Prospex Energy (LSE:PXEN) — Annual General Meeting

0:00 Good morning, and welcome to the PROSPEX ENERGY PLC Annual General Meeting Proceedings. The Company may not be in a position to answer every question it receives during the meeting itself. Have a good view all questions submitted and published responses where appropriate to do so. I'd now like to hand you over to Bill Smith, chair. Good morning, sir. Thank you very much, Paul, and good morning. It's, just after 10:00, and I declare the meeting open. I am the chairman of the company, and I will be chairing this year's annual general meeting. And after the formal part of the meeting, Tom Reynolds, the CEO, will be giving a brief presentation. I have, in the room with me here, the following directors present in person, Tom, who, as I mentioned, is the CEO on screen, Alistair Buchanan, and Simon Ashby Rudd.

0:56 Andrew Hay, our current director, is not standing for reelection. He could not attend today. However, I would like to acknowledge Andrew's contributions to the company over a difficult period and thank him for both his insight and his guidance. The twelve months since the last AGM, the board implemented a process of change, the most significant of which was the appointment of Tom Rollins as CEO in February and the appointment of Simon Ashby Rudd, bringing his decades of capital market leadership to the board. All of this is highlighted in the annual report, and you'll hear more from Tom Reynolds after we have concluded the formal portion of the meeting. Also present are a number of our key staff and contractors. We'll now proceed with the meeting.

1:44 I'll take the notice of the meeting as being read. Thank you very much. Exactly, Bill. I've just lost the screen, I think. It's fine. We've got Bill's microphone on there, Tom. If you could just reconnect, that would be technical issue here for a moment while Tom reconnects. Bill, you can carry on, sir. Paul, are you available? Yes. I am. You can carry on, sir. Alright. Little technical issue. Tom's just reconnecting. However, I think, Tom, while you're doing that, we'll just proceed with the formal portion of the meeting. Yeah. Okay. Paul says we carry on. We can hear you. That's I don't know if that's good news or bad news for those listening in.

2:33 Before presiding proposing the resolutions, I'd like to invite any questions from any shareholders or proxies on the 2025 report and accounts or any other matters concerning the resolutions we put before you at the meeting. Please raise your hand. If you have a question, give your name before asking your question. There being no questions, we'll proceed now with the formal portion of the meeting. Ordinary resolution number one. I propose that the annual audited accounts for the company for the year ended 12/31/2025 be received and adopted.

3:20 I'll put the resolution to the meeting. All in favor? Any opposed? The proxy votes received for this resolution are as follows. In favor, 99.4% of the proxy votes received against 0.60 of the proxy votes received, and one 41,338 votes were withheld from voting. On that basis, I declare the resolution is carried. On ordinary resolution number two, which provides for the reappointment of myself as a director of the company, And I have retired in accordance with article 84 of the company's articles of association, but I am standing for reelection.

4:10 I propose that William Smith be reappointed as a director of the company. All those in favor? Any opposed? The proxy votes received on this resolution are as follows in favor, 76.75% of the proxy votes received against 23.25 of the proxy votes received. 86,066 votes were withheld from voting. On that basis, I declare the resolution is carried. On ordinary resolution number three, for the reappointment of Tom Reynolds as a director of the company in accordance with article 78 of the company's articles of association. I propose that Tom Reynolds be reappointed as a director of the company.

4:55 All those in favor? Any opposed? The proxy votes received on this resolution are as 99.4% of the proxy votes were in favor. Against were 0.59 of the proxy votes received, and 86,066 votes were withheld. On that basis, I declare that the resolution has been carried. Resolution four. This provides for the reappointment of Simon Ashby Rudd as a director of the company in accordance with article 78 of the company's articles of association. I propose that Simon Ashby Rudd be reappointed as a director of the company. All those in favor?

