Sintana Energy (TSXV:SEI) — Management Update

0:02 Good afternoon, and welcome to the SINTANA ENERGY INVESTOR PARTICIPANT:] Throughout this recorded presentation, investors will be in listen only mode. Questions are encouraged and they can be submitted at any time using the Q and A tab situated on the right hand Before we begin, I would like to submit the following poll. And I would now like to hand you over to Jonathan Patterson, Investor Relations. Good afternoon to you. Thank you, Alex. Good morning, good afternoon and good evening, everyone, and thank you for joining us following today's AGM. Before we begin, please note that today's call may include forward looking statements within the meaning of applicable UK, U. S. And Canadian securities laws.

0:47 These statements reflect management's current expectations and are subject to risks and uncertainties that could cause actual results to differ materially. Please refer to our annual report and other filings with the FCA and Canadian securities regulators for a full discussion of these risks. With that, I'll hand over to Robert Bose, Chief Executive Officer of SINTANA ENERGY. To echo JP's comments, good morning, good afternoon, and good evening to you all, and many thanks for for joining us today. We're we're grateful for for the time and the interest. And to our shareholders on the phone, your continuing support as co owners of SINTANA with us is, is greatly appreciated. So, so thank you everyone for joining us today.

1:32 In terms of the call, we will, do a relatively quick walk through of some of sort of the key highlights of the story focusing on kinda where we're headed and and what we see on the relative near term horizon, and then we've got some time on the back end for questions. So we'll look forward to to doing that on the other side of a short presentation. I'll just begin with a slide looking at the team, and, you know, it it can be a little tedious when you kick off with people just kinda talking about individuals. But it it is important from our perspective to really emphasize both the scope and depth of the team that is behind SINTANA. I think there's often a sense that there's just one or two people kinda, you know, running the whole ship, which is just not the case. And so we have both a full management complement as well as a board constituted by individuals with a significant amount of experience and expertise to help us continue to evolve and execute on SINTANA's strategy.

2:34 I would note that in the course of acquiring and completing the Challenger acquisition, not only were we able to to deepen the management bench prior to that, It was really just a couple of us running the show at SINTANA. But having completed the the acquisition of Challenger, we were able to add both John and Eitan to the management group. They bring to a significant relevant experience in private equity, in m and a, in public company operations, all critical expansion requirements as we completed the Challenger acquisition and and went public in London. Additionally, complementing our board, we were able to to bring Ian McKendrick on board. Ian's significant experience in oil and gas, including his time at Total, is deeply relevant to us as we look forward to continuing to execute and, and monetize our assets as as we go forward. So, you know, it is a big bench.

3:33 Although we run a tight ship in terms of expertise and credentials, we've got a full complement here to to set the stage for for the company and help us to to execute on our strategy. To sort of just kind of set the stage a little bit more as we kind of think of, you know, what SINTANA is and and how to think about it from an investment perspective, you know, at the heart of it, SINTANA is an opportunity for investors to be exposed on a capital efficient basis to very asymmetric outcomes. We look to make early stage investments that have the ability to generate significant high impact returns. And if we look at kind of where the company is at the moment, I think there's a a couple of key ideas on this slide which are worth emphasizing.

4:19 In the first instance, as will be known to many of our viewers or and people on the phone today, we maintain an indirect interest in a license in Namibia called PEL eighty three. It is home to a constellation of discoveries in a complex called Mopane. Mopane is one of the most significant offshore discoveries over the past number of decades and across a wide range of valuation scenarios. Our indirect interest in Mopane more than offsets our current market capitalization. And as you'll hear about over the next few minutes, we have an entire balance of portfolio of exploration optionality, which has the ability to create additional Mopani like outcomes, which currently are are getting no value in our market capitalization.

5:07 So we certainly think it's a very attractive entry point. There's a lot of upside from here, and it there is a portfolio behind this to generate significant returns. And that's a a good segue into the second point. I think it's worth emphasizing is the asymmetric exposure. As I alluded to, you know, we make early stage investments in high impact opportunities, which have the ability to generate very significant asymmetric returns. We endeavor to do that on a capital efficient basis, meaning we run a pretty tight ship from a cost perspective. But I would say more importantly, we have been able to structure our exposures to require very limited additional capital from us in in almost in in most cases, I would say, where our partners that are operating the blocks will spend significant capital to to move the ball forward on our behalf, providing us exposure to very significant outcomes with very limited additional capital required from us, say, for a couple of instances.

6:14 And as we look at the kinda near term horizon over the next kinda four to eight quarters, there is the potential to see up to 10 wells drilled across our portfolio in both Namibia and Uruguay, two of the most exciting, most quickly emerging frontier exploration geographies on the planet today. Those are wells that would be operated and variously prosecuted by Total, by Chevron across our portfolio. So there's a lot of catalysts ahead, some of them just in the balance of the year, which we'll talk about here shortly. But the message really here is there's a a significant number of catalysts in terms of well activity in the portfolio both for the balance of 2026 and into 2027.

