Hello, everyone, and welcome back to ABG Investor Days. My name is Adrian Gilani, and I'm an equity research analyst here at ABG, and I will be moderating our upcoming presentation, which will be given by Stefan Pedersen, head of investor relations at Tethys Oil. He will give a roughly 20-minute presentation, and then hopefully we will have time for some Q&A after that. And with that being said, Stefan, please, go ahead. Thank you. Thank you, and thank you all for coming. Yes, I'm going to spend the next 20 minutes to talk a little bit about Tethys Oil. I am not Petter. He unfortunately got delayed on the way, so I'll jump in. Tethys Oil, we are an oil exploration and production company which is listed here in Stockholm, but has its main operations in Oman, in the southern part of the Arabian Peninsula. In Oman, we have 5 blocks, as it's called, or EPSA, where we generally speaking are covering the whole section of exploration to production. And as of year end 2022, we had some 24 million barrels in reserves and roughly 15 in 2C resources. For the full year of 2023, we expect to have roughly 9,000 barrels per day of oil in production. And our current main ambition is that we are conducting a heavy exploration in specifically two of our own operated blocks, but we're going to get a little bit more into that as we come along. As we can see, we are mainly focused on the flanks of the main production block in Oman, which is called Block VI and is run by the state-owned PDO. Our strategy is basically to follow these flanks and to find slightly overlooked possibilities, if we put it like that. So our main current exploration drills are just here on the southern end of Block VI, where we follow their borders and have found some quite interesting both prospect and leads that we will get into when we discuss the blocks individually. Two weeks ago, we published our Q3 report. I just wanted to highlight a couple of the most recent developments and the highlights. We have just ended our extended well test on Block 56. The extended well test was basically a 6-month-long testing program of 3 wells that we drilled back in 2022. The main goal of this test was basically to find more data for the upcoming field development plan for the block. Right now, we are incorporating this data into the field development plan that we will hopefully be able to present in the not-too-distant future, with the ultimate goal of bringing Block 56 to commercial production in 2024. At the same time, we will also get... We We picked our well for the first drilling we're going to do in Block 58, to the west, where we are targeting 120 million barrels of prospective resources. So, again, we're going to go and come in a little bit to the differences between these two exploration blocks, so why they're both exciting in their own ways, so to speak. In terms of cash flow for the quarter, it was a little bit less compared to... or it was $10 million less than to Q2, a significant amount, but this is mostly due to a flip in working capital rather than any other underlying operations. So, and we are still having almost $30 million in the bank per the last of September. So with our operated activities, we're going to start talking a little bit about Block 56, which is, let's say, the most short-term excitement we're having right now. As mentioned briefly, we just concluded the Extended Well Test, which ended with quite positive results, actually. And it definitely gave us the motivation to continue and to ask for an extension of the block in general for the upcoming year. After discussion with the Ministry of Energy and Minerals, they agreed with our timetable and our plan for the future. So, for 2024 now, the full plan here is basically to do additional drilling, incorporate the data from the extended well test, and also retesting a well that we had to suspend testing from in 2022. And all this combined will serve as the basis for the field development plan going forward in 2024. We also have done quite extensive seismic acquisition programs in what we are currently calling the central area of the block. We will, going forward, rename these to make it a little more clearer. But the main focus is what we call here, the eastern flank that you, that you see along the northwestern border up to 56. Besides having quite a good data, we also have the added benefit of being quite close to Block 6, the main production block in Oman. Not only because it gives good indication that there are oil or hydrocarbons in the general area, but also because we then have quite good access to the infrastructure and the most established infrastructure that there is in this part of the country. We have a lot of things going for us here. Even before the field development plan, there is our general hope that we will actually be able to add resources from Block 56 or for Al Jumd, specifically, in the reserves and resource report for the full year. So there's actually quite a lot of exciting stuff going on here. And we are also now in the... I dare not say an exact date, but hopefully within the next month, start drilling at Menna, that you can see. There is roughly 30 km away from Al Jumd, but the structure itself is quite similar. And we have so far... We have not published the prospective resources for the Menna prospect yet. It is in a third-party validation, but we hope to be able to publish this before we start drilling as well, so to keep people in the loop as it comes. But this is, generally speaking, our current most exciting things within, say, the next couple of months. And together, this will then form the basis of our plan going forward on Block 56. For obvious reason, not only that it is good to have a secondary production flow from our operations in Oman, if the field development plan comes along and we eventually can bring it to commercial production