5:44 Are there any opposed? Excuse me. The proxy votes received for this resolution are 98.78% of the proxy votes in favor, 1.21% of the proxy votes against, and 86,066 votes were withheld. Again, I declare that resolution has been carried. Resolution five, the reappointment of Alderschein LLP as the company's auditors. I propose that Alderschein LLP be reappointed as auditors of the company to hold office until the conclusion of the next annual general meeting at which accounts are laid before the members. I put the resolution to the meeting.

6:31 All those in favor? Are there any opposed? The proxy votes rep received on this resolution are 98.37 in favor of the resolution, 1.63% against the resolution, and 50 thou five thou sorry, 50,211 votes were withheld. On that basis, I again declare that this resolution has been passed. Ordinary resolution number six. This authorizes the board of directors to determine the remuneration of Aldersheim LLP as the company's auditors. All of them in favor? Any opposed? The proxy votes received on this resolution were 98.64% of the proxy votes were in favor, 1.36% of the proxy votes were against, and 19,686,786 proxy votes were withheld.

7:43 On that basis, I declare that the resolution is passed. Ordinary resolution number seven. This provides for the authorization to the directors to allot new shares in the capital of the company. The explanation for the reasoning behind this resolution was set out in the notice of meeting. I propose that the resolution number seven, as set out in the notice of the annual general meeting be passed as an ordinary resolution. All those in favor? Are there any opposed? The proxy votes received for this resolution are 96.51% in favor, 13.49% opposed, and, again, 19,160,540 votes were withheld from voting.

8:35 I declare that that resolution has passed. Resolution number eight. This is a special resolution, and it provides that the author the authorization to the directors to allot new shares free of the exemption rates. Again, an explanation of this resolution is set out in the notice of the annual general meeting. I propose that resolution number eight, as set out in the notice of annual general meeting, be passed as a special resolution. All of those in favor? Any opposed? The proxy votes received for this resolution were 96.51% of the votes received in favor, 13.49% of the votes received against, and 19,160,450 votes were withheld.

9:30 I declare that resolution eight has been passed as a special resolution. Well, with that, ladies and gentlemen, I can declare that the formal portion of the business of the meeting has been terminated, and I'm ask Tom Reynolds if he'd like to make a presentation. Over to you, Tom. Okay. Thanks very much, Bill. And good morning, everybody, both in the room and at the other end of this wire. I'm going to talk you through a brief presentation, really just to set out the stall here. We will be making some forward looking statements, and I do direct people's attention to the disclaimer here as we go through the presentation, and I'll get into this in a little bit more detail as we get on. Just to remind everybody of what I believe using your mic because I need to turn it up a little bit.

10:23 Pardon. I was having a microphone issue. So the just to remind everybody of the corporate investment case, this is what I believe PROSPEX offers exposure to for investors from an investment perspective. First of all, the positives, extrinsic factors to rising tights, which lift all boats, is that PROSPEX gives direct exposure to real assets linked to commodity value, which hold their value in currency terms during periods of inflation. That's also supported by growing energy demand, particularly driven by digital infrastructure growth, the AI boom that we're all reading about every single day in the press and shows no signs stopping. And then the last piece with a very much a European focus is energy sovereignty.

11:12 As energy imports from other sources cease to be taken for granted, and we can see that most recently with the conflict in The Middle East disrupting supplies, energy resources within the European boundaries will be more valuable in terms of a strategic premium. In terms of intrinsic opportunities, so that's specific to the company and its assets. What we're about to set out here as we go through this presentation will demonstrate that each asset has a very clear identified pathway to grow value, and that's either through discovery, derisking, or development. The goal for me that I'm bringing to shareholders here is that we create a cash compounding machine where there's a body of assets that can absorb growing cash flow and create a a flywheel effect of growing cash flow feeding back into investments over multiple investment cycles.

12:10 And I guess the key thing about all of the decisions that are involved in there, I want to be very clear that each stage, every investment will be assessed rigorously against the value added per prospect share. So moving on. What I'm going to present here is a full potential analysis. The purpose of this is to identify an upper value range for our assets and portfolio. It's not forecast. It's not prediction. It is to provide an upper value range for our assets and portfolio. This then provides us a pathway to maximizing value and defines the actions that we, as a management team, want to take over the coming months and years. Where relevant, I've included the historic investment cost and the carrying value for each asset. And that's an important reference because that allows all of you to tie that back to our published annual accounts.

