Good morning, everybody, and thank you for joining our Q1 results presentation and the Conference Call. I'm joined today by a number of colleagues from both the financial and technical disciplines, and we also have dialed in some of our country management in Africa. It's well -represented here from a Panoro perspective. What I'd like to do is take you through a presentation on our Q1 results, which were announced this morning. As a reminder, today's Conference Call contains certain statements that are or may be deemed to be forward-looking statements, which include all statements other than statements of historical fact. Forward-looking statements involve making certain assumptions based on the company's experience and perception of historical trends, current conditions, expected future developments, and other factors that we believe are appropriate under the circumstances.
Although we believe the expectations reflected in these forward-looking statements are reasonable, actual events or results may differ materially from those projected or implied in such forward-looking statements due to known or unknown risks, uncertainties, and other factors. For your reference, our results were released this morning. Press release and the presentation are available on our website, www.panoroenergy.com. Next slide, please. For those of you who joined before, you know all about this, but there will be a chance for you to ask questions during my talk. You can type them in, and you can also raise your hand if you'd like to have your microphone unmuted. As you can see on the right side there, you can just click the hand and we will unmute you if you have any questions.
You can type in questions as you see on the left panel there. We'll endeavor to try and answer as many of those as possible. I will repeat these instructions at the end of my presentation. Next slide, please. Our financials this quarter were as expected, as guided, and as pre-announced. Quarter one was a good quarter for production. In fact, it was our record production quarter ever, 8,300 barrels a day net to Panoro's working interest. We had a reasonably small lifting period as has been widely disclosed for many quarters now in a row.
We're very, very dependent on the second half of this year to generate most of our liftings, and that's when our revenue and our cash flow principally gets recognized. The Q1 indeed was bang on guidance at around 130,000 barrels a day lifted. This was principally some Tunisian barrels that were lifted during the quarter. In terms of the financial highlights, we had a very good realized oil price in the quarter, $108 a barrel. That's after customary discounts. Tunisian crude does sell at a couple dollar discount to Brent. We obviously caught a very, very good cycle of cargoes there with the revenue of about $16 million and capital expenditure in the quarter of about $11 million.
This is all as per guidance and as per expectation. Cash at the end of the quarter, about $30 million, with net debt about $60 million. During the quarter, we actually repaid quite a bit of debt as well. We repaid about $8 million of debt. We're de-levering even in quarters where you know, our cash flow and our revenue lines aren't that strong. Next slide, please. Here it is in graphic form, our production. In the quarter, we produced 8,300 barrels a day net to our working interest, which is again our record quarter ever. That sits very comfortably within our full- year guidance of between 8,000 and 9,000 barrels a day.
We are still on target during the course of 2023 to deliver in excess of 12,500 barrels a day. Principally as Dussafu the next phase comes online, the Hibiscus development comes online during the back end of this year and well into the Q1 and Q2 of next year as well start coming online sequentially. You will see our production increase around these levels. We have a very, very good production growth story, and it's very much intact at the moment. Next slide, please. We announced during the quarter our annual statement of reserves. I think we're very happy to say that we have almost 100% reserve replacement from last year due to some upward revisions offsetting the production that we produced during the year.
That gets netted off the reserves, obviously, as we produce the barrels, but we were able to replace almost 100% of those through reserve additions in the portfolio. Very good position. Continue to be in a good position both on our 2P reserves, but also if you look at the 3P and the 2C resource numbers, it gives you an indication of some of the upsides that exist within the portfolio. Next slide, please. A couple weeks ago, we announced an extension of our Block G license, which is in Equatorial Guinea. It was the asset that we acquired from Tullow about a year ago. The announcement was made, you know, as per stock exchange regulations as soon as we signed the deal.
