Good morning, everybody. Welcome to Panoro Energy's first half twenty twenty, results. This is John Hamilton, Chief Executive Officer. I'm joined today by my colleagues, Richard Morton, our Technical Director Nigel McKim, our Projects Director Qazi Kadir, our CFO. I'll be going through the presentation, but the entire team is available for any questions that you may have.
Next slide, please. As a reminder, today's conference call contains certain statements that are or may be deemed to be forward 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 that 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. And for your reference, our results announcement was released this morning, in both, Norwegian and English, and a copy of these, press releases and our second quarter report are available on our website, www.panoroenergy.com.
Next slide, please. So we're using the webinar system here. You'll have opportunity to submit questions to myself and to the other panelists by typing your questions into the questions pane on the control panel illustrated on the left side of the slide there. Can see you can type your questions in there on the left, and we will collect those questions and answer them at the end. You can also raise your hand, as you can see on the on the right there, to be unmuted for verbal questions here.
You can see it circled on the right there is how you can, ask a verbal question. We'll try and try and deal with that as well. Next slide, please. Here's our highlights slide. We've all been through a very challenging few months.
Oil companies have been particularly affected with the double hit of COVID plus the huge historical drop in oil price. Despite all these challenges, Panoro has done well and even made some noteworthy achievements, we believe. First and first and most importantly, we continue to produce oil safely through the period. Our health and safety systems proved resilient across our assets, and we actually achieved a record quarterly production rate since 2013 despite all the turbulence. The big headline yesterday was that the operator Dussafu announced with their results their view of the potential of the hibiscus area in in Gabon, which could be three times larger based on the remapping, of that field, and I will touch on this a little bit later.
Financially, oil prices were low. So of course, this impacts our headline numbers, which have been well guided to the market. We don't believe there are any surprises there. But to demonstrate the low cost nature of our business, we managed to stay both EBITDA and operational cash flow positive despite average oil prices being below $30 in the quarter. On the CapEx side, we've largely completed our adjusted program, and we actually also repaid debt of almost $3,000,000 during the first half.
All in all, a very credible performance against a difficult backdrop. Next slide, please. So just a quick look at the macro. I think we all follow this, but, I think it's worth touching on. In recent days, things are better.
They're not great yet, with oil stuck still in the mid forties, but definitely better than where we've been. And after the brutal, price crash, the producers cut, output on a historic scale. We can see the shape of the forward curve on the right there. It's been moving up. And we're starting to see, other signs in the market, oil majors, banks, M and A deals, all using oil prices in the future, which are considerably higher than the current forward curve and considerably higher than than where we've certainly been.
So we believe the focus has shifted now from fear to the positive with gradual increases in demand, businesses restarting, motorists permitted a little more freedom. We believe that the drastic capital expenditure cuts we've witnessed recently will eventually result in supply shortfalls, which will further support oil prices. So we remain very, very bullish on the oil price, and the market is starting to recognize that as well. So hopefully, we're in for better times than we've seen over the past few months. Next slide, please.
Just a quick touch on our, hedging. Again, most people don't pay attention to hedging when oil is flat or it's going up, but we've seen the advantage of a sensible hedging policy. Some of our peers have also hedged, some are not, but we can see that a sensible policy makes sense. Our hedges are are referenced in David Brent, so we get full advantage when prices are low. We have colors of around $55.
We had an additional swap in July, which we'll see benefiting in the third quarter. It's worth noting that, again, gains or losses in the P and L that come through realized or unrealized gains on hedges come not in the revenue line, but further down the p and l. So you have to look a little further. And you also do get some volatility on the unrealized oil price, hedges, the mark to market value. Those can go up and down and and kind of distort the p and l.
So it's it's it's important just to make sure that that that you recognize that that that volatility. Our mark to market of our remaining hedges, is $5,500,000,000 at the end of the second quarter. And it's also worth noting that the gains that we have made on this are outside the petroleum taxation regime. So sometimes, taxation regimes can be quite punitive in our sector. These hedges fall outside of any tax, that may be there.
Next slide, please. So, update on some of our assets. I'll start with Gabon. In Gabon, we've been active since 02/2008, and this is we've been part of the all the success that the bloc has seen since then. But why is Gabon so interesting?
During the opening of the South Atlantic in the early Cretaceous, a series of pre salt basins formed along the West African and Brazilian coastlines. These events created world class oil fields in Brazil and also in West Africa, and Dusifu is one of them. We've had 14 straight successful well penetrations since we started drilling in 02/2011. And Dusifu is the largest exploitation license ever granted in Gabon, and we have the rights to produce and explore here for another 18 and can extend beyond that even. So during the quarter, we had two new well come on come on stream.
They actually came on stream in the first quarter. We have a total of four wells now on stream, and the field is doing very well, currently producing at about 18,000 barrels a day on those four wells. We had a oil lifting by BP in June, and we have three more expected during the second half of the year. OpEx is about $17.18 dollars a barrel, so it's a good low cost operating environment. Obviously, those operating costs will go down.
The more oil we start, we will produce, and we will produce more in the future. Next slide, please. Again, we've shown this slide in the past, but it's worth touching on it again now that we've had recent news on Hibiscus, which is we have had 14 straight successes in Dussafu since we drilled the first well as Panoro in in 02/2011. There's a saying that good oilfields keep getting larger, and Dussafu so far is providing is proving to be a world class asset. Again, we have the rights to produce and explore here for eighteen years.
The long term nature of this asset is worth remembering in the context of all the short term volatility we've seen in the market, recently. We have no license commitments here, so we can take our time. We can choose our timing depending on when when it's right for ourselves and our partners, to explore here. So we have lots of time and lots of oil still to be discovered. Next slide, please.
So a quick little update on, Dussew and what to expect next. We announced, obviously, that Tortue phase two was curtailed as a result of the crisis. Two additional wells were meant to have been brought on stream, but the rig had to be demobilized following the successful drilling of the DTM 6 well. DTM 7 was going be the final production well to be drilled as part of this campaign, but that too was postponed. We anticipate that these two wells will be finalized and brought online in the 2021 next year, so not too far from now.
And in line with operator guidance, we should see production levels increase materially once we get those two wells on stream, we believe, in excess of 20,000 barrels a day gross in total. In the middle section of the slide, we talk about Ruche Phase one. Ruche