7:02 You know, I I would add additionally, the positions that we have in Namibia and in Uruguay really situate us uniquely in the capital markets. This is an opportunity for investors to be exposed to some of the most promising and emerging frontier geographies. We've had the success at Mopane. We have additional upcoming wells, which we think will generate the same kinds of outcomes, and we really are the only public vehicle which provides this kind of exposure to those quality assets on both sides of the Atlantic margin. And and, really, I think another thing to emphasize is the risk profile here. SINTANA has significant carry through most of its licenses. It requires very little capital from us, but these are very capital intensive assets.

7:52 And so we have supermajors spending money on our behalf to derisk these assets, limited capital required from us, and and significant progress as a result of that capital deployment. And so all of this ultimately culminates, we think, in an extremely attractive pathway to value. We have a number of exploration outings on the near term horizon, which we think will have the opportunity to generate the kind of returns we're all looking for. I we thought it might be worthwhile maybe to pause a little bit and talk about SINTANA from an owner's perspective. You know? And I are two of the largest shareholders in the company, and and, you know, I myself, together with our family office, have been large shareholders of SINTANA for for some time now, and and we really do think about it as owners.

8:41 You know, as as is indicated here in in the gray box, SINTANA does exist to provide public investors with exposure to large, high impact frontier exploration opportunities. We make capital efficient investments that have asymmetric return profiles. And as I alluded to, you know, that type of exposure is otherwise, in this kind of distilled sense, unavailable to public market investors. In order to execute on this, though, it it creates a certain number of challenges we need to overcome. We need to be able to identify the right geographies early and get in before the rush starts. We need to structure these investments in ways which are capital efficient, and we need to be able to continue to execute these recognizing the realities of being a public company and the requirements of public company investors.

9:31 And we think we have been able to do this extremely successfully. It's otherwise very, very difficult to provide direct public exposure to these kinds of investments where the vast majority of them are owned by majors, IOCs, and NOCs, you know, between regulatory requirements and capital budgets in the billions in addition to long investment horizons and a relatively high risk requirement. These investments on their own are very difficult to shepherd in a public context, and we think it's our strategy and the portfolio that we've created around it, which really position us for continuing to see the kind of success we've seen so far as evidenced by our progress at Mopane. And so, you know, the core value proposition from an investor and owner's perspective is we have the capabilities.

10:22 We've demonstrated those to get into the right geographies early to both partner with large scale super major operators, but also bring them in. It's worth noting that in two licenses in Namibia as well as one of our licenses in Uruguay, we were able to bring Chevron in as the operator with significant carry. We have the kinds of relationships that allow us to convert early stage investments into long duration exposure on a capital efficient basis. The capital efficiency is sort of indicated in bullet number four is a requirement given the capital intensity and risk profile of these opportunities. But if you can do it right, it really does generate the kind of returns that we are all looking for. And, you know, the other thing that I would just note is a portfolio is an absolute requirement in this business.

11:12 This is a statistical game. And while we've seen very significant exploration success in Namibia, it remains a a highly risky outing, and you need to have a portfolio in order to create the kind of diversification to ensure that you have the durability to get to the end and and really see the kind of results you're looking for. We have multiple shots on goal across the portfolio in the coming quarters, and it is that portfolio approach together with the capital efficiency that we think positions us not only for durability, but as well for success. So maybe with that, I'll hand it over to. Alright. Good day, everybody. So I'll just talk a little bit to the the scope of our portfolio.

12:00 I'm assuming many of our shareholders are already very familiar with this, but but just to lay it out in a single place, we have a portfolio of licenses in Namibia, in Uruguay, and an early foothold now in Angola. In Namibia, the core of the portfolio is in the Orange Basin where we have p l 83, p l 87, p l 90 are the principal ones. There there is one other. And and at the core of that is p l 83 and the Mopane discovery, which Robert mentioned. We also have a position in the north in the in the Walvis Basin, which is, as we'll discuss shortly, the next sort of big upcoming thing we like to think in Namibia.

12:46 And and this is really a best in class portfolio in Namibia, a country that has seen enormous exploration success and is now on a on a pretty clear path to seeing several of its projects move forward into into development. One of the things we we say repeatedly, p l 83 differentiates us in the sense that it is not our portfolio is not merely exploration. P l 83 is a much more advanced project. It has had discoveries. Total has recently farmed in and is taking over operatorship that is moving forward, And that is something that can be readily quantified, readily valued, and as Robert mentioned earlier, underpins the entire value proposition of our company, which is something that not too many other exploration companies can point towards.