within 2024, then obviously we will also have access to the cost pool of previous investments on the block, which adds an added benefit to the whole financial part of it. Yeah. Explained this a little bit, but just to clarify, like, commerciality cannot occur until the field development plan is completed. So, our goal right now is to make sure that the field development plan is as perfect as it can be, and then to bring it to commercial production in 2024. Yeah, and on the western side, roughly on par in terms of height, but we have Block 56, fifty-eight, sorry, where we're having two primary prospect areas that we're currently... Earlier in the year, we published our prospective resources for the Fahad area in the northeastern part of the block that contains 184 million barrels of prospective resources. Now, obviously, prospective resources are not contingent resources or reserves by a long shot, but still, this is a very good indication that we are onto something here. And as with Block 56, we're also hoping to get the South Lahan prospective resources published in the not too distant future. So these are two quite exciting areas in one block. They are quite different from each other, the two play areas. This South Lahan area is a salt stringer, carbonate stringer with salt, whereas Fahad is slightly easier to produce from. And we are currently doing the last sort of tender details in order to get a drilling rig in place for what we call Canoe or Gift. That's gonna be the first exploration drilling in the area. And God, I'm sorry, I get such a sore throat all of a sudden. And we are there targeting 123 million barrels of prospective resources. So quite exciting times, actually. We are conducting some farm out discussions with a selected group of companies. These are not by any means something that we need to continue on the block or anything like that. But there is a lot of interest in the blocks in general. As always, if we consider any offers and both from the technical expertise but also from the financial part, we are considering. So it's not something that we at least out of hand say no to. And the final of our operator blocks are Block 49. It is not the most exciting one among the three. Not that it is by any means uninteresting, but compared to the other two, this is a little bit further away. We are looking for an unconventional play, and to retest the well that we drilled back in 2021. We are currently conducting tendering process, the problem with it so far has been that, we want it to be cheaper, and then, and the, the contractors want it to be a little bit more expensive. It's an ongoing process to find the sweet spot. And besides our operator blocks, we have a 30% interest in Blocks 3 and 4, which is our main production block at the moment. So, here we are, we have a 30% interest, and we are conducting quite a lot of both exploration and production. This is the main target for our CapEx budget for the year, which include, amongst other things, a vast seismic acquisition program in the southwestern part of the Tronden. It also includes, four exploration drillings, products during the year. Besides then, what it has been so far, roughly 30 wells drilled in, in total. The production for the year and for last year, generally speaking, since COVID hit, has, decreased. You can see this basically as an effect of the decreased CapEx, during, COVID as well. This has a, this has a lagging effect, you can say. But, back in 2022 or last year, we, we started to ramp up CapEx again. It has so far not had the effect we had hoped for, but it's still quite a lot of catching up. The reason why I want to highlight this specific graph is just to show that the 2022 catch-up program, in terms of CapEx, just barely put 2021 and 2022 back in place, so to speak. These investment also includes the seismic acquisition program, which is quite expensive, and also our gas to power project that we're doing to decreasing. Well, it's a more environmentally friendly, and it will decrease cost going forward. Some additional financial highlights then for the most recent quarter. We had a lower achieved oil price than the previous quarter. This is obviously because we're working on a two-month contract in terms of oil price, which means that we will have higher oil price going forward in Q4. So, so that is just a timing issue. With that being said, we had still $32 million in revenues, so, and an EBITDA of $16.4 million. The free cash flow, negative, due mostly down to the high investment rate for the blocks, and then especially blocks 3 and 4. But as I mentioned, we, we still, we still ended the quarter on a quite solid $27 million. The good news in this as well is that we have already considered ourselves to have peaked in Opex per barrel. And, knock on wood, nothing is clear until we can look back at it through hindsight. But, from the looks of it, we have at least stopped the increase in Opex, and started to get back. And this is, of course, due to a lot of the efforts we have put in the production assurance initiatives over the year. Yeah, and, this is just a short slide to basically show that, yeah, we reap the benefit of the high prices two months afterwards, and that was why we had the lower price in November or in the third quarter, but we'll see higher oil prices then again in Q4. So and so these figures we already know in advance what they're going to be, so we expect slightly higher revenue going forward in Q4. So, the brief outlook then. Yeah, the exciting things right now as we see it, is obviously the field development plan in Block 56, the exploration drilling on 58. These are the two main events going forward, and this is where we will focus our 2024 on. We will include with this additional testing of previously drilled wells and a couple of new wells, with the hopes that we bring commercial