Earnings Call: Q4 2020

Feb 19, 2021

Welcome to this VW Energy presentation of fourth quarter twenty twenty and full year. This presentation will be hosted by CEO, Karl Arnaud, our CFO, Knut Settehra, and our chief operating officer, Lynne Esby. I will take you through the first part, which is the highlights and the assets details, and then Knut will take over and take you through the financials and a short summary. Then I move to the second slide. Our please note our disclaimer. It should be very quick to go through. Moving on to slide three, our highlights. Our EBITDA was $28,000,000 based on two liftings completed in the quarter. We did a subsequent capital raise of 75,000,000 in January 2021, and I'm happy to report that we have resumed project execution activities, and I will come back to that in more detail. As I said, we completed two liftings and achieved 1,100,000 barrels net to BWE at an average price of $46 per barrel. The average daily production for the quarter was 13 and a half thousand barrels per day, and we are preparing for drilling of the Hibiscus extension exploration well before completing the Tortue phase two. We're also progressing preparations for the Hibiscus and Rouge development, which will with a reduced CapEx program and reduced time to first oil, and we will cover that more in detail later. We are, of course, still dealing with the COVID situation. It has dragged on longer than we expected, but we are still maintaining operations production operations as per normal. Moving on to slide four. We have a zero harm objective for people and environment. For the full year, we achieved that goal for BWE. We had zero LTIs. But for our main subcontractors, we had we registered five LTIs through the course of 2020. There there were two LTIs associated with operations on the FPSO Adolo and three LTIs associated with our installation project for TOR two phase two project. So this is obviously going to be a focus of attention going forward. Moving on to slide five. This is our MSI reserve update. The basically, the two so two production is reflected in the update. This is you can see it doesn't quite adopt on the decimals, but that's within the expected noise of these of these checks and balances that we do with our third party auditor. The Hibiscus extension expiration well is, of course, a potential trigger for a significant upward revision of reserves. We're talking about adding up to 100,000,000 barrels of reserves from that, making it 150,000,000 barrels total for Hibiscus area if if the extension well comes in. We have had a a slight increase in the Maramba one c reserves with while the two c has been stable. This is based on more work of the models that we have for the Maramba. And this, moving on to slide six, will give the displayed production outlook with a gross production peaking at about 65,000 barrels per day, which is a bit more, 55,000 net to company, and that is including the Tortue phase one and two, the Hibiscus phase one, and Hibiscus Rouge phase two, and the Moramba phase one and two. Moving on then to Dussafu with some more detailed comments. That's on slide seven and then quickly on to slide eight. We had stable operations in the quarter, and we have restarted the TORQ phase two development. Fourth quarter production was 1,240,000 barrels equal to 13 and a half thousand barrels per day. This was affected by our annual maintenance program that was completed in October related to the FPSO operations. The q four OpEx was significantly higher than we had hoped for. This is again caused by the COVID, which added to our costs. So we came in at $23 per barrel. Full year OpEx is about $20 per barrel, also a tad higher than we had hoped for. We I think we guided $19 at the previous presentation, but this is again related to the COVID and a slightly reduced production due to complying with OPEC quotas. The completion and tie in of TORQ phase two wells, DTM six h and seven h, will happen after the Hibiscus extension well, and we expect to achieve first oil from the new two wells in, well, third end of third quarter, beginning of fourth quarter. And I say this with a little bit of let's say, we we have several factors affecting this. We have, of course, if we should have a successful Hibiscus extension well, we are planning to do a couple of sidetracks, one or two, which will affect the start of the drilling of the D t m seven h. And in addition, we have, of course, the continued COVID situation where we see that it is getting more severe rather than less severe. We are, however, of the opinion that it's it's acceptable to restart project execution activities, and we are we feel that we have full control and that we will manage, but we we are, of course we we we see that there is potential for some disruption or some delay to activities, which is not factored in necessarily in our q three, q four estimates. Then moving on to slide nine. The hibiscus development, this is the first well in the upcoming campaign, and the reason for that is to ascertain the potential extension of the hibiscus, the the reservoir we discovered in towards the end of twenty nineteen, that this extends into what we formed previously called the Mupale area, which will make the Hibiscus Reservoir significantly larger, and as we told you before, up to a 150,000,000 barrels. This will, of course, make us localize the first offshore installation facility that we intend to install in the Reef Hibiscus area. We will then install that squarely over the Hibiscus project, and we will use the second offshore installation converter jackup that we have also bought to to tap the Rouge and Rouge Northeast discoveries and any other discoveries we we are looking at in the area. Moving on then to slide 10. We have congealed