13:44 We also have two very high prospect licenses in Uruguay. As Robert mentioned, area of one is partnered with Chevron. And as I said, we we have a an early foothold in Angola, and we hope to be finalizing the transaction for that in the very near term. So so that's our portfolio as a whole. If we talk about valuation, this is something that we've received a ton of questions on, you know, how to look at valuation. And, first place to look is, well, what is the project worth? Now shareholders need to understand this is not exact science. We are talking about very big, complex projects that have decades to run, and everyone approaches valuation in a different way.

14:42 And we've looked at all sorts of different metrics. But, fundamentally, because it's so advanced, you you have third party industry parties who write very extensive reports, and they look at all the different development scenarios. And they actually give you a whole series of very tangible inputs that you can put into a financial model. So taking those in the case here, we we've taken them from from a company called Welligence. You put them into a DCF model, and you get a long term fundamental view on what these projects are worth in a sort of discounted cash flow sense. And, you know, you can look at all sorts of scenarios and variabilities, but, essentially, you get to a place that says on an enterprise basis, on a DCF basis, our share of the Mopane discovery as it currently stands well exceeds our current market cap. And that is validated by several brokers as well. So if people prefer looking at the shorthand of this at the broker valuations, we're covered by several brokers.

15:52 Their reports are generally available. And, again, they all come up with valuations of the Mopane asset that significantly exceed our market cap. There are then elements of Mopane that are moving forward. So Total, when they farmed into it, have said that they're gonna look towards a three well exploration and appraisal campaign designed to expand the resource base of Mopane. Equally, P E L 83 is a much bigger block than just Mopane, and there's exploration potential outside of that. And if you make a series of assumptions around what that might look like relative to the existing Mopane, you can see the value of that growing exponentially over time.

16:37 Equally, we have a project in Uruguay area of one where Chevron is, as we speak, has just finished shooting the first season of three d seismic is lining up for the second season. That has a similar scale, a similar potential to Mopane if it is successful, if a discovery is made. So you can run very similar economic models on that and come up with indicative ideas of what that could be worth and so on through the rest of our portfolio. And that's what the bars on the right of this chart are designed to show. If you start where we are today, just anchored purely on what we know about Mopane, and then you make you look at each of our individual portfolio assets and add them all up, you can easily see a pathway here where our valuation could multiply by five times over the coming years. Now, obviously, everything would need to go right, and we're an exploration company, and not every exploration outing is a success.

17:42 But to the point Robert made earlier, that's why you have a portfolio. You have multiple shots on goal. If several things go your way, then you see good value increments. And if more than several things go your way, you see really great outcomes. And that's what we as shareholders, and that's what we as management are in this for. So I hope that kind of provides some guidance to shareholders as to how we, Robert, myself, the rest of the team, look towards the valuation proposition here and how we see us going from where we are today to where we would like to be in two, three, four, five years from now. The acquisition of Challenger seems like so long ago, but in reality, it was seven months ago that that completed.

18:35 And I'm acutely aware that shareholders, in particular retail shareholders, love to see things happening, love to see, you know, stuff. And you sometimes in as time passes, you lose track of exactly what's been going on. And so we thought we'd set out in one slide here all of the things that have happened in in 2026 so far. Sorry. There's a typo on the top of that page, which will correct. It's the 2026 scorecard to date. And, really, the point is that seven months ago, we set out a fairly ambitious list of things that we think will happen both within our portfolio and adjacent to our portfolio.

19:21 And more or less, all of these things have come to pass or are coming to pass. So the the takeaway here is we are doing exactly what we said we would do. And, again, a common question from our shareholders as well, the share price has drifted down, and what are you guys doing about it? We're not in control of the stock market. That's your job. We are in control of the company, and we do what we say we're gonna do. We pitch our wares. We say these are the things that are coming up and measure us by what we do. And and I firmly believe, Robert and I firmly believe, that over time, if you do what you say you're gonna do and if you deliver the things that you say, eventually, the market will get it. And, eventually, the value of your share price will reflect the value you're creating in the business.

20:10 And that's what we're about, doing what we said we would do. If you look across the portfolio, I won't talk to every one of these, but Total Energies have farmed into p e l 83. As part of that, they're doing a big work program, and they themselves, this is not us saying it, you can listen to the Total Energy calls every now and again. They are very clear about their plans for Namibia as a whole and for P L 83 in general. They've put out some very clear statements about when they expect to see this go forward to FID, when they expect to see first oil. The scale of the project here, they're talking about 200,000 barrels a day eventually of production. So this is this is hugely important developments that have happened over the past six months.

20:57 There's been a big resource upgrade at P E L 83. Separately, Chevron have been very clear that they're gonna start drilling on P E L 90 by the end of this year. We've seen, you know, we've seen activity now kicking off in the Walvis Basin. BP have farmed into some neighboring assets. So so there's been a lot of activity in Namibia, including drilling, continued successful drilling on adjacent blocks from Shell and Rhino. So the Namibian story is like a rising tide. It just keeps getting better as time goes by. The same can be said of Uruguay. So there, Chevron kicked off first season of seismic acquisition as we said they would.