production in 2024. And with that, I made it to the 20-minute mark, so. Okay, perfect. Thank you for that presentation. I'll go right ahead with a few questions. I guess starting off on Block 56, can you... Without saying anything all too specific, can you give us some sort of indication of what the potential is in Block 56 for you? No, well, we obviously have a picture of it, but... Our goal, as I mentioned, is to publish the contingent resources as a part of our year-end reserves and resources report. So that will be included. And we have decided, as a new policy, that we are not mentioning any resource figures until they have been third-party validated. So that's basically it. But what we can say is that we were quite happy with the results as is for 56. We are quite happy about that we have an entire string of prospects going from the northeast to the southwest part of the line between the blocks. So, we hope that we will be able to publish the prospective resources for Menna, the new exploration well we're drilling, within, say, the next couple of weeks, and have the contingent resources by, in line with the year-end report. I understand. Given that, to my understanding, Blocks 3 and 4 are starting to sort of enter into a more mature phase at the moment, what are the growth opportunities as you would outline them, sort of in the near term, and if we look further ahead as well? On Blocks 3 and 4 specifically- Mm-hmm ... I mean, there it is basically. I mean, we have an extensive exploration program there as well. Mm-hmm. There is roughly 6,000 sq km of ongoing 3D seismic acquisition in the program. So, these are to find leads for the future, obviously. Yeah. On top of that, we have this year, or we will by the end of the year at least, have had an additional 4 exploration wells in on the blocks. And the data from them are still quite inconsistent. We're gonna have to see. We know from especially Jary 1, which we consider to be the most exciting of these, or have considered at least to be the most exciting of these exploration wells to be. We We have deemed it not to be like in and of itself, if it would not be commercially viable to produce from it. But that doesn't mean that the area surrounding it has become less interesting, and that it could, in the future, become something. In terms of existing producing fields, it is still to improve the production assurance initiatives and to just bring production up from wells. I understand. Then I guess a bit about capital allocation strategy. With the exploration programs you have going on and the CapEx plans that you have going on, how is that sort of balanced with the shareholder distribution in the near term? Yeah, I mean, we have had very high shareholder distribution- Mm ... for the last couple of years. I mean, for 2021 and 2022, we have had SEK 12 in- Mm ... distribution, in total. Obviously, like, as we, we have to make sure, first and foremost, obviously, that we can, that we can finance our operations. Mm. So, the shareholder distributions is also incredibly important, but basically, that's the step. There might be an increasing focus on, say, share buybacks rather than AGM-approved specific amounts of per share- Mm ... just to keep the liquidity up and the options open. But generally speaking, we keep a high dividend, and that is part of our company profile. So, I don't see it to be too threatened by this. That sounds good. And also, I guess moving back to the more developing assets, on these, I understand you won't perhaps give us an exact timeline for commercial production, but can you just talk a bit about the general lead times in this industry, so that we can get a feel for how long these types of products or projects typically last? Yeah. Okay. So, the Field Development Plan is, I mean, it's a fancy term for a vast array of- Mm ... various instances. But our goal is absolutely to be able to commercially produce from Block 56 in 2024. Mm. That I have no problem saying. No. When in 2024- Mm ... we will enter the commercial production, difficult to say. And it depends mainly on, perhaps, say, drilling schedule for new wells, the exact results from the ongoing analysis, and then, and these sort of things. And also, but also, there is quite a lot of planning in getting this, because it has to make economical sense, to, we don't want to rush it and pay too much for, for certain- Mm ... services and these sort of things. But absolutely, the goal is to bring this to commercial production in 2024. Okay. I think we have time for one final question. I guess on, you mentioned that Blocks 3 and 4, you have the minority stake model on those. Is that a model that could be interesting for some of your other blocks as well, to split the CapEx with another actor? Yeah. I mean, we should definitely not exclude the option at the very least. And I would say that on Block 56, we are not currently very interested- Mm ... in decreasing our share of the EPSA. On Block 58, that's more likely. And it's dependent on two things, as you mentioned, it's partly because of the CapEx, because I mean, developing oil fields is quite expensive, and we have 100% currently of Block 58. So there we have quite a lot of wiggle room and a good bargaining position if something we find interesting comes to the table. But also because it might be good just for this the sake of operations as well as to bring in a partner who has certain technical expertises. So we'll... We're looking at both those sides in that scenario. So it won't be just because of money or just because of expertise. If we're bringing in a partner on 58, it would have to be a very solid choice all around. Mm. I understand. And I guess, with that being said, we are unfortunately out of time, and I'll have to once again thank you for your presentation and for answering all of my questions. Yeah. Thank you.