our plans for the Hibiscus Rouge development program. We are currently in a feed phase. It will continue for a short while longer, and we have already started the basic and detailed engineering activities and the rig reactivation. This is all concerning the Hibiscus alpha offshore installation. We plan very shortly to start the refurbishment and modification activities. We will have topside skins manufactured and integrated, and we will, of course, upgrade the rig and make it suitable for our purpose. You also see here the procurement activities that will start shortly with, among others, procurement of the pipeline material. And then we move on to the the offshore and field installation phase where we will then install the offshore installation. We will drill and complete the first well, and we will lay the pipeline down to Adolo, and then we will have the tie ins and hookups and then achieve first oil in the first quarter of twenty twenty three. Moving on to slide 11. The production forecast includes the TOR two, the RUGE phase one, and RUGE phase two, which may, as I've alluded to, be hibiscus phase one and two initially. We expect a 2020 production of 5,200,000 barrels gross. This is, of course, a bit shy of previous guiding, but that is due to the suspension of the 2020 program for two Tortue phase two and the subsequent delay then in getting production from the two last Tortue wells that we have told you about on multiple occasions. So we expect a production in 2021 of 5.2 to 5.8 is our expected range depending on, again, when we manage to complete the two wells after the Hibiscus Extension exploration well. You also see here in the caption to the right, the actual unplanned quarter lift liftings to BW Energy for the coming year. I'll then move on to slide 12. Our exploration program, we have a number of prospects, very promising prospects, and they have become even more promising after our seismic reprocessing. We are planning two exploration wells per year for the coming five years. The coming drilling program that we have already mentioned will then include the Hibiscus extension exploration well. We are also planning another well in the Hibiscus Rouge area. It is likely going to be the Hibiscus North prospect, but we are still talking to our partners, and we are still working on on finalizing that decision. But we we think Hibiscus North is a very good prospect. The work is, of course, also ongoing to high grade the next targets for the 2022 campaign and onwards. Then on to slide 13, this is just a small snapshot from our we did our second offshore installation facility, the Jasmine Alpha, the former jackup ball boulder. You can see here that shield is being loaded on the heavy lift vessel and being prepared for for transit to The Middle East and where she will be in a yard and be ready for conversion. Then on to slide 14, Maramba. Quickly on to slide 15. As we have previously reported, the field development plan has been approved by AMP, and we are progressing towards environmental approval by Obama. And we are planning a soil survey, which is the missing piece to get that approval. We have worked significantly on the project execution plan to reduce start from the the the time, sorry, from start to first oil. We're also in parallel working, of course, on improved economics while, among others, achieving marginal field status. We are tracking very well for an FID for phase one to be approved in q one twenty twenty two, and what we are targeting is breakeven below $40 per barrel while achieving 50% IRR. Moving on to slide 16. Maramba has a long term production potential. The first phase will be purely targeted to develop the Maastrichtian sands in the main body of the reservoir, and we have a Maastrichtian phase two. And we then move on to phase three, which which is similar mustriptan zone, but in other sections, the global and neocene producers plus water inject injectors. And then we have a significant upside that is just rudimentary illustrated here, which is, of course, the carbonate, which will be an appraisal program and then significant development if we are to untap that. Then we move into slide 17, Kudu, and slide 18. The status on Kudu is that we have agreed to take over 95% working interest. We previously had 56, and the government entity, Namcor, will hold a 5% current interest after approval. So this is now going to the Namibian government for approval, and we expect that to be approved shortly. The Kudu gas field is located about 170 or sorry. Hundred And 30 kilometer kilometers from land and about 170 meters of water, and the sinking or the idea of the development is to feed the gas to the shore either to South Africa or Namibia and mainly then use the gas for the power production. We believe there's significant market in Namibia and South Africa for this power. So we are now going as soon as we have our formal approval, we are start going to start to revamp our efforts on making taking this to a final investment position. We are hoping to achieve that by by end of twenty twenty two, but, of course, gas projects are more complex, more government interaction intensive than oil projects. So this is our ambition, but we are, of course, prepared also for a longer haul if that is necessary. I will then leave the word to Knut that will take you through the financials and a short summary. Thank you, Carl. Moving on to to slide 19, the Q4 financials, and I will also cover the full year as we have today also published our annual report, including the sustainability report, reports on on payments to government governments and and also the annual statement of reserves. So it's all it was all out in our press release from this morning, and you can also find all that information on our