21:43 That completed successfully. We successfully navigated a series of environmental challenges. They are now proposing to kick off the second season towards the end of this year. We should see early seismic results before the end of the year, all of which is moving p moving area of one forward towards well drilling decisions. And similarly, we've seen a continued increase in interest in Uruguay. So Qatar Energy, in particular, have farmed into several blocks adjacent to our blocks. Chevron increased their presence in Uruguay by farming into another block. E and I have entered the country. So Uruguay as a destination is following a very similar trajectory to what we saw in Namibia, and that underpins the excitement we feel about Uruguay.

22:33 Angola, we're, as I said, shortly going to be completing that transaction. But in the meantime, that block has seen completion of two d seismic. There's a farm out process underway. And in a corporate sense, we've continued to focus on what we need to focus on. We we raised money recently. The point of that was to ensure we are fully funded across this wide range of activities. As Robert mentioned, our business model is capital efficiency to try and reduce the amount of capital needed but still retain exposure. But, unfortunately, it's not capital zero. You still do need some money sometimes to do some stuff. And so we've ensured that we are no longer exposed to that risk. We have the money we need across all sorts of contingencies and scenarios to see the portfolio through to the ends we want.

23:32 We achieved an amazing outcome in a settlement with Exxon earlier this year where they're paying us $9,000,000 as part of an exit from legacy assets in Colombia. Again, that may have just escaped the attention of many shareholders, but trust us when you tell when we tell you to extract money like that out of Exxon is no small feat for a smaller company. We were very pleased with the outcome there. And we are maturing very targeted business development opportunities across the portfolio. There was some announcement recently, for example, about something we've been beavering away at very quietly for the last eighteen months in Argentina. But to stress, these are incredibly targeted.

24:18 They are not random business development opportunities. They fit very much into the model of capital efficiency with high impact outcome potential very closely aligned to our existing portfolio. So the summary here is it's been a very busy six months, and shareholders may not fully appreciate just how busy, but there have been a lot of things going on. And as I said, we're doing what we said we would do. I might use this opportunity to hand back to Robert who can talk through some of the key upcoming catalysts over the next little while. Thank you, Eitan. And, you know, I would just note in terms of that sort of distillation of everything that we've been up to, that's just the things we can talk about at the moment. So there's a lot more happening below the surface, and we're looking forward to continuing to deliver on those on those opportunities.

25:14 It's a good segue into thinking about the, you know, catalysts ahead of which there are many over the coming quarters. I would say as we look most imminently in Namibia, the two things on the on the, quote, we hope near term horizon are the declaration of the FID at the Venus project. While we are not directly exposed to that, it is important vis a vis the asset swap that was done to bring Total into Pell eighty 3. So that is something that monsieur Bouillonet on their call a week before last indicated was he was hoping to happen sometime in the relatively near future. He as well talked about the fact that final ministerial approval had been received for Total's farm in to Pella 83, including taking up operatorship.

26:05 Those are both, important milestones, to set the stage for the upcoming, three well exploration and appraisal campaign on PEL 83. The expectation is that that program will be complete sometime in h two, let's say, of 2027. It will underpin not only a, potential, circumscription of the phase one development at Melpane, but as well provides visibility, as Eitan alluded to, into upside in the overall resource. And so we look forward to that campaign beginning, this year and culminating early next year. That's three wells on PEL 83, which have the potential, as I said, not only to add significant volumetrics to the resource at Mopane, but help set the stage for an FID on the phase one of Mopane in early twenty twenty eight, and that's currently contemplated to be a 200,000 barrel a day project coming on stream in 2032, delivering resources at below $20 per barrel fully loaded with OpEx and CapEx. So as I Tan alluded to, Total has been very specific and clear about their intentions for Namibia, and we expect some near term catalysts on that in in the coming weeks.

27:25 We continue together with our partners at Penn Continental to work on a potential farm out at Pell 87, and then we are working as well on our previously announced expansion in the Walthus Basin associated with with Pell 37. As Eitan has mentioned a couple times, we're looking forward to concluding our transaction with our friends and partners at Corcell on. That sets the stage for a potential farm out and the drilling of the first onshore exploration well in Angola, in this case, specifically in the Kwanzaa Basin in fifty years. That is set up to be an offshore price for an onshore cost. So, again, all of that activity is expected before before the end of the year on the on the African side of the portfolio.