It was on a Monday, and that was one of those Mondays where I think the world took fright of various macro events and our share price went down. A bit unfortunate and therefore didn't really get the attention that it deserves, and we'll continue to try and provide the attention that it deserves as more details about this come about. Very simply, we had an extension to 2040 of these licenses. When we bought the assets from Tullow, they were 2029 and 2033. This extension is extremely important. It's what we always hoped when we bought this asset from Tullow, that we would get the extension from 2029 in the case of Ceiba to 2040 and 2034 in the case of Okume. What this does is it does multiple things.
First of all, it creates new 2P reserves. We estimate somewhere between two and three million barrels of new reserves that we will be able to book on the next reserve report. That's a management estimate, but we think that that's an accurate one. That's at something like a 15%-25% increase in the 2P reserves that we have currently booked. It's approximately, you know, 5%-10% higher total reserves for the group. Again, our share price went down on the news, but this is certainly a, you know, 5%-10% uplift on our 2P reserves at the time of our last ASR. It does a few other things as well.
It kind of supports the view of the joint venture that there are additional contingent resources here that are gonna be worthwhile exploiting and bringing into that 2P bucket, drilling more wells. There's also a commitment to drill new production wells, probably in the second half of 2023. We'll continue to update the market as we go. This is really exciting. This is really what we hoped as one of our upside cases when we bought the Tullow assets. Again, we bought the Tullow assets on a do nothing case, basically, at $45 oil. We're taking a gamble, I suspect, that oil prices would be better than $45 a barrel and/or that the technical case would improve. Obviously, we're seeing the benefit of both of those things at the moment.
This has really validated the management's case towards buying this asset off of Tullow. The other thing that it will do is that it will provide upside to our medium-term production targets. Again, most analysts, indeed, our guidance to the market has been a do nothing case in Equatorial Guinea, other than what was identified at the time. What we're seeing now is that these additional production wells that we'll drill, again, in the second half of 2023 is our best estimate at the moment, will continue to provide a strong production growth and to level out the plateau of that production profile as we get into 2024, 2025, 2026. This is an extremely accretive thing to have happened.
It's almost like another acquisition is the way we like to look at it. We're very, very pleased with this. We'll try to help the market understand the importance of this, as we go forward, as we define with the joint venture, the next steps in this work program. Next slide, please. We also announced in the quarter the appointment of country managers for our business. Sofiane on the right in Tunisia has been with us already many years, but we recently hired both Antonino and Ghislain, whose nice faces you can see there. The importance of this for Panoro is really to reflect the maturing of the company Panoro.
As we've grown through these acquisitions, we've also grown in country where these gentlemen are responsible for the day-to-day management of our businesses there, the interaction with the regulators and the ministries, and driving the corporate social responsibility and the ESG mandates of the business. Although these are three staff that you might not see much or hear much directly from, these people are critically important to the success of our business and the impact that we're having locally in the countries in which we operate. We're very proud to have announced that we now have a country manager in each of our core countries of operation and production. Next slide, please. Just quick little window shots of each of our production assets. Equatorial Guinea, again, continues to be the lion's share of our production.
It's our most important production asset at the moment. When Gabon comes full swing about a year from now, with all six new wells are online in Gabon, you'll see that leveling out a bit. At the moment, Equatorial Guinea is driving the bulk of our production. We've had great uptime on the FPSO there, better than budgeted. We always budget a little bit conservatively on that kind of thing, but the uptime has been fantastic. We have a number of work programs underway. Production has been about 35,000 barrels a day gross in the quarter, which is a big uplift from when we bought the asset, when it was doing about 29,000-30,000 barrels a day. We're already seeing production growth in Equatorial Guinea.
This really is turning out to be so far an excellent acquisition. In Gabon, already pre-announced by ourselves and BW in terms of what the average production for the quarter was, around 11,600 barrels a day gross. It's about 2,000 barrels a day net to us. During that period, there was an annual workover program, maintenance program, excuse me, undertaken, which obviously impacts average production. Still working on optimizing the gas lift capacity such that we can increase production there. There's certainly several thousand barrels a day of latent production there that's not being produced while we're waiting for the gas lift solutions to be fully implemented.
