

24:57 Gas storage is dwindling in the in The UK. Trump coming in is going to flood Europe with LNG. Well, you know, so Europe then becomes a puppet of The United States. Operatorship of assets. We have always maintained operatorship to control our costs and to accelerate, believe it or not, accelerate execution of strategic decisions. If we were a minority partner, we could still be waiting years to get projects off the ground and moved along. But we control our projects. We control the timelines. Sometimes they're attractive for shareholders, sometimes they're not. Tough, that's a fact of life, that's a fact of our business. Project equity. We maintain undiluted asset prior to divestment.

25:46 No point in diluting your asset down to 10% and expect people to come running to your door because they're a material asset. So choice is either dilute at shareholder level or dilute your assets, which in turn dilutes the value, potential value in the company, and makes it 10 times harder to look at divestment or farm out. You don't have enough interest to offer. So it's a choice. You make the choice. No, don't. We make the choice because we know the industry and we know what the assets are worth to a potential buyer. They're not worth the same to traders. Of course they're not. Yeah, because they're trading in the shares. They're not trading in the assets. We are trading in the assets and that's a completely different model to trading in the shares.

26:38 Corporate structure. So what we've always done is wholly ring fenced all our projects. Just simple thing. Amazing how many companies don't do it, which means if we want to divest, we can divest a subsidiary and change the share structure of that subsidiary to give control to an incoming party, and that's a change of control, consent, and it doesn't involve any more complex regulatory approvals if you're selling an asset. If we were selling an asset in Morocco, we'd be taxed on that sale. If we're selling shares in Jersey, there is no capital gains tax. So that's the way the companies are structured in the way they're structured.

27:27 Okay. Pausible breath. I won't go through this, because everybody I hope knows why Morocco, why GAS PLC. Fiscal regime, very benign, no signature bonuses unlike many places in West Africa. Fantastic infrastructure, not many places in the world where you can have an open pipeline to Europe, which is completely underutilized. Morocco needs to replace coal with gas, so the government is very supportive, despite some of the questions that have challenged that. The government is extraordinarily supportive of the gas industry and they do help us.

28:18 They are limited by their bureaucratic structure which all government agencies have. But we can work within that structure and we've done that very well over the last six months by working with our partners and not working against them. And Gursief is unique. It's never before was explored in this particular part of Gursief until we came along. And the prospect scale is unique. The biogenic gas potential is unique. The CNG transport to industry is unique. The generative potential of biogenic gas is unique to Morocco, 70 CF potential. So, we have all the elements for a big discovery, but if anybody thinks Morocco is like the North Sea, I say it's more like Ireland.

29:06 That the geology is right, the infrastructure is right, fiscal regime has got a little sour in Ireland, but it has all the elements, but it will not reveal or release multiple fields like the North Sea. Ireland Kinsale field 1.7 TCF, Coric Gas field 1.1 TCF, and Morocco is going to be like that. It will yield one big field at best two big fields. It will happen a bit like Ghana before they discover Jubilee. So Morocco is that kind of environment. It's not an all North Sea environment where you just move along, drill a price well, boom, you put it on production or you make another discovery. That's not the same geological environment. Trinidad, you know, a lot of people say why Trinidad, you know, but at the end of the day it's proven oil. They produced over a billion barrels onshore and the beauty about the onshore is that it's ripe for new technology like the wax treatment, like applying improved up to date petrophysical analysis, like applying different geological vision, like singling out the low hanging fruit plus the bits of wells that have been neglected.

30:23 The difference we have in Trinidad is twofold, basically. One is we went in and acquired Cori Moruga, because it was a near virgin undeveloped field with initial discovery from just one of the eight potential reservoirs on the block of over 1,200 barrels a day initial IP production. And two, we had created a situation where we had $47,900,000 worth of tax losses to offset against production. And a problem in Trinidad is that they couldn't get the production up mostly fast enough in the older mature fields to utilize all the petroleum profit tax, tax loss as a relief. We can do that.

31:09 And the WACS basically treatment is potentially a game changer. And I don't say that likely. It hasn't been done in Trinidad before, but what it does, and I've seen the experiment on the desktop, and I've seen the numerical modelling, it fits all the boxes of what you would geologically expect this new treatment to do. I'll answer a specific question on that in the question and answers. Okay, so why Ireland? Corrib South is 18 kilometers from the Corrib Gas Field. Corrib Gas Field resources are dwindling, throughput is dwindling. Ireland is coming almost a 100% reliant for gas in the winter on the interconnector eventually through The UK.