28:13 In Uruguay, as Eitan alluded to, the initial sort of phase one of the seismic acquisition over off one has been complete. We're expecting fast track results in the next few months or so. The balance of that acquisition will be completed by the end of the year with a view to a a drilling decision on off one, hopefully, sometime sometime late next year. But the progress on the seismic has been fantastic, and we've continued to receive significant interest around our investment in in off one. The off three farm out process continues. It's been reinvigorated through the expansion of a technical narrative to include potential exposure to an updip of the basin floor fans emanating from the deeper water license that's outboard.

29:04 That's given rise to a significant degree of invigoration of some very vibrant conversations we have going on, and so we look forward to to moving that that forward over the coming couple quarters. And then lastly, as Eitan alluded to, we are expecting, hopefully, the final payment from Exxon as we look to monetize our legacy asset in Colombia, and there are considerations and discussions going on with how to manage the legacy asset in The Bahamas. So those are all activities we expect to report on before the end of the year. And then as we look into to 2027, the results of the sorry. One other thing. Chevron is expecting to spud the exploration well on PEL 90 before the end of the year.

29:50 So in early twenty twenty seven, we should have results of the exploration and appraisal campaign on PEL 83, the results of the exploration well on PEL 90. Chevron will, as indicated, continue in preparation for an exploration well in PEL 82 in the Walvis Basin. There's well activity in Angola, and we should see the results of the seismic acquisition and reinterpretation on off one in in 2027 as well. And, you know, beyond just continued progress in terms of the licenses regarding FIDs, farm outs, and further drilling activity. So whether or not we are truly unique, I'm not sure, but, yeah, I think it's tough to find a company that has this scope and scale of catalysts on the kind of two to four quarter horizon in the kind of basins with the kind of exposure that that we have. So we're we're very fortunate in terms of what we'll have to work with and be able to report on in in the coming quarters.

30:52 Ethan? I might take this. So we have received many questions from shareholders about the subject of compensation, governance, and incentives. And so we thought, you know, we're not afraid of dealing with the difficult topics, and let's just deal with it head on. So starting with compensation, the reality here is that our cost base, the amounts that people get paid in particular, are competitive. They are at market. Now we have gone through an exercise. We've benchmarked ourselves against comparable companies. And I can very confidently say that no one who works in SINTANA is paid egregious sums of money. It's competitive. It's at market.

31:44 And this is all overseen by a remuneration committee on which the majority of the members are nonexecutives' independence. This is just a good segue into the subject of governance. That is just standard practice at every other similar listed company. We do it no differently than anybody else. Now we are listed on three exchanges in Canada, in The UK, and in The USA. We are subject to the most extraordinary array of security laws in these jurisdictions, and we are fully compliant with all of them. So it's fully compliant with an extensive suite of reporting compliance and governance obligations. And whilst that may not always be obvious to people, we live with this all day every day.

32:34 We're subject to the rules and regulations also of three different exchanges. You we are also in partnership with very large companies like Chevron, like Total, with various government and regulatory authorities, and we are subject to periodic audits from all of these people as well. As a result, we apply best in class policies across our business to maintain, you know, squeaky clean corporate governance. And, again, we have nonexecutive and independent board members who overlook all of this. So, you know, when we receive these constant queries from shareholders as to governance, I have to admit we're somewhat sometimes a little bit befuddled, like, where it's all coming from because we are so heavily regulated and so compliant with all of these things.

33:30 Again, no different to any other listed company of our size and nature. And then we come to the subject of incentives. First and most important thing, is what Robert said at the beginning, I and Robert and many of our directors are direct shareholders in the company. Robert and I are amongst the largest shareholders in this company. Our financial outcomes, our incentives are 100% aligned with that of other shareholders. You know, ultimately, the vast majority of my personal net worth is tied up in my shareholding in this company. And like all other shareholders, I would love to see the share price increase. And I'm in as frustrated as everyone else about, you know, where the share price might be relative to where I think it should be.

34:21 But like I said earlier, we do what we say we're gonna do, and sooner or later, we believe that the market will reward that track record of consistency. And finally, as to the executive incentive scheme, every listed company of our sort operates an incentive scheme through a combination of options and restricted share units. There is a difference between them that's largely tax driven, and so options are more useful in places like The UK. RSU is more useful in places like North America. But, fundamentally, 10% of the company is available to executives and so on as an incentive under the scheme. That's just normal. The terms and conditions, which were just approved at the AGM by our shareholders, are identical to those of most similar companies.

35:13 And the most important thing, you know, we keep getting these questions. How come you guys are just constantly awarding yourself these things? Well, we don't get anything unless the company delivers. So whilst you may have it hold an option or an RSU, they are of no value whatsoever unless the outcome desired, which is an increased share price, is delivered for all shareholders, and then they suddenly become a value. It's also worth noting in relation to options. In order to exercise an option, you actually have to pay for it. So when I want to exercise one of my options, I need to write a check to the company, no different to any other shareholder buying a share. So it's part and parcel of how incentives are awarded at any public company.