website. Moving on to Slide 20, the income statement for the fourth quarter. So EBITDA increased by $6,000,000 mainly due to the we sold 550,000 barrels more of oil in in the fourth quarter with with our two liftings. The average realized oil price was more or less in the same. So $46 is what we achieved for for the fourth fourth quarter. Depreciation increased with the with the additional barrels sold. And we also had an impairment related to to Qudu, and that was due to the fact of the agreement that we entered into Namcor, our partner. They or we had a trade receivable against them that we gave away in the negotiations. And as we are still in in the phase of of putting together a firm business plan, we we have for now impaired that trade receivable. So all in all, that that gives us an operating profit for for the quarter of 04/2009, slightly up from from last quarter. On the other financial items, it's very stable. We had some gains due to a hedge we have for interest rates. As you know, the the longer term interest rates have increased. So our mark to market swap is is kind of more in the money now than what we used to have. And that gave us then a a profit before tax of 2.9. After taxes, we recorded a net loss for the quarter of $5,100,000. On the full year, we have the EBITDA of of $87,000,000 compared to a 192 last year's. We we had less doll barrels sold, less volume. But mainly, the reason is that the lower realized oil price throughout 2020, which was $22 lower than what we achieved in in 2019. So that's the main reason for this decrease. On the depreciations, they have been reduced to lower volumes sold, along with the lower depreciation rate. Then we have the total impairment for Q2 amounted to $13,200,000 for the full year, giving us an operating profit of $1,800,000 for 2020. On the financial items, the explanation here is on the lease liability interest expense, the IFRS 16, where we increased the discount rate. And we also had the other financial items, mainly FX movements in 2020, giving us a negative 2.3. So the loss before tax ended up with $12,200,000 And after taxes, the net loss for the full year was 41.1. Moving on to the balance sheet on Slide 22. There are a lot of, let's say, minor movements. So I'll just cover the the main ones. The inventory decreased from the third quarter to the fourth quarter due to a reduced overlift position by $10,000,000. Then we had an increase in freight receivables and other current assets, mainly due to the the December lifting that hit the trade receivables and gave us a high working capital. But that was all paid in January, so it's now restored. And the cash situation was 120.6, a reduction from 145, mainly because of then the investments that we did in in Dussafu and also then related to the to the acquisition of the two jackup rigs. If I then move on to the I would just to mention the 75,000,000 equity issued that we completed in in in q one. That's obviously not not in here, but will will be in in our next update. So we completed then our private placement in in January, twentieth January, which gave us then the gross proceeds of of $75,000,000, ensuring us to to to have capital to deploy towards our accretive projects and and capture a significant value creation going forward. And also to mention the the the changes here in in the fact that VW Offshore did not participate in in this capital raise, reduced their holding to from 38 to 35%, which is more or less the same as as the the BW group ownership. So the free float has now been been increased to approximately 30% after that capital raise. And as you also can see here, the shareholder equity is still very strong compared to total assets, giving us a very healthy and robust balance sheet going forward. And going forward on the slide 23, the investments that this overview shows all our historic investments over the different quarters. And and as you can see, we we curtailed all all investments after the COVID outbreak, put everything on on hold, both Dussafu and and Maramba. So we had very little CapEx in in q two and q three, and then we started to spend some money again in in q four. Here, you can see the the mainly the the jackup investments. And and going forward, we as as Carl has been through, we will then now restart all our investment activities first with the with the drilling and then all our activities. And for for the year of of '21, we we have plans to to spend about 100 and 160 to a $170,000,000 mainly comes in then in q two, q three of this year. And then moving on to our cash flow situation. This shows our total cash flows for for 2020. So we started off with with $81,000,000 first January 2020, then we did the the capital or the IPO in February, giving us $121,000,000 net proceeds. And in addition, we had operating cash flow throughout the year of $49,000,000 and investments mainly in the food and of total 74. And we have other financing activities, that's the repayment of debts that we also did early in in 2020. So the company is is now totally debt free. And then we have the payment of of lease liabilities giving us the $121,000,000 at the end of the year. So now with the with the capital raise that we did in in January 21, we have more than $200,000,000 in in cash as of the January. And then moving on to the summary and to Slide 26, The key value catalyst going forward, we are extremely excited about restarting our drilling program, and and we'll then start with Hibiscus extension well. Looking forward to to the outcome on on that one. And we're constantly looking at our our seismic that has been reprocessed and to to find the the new targets after after the this extension. Then as as Carl also mentioned, we we have one optional well that we will decide shortly, which one that is