32:01 That situation is not going to be redressed unless more gas is found. Ireland has no gas storage facilities. It's sitting there. The the the last storm, next storm is due to hit any second now. And at this time, if they had to increase gas supplies from The UK in an emergency, I don't think those gas supplies would be available. So Corrib offers us a security of supply option. It also offers us the ability to put our MAGMEL FSRU concept place at the end of the Corrib gas pipeline instead of a ram head. And it also offers us or Corrib South offers gas storage facilities as well. So it ticks all the boxes for security of energy supply, which is going to be the number one priority of the new coalition government.

32:56 We have already met over the last eighteen months key independent TDs who are equivalent of our MPs, and I'm pleased to say that several of them will be in the coalition government, and I'm meeting them in a couple of months time to resurrect FSRU concept and mag battle with them, which we discussed with them over a year ago, and they were very, very supportive of, but had no position of power authority then in a coalition government. So we're not sitting here saying that we're starting to go into big business on LNG imports and FSRUs, etc. We're putting together the concept, we'll secure the minimum case, the gas storage facility at Corrib South, and in a positive case, up to one TCF of gas, prospective gas resources.

33:55 Corribs South is a look alike for the Corribs gas field. And of course, President Trump is going to flood Europe with LNG, But bad luck Ireland, they've got no LNG import facility. FRICU is the quickest way to get an LNG import facility. If you try to build it onshore, it's like Shannon, it's still gonna take several years. So, we're in the right place at the right time. If we can sell the concept on as a business, with all the approvals, some of the approvals at least in place, and with Corrib South awarded, that has value and we already have one of the owners in in the current gas field have already made an outline proposal to farm in, not just to us, but also notifying the Department of the Ministry in Ireland that that's what they wish to do. But we have to get the successor authorization awarded first.

34:51 So outlook 2025, Baroque and gas near production, Trinidad oil production, blue sky Tatianosaurus, and not listed here, but an energy infrastructure play in Ireland. So, summarise, MOU five is the higher risk, higher award proposition being drilled end of end of February, well will take maximum ten to twelve days to drill, already funded, ready to go. And then everything else is a layer below that in the sense CNG production, CNG development rather, potential gas flows, gas flows from from all the the wells that we have drilled to date, where we think there is the possibility of gas flow and the high pressure gas, and also gives us the opportunity for either partial or full divestment in the event that we our preferred option is to go down that route at the earliest opportunity.

36:01 In Trinidad, we will continue with completing acquisitions of producing assets, and I should add that we acquired an asset that we announced for zero cost consideration. What we did was put up 170,000 effectively by the oil tanks that we needed to store oil up to 400 barrels in Jacobin one, and we also bought some other equipment that would help us with, not just producing the oil, but obviously moving the oil to where the point we want to sell it. So a neutral transaction, we had that money already in our working capital forecast for the facilities that we would have to buy. So, not often that you can buy a field where we have already restored three of the seven wells, to production, and this four male former wells to to restore to production, and you can buy that for zero, basically.

36:59 Next slides all refer to the appendix. So the only one I'm going to look at now is MOD3 rigorous testing. So firstly, sand jet rigorous testing tools were deployed and they successfully perforated the reservoirs that we initially wanted them to perforate, TGV4 and MA sand. Pressure build ups reached two forty six psi and 159 psi and then became static. And there was no flow of any reservoir fluid or gas to surface, so nothing got to surface. But certainly nothing came out of the formation other than potentially, well, than mud filtering.

37:50 So the well hadn't cleaned up enough, because what we had to do effectively, what we now know we have to do is to draw down the pressure on the back pressure, if you like, on the reservoir caused by the fluid column in the well, so to increase the drawdown pressure. So that wasn't possible to do that swabbing at the time, because we didn't know at that time what the problem was, till we analysed the data and looked at what the possibilities were. We had an independent study done by John Tingas, who did all my reservoir engineering work incidentally for Tendrara. And Tendrara came on stimulated at 40,000,000 a day, so proved the value of working together with a reservoir engineer.