36:03 What we do is no different to any other public company. It's subject to oversight by independent nonexecutive directors, And, ultimately, it's only of any value if we deliver the outcome, which is to see the share price go up for our benefit as much as for all other shareholders. So I'm sure there'll be further questions on this. We're happy to take them. We're happy to respond to them in writing if we don't have enough time. But we want shareholders to understand the questions about this area have been registered, and we're trying to answer them as directly and transparently as we can. Rob? Sure. So, you know, we've taken a little bit more time today to to sort of hit the highlights, just to sort of sum it all up, SINTANA does provide a unique opportunity for public investors to be exposed to some of the most significant, exciting frontier geographies on the planet from an exploration perspective.

37:05 The portfolio we have is unique in its constitution, including the existence of our interest in Mopane, which more than fully underwrites the Vowel, the current market cap of the company in addition to a portfolio of extremely high impact catalysts we expect to see results on in the coming quarters. Again, we really do focus on creating an environment which is capital efficient with a view to driving shareholder returns. We are your partners in this company. We own it together with you, and that's how we think about it. And we think in terms of what we see ahead, only the promise and prospect for continued success and progress in the portfolio. And so maybe with that, we'll wrap up the presentation and and certainly thank everybody for the time and interest today. And I I think we're we're here for a little bit to take some questions, so I'll I'll hand it over to to JP.

38:02 That's great. If I may just jump back in there. Thank you very much indeed for your presentation. Ladies and gentlemen, please do continue to submit your questions using the q and a tab situated on the top right corner of your screen. While the company take a few moments to review those questions submitted would like to remind you that recording of this presentation, along with a copy of the slides and the published Q and A can be accessed via our Investor Dashboard. And Jonathan, at this point, if I may hand back to you to take us through the Q and A session, and I'll pick up from you at the end. Thank you. Thank you, Alex. Just a quick reminder before we go into questions that today's discussions, including our answers, may contain forward looking statements as noted earlier. Okay, let's jump into the questions. Eitan, one for you.

38:48 What's happening with off three? Why is the farm out taking so long? So we have been running an off three farm out process for quite some time, and and that's a fair question. It has taken longer than we would have ideally thought. As Robert mentioned, it's going on as we speak. Couple of things have have impacted that. You know, there's been obviously issues at the beginning of this year and until now with the war and various other sort of disruptions, which people may not see the direct connection. But when you're talking to large international companies as potential partners, they're, like, distracted. They have other things to worry about, and things just go slow.

39:34 But the more fundamental reason why it's taking a bit longer is that the landscape is shifting in Uruguay almost weekly. So the most obvious example I can point to is out of nowhere a couple of months ago, Qatar Energy farmed into two blocks, area of two and area of seven, which are on either side of area of three, and that changes the discussion. It opens up a whole different concept of, you know, who we might partner with. It means that people who have previously looked at it now wanna look at it again in a different light. So the the changing landscape in Uruguay means that the nature of the conversations, the potential partnership things we can contemplate keep shifting.

40:21 And finally, as Robert mentioned, one one of the outcomes of our ongoing technical work is that in the far northern corner of the block, we've identified potential basin floor fan exposure, which is completely different to the technical technical story here, the two on all three. That that is big stuff. That is of major interest to a lot of the bigger companies. And so, again, we've we've kind of rapidly sought to expand our technical work program to start capturing some of that. And, again, that then needs to be reshowing to everybody who wanna look at it, due diligence, etcetera. So the pro the the farm out process is going. It's going well.

41:08 We're still very enthusiastic about the block and and where we think this could go, but it's just taking a bit longer for those reasons. Final point I'll make is whilst time may be relevant to our shareholders, anxious for news, three months, six months, nine months is irrelevant in the scheme of the kind of parties we're talking with. And we have a long initial expiration period in which we've met all of our work program obligations already. So whether it takes us an extra few months to get to the optimal outcome, the best possible outcome for us and for the block, it'll take what it'll take. Thanks, Eitan. And perhaps staying on on that side of the Atlantic margin.

41:58 We've got a question. Given last year, Norwegian Statoil, a very reputable and experienced company, prospected in Argentinian waters in a vertical line approximately 500 miles south of where you will be prospecting without success. How confident are you that you will discover oil off the coast of Uruguay? Well, if I knew we would be discovering oil, I'd be doing something very differently. I mean, it is exploration, but the well that was drilled in Argentina, as noted, 500 kilometers away, is geologically irrelevant to Uruguay. It's a completely different basin. It was a completely different geological concept. It has no relevance. What is relevant to Uruguay, and that is the underlying thesis here, is the discoveries that have been made in Namibia.