We do have some upside in terms of even before the Hibiscus development comes online in terms of making sure that the current six wells are optimized as well as they can. The Hibiscus Ruche development is progressing well and is on target. There's nothing new to update there other than things are going to plan there. In Tunisia, we produced 1,300 barrels a day net to ourselves. There's an extensive workover campaign going on as we speak. We continue to see lots of opportunity there to increase our production over the short- to- medium- term on this very important asset, including the completion of the exciting Douleb reservoir. It's a very productive reservoir in Guebiba, which we're currently eyeing and hoping to complete over the coming couple of months.
Next slide, please. A couple of other assets and things to follow, some other catalysts within the company. Block 2B in South Africa Energy have been out there. Eco Atlantic have been out there, talking more and more about this well that we're drilling. The well looks like the rig looks like it's now mobilizing in July, which probably have a September spud on the Gazania well, which as you will remember, is drilling up dip from an existing discovery. We're looking for high-quality reservoir sands. The unrisked prospective resources on what we're drilling is significant, greater than 300 million barrels, so it has the potential to be quite big. This area has come into focus.
Many of you will have followed TotalEnergies' Venus well, which looks like it's unlocked somewhere between 5-15 billion barrels of oil, which is not too far from where we are. We'll be honest to say that this is a different geological setting than that, but this area is very hot. We've also had Shell drilling quite nearby the Graff discovery, which looks like it's in excess of 500 million barrels. We're probably in the best postcode on the planet right now with the largest oil field, offshore oil field ever discovered, the Venus, not too far from us. We feel we're in the right place.
We've got a rig, and we have a plan to drill this well, and this could be quite an interesting catalyst as we move into the Q3 and Q4 , and we look forward to updating the market more on that. The sale of our interest in Aje has been slow, but progress has been made with the government approvals all secured. PetroNor made an announcement on Monday that certain other conditions to their deal have now been resolved. We are now in the sort of the legal and operational execution phases of this transaction. It's been frustrating for us and probably frustrating for shareholders, the delays here, but the finish line is in sight. We hope to be able to announce in the near future the completion of that transaction. Next slide, please.
I won't go too much into this, but what we would like to do every quarter is to reconcile the cash flow. The P&L is of course always interesting to look at. The balance sheet is always interesting to look at. For us, cash flow is what we look at, and we think is where the truth of what's going on in the business really lies. We will for transparency and to be able to articulate where the company's going, we will provide cash flow reconciliation every quarter for our investors can see exactly what's happening. I won't go into too much of the detail. If there are any questions, obviously, please do ask them in the Q&A module. Next question. Next slide, please.
I won't go too much into the detail here, but again, we will just continue to update the market every quarter in terms of where we are with our our loan, our debt maturity profile. Again, we repaid over $8 million in the quarter, so we're continuing to chip away at our debt. We paid, I don't know, it was 8% or 9% of our total debt we repaid in the quarter. So we're chipping away at the debt, which is not very challenging in the first place. The assets support a much bigger debt capacity than we currently borrow. So we feel very comfortable with this. This is not an aggressive lending profile. Our CapEx, there's nothing changed here.
We previously guided around $65 million this year, and nothing has changed there. Next slide, please. Crude liftings are the things that change a little bit. It's always difficult to exactly predict 12 months forward exactly what your lifting profile is gonna be. This is our best estimate at the moment. In the previous quarter, we had an estimate that we might be doing some small lifting in the Q2 . That is now just rounded into July. Just a couple week change. Just kind of put it into a different quarter. Nothing fundamentally has changed here. What we're seeing and our best estimate now is that July will be a very busy month for us on the crude lifting side.
We anticipate lifting approximately 850,000 barrels during July. We've broken out July from the rest of the Q3 just to show that it actually is right at the beginning of the quarter. This is largely driven by a lifting that we have now planned in Equatorial Guinea, which will be the lion's share of this. The balance will be some Tunisian lifting we anticipate also in July. July looks like a very busy month for us in terms of revenue recognition and ultimately in terms of cash flow as well. August, September looks like it's principally September looks like it's gonna be another busy month. Probably December looks like the next big lifting point.