going to be, and then we have several other planned wells in the next five years. On the TOR two phase two, the last two wells that are not connected, we hope to get to there. I mean, COVID is a little bit unpredictable as as as was mentioned earlier in the presentation, but we expect to be there in q three, q four, adding on about 8,000 barrels at at peak gross production, that is. And then we with the with the, let's say, the execution plan that we have now shows that we will get to first oil on the hibiscus development in in q one twenty three, and we will then also see what what we can do with with the FPSO. And and as we also mentioned previously, we might have to to increase that nameplate capacity, and that's in in the planning to ensure that the FPSO is not going to be a bottleneck going forward. And finally, to Maramba, where our team is working there on the field development plan and to optimize CapEx and OpEx, where we target FID early 'twenty two, with first oil expected in 2024. So all in all, we expect to generate a significant positive cash flow at current price oil price levels. And with no debt and solid capital base following the the recent capital raise as well and access to a number of accretive investment projects. I'd like to do something in Maramba, but also looking at other opportunities, we don't expect to generate significant value for our stakeholders going forward. So that ends our presentation today, and we're now ready to open up for questions. So I give the word back to you. Thank you. If you do wish to ask a question, please press 01 on your telephone keypad. If you wish to withdraw your question, you may do so by pressing 02 to cancel. We have a question from the line of Theodor Nilsson from SEB. Please go ahead. Good afternoon and thanks for taking my question. It's SBO, Martin from SEB. But three questions for me, if I may. First of all, on Hibiscus, what do we need to look for to have a reserve booking for 2P reserves at Hibiscus during this year? Second question, just on you mentioned the OPEC quota. So Karl, what's the underlying assumption in your production guidance for OPEC quotas and potentially easing of those during 2021? And finally, just a small clarification on Marumba. There's one chart at least it looks like on Slide 16 that you indicate first oil in 2022, while on Slide 16, 2023. So just a clarification. What's actually key message there? Thank you. Okay. I I think Lynn is the best place to give you these answers, Taylor. So I think I'll leave the word to to Lynn. Okay. Hello, everybody. This is Lynn Espey. I think the first question was in regards to the hibiscus exploration well and its impact on two p reserves and would there be any impact in this year. So we're very excited about the Hibiscus exploration target. It's we're scheduled to drill it April time frame. We'll know the results roughly a month or so later, month forward to six weeks later. And if it's positive, then we will integrate those, that outcome and those reserves into our development plans, and we would look to book those reserves here, and they they make a booking of those this year. So anyway, we're very excited about that. And the other questions, you'll have to remind me. Carl, did you catch that? I think it was Morocco. Was was one? That's correct. And the last one was, of course, assumptions for all all practical stuff implied in your 2021 production guidance. Okay. The production guidance so we have been advised from the government of Gabon that they don't anticipate there'll be any OPEC restrictions on our production in twenty twenty twenty one. So our production guidance does not reflect any restrictions. But as you know, it's a the oil market is very fluid, and we'll have to wait and see on how OPEC reacts and then what that influences on on Gabon. And as you know, Gabon's a very minor member of OPEC, but they still, on occasion, have to apply with OPEC's overall cuts. And then the other question was about Moramba first oil target or first oil date. And Yeah. I think I can jump in. I think it's it's just the the graph. It's Excel to the graph that that shows the '22 start, But but that is is that should should be '24 as we as we have said clearly in the last slide, Theodore. Yeah. Thank you. Understood. Okay. That's all for me. K. And the next question comes from the line of Tom Hesterson from Pareto. Please go ahead. Thank you. Yeah. This is Tom Erik Hesterson. Can you talk a little bit more about the impact if the Biscuits extension were successful? One thing is the placing of the next call in production center on top of that. But but will it not also immediately trigger increased efforts on the the plan it could be bottlenecked there, so to 70,000 barrels per day, or or is more salt needed for that? And then I have a second question around the financing strategy. Right now, you have a lot of cash and low leverage. Is is the thinking around that to to, call it, leverage capacity for m and a or or later as you grow organically, or or will you build an E and P business with with very low leverage at at a strategic decision? In terms of acquisitions that have been mentioned before, how do you think that opportunity set looks right now compared to deploying capital at, say, Marumba. I guess priority number one will will be the software run, but it's very hard for external opportunities to compete with the the returns you're seeing there. That's that's all. Yeah. Okay. I I so that was three questions. The first one was how what was that again? Just Give me I can take that one. Yeah. That was on the Yeah. Reserves. If if Hibiscus comes in, what what's the impact on how we produce it, and would that trigger debottleneck on the FPSO? So in in if Hibiscus extension comes in, it would have