13:02 In terms of the assumptions, this is a key point to reflect on as we go through the full potential analysis. This is based on a number of assumptions which define the envelope. The first point to note is that the analysis assumes there's no barriers to the activity commencing. What that means is we assume permits are granted and funding is available on reasonable terms. The second point here is that the volumes and associated production profiles used in the modeling are unrisked. We'll talk about that more in a bit. And in all the analyses, a flat gas price of €35 per megawatt hour has been used. We think this is a reasonable benchmark to use across all assets looking at the timeline and given the uncertainty in the market we've seen recently.

13:49 Unless otherwise stated, companies are, figures of company estimates using the best available data at this time. They are clearly subject to changes. The forward looking statement guidance will will remind you, but it's it's it's the company that has put these things together. And when values are presented, they are on a discounted basis, NPV 10 after tax. Quick reminder of what we have. It's a multi jurisdictional portfolio of assets across Europe. It gives great exposure to the European energy market, particularly the European gas market, which I think is a great place to be in the coming years, and it provides country diversification because of the three locations that we operate in. First is in Italy with the Pool Valley assets where we own a 37% of silver Malvetsi.

14:37 Second is in Spain where we own two assets. First is Viura through our ownership of HECO ENERGY Iberia. In the South, we own a 100% of Tarbeck ENERGYA, which exposes us to El Romeroll gas development play and the Tesoriyo and Ruedi L'Ebola exploration licenses. I'm gonna pause there to appreciate how I pronounce that. Moving on, the final piece is Poland recently awarded new exploration licenses, which are a 100% owned by PROSPEX. So I think, summary, it's an attractive exposure to a range of assets at different maturities across multiple jurisdictions. Great diversification. The core theme is exposure to the European gas market. So let's get into the assets.

15:23 Starting with Selvium Alevecie, And I think I've started with Selvo Malvetsi because I think it's a great poster child for what PROSPEX is trying to achieve in all of its assets, and we'll talk about that in the next slide. Quick summary of status. Surface well locations and subsurface targets have been identified for the four wells as followers of the story will already know. Drilling permits are lodged with the relevant authorities, and the environmental update is currently being finalized to be lodged. Seismic processing is expected to be complete by the end of July, then the work program continues from there. We'll summarize that when we turn to the next slide. The resources that we're pursuing here, shown here on the screen, gross and net. For Selva, North and South, these are prospective resources, and that net to prospects is five BCF.

16:14 East Selva and Riordina are both prospective resources on a best estimate basis. And as you can see, they are thirteen and fourteen BCF respectively. And the investment case for this asset, how do we add value, is the opportunity to rapidly convert confirmed gas resources to high margin production because of the existing infrastructure that's already in place. So that cycle time from spend to cash flow is crucially important, and it goes back to that recycling through the various investment cycles that I defined in the investment case. So, clearly, Selva offers a very near term pathway to significantly introduce significantly increase production cash flow. So turning to the full potential, and this is a model of a slide that you'll see for each of the assets as we go through.

17:03 And, the intention of this format is to show what we have spent, the graph on the left, and the carry value for each asset. Those are expressed in pounds, so that people can look back at the accounts and and check those off against the published annual accounts which are expressed in pounds. Then on the right, you've got the full potential for each asset in a waterfall chart broken down by each discrete activity segment, and that's expressed in euro euros because for all of our assets, the costs, the revenue, everything's in euros. The current exchange rate is 1.15 in case anybody's looking for that. So what you can see here and the reason I've started the Selva and the reason I said it's a great poster child for what PROSPEX is trying to do, on the left hand chart, what you can see is expenditure over a number of years starting in 2017, culminating in 2023, which basically saw the company invest in the asset in the initial drilling of PM one well, then in acquiring the additional interest in Selva through the acquisition of EOG, and then the final development CapEx in 2023.

