Good morning. Welcome to the Awilco Drilling Second Quarter Presentation. I now hand over to our CEO, Eric Jacobs. Good morning, everyone. We're going to take you through a small agenda today. Waiting for that agenda to come up. There we go. We're going to go through the main events from the last quarter, and we're going to have our CFO, Ian Wilson, talk about our Q2 results. We're going to have our COO, Roddy Smith, talk about operations. He will also give us an update on the dispute, and then I will go through the summary at the end. Let's go to the main events for this quarter. Total revenue for the second quarter was $12 million, EBITDA of $3 million, and net profit of $1.6 million. The revenue efficiency was 96.7% during the quarter, and the total contract backlog at the end of Q2 2021 was approximately $7.1 million. We'll go to the financials. Ian, I'll hand that over to you. Okay. Thank you. Yep. Looking at the Q2 2021 income statement, contract revenue, $11.6 million. As Eric mentioned, that was revenue efficiency of 96.7%, and that comprised the contract with Serica that went for the period from the start of the quarter through until the 25th of June, so virtually a full three months activity there. The rig operating expenses of $6.3 million, that was $67,700 a day for the WilPhoenix, approximately $1,400 a day for the WilHunter stacked in Invergordon. The G&A expense of $2.7 million, that includes some fairly significant individual items, including legal fees of $400,000 in respect to the HMRC case. There was also the project team support in respect to the arbitration of about $700,000. Underlying G&A cost approximately $1.5 million. Operating profit $1.5 million, very little in the way of expense, non-financial items. That filters down to total comprehensive profit of $1.6 million, equivalent to $0.03 per share. Onto the balance sheet. There we go. Yeah, rigs, machinery and equipment, very little movement other than the depreciation for the quarter. It's $63.1 million. The right of use asset as inspected, the office lease. Current assets, we've got the trade and other receivables. That is the May revenue for Serica and the accrued revenue down below $4.5 million is principally the June revenue. Inventory, a slight increase in the quarter as we bought back the fuel on board the rig. Cash and cash equivalents at the end of the quarter, $15.4 million. Probably worthwhile at this point, just commenting on the fact that cash balance, whilst it's keeping us in a healthy position right now based upon our future outlook, we anticipate that we would need additional funds as we go into Q1 of 2022. We're looking at potential providers of debt there. Whether it's debt or alternative means, we will obviously look at every possible source of funding to ensure that we do what's in the best interest of the shareholders. In terms of obtaining third-party debt obviously very important that we are successful in getting a reasonable term or a reasonable backlog of contracts, Roddy will be touching base on what the future outlook of the market looks like later on. Total assets of $91.8 million. Below the line there we've got trade and other creditors, $1.4 million, actuals and provisions $4.3 million, total equity and liabilities $91.8 million. That's it on the balance sheet. Eric, you're on mute. Sorry about that. Thank you very much for that, Ian. I will hand this over to Roddy to give us an update on the operational issues. Good morning, everyone. Firstly, I'd like to say thanks to all of our team who've had an extremely busy Q2, not least delivering the Rhum R3 workover for our customer, Serica Energy. Also for the recent yard stay, the class and flag work, and most recently, the commencement with Ithaca for the Fotla exploration well. It's a credit to all of you that you've managed all of that work safely and without harm to the environment. On behalf of the whole management team, thank you for your efforts. In the quarter, as you can see from the slide here, operational uptime of 94.2% and OPEX holding fairly flat at 67.7%. The contract with Ithaca commenced on the 29th of July, after our five-year class and flag work on the WilPhoenix. Our original intention had been to do that work after Fotla, with the extension of the time spent at Serica, it became necessary to accelerate it and do it prior to the Fotla contract. It was all done in line with our cost estimate and on schedule. The WilPhoenix is now classed and certified by the flag state, Vanuatu, until June 2026. Obviously our look ahead shows that beyond Fotla, we will do those remaining equipment items that are still to be done on the five-yearly cycle. The total SPS cost is still looking to be around about $10 million. We hope to come in slightly under that. Looking forward to the market, we've seen a number of new contracts come up for both tender and through pre-qual. The market of 2022 certainly looks much tighter in the U.K. than we've seen for a number of years. We estimate there's probably somewhere between about 10 and 12 tenders pending award currently in the U.K.. Those contracts do seem to be taking a little bit longer than expected to mature into awards. We don't think there's any consistent reason for that. We think each of the customers is undergoing independent processes. We do see that the macro drivers, which are driving this recovery, the emergence from COVID-19, the stronger underlying commodity price, and the lack of activity over recent years, those remain unchanged, and we feel quite positive as we look forward to 2022 and beyond. That brings us to an update on our dispute with Keppel FELS. Roddy, I think it would be nice if you also could follow up on that. Yes. No problem, Eric. There's not too much to say. These arbitration processes are obviously very structured. They continue very much in line with our expectations. Timelines are substantially unchanged. We do have a tribunal hearing set for rig one, which is in October 2022. Our current timeline shows that that would lead to a decision, an award, potentially close to the end of 2022 or into early 2023. The total legal fees for both cases remain estimated at approximately $10 million. Ian, I think you can give us a small update on the tax dispute. Okay. Yes. The ongoing tax dispute has been on the go for quite a few years now. It did come to a tribunal, the First-tier Tribunal, which was held early part of June. The decision by the judge at that point, that came out in July, was that our appeal had been rejected. We do believe, however, that there are certain, what we term, procedural and substantive reasons for challenging that decision, and we have submitted an application for it to be reconsidered and the decision to be remade. That was submitted on the 9th of August. In terms of when we get an outcome of that application, it may be within the next one or two months, unless it goes on to a further tribunal with a new hearing that would require additional work to be performed by the actual tribunal. Still early days yet. We still believe that our case is the correct one, and we await the outcome of the Rule 38 application. Thank you, Ian. That brings us to the summary. As Roddy explained earlier, we're awaiting contracts on the tenders that we have submitted for WilPhoenix. We are quite optimistic that we will secure a good contract for the Phoenix, and we will let the market know as soon as we know. As also Ian mentioned, we most likely will require additional capital in the first quarter of 2022, and that we are now exploring alternatives for financing, and that we will revert closer to the year-end in regards to that. As we've been the whole time, we've been actively managing the arbitration process towards Keppel FELS, and we are optimistic that we will receive a full payment of the installments that we put in. We are also continually actively pursuing opportunities in a recovering global market, as Roddy mentioned. We are looking on consolidation acquisitions and also management of units, and we've been in discussions with several parties in that regard. I think we go over to Q&A. If anybody has any questions, we'd be more than happy to answer them. I'm just having a little technical issue. Actually, I cannot see any questions that have come in, and I believe it's not necessarily because there aren't any questions, but the way this is set up. I believe we can probably just confirm that the amount of financing that we are looking for is around about $15 million. I'm not quite sure if we got to say that. I also would just, because we have this technical issue now, I would encourage everyone who has a question to send them to me via email. That is ch@awilcodrilling.com. We will of course do our best to come back to you as soon as possible with answers to your questions. Yes. We apologize for this inconvenience. As Cathrine says, we will be more than happy to answer any questions that come in by email or if you give her a call. Well, thank you very much. I think we'll then end this session.
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