These are important points for us because again, there's revenue recognition and it's cash flow. We've always said the second half is gonna be dominated, and it certainly is the case. We are fortunate that quite a bit of it is happening right at the beginning of the quarter. We remain largely unhedged. We have the historical hedges in place from our Tunisian loan, which were put in place by the lenders back last year, which continue to not look great, but it's probably about 6% of our estimated production for the year. Very modestly hedged. About 95% of our production is completely unhedged for the year, which is great.
We have decided to take out some small hedges for that July cargo, around 200,000 barrels, out of that 850 has been locked in at around $104.5 a barrel, just to make sure we have some triple digits in there. Just in case something funny happens, we wanted to start chipping away and making sure that we had triple digits. These are interesting times in respect to the oil price, and we're enjoying being unhedged, but we will continue to try and target some risk management around, specifically around liftings. Next slide, please. This is the final slide, and we've shown it before. It's some of the words are a little bit different, but this is the way we like to summarize the company.
We have a great foundation for shareholder returns. We fully expect to be returning the significant cash flows that we generate from these assets, and with these high oil prices as soon as practically possible. We think we've got a great company set up to do that. We have a very high-quality asset base, with very long- life reserves. This is not a company that is flash in the pan over the next three years and then nothing. We have a 13-year reserve life on this thing with very low operating cost assets. We've got organic reserves growth. We've just demonstrated that again in Equatorial Guinea. We have an active development program going on, and that will continue over the years to come.
On the whole, we believe we have a very strong board, and in fact, we have our annual general meeting of shareholders in approximately an hour and a half. We have announced the creation of a Sustainability Committee, and we've also announced the nomination, the post appointment of Grace Reksten Skaugen to the board. Grace, assuming that she gets voted in today, which I entirely expect to be the case, brings with her a great experience and a great addition to the board. Grace has been involved with Lundin Energy for many, many years and is the chairman of the new Lundin Energy post the disposal, merger with Aker BP. She was also deputy chairwoman of Statoil back in the day before it became Equinor.
She sits on the board of a number of other very high-profile companies. She's really a super addition to the board, assuming that she gets voted in today. We look forward to her role as chairwoman of the Sustainability Committee, which she has a great experience in. We already had a strong board and strong governance, but this has now really made a big step forward with Grace. Finally, we have visible production growth. Again, we are strong believers in the macro environment now. We believe oil will continue to be very, very strong.
Leaving the tragic events in Ukraine to the side, there's been a structural imbalance in the supply side of this business for many years, with people being scared off of investing in oil and gas due to the energy transition. What we're seeing is now that oil and gas is certainly an important part of that transition and will continue to be an important part of that transition for longer than perhaps was originally expected. The underinvestment that we've seen over the past 10 years in this business is bad and will create a very tight dynamic in the markets. We are a company that is growing our production into that dynamic.
We look to be increasing our production by about 50% over the next 12 months or so, and we are largely unhedged. Again, this, we believe this is a great company, a great foundation of the company, and a great foundation to start returning that cash to shareholders as soon as practically possible. With that, I will conclude my remarks and open up to questions. Again, you can raise your hand using the hand icon, and we will attempt to unmute you. Or you can type in questions into the question panel, and we will endeavor to cover as many of those questions as possible. If your questions have already been answered through a previous question, we may bypass it, but we will endeavor to answer questions as much as we possibly can.
I open it up for questions now if there's anybody that would like to ask anything.
Okay. Thank you, John. The first question is from Teodor Sveen-Nilsen. Teodor?
Hey, good morning, guys. Thank you for the presentation, and thanks for taking my questions. A few questions from me. First, can you give a brief update on the gas lifting issue at the Dussafu? Second question, just in timing on the PetroNor dividend, should we expect that to be a Q3 or Q4 event? And finally, maybe the most important one is on cost inflation. Of course, we hear across several sectors more than usual cost inflation. I just wonder which of your input factors do you see the most pressure on. Do you have any thoughts around your full-year CapEx guidance on $65 million? How much of that $65 million are actually locked in on fixed prices? Thank you. Right. Yeah. Good questions, Theodore.