18:12 What you can then see from that point onward is net cash flow coming out of the asset and repaying the cumulative cost that PROSPEX is exposed to. So you can see investment going in, positive cash flow going in, which is then invested in our other assets, and you can see the carry value as assessed for PM one, which sits on our balance sheet, and that number expressed in pounds is verifiable against our balance sheet. Looking on to the right, what we've done here, based on all the assumptions I've already covered, is looked at each of those wells, Selva North and South, that's two wells individually, Selva East and Ricardina, recall, Selva North and south contingent resources. Selva East and Ricardina are prospective resources.

19:00 And you can see how the value builds based on the assumptions we've applied. Anybody can look at that that screen and see that there's very significant value upside, and all these numbers are net to our interest. Final element here in the spirit of pursuing all aspects of potential value, I've added on an indicative block, and you can see that it's in dotted lines for storage. There is precedent in the Selva area for depleted fields to be turned into storage unless another positive value later in the field life. So route to value here, increasing production reserves through the drilling program, derisked by the recent seismic, leverage planned CPR to deliver debt funded so that potentially reduces project equity requirement, and then upside from conversion of depleted reservoirs into gas storage. And you can see the timeline that we're talking about is consistent with the IMC we delivered in March. Effectively, it's planning preparation through the balance of twenty six into designing and procuring, with drilling plan to commence back end of twenty seven.

20:11 Turning to El Romero, which is in, Southern Spain near Seville. I think people who follow the story are very much aware of the applications that were launched with regulators to drill five wells and connect to export grid for direct export. The near term activity is focused on obtaining those permits and identification of a farming partner. An important point to note here that has been developing the background since the installation of the new transformer in February 26. Generation activity and generation revenue has steadily increased, and that has reduced the monthly cash requirement that TARBA requires to keep the lights on, which is very positive development, and we'll be talking more about that as we go forward. So the investment case here, very much like Selva, the opportunity is to convert any confirmed gas resources from the five well program very, very quickly into cash generative production given the existing infrastructure.

21:10 So that is what Rommel offers us offers us in the short term. In terms of the full potential, what I'm showing here on the left, again, historic cost. You can see that the cost is dominated by the acquisition costs of Tarba. And then through the course of 2025 and 2026 is the contribution to overheads at Tarbah to effectively maintain the company whilst generation activity wasn't inactive. Let's say, we're making head roll headway into eroding the amount of money that the company requires on a monthly basis through increased generation. On the right, full potential broken down by activity, again, expressed in euros. Program one is a five well program that will apply for permits.

21:58 Program two is a secondary program of well identified targets. And then as you get into program three, is everything else that's possible on the geological map to be pursued for drilling is slightly more speculative, which is why it's in a slightly faded green color here. And then storage, similar to Selva Malvetsi, the opportunity to turn depleted caverns or depleted reservoirs rather into storage. And also because of the peculiarity in the South Of Spain here, we have a very high thermal gradient. There is the possibility to convert at the end of useful life some of these wells to geothermal generation. So in the spirit of including all potential aspects to value, that's on the sheet. So what is the route to value?

22:45 Motherhood and apple pie is increasing production and reserves through the planned five well drilling program. It's providing an alternative gas sales path pathway through connecting to the gas grid, not relying on electricity generation. The 100% ownership position allows introduce introduction of partnership capital through a farm out, and we'll be talking more about that as we go through the rest of the presentation and upside from conversion of the depleted reservoirs into gas storage. A key question, and I might as well address it now that we've got ahead of the meeting, is about when permits. And I can understand people's anxiety about that. We share that keenness to see these permits granted. Everyone that's followed the story will know that the legislative guidance for the government is to grant permits or give a response ninety to a hundred and eighty days after they've been served to the minister's office.