the impact of doubling our reserves from Gabon. And that, you know, wonderful outcome, tremendous outcome, and we would that would certainly entail us increasing production capacity to produce more oil. Now how we go about doing that, we have a number of options, one of which is we can debottleneck the FPSO to process more crude, which is which is one of the more obvious paths that we can take. There are other options. You know, we can do processing on on these on these platforms that these jackups that we're converting as well and send fully processed crude over to the FPSO. But, yes, the answer to your question is if we have the outcome where we double the reserves, we would be looking to increase capacity processing capacity. And then I think the the second question was about the the leverage going forward and maybe also implicitly asking about the the background of of of our capital raise. So so just to please introduce, BW Energy has been exclusively funded by by equity and and and the proceeds from the IPO. By the way, congratulations, everyone. It's nineteenth February, and we've been listed for one year today. So the company still have have no debt, and and the only thing we record are are the lease obligations from from the Adolo. So we still have a a very strong balance sheet, which we definitely like. And if you look here back at 2020 and see the the volatility in in our industry and also for our company with with a with a very volatile oil price and and, of course, the pandemic influence, it has definitely served us well to have a strong balance sheet and and and a very low gearing. So that's something, at least me as a CFO enjoys. And going forward, we we are still looking at at financing options like like the RBL that we mentioned many times, and what we've said also many times is when when we resume investment activities, we will also then start to to get the the financing clear going forward with the with the RBL, and we we also look at some other options. But can I just add add one thing on I know there's, you know, speculation? Do we go out and and and raise money because we are looking at m and a? Yes. We're always looking at m and a as an opportunity set, but we have excellent opportunities. We yes. We have Dussafu that's well recognized. Internally, we believe Maramba is an equally good opportunity with significant oil reserves and and potential for significant improvement in recovery. So we do find the best opportunities within the company. But we are in front of a very, let's say, extensive investment program with our Hibiscus Rouge development, and we could very easily see a scenario where we had a second offshore installation as well as Morumba. And, we believe that, as Knut said, it is very much in our favor to be well capitalized and have a large operational freedom to pursue the business. So it is the primary objective to invest in our existing projects, and that's where also the shareholders will see absolutely the biggest return. Okay. Thank you. That makes sense. There's no further audio questions. I'll hand it back to the speakers. Yeah. We have we have a question here from from the web. I think it's partly been has been answered. It's about Hibiscus extension and the potential outcome and and the way forward there. But maybe also a little bit of granularity, Lynn, on on the on the optional well that we have in in the drilling contract. Okay. So we have we have signed a contract with Board Drilling for firm two wells plus an option well. And as I said earlier, that program's gonna start well, in right now scheduled March where we start taking mobilizing the rig and then spudding the well in the first well in April. And the drilling sequences, we're gonna drill the exploration well first. It's a key value trigger, the hibiscus extension. That'll test we have an alternative interpretation based on the reprocessed seismic that the hibiscus field is considerably larger, three times as large as it's currently mapped. After that well and that well is gonna take a month to six weeks. And if we're successful, we'll delineate that with up to two appraisal sidetracks. And then after that, we'll move the rig back over to the Tortue Field where we'll drill the DTM 7 h well. And so that'll be the second of the two fern wells. However, we do have an option slot to drill a third well, and we are contemplating drilling another exploration well in the Greater Ruche Hibiscus area where we've been very successful. And as everybody knows, there's been the Rouge discovery. There's been the Rouge Northeast discovery. Then we had the Hibiscus discovery. So we're three for three over in that area, which is a highly prospective area. And as as Carl mentioned earlier, if the Hibiscus comes in, we'll and gets a lot bigger, our one of our jackups that we'll be using as a platform will have will be will be full of wells to drill just in that Hibiscus area. And so, therefore, we'll still have the Ruche and the Ruche Northeast discoveries to to put online, commercialize, and we have a second jackup that we could utilize for that. And then as Carl said, drilling the Hibiscus North, which is which is one of our favorite prospects all along. And at one point, it was a toss-up whether we drill Hibiscus North or a viscous. We chose to drill a viscous last time. So we're we're we're evaluating in the throes of evaluating finalizing our evaluating that, working that through the government, through the board, and through partners to finalize that. But we look to finalize that decision here at the end of this month whether we wanna drill that second expiration. Okay? Good. And then there is another question from the the web, and that's about Maramba. You said you were going to have FID on Maramba in q one twenty