38:39 So he concluded that the wells will flow, but we have to increase the drawdown pressure, which is the next step. To do that, we have to do a safety case. The reason why we have to do a safety case is because if we increase the drawdown pressure too much, then we could have a blowout at surface. And nobody wants that, least of all our insurers. So we have to be very careful in what we do, Painstakingly slow process, but I don't care because at the end of the day, I need to sell an asset that is de risked. I don't I can't sell a blowout to the industry, I'm afraid. And I can't jeopardise all the other reservoirs in that well that have been safely secured behind casing, just to, as one question put it, taking time to reach the finishing line. I'm sorry, we're not in a 100 meter race.

39:37 This isn't the Olympics. We don't we're not there to to run a 100 meters to try and get to the finishing line, so that we get a little bump in the share price but for the next four. Now, we're here to do whatever we have to do to sell the assets. So, it's not a finishing line for us. We're not racing against you saying, but he's retired. I'm not gonna retire anytime soon. So, last point then is that the volumes here are significant. So, we still have $69.61.9 Bcf two c resources. So, in the just in the TGP six and MA sand, which is what we're concentrating on at present. Now, say well, don't you test MAU1? Why don't you test MAU2? Why don't test MAU4?

40:24 Why don't you test more RESWARS? Our priority at present is to test MA SAN to make it work and to get that result de risked and then to perforate the high pressure sand. The high pressure sand doesn't have any other problems, reservoir problems or mud problems of the deeper sand. The problem with the high pressure sand is we couldn't stop the gas coming into the well. You know, that was that was how pressured that gas was and how connected that gas was, even though it's such a shallow depth. Many examples in the North Sea where you get shallow gas, that some of it is produced, for example, The Netherlands. So that was turns out to be the easiest option, but we can't take we couldn't take that option until we had completed, you know, a safety review of how that gas could be produced safely without causing us again to lose a well.

41:21 The why you would produce that shallow higher pressure gas first is because you don't want to back out all the other reservoirs in the well. And that is one of the problems that we've been wrestling is how how to flow test potentially the MA sand, but potentially co mingle the higher pressure sand. But in that instance, could have cross flow, all kinds of things. So, what we want to do is to separate out the two operations, and our priority would be to produce the shallower most sand first, then the deeper sands, then the deeper sands. We don't need a lot of gas to kick start the CNG project. And in many of the ways, a smaller project is easier to manage and gets us to our objective. Our first objective is to apply for an exploitation concession to secure the acreage, to separate acreage out effectively, the different license from an exploitation license for a potential divestment.

42:22 Because we can't divide up the acreage, if we want to divest say MOU5, we have to give away the CNG gas at the same time, even if we give away shares in the company, which is in a subsidiary, which is our intention. So despite what a number of questions ask, you know, are we fit for the job? Or why am I personally fit for the job? Well, I, you wouldn't want to know what I did after I read that question, because I was disgusted quite frankly. Quite disgusted. And if that person wants to come up to me and say that to my face, I will give him chapter and verse why he was absolutely wrong in what he said. Obviously, there may be other reasons, but I won't tolerate any of that kind of abuse.

43:11 Okay, so next slide is perforating the ASAN. So we've talked about we can perforate the ASAN, we have 21.1 Bcf of 2C contingent resources in just the ASAN alone, that is sufficient for us to kick off our CNG project, even a moderate case of 3,000,000 a day, which is being conservative, we believe we can get at least that out the reservoir, but we have to have a profile of four or five, six years from CNG while we get everything going and deliver, you know, an FID and an exploitation concession. And that would generate us over a BCF annually, which, for argument's sake, is more in the order of, well, $1,213,000,000 dollars gross revenues, anywhere between 6 and $8,000,000 net revenues, depending on the arrangement for the gas offtake.

44:09 And contrary to speculation on questions as well, we are still collaborating very much so with Africa Gas. They were texting me after the RNS announcement. We're going to meet up again in Morocco ahead of the SPAD for MAU five. The only, I'm saying issue, the only thing we're considering internally is what we do with the helium, whether we put that into the overall package with of collaboration with Africa Gas, or whether we try to get a look at that separate. There are Middle East entities who are looking for helium and have a lot of experience in helium. And it would be good of us to have a couple of options for helium, not just Africa Gas, but but another bigger option if the helium proves up to be a viable option for us, because helium would be very difficult to develop.