23:38 That expired in early June, and we are currently engaged with, the Spanish authorities, directly and indirectly to get some, feedback about guidance and expectation of remaining process. We haven't got a clear answer on that, but when we do hear that, we will absolutely announce it. Turning to Vallura in the North North Of Spain in the Rioja region. The dynamic modeling work has been continuing by the operator, HECO ENERGY PIBERIA. They are now turning to development scenarios based on that modeling exercise. The next phase of investment is going to focus on solutions to water handling and drilling the three a and three b wells.

24:25 What you can see here on the map is you can see the main value of the plant, and on the right is the wellhead satellite. Wells three a and three b are drilled from the satellite over on the eastern side here. The other thing I've included here is q one key financials, and the main purpose of that is in the spirit of transparent communication and transparent disclosure about what Viura is able to deliver here. In terms of production, a 112,000 of megawatts or a 112 gigawatts were delivered in q one as well as 2,805 barrels of condensate. Water production, significant 16,645 meters cubed.

25:15 And as people who follow the story understand, water production is an issue. It needs to be addressed and disposed off carefully, and it has a cost attached to that, which affects your OpEx. Revenue for the quarter before the onset of higher gas prices triggered by the Middle East Conflict was €3,300,000. Cash OpEx all in was 2.82, of which water handling was just under €1,000,000, €940,000. So you can see here the water and its handling and its disposal is a significant cost. And that's why the next phase of investment will include some form of solution to manage the water on-site on a more cost effective basis.

26:03 In terms of the investment case, very much like Selva, very much like Romero, the opportunities to convert new wells into production and cash flow immediately through existing infrastructure. And at Valeura, we benefit from very significant historical investment. A quick summary of PROSPEX ownership structure. This is gonna be available on the website, and it's available for reference after. I'm not going to read every word on the slide because I'm conscious of time. This is presented here really to provide people with an understanding of our ownership structure, at what point do we shift from a 15% participation to seven and a half percent participation, and when we are likely to receive cash flow from the asset.

26:52 The key points I would like to make is that during the investment phase, the b shareholders, as you can see here, which 150% of HEICO ENERGY Iberia, which owns 96.5% approximately of the Bioer field, are the effective investment group. And therefore, PROSPEX has the right, but not the obligation, to invest 15% of any cash coal into the Viagra field. If we choose not to invest, then we will be diluted down from that 15% in the B shares. When a dividend is declared by HEI, it will return first to the b shares on a preferential basis until they achieve payback, and payback is full repayment of cumulative historic investment plus a margin of 10%, an uplift of 10%.

27:44 After that payback point, which I've defined in the slide as b share payback, the a shares reparticipate in the field, and then dividends could go to all shareholders, at which point, PROSPEX share of those dividends would go down to seven and a half percent, which is the share we own in HEI as a whole. And in the future, if there was a further investment phase later, post dividend declaration, then the investment process would reinstigate and PROSPEX again would have the right, but not the obligation, to invest at 50%. I'm planning on an explainer video that goes a bit more deep into this. It will come out after the AGM, but this will be available for reference, and I'm going to move on.

28:30 So in terms of full potential of Vowera, on the left, we've got the historic costs. You can see the original acquisition through foreman and then the additional costs of work during 2025 that were engaged and the current cost expressed in pounds. That's shown on the right hand slide here. And then the NPV, so net present value of the different wells and the action to take care of water are shown on the right hand side. Now I'll stress these are PROSPEX company estimates, and they are likely to be updated once we get into development scenarios provided by the AI over the next quarter or the second half of the year. But what we'd say is you can see here that Bayer offers very significant value in relation to our sunk cost and robust net value for each one of these investments we're looking at here. And the route to value is effectively manage the water, drill the additional wells and increase production and cash flow and maximize the economic reserve that could be recovered against our existing infrastructure.