42:48 Namibia being the the Orange Basin, particular being the conjugate margin, the sort of geological mirror on the other side of the Atlantic of the of the of Uruguay, the basins we're looking at in Uruguay. So, you know, our views, our confidence in relation to Uruguay have nothing to do with the prior well drilled, you know, a long way south in Argentina and everything to do with the successes, the exploration successes that have been thus far experienced in Namibia. And as I've said many, many times, this isn't just little old SINTANA, little old Eitan and Robert talking. I mean, you can see the majors piling into Uruguay to, you know, Chevron, ENI, Qatar Energy.

43:37 They are in Uruguay because of this reason. They see the success in Namibia. They can directly correlate the two sides of the conjugate margin, and that very significantly derisks the technical view on Uruguay. Still exploration, anything can happen, but that's why we're optimistic. Thanks, INC. Robert, I was just I was gonna come to you and and jump over into Namibia. We have a question. Has the upcoming three well program for Mopani been pushed out into 2027 with no wells being started on PEL 83 this year? You know, the real answers, we don't know, but I don't think there's been any material delay. The expectation has always been that the campaign would culminate in 2027.

44:30 There was really no state of the world where all three wells would be drilled, completed before the end of the year. The initial kind of August expectation for a spud date for the first well emanated from some discussions that Total had when they initially stepped in to the farm out transaction as a result of just the ongoing process to receive ministerial approvals and complete the FID. Things have been moving a little more slowly, but I would say in terms of any fundamental and material change to the overall expectations of results of that campaign in early twenty twenty seven, nothing we know of at the moment. You know, I think Eitan raised exactly the right point. And while we focus on days and weeks and if we're lucky, sometimes months, in super major time, ninety days one way or another has absolutely no bearing on their expectations or plans or the promise of these assets, Total, if anything, has continued to reiterate its level of excitement and what it sees as the opportunity associated with Mopane, and this three well campaign is a critical part of that.

45:42 Thank you. And and then just we've had several questions with a similar theme regarding monetization of our investments. So I'm I'm gonna pick one of the questions here. And and this perhaps, Robert, you could take the initial answer and then and then hand over to Eitan. But what framework will management and the board use to determine how future monetization proceeds are allocated between shareholder returns and reinvestment? And what financial hurdle must new investments meet before retaining that capital to create more value than returning it to shareholders? So Robert, perhaps if you can lead off and then hand over to Eitan. Sure. And, you know, it's to some degree a little, you know, easier to answer the second question first in part because, you know, those considerations are at the heart of some of the investment decisions we are making right now. And, you know, speaking for myself, you know, we look at this business as the kind of business where we can generate five to 10 times returns on our capital.

46:45 And it's those kinds of expectations that we look for when we make new investments. We are really not in the business of generating 20% IRRs or something like that. This needs to be multiples on capital invested. And the way we achieve that is looking for opportunities which have the scale and prospectivity to deliver very large outcomes. And then, additionally, you know, being able to scout sculpt our capital exposure to them to really limit that capital to give rise to the kinds of multiples on invested capital that we're looking for. And so, you know, just to be abundantly clear, you know, we look at this very much as a high return platform. And in our minds, high return is not, like, 20% IRRs. It's five to 10 times your money for taking the kind of risk that we are.

47:36 You know, when we find ourselves in the fortunate position of having realized value on some of our assets, you know, the board as a body will make a determination at the time. But I'll certainly tell you, from my perspective, the expectation is not to have SINTANA sit on vast amounts of undeployed cash. If we are able to receive significant consideration in the course of monetizing an investment of ours, subject to ensuring the company has, you know, the capital for its existing business plan, the idea would be to redistribute the majority of cash back to shareholders. And I believe that's the kind of framework that the board, you know, is constituted with, and and that's certainly how, you know, I think about it.

48:23 Jan, I don't know if you Yeah. My my little 2¢ on the side. We are not out to build a giant portfolio for the sake of building a portfolio. Now one of the things shareholders may not fully appreciate is we get shown just about every deal out there at the moment, function about perceived position in, you know, these two very exciting places and on the on the both sides of the margin. There's virtually nothing that doesn't cross Robin or my desk. So we get to see just about everything on offer, and 99% gets politely declined because it doesn't meet certain requirements.

49:09 The most the two, which Robert alluded to, one is it has to be big. It has to have the potential to be big. It has to be something that we think can be attractive ultimately to a major. That's number one. And number two is we have to be able to see a way where we can get into it early and limit the amount of money we have to spend. You know, these projects, if you go the distance, are not measured in tens of millions of dollars, but hundreds of millions of dollars, if not billions, and that's well beyond our capability. So we have to be able to see a big prize, but where we can access it with a relatively small, if not no money at all. That is not something that comes along every day. We have to remain vigilant and diligent about it.