On the gas lift, we don't have any additional information than what has previously been discussed and disclosed by BW. They have their results also in a couple of days. Perhaps they will say a bit more, but basically the intention is that towards the Q3 and Q4 that we will have some resolution of the gas lift issue with additional unit being procured and brought in. These are big units, so these are not things you just order up on Amazon, as I'm sure you appreciate. They take a while to come, but when it does, it should allow us to better balance the wells. We currently have four wells under production with two basically not producing due to shortage of gas lift.
It's very frustrating for all parties concerned, not least of which are our shareholders, but also for the government of Gabon, for BW, for ourselves, for the Gabon Oil Company, for all the partners. There is no lack of attention and urgency on this issue. There's no additional guidance on it at the moment. The wells are still not producing to their optimum. They are still within the guidance that has been provided by BW previously. There's not, you know, a change in the guidance. The guidance has always been expecting that this comes a little bit later, and that remains to be the case.
The PetroNor dividend, I expect that it could still be Q2 , more likely Q3 rather than Q4 , though. I think, you know, there are a few procedural steps left and PetroNor need to issue the shares. They need to get them to us. We need to then dividend them out. There are a number of kind of slightly, you know, slightly procedural and boring steps to this, which are now underway. I would expect that it would be late Q2 , the first part of the Q3 . Cost inflation, you know, I think of the CapEx guidance we've given for this year, I think that that's reasonably solid because most of the...
Most of that CapEx had been agreed and procured and contracts signed in Gabon and Equatorial Guinea, South Africa. These things had been agreed well upfront. There could be some cost inflation around some of the ancillary services that have not yet been contracted, but I would expect not to, at this point, expect any major changes to that CapEx guidance as a result of inflation. I think where we are more concerned would be with 2023 work programs and budgets, which are obviously still not agreed and defined. We would expect the biggest elements of that cost inflation to probably come through on the rigs and the you know the ancillary services around the drilling of wells, I think is probably principally where we see cost inflation risk.
How big that is yet, I'm not prepared to. I'm not informed enough to quantify because we're not in the market tendering for 2023 yet. 2022, I think, is reasonably solid, though, Teodor. We're lucky enough to have locked in most of that early enough. It certainly is a theme that we're gonna continue to see in the sector.
Okay. Thank you. Just let me follow- up on that CapEx for 2023 in terms of activity level. Should we expect higher CapEx for the year, assuming the same prices?
You know, what we've guided and what BW guided obviously is that we have in 2023, we have the first part maybe of the next phase of Hibiscus kind of lined up. There's a little bit of CapEx in there for that. Equatorial Guinea, with our license extension, we really wanna go after three new development wells there. We've guided $65 million this year. We haven't guided next year. But you know, if I was forced to answer a question on CapEx guidance for next year, I would say directionally it should be in and around where we are in 2023, 2022, excuse me. So, you know, is it $50 million? Is it $60 million? I don't know. But it
You know, I think if I was forced to estimate, it'd probably be in that range. Which would be a combination of Dussafu. It would be Equatorial Guinea, the three new development wells. There's always hopefully things we can do in Tunisia, which are of a lower- quantum clearly, but quite impactful nonetheless.
Okay. Thank you. That's all from me.
Thank you. The next question is from Stephane Foucaud. Stephen,
Morning. Morning, gents. I had two questions. The first one was around the availability of the FPSO in Equatorial Guinea. That was really good in 1Q. I was wondering whether you would see that continuing the rest of the year. If not, what sort of efficiency do you assume in the budget or in the guidance? That's my first question. My second question is back on inflation. The first question was around CapEx, and we have the same on OpEx. In presentation, you talk about that $17 per barrel OpEx against wherever the portfolio stand at the moment. How would you see that evolving over the year and next year? Thank you.