29:38 And you can see here that the timeline leads us to the end of the year, preparation to drill and drilling in early twenty twenty seven. On Mieshof, this is the undeveloped oil discovery in Poland. As, followers of the company know that, this came as part of the award of the San and Dunoyet license in in Poland recently. We reviewed a very extensive historic database and identified an initial view of potential in place volumes and recoverable barrels. This is upgraded from the historic estimates that we saw based on a lot of work by the team here. So this is a PROSPEX company estimate. The the original in place volumes, we estimate to be 13,000,000 barrels of oil, and the updated estimate of recoverable reserves is 3,700,000 barrels.

30:35 So very significant opportunity. We take 15 wells to deliver that, and that's what we've modeled to include in the full potential analysis here. So this is very significant. And what layers on top of this is the regulated regime in Poland is very supportive. We have an established oil field services community in Poland that can get things done quickly, and that we own a 100% here. So this is under our control. So looking at potential, this will go very mean, the fact that we've got very little to no historic cost because this work has been done in house with team cost. The the established basis is zero effectively. So what I've shown on left is an indicative production build based on three well programs. One well in 2027, which is to prove the factory model and the completion design works in this location.

31:27 And then two additional programs, eight wells and seven wells drilled effectively back to back as we can see here. These are shallow wells with the average depth of being about 600 meters. So they're very quick to drill and complete. And the route to value is get these wells drilled, but the 100% ownership position allows introduction to partnership capital. That theme coming back again, how do we engage with third parties to bring money into our assets? And as we go through what is pretty extensive drilling program, we have the opportunity to optimize the drilling and completion design to maximize recovery. And you can see here, the first well is relatively modest in terms of its contribution, but it does trigger additional production and cash flow immediately, which is denominated in oil barrels and therefore linked to the oil price. And you can see very significant values coming from those fuel programs number two and three.

32:24 Because of all the local aspects I've discussed in terms of supportive regulations, supportive oil from service community, and being in our control, can see a very rapid timeline to the potential first drilling in 2027. We obviously have to talk about exploration because we've got some very exciting and interesting exploration assets here. I'm not going to go into these in all detail now. We do plan a deep dive on each one of the assets, a single asset session going forward, and we will pick up on this. But we can't we can't consider full potential without noting that we have very significant potential in the Tesoriero permits and also the the the licenses that we've recently been awarded. And we'll talk about them more as we go forward.

33:11 So bringing all this together from a corporate roll up perspective, what I've done here is add each of the asset bars on the shut on the sheet we're looking at here is the sum of full potential from each of the asset analysis. The exploration piece here, frankly, I've put on a holding number, which is effectively $50,000,000, which is not an estimate. It's because if I put the actual full potential of the exploration on here on a non risk basis, Everything else would look tiny because the chart would look ridiculous. So I basically show you here that we haven't forgotten it, but we obviously do recognize that it's very significant. And, again, just to restate, these are based on company estimates tied to the assumptions that I've opened with.

33:58 You know, for the conclusions here, relative to the base cost, we have a huge amount of value upside that we can pursue on each one of these assets, And I believe that it does give us an enviable portfolio and set of options, particularly when compared to our current market cap. There's clear path on each asset to deliver value growth, and I've identified what that pathway looks like during this presentation. And what the analysis shows is the potential of each one of those assets and the relative contribution. So our focus going forward is going to be delivering partnership capital to the assets where we have control over the activity and pace. And you're probably glad to hear this is the final slide. So looking forward, really just to wrap up here, three things.

34:46 Always talk about three things. The first is in communications. Going forward, you'll see more direct engagement with shareholders, and, also, you'll see more short updates about the assets and commentary on market conditions. We started that, but we're going to do more of it. We'll also run, as we've already said, a series of focused single asset deep dives over the coming months so people can really get into the details, and I'll bring more of the team that some of which are here with me today, to talk about the technical aspects and be available for q and a. The key milestones we're going to focus on, raw morale permits, which we've talked about, Selva seismic and CPR, Viura CPR and development options, those are very near term, and the part bringing partnership capital across the portfolio.