49:56 And on a very, very targeted basis, we see occasionally something that meets those criteria, and that's the basis on which we might add something new to the portfolio. Other than that, we are constantly looking at ways to monetize the portfolio. As and when those monetization options come up, you know, we will just assess whether the present day value we see in doing that exceeds the long term value and risk in holding these things to fruition. You know, the great benefit of the way we've done things, which is to have carried positions, means we have the luxury of being able to hang around for a long time.

50:43 But hanging around for a long time means waiting ten years sometimes to to see an eventual payday. So if we can bring that forward in time, if we can accelerate that, and if the value today exceeds the longer term value risk adjusted, then that's something we'll do. And then as Robert says, how we then redeploy that cash, The fundamental default, I think, from my personal perspective is return it to shareholders, you know, subject to what you need as a company unless we can find really, really compelling things to redeploy some of that money into. Great. Thank you. Shifting topics, there's been a question submitted that Robert, obviously, you're a managing member and principal of Charlestown Energy, whom is a major shareholder of SINTANA, and that also you obviously are the CEO of SINTANA ENERGY, and that there could be a perceived potential for conflict of interest.

51:47 So, Robert, perhaps I'll position this to you. How as how does the management team handle that potential conflict of interest? And then Eitan, if you could perhaps as as president follow-up on how the board manages that potential conflict. So so Robert to you. Sure. You know, it's certainly an accurate distillation of this situation. You know, the first thing that I would say first and foremost is, you know, the alignment emanates from the scope of our equity position. I mean, as Eitan alluded to, you know, there are a few people on the planet that are as exposed to the success of this company as he and I are. And it is certainly our view at Charlestown that we only invest in situations where management teams are fully aligned with shareholders, where the outcomes that will result in success for one are the same as that what will result in success for the other.

52:39 Secondly, you know, while I, you know, have the benefit of, you know, doing a couple of other things on the boards of other committee of other companies, I spend in excess of 90% of my time on SINTANA related matters, and it is by far my principal and predominant point of focus and and where our efforts lie. In terms of potential perceptions of conflicts of interest as they pertain to making decisions or how capital is allocated, you know, Eitan will jump in in a moment. But the board has full oversight on, you know, what is being reviewed, what is being approved, what is being declined. We have quite a vibrant independent oversight mechanism to really ensure that any conflicts of interest are fully early and proactively addressed and managed in a way which ensures that the incentives are aligned and the results are conformed to ensure that, you know, the success of Charlestown meets the success of all of the other investors in SINTANA.

53:44 Hey, Ted. I I don't have much to add. I mean, we do have a fully functioning board that reviews everything, etcetera. The one thing I would say, you know, to the introduction Robert made, this company has a a pretty decent team of people and some fairly deep bench strength for a company of its size. And, you know, I'm conscious from various comments and questions from shareholders that there seems to sometimes be this perception that it's the Robert Bowes show, which is just not true. I take a little bit of umbrance at that. I mean, I've been in the business for twenty years. John, our CFO, similarly, Randy spent his whole life working at big majors.

54:30 You know, our board members have a lot of actual on the ground experience working in and running large oil projects. So so, you know, none of us are patsies, and and we have a very functional management team. We we debate things. We talk about things. We make decisions as a collective. And that's what, I guess, shareholders want. And and as Robert says, there are no other people as exposed to the outcome here as we are. And and and, you know, I I don't know. I would have thought most shareholders would be very pleased to know that the people managing their company and looking after their money are fully invested in the same in in the company and fully invested in the outcomes that it might derive.

55:27 Thanks, Eitan. So unfortunately, we're coming close-up on time. If we haven't been able to get to your question, we will get an answer over to you. Perhaps before we close-up, if I could maybe just ask Robert and Eitan just for any closing comments. Robert? Sure. I mean, you know, sort of end with where we started. I mean, first and foremost, we are greatly appreciative of our share our co shareholders, our co owners. You know? Inevitably, this business and, you know, the capital markets are fluid and things change, but the continuing support of our shareholders is greatly appreciated. You know, we really do think we have a best in portfolio, a unique proposition in the public markets, and, you know, the expectation underpinned by insights and experience really tell us the coming quarter should really deliver some very exciting things for us all. So I just really thank everybody for the time and the interest, and certainly hopeful that taking this opportunity today to connect with everybody was was useful.

56:33 Ethan? I have nothing to add. I thank everyone for their attendance, and I hope just to reiterate, in addition to this being published via the investor meet company platform, this presentation will also go up on our website shortly. And at the back of this presentation are a number of appendices, which are essentially little cheat sheets, summary sheets on each of our assets for people who want to become a bit more familiar with the details around them. So so that'll all be made available for everybody. Thank you. With that, I'll hand over to Alex. Fantastic. Thank you very much indeed, all of you, updating investors today. Could you please ask investors not to close this session as you will now be automatically redirected to provide your feedback, which will help the company better understand your views and expectations.

57:21 On behalf of the management team, we would like to thank you for attending today's presentation, and good afternoon to you all.