45:08 It's produced in a gas field, Hassi Mazud in Algeria, but we don't, you know, we'll be honest here and hold our hands up. We don't yet know how to process out PDM from natural gas and the economics of that etc. So it will be a nice problem to have at this stage, but it will require a huge amount of work to get it into a development situation, which is why divestment is obviously an easier option. People talk about how are going to fund this? You know, it's the age old thing. You get a bit of success, and then oh, how are going to fund it? So in this instance, the obvious way for the CNG development is that you would pre sell gas, forward sell gas, not huge amounts because development costs net to us at most a couple of million dollars, and an arrangement with Africa Gas, who would potentially lease and buy the trucks and and just buy the gas at the wellhead means all we need is a compressor.

46:10 Very little processing because it's 99% the the intervals we want to test produce, a 99% methane dry gas. If it was a case of appraisal development on gas to power, well, that's why we're going down the divestment route. Now, you won't sell that for a billion dollars in day one. But what you then do is structure a deal whereby you get significant back costs, significant costs, opportunity costs for getting the license interest for getting into the the the project, and also then milestones as various things ticked off. Like, for example, an appraisal well development, first gas, etc. So that is the structure agreement. Nobody nobody in this planet is going to give you maximum value, maximum resources value after one well. So you have to structure it in a way, hopefully better than some farm outs have been structured.

47:14 And that's why it's very important to maintain debt free status and cash in the bank. That gives you much greater leverage with someone coming in on a divestment process than if they think you're a wounded sick animal that basically needs an injection of cash before, you know, you can even, you know, get up in the morning. Well, that's not us. That's never will be us. We're called PREDATOR for a reason, and we'll never give an inch on values in terms of what we can realistically achieve for a divestment. And the the keyword there is realistic. And being in the industry so long, people who look for absolute values, absolute time scales on a divestment or whatever, they don't understand the industry. It never works that way. You always try to achieve the best possible result in the shortest time framework. And that is normally after a discovery.

48:12 As the cycle grinds on, the value of that discovery starts to unwind. Okay, so I think I've talked enough now. Just on Trinidad, one last thing here and this is what we're looking at in terms of primary depletion and cash flow. So, for example, looking at a full quarter, the quarters are Q2, Q3 and Q4. The bulk of the production just for three workovers without any stimulation is for the first quarter, because naturally in Trinidad, all fields declined quite rapidly in the first twelve, eighteen months. And there's all kinds of technical reasons for that.

49:00 So, in the first full quarter of production, 300 barrels a day, we could net back up to or just over $1,000,000 in cash. That's after taxes, after field opex, etc, after royalties to the government or whatever. So, it's very cash generative. But the trick is to arrest that decline that you see there in the second and in the next quarters, and then the year afterwards. And the reason for that decline is because you don't have the same energy in the reservoir because the wax content, because the oil is viscous and because the gas content which drives the mobility of the oil and allows it to flow into the wellbore. So, if you can find a mechanism that allows you to reduce the viscosity whilst at the same time bringing gas into the lift, then you've got a winner potentially, and you could maintain, certainly for two or three quarters, maybe a year, maybe two years, all that cash flow that you see there in the first quarter. So that's why I say, or we say, that the wax treatment is a game changer.

50:18 We don't know whether it's going to work in practice. What we do know, it's worked in Saudi Arabia and in different circumstances for heavy oil and also waxy oils, that has not been tried in Trinidad. But what we do know geologically is there's a very good reason why it should work. It ticks all the boxes. And then rolling that out is a very small risk for us. The costs are all included in our working capital forecast. The investment is small. The reward for increasing the productivity of the world is tremendous. Now bear in mind, Snowcap one flowed 1,200 barrels a day, we think a stabilised rate of 200 barrels a day is achievable. A wax treatment could increase that a little bit more.

51:06 But the reason why we can't go full blown on reservoirs is that we don't want to be producing the gas cap, for example, in Snowcap 1. And then you've got management issues with trying to control the oil production. So there's a neat way to try and find a balance. Okay, so that's enough. That's the last slide. There are a couple of other slides, but I think we should move to questions now.