35:33 And business development, we're remaining active in all markets that are relevant to us to understand what is available. We're seeking to identify partners at the asset level, and we're testing new opportunities against strict value targets, particularly on a per share basis. So what are the three things? Transparent local communications will continue. We're gonna focus on what we control and what makes a difference, and we're going to be pursuing partnership capital and value adding opportunities across the portfolio. So that's where I'm gonna make the calls. I'm gonna turn to q and a. Thank you, Tom. We have several people in the room. We also have few questions online. The first question, which has come through online, has to do with our ownership in El Romero and Taraba with respect to the AIM rules.

36:23 And I have to be very cautious here because sitting here in the room across from me is Rory Murphy of SRADHANSEN, our nomad, who has assisted us in looking at that. At the time when the company exercised the writer first refusal, the question came up in our minds at the board level as to whether an AIM listed investment company could maintain its status as an investment company to own a 100% of the asset. And the answer to that question was, as it currently stands, yes. The question online goes on and says, if the company deemed and this is gonna be for you, Tom. If the company deemed it prudent to continue to hold a 100% through exploration or exploitation of the asset. You've referred a couple of times, Tom, to seeking partners for some of the assets. Perhaps you could just address that.

37:15 Yeah. I think, I mean, what hopefully is pretty clear from, the the presentation that I've given is that we see partnership capital as a a key tool to exploit going forward to get the assets moved into the development and production phase. And so what we would see is both of those assets, Ramallan in Spain and the licenses in Poland, reducing from a 100% by bringing in those partnership bringing in partners. Thank you. Another question online has to do with the recently advised stock options, which were granted to staff and to the nonexecutive directors and just in questions with respect to why those options were granted. And again, Tom, you did not receive any of those options at the time, and perhaps you'd just like to explain a little bit about what the thinking was.

38:07 Sure. So from from my perspective, people who are familiar with the situation will know that on appointment on my appointment, I was awarded options that are effectively trigger and are tied to delivering on liquidity event for shareholders. And, and, effectively, what was the the objective of the this option release was to get everybody on the bus in terms of alignment, so that all, members of the PROSPEX team are aligned with the same outcome. And you can see that in the way that the option statement was drafted is that those options granted are tied to the delivery of a significant shareholder liquidity event or in a similar vein, an extended period of, liquidity at a substantially higher price after the end of twenty twenty seven if no liquidity event has taken place by then.

39:08 And so from my point of view, it achieves the objective of making sure the entire team is aligned with that single goal, and I think that's crucially important. So we're all pointing in the same direction. I think in terms of we have received a couple of questions about the actual specific structure, which I think is worth just talking about briefly. The first point here is to note that the nature of these options is that they are worthless unless those trigger events happen. So effectively, they are worthless unless shareholders vote in favor of a liquidity event presented by the company over the, you know, the the coming months and years, which delivers value for them. So in some respects, that's in shareholders' control. Otherwise, these options are worthless.

39:56 And the second point on the strike price, it's set at point one p, which is the nominal value of the share, and that is by design to maximize the value of each individual option per share. So that to deliver value to the recipients, it minimizes the level of dilution for shareholders to deliver a value outcome. So there is conscious thought in the design of these options in the strike price and in the conditionality to make it clear that nobody gets paid unless shareholders are paid first. And the second part of that is that we have chosen a structure that minimizes dilution for shareholders to deliver a particular value.

40:42 Thank you, Tom. Are there any other questions in the room? Well, you, and thank you for the presentation as well, Tom. I thought that it clearly demonstrated that the assets that we currently have, have a significant potential and that we've got a good man on the job to steer the way towards realizing that potential as it comes through, which hopefully then gets reflected in the share price over time. So, Paul, I'm gonna turn it back over to you to shut down, and thank you to all the shareholders in the room and thank you to all the shareholders online. Bill, Tom and the team, thank you very much for updating attendees today. Could I please ask attendees not to close the session to be automatically redirected to provide your feedback? You. Many thanks indeed. That concludes today's session, and good morning to you all.

41:31 Oh, wow.