two. What are the the triggers of so what do you need to see to to trigger the FID of Maramba? Well, the good good question. The and as Carl said, we're very excited about it. It's a wonderful quality reservoir, four to 500,000,000 barrels of oil in place. We think our first development will produce about a 100,000,000 barrels, and this has been confirmed by third party reserve auditors. So what we're what we've taken the time this past year is, I think, in recognition that the whole market goes up and down, we wanna make sure we have a robust project that returns a positive rate of return and a 15% rate of return at a constant $40 oil price. And so we've been refining our development plan and our development options, like how we go about the development, and we've made good we've identified four or five different elements that we wanted to further fine tune. Some of these are such as the FPSO cost. Some of these were the the commercial arrangements between BWO, BWE, and making sure that's most optimized for for tax purposes. Others included the in on the subsurface side, the requirement for water jet injection or not, and and so on and so on. So we made good progress on all of these, and we are on track to to take this to internal FID, as you said, first quarter of next year. Good. And then there is a final question here for Maramba from the web. What is your current attitude to trying to farm down Maramba, and what timing do you think might make sense for that if you do seek to farm down? Karl, I'll put that over to you. Yeah. That's an interesting one. Well, we have been quite we have been quite okay with accepting to have a high ownership stake in the developments. I know that the the the the norm in the in the business is to to have more partners than we we have typically done so far. It doesn't mean that that it it's totally off the table to to look at farming down, but we truly believe we have an edge in the development of these assets. We think we have a good plan. We have a good way of going about it. So we believe it is highly accretive for our shareholders to wait until the value is unlocked. Today, I think we we could absolutely farm down, and we have suitors to that effect. But, we believe it's in our shareholders' interest to take it quite a few steps further and get more clarity on the development solution and the development, and that would give a much better price. And it's that simple. Everything is for sale. It's just a question on price. But we believe we have a good plan, and we think it is in our interest to progress on that plan. Good. And then we have a a QDU question from the web. It says, what is the mix of liquids versus gas at Qudu, and what approximately gas price do you need to justify the development assuming $55 oil? We have very little liquids. It's quite dry gas. It's so that's there's no issue of of liquids. We would obviously have to dry the gas to achieve pipeline quality, but the the the amount of liquids is very low. That's number one. The the the, the work we are doing or we are going to start, let's say, with a big effort, or a bigger effort than we have had while we have negotiating the farming has been is exactly to to make a good development plan that can meet the, let's say, expected gas price or the gas price in that market. And obvious contenders is or competition is LNG import, and we know that gas price for LNG long term LNG import. So that's our target. So it's a bit early to say where we are because that's exactly the work we're doing. But, of course, based on previous concept and design, we we are competitive. That's our overall judgment, and, otherwise, we wouldn't have pursue this project. So we are confident that we will have a competitive solution. Okay. And then there's the final question from from the web. Did you consider finalizing an RBL as an alternative to raising earlier this year? And if so, why did you choose the equity rate? Maybe you take that, please. Yeah. We we I mean, we we see the RBL as as a more complimentary type of financing. It's it's revolving credit facility. It it gives us a good a good, let's say, access to liquidity at a at a fairly competitive price. But as I mentioned earlier, we also believe that we do have a very strong balance sheet, and and it should be largely equity finance. We have a lot of, let's say, accretive projects to invest in like like the. And it would we also believe it's good to have some some extra firepower there in in in today's market. Yeah. I just I just want to add on that that, historically, I think it's quite clear that the oil industry has always come into trouble if they it's been overleveraged or in the periods, it's been overleveraged. Underleverage is is less of a problem for the oil and gas industry. So yeah. Yep. Well, that concludes the the question on the web. So then, I guess, I'll leave it over to you, Carl, for some final remarks. Well, I I guess the final remark is that we are very optimistic and hopeful that we have the worst of the pandemic behind us. We are certainly confident enough to restart operations. We we feel we can execute without too much, let's say, problems and and to getting into inefficiencies. So we are optimistic. We do see that there is a lag on some COVID on the the second phase of COVID in in Africa, which, of course, is a bit of a unknown at this stage, but we believe we have proven that it can be mitigated suit or sufficiently to not affect our operations. So we are extremely optimistic. The Hibiscus extension is, of course, the great price at this juncture as we restart the operations. So we are going to have some extremely exciting months ahead of us. So we thank you for paying attention to the company and our presentation, and wish you all a very good weekend.