Nigel, if you're able to talk a little bit about the FPSO in Block G, Equatorial Guinea. The question was, your voice came through a little bit wobbly, but I think the question was around why the upside was so strong and whether we had budgeted such a strong outcome.
Absolutely, John. Yeah. A very good performance indeed. I think the first thing to mention is it underlies the significance of the investment activities over the past year or so, on the Ceiba field and the FPSO itself. A lot of work has been done to improve the performance at Ceiba. Repair of the gas lift distribution unit, subsea flow lines, the reconditioning of two multiphase pumps on two of the clusters. All of that has come together to produce much better results for the field and for the FPSO performance. We have assumed both in our CPR reserves estimates and also in our forecasted profiles for the budget purposes at 85% uptime at Ceiba and 98% at Okume.
Clearly, we're in excess of that. Realistically, over the long- term, uptimes would be less than 99%. Typically, I think for a facility of this type, it would be in the range of, say, 93% to 95%. Clearly, we're very encouraged by what we see. It's a great sign that the investments are delivering value now.
Thank you. That was very useful.
Yeah.
It's probably a little early to say, Stephen Foucaud, you know, I think we're seeing inflation across the board globally in everything. I think it'd be safe to assume there's gonna be inflation on the operating cost. You know, depending on the asset, a lot of the fixed costs on these operations is through the, you know, the, the. A lot of the cost is fixed like for instance, some of the FPSO leases and things like that. Now, where you have on the variable costs, you have, you know, staff costs and equipment and everything else that goes into it.
Undoubtedly, there'll be some cost inflation on that, but I—it's hard to quantify that at the moment. You know, we have our existing budgets, agreed and contracts in place. Again, I don't expect a massive change this year, but I think obviously cost inflation is gonna creep into the world generally. Great. Thank you.
Thank you. John, a couple of questions that have come in through the Q&A portal. Could you please elaborate on Panoro's hedging strategy and what further hedges we may be contemplating or our approach to it this year? Also, maybe if you can touch on, you know, we refer to our potential upside on the 12,500 BOE a day target rate achievable in 2023. Just how thinking around that may be evolving.
Sure. The hedging comes from two sides. One will be lenders. Lenders typically in our business, you know, have a certain expectation around hedging. In the case of our Tunisian business, you'll see we have those historic hedges in there. Under that loan agreement, you know, we were required to hedge a certain percentage of production on a rolling two-year basis, which is why we have these hedges which were eminently sensible. By the way, during the times of $10 and $20 oil, we're doing very, very well for us. Now we're seeing the flip side of that. Those aren't looking as good. Again, that's just for about 600 barrels a day of production. Thankfully, it's minimal.
In that particular case, we have not put any 2023 hedges in place around that particular lending situation. We've managed to kind of keep that bit unhedged. In the case of the loan that we have that back the acquisitions that we made, that one's a little bit more benign. That one, they're not as strict. They like us to really look at the rolling twelve months and try and keep an eye on lifting schedules. That's really where the corporate strategy principally is focused because we have very few lifting events, those are quite important events for us. What you don't wanna do is get exposed to some bad luck.
You know, if you happen to lift on July first and the ensuing five-day period, which is when cargo is normally priced, happens to be a day where there's a big market sell-off, and then it rallies the next day. You know, these kind of things can happen, of course. What we try and do is try and identify where we're lifting and try and get some risk management in and around that. Just like I've just announced today, that we have 200,000 barrels out of that 800,000, hedged at around $104.5 a barrel. That's just trying to lock in and chip away at that to make sure that we don't get exposed to very small windows of pricing periods. That will continue to be the case.
you know, after we do this, we'll probably look at, you know, at that September lifting that we anticipate. As that becomes a little bit more firm, we'll try and hedge in and around that. I think you'll see some sort of tactical hedging. You won't see us, I don't think, locking in longer-term oil price hedges at the moment. That's constantly under evaluation. I mean, we recognize that the majority of our equity investors like the exposure to the oil price. It's one of the reasons they invest in the company. When you take that away, it takes away some of that upside that the investor is investing in sector for.
At the same time, we have to manage our treasury as well as we can, so we have a duty to ourselves and to our shareholders also to manage our cash well. It's about finding that balance. As I said, we're about 94% unhedged at the moment for our production this year and completely unhedged in 2023. Production upside from the new activities in Equatorial Guinea. We have a series of workshops going on, literally as we speak. A few colleagues that aren't able to join the call today because they are in another workshop around this, trying to define the timing of those wells and what those wells may deliver.
I think the best I can tell you right now is that there is a meaningful upside, I believe, to that 12,500 barrels a day in 2023. Just as importantly, that it will increase the production, but then maintain a plateau at a higher- level than is currently modeled by our guidance and that could be because we're not giving enough detail. We really see this as almost another acquisition. We just think it's a great addition to reserves and a great addition to our production profile. We'll try and articulate that a little bit more as we get a little more firm with our partners, Trident and Kosmos, on that.
Thank you, John. A further question from Teodor Sveen-Nilsen. Teodor, over to you.
Well, I'm not sure if I have any more questions other than if I have to ask a long story.
Okay. Okay, no problem. It's okay. Okay, John, I think that concludes the Q&A for today.
Perfect. Well, thank you, everybody, for joining, and we look forward to keep-
Sorry, John, to interrupt. I think Odvar is on the line. I don't know if you can see that.
Odvar? Oh, yes. Odvar, are you looking to ask a question? I think you are muted. Yeah, I think you have to unmute yourself. Odvar, are you there?
I'm here, but yeah. Okay. Can you hear me?
Yes.
Yeah, okay. I'm sorry. Yeah. One question here is about the M&A market. I wonder if you can elaborate a bit around the potential M&A market in Africa. Do you still see the larger oil companies trying to get out of oil assets, or has this trend slowed down so much recently? If you can try to shed some light around that, please.
Yes. We continue to see the large companies divesting of assets globally. Obviously, what's happened in Russia has put some question marks on the speed of that. They've effectively had some forced divestitures of production reserves out of Russia. Nonetheless, we continue to see the trend that we've seen for a number of years, which is larger oil companies shedding assets, and that is true for Africa as well. We see a limited number of players like ourselves that are able to look at those things. I think with the high oil prices right now, I think that that's creating a difficult dynamic between buyer and seller. You know, we'd love to do another Tullow deal, you know, where we get things as cheaply as we did.
We don't see that opportunity set out there at the very moment. The dynamic is interesting because some of these companies, it's not necessarily about trying to achieve the best price and show off that they've sold something for a very high price. It's also strategically about divesting assets and using those proceeds towards energy transition. We may see some opportunistic things happen.
One of the interesting things we're seeing early signs of, Odvar, is that with energy security globally being, you know, challenged, you know, the paradigms have been challenged by everything that's happening in Ukraine and Russia and the sanctioning and the flow of oil and gas, and is that there seems to be the first signs of maybe a reconsideration of Africa as a reliable energy supplier of both gas and oil. So we're seeing that Africa may come a little bit more into focus from the investment community, the financial community, government support. So we think we're very well-positioned in all that. We think that Africa is gonna become a more important focus for global energy supply.
We think we're in the right place at the right time in that respect. You know, we're very, very choosy. We think we've got a lot in the company right now with our development asset in Gabon. You know, all good steps are being made in Equatorial Guinea, the new work program in Equatorial Guinea. You know, we think we got a plate full. Obviously, if something really interesting comes along, we have to consider it. The market is there. There are definitely sellers in the market. $100 oil makes finding a really nice deal more difficult, more challenging, though. We're being extremely choosy.
Yeah. Thank you.
Okay. I think that is it then. I thank you very much for joining, and we look forward to continuing to update the market as we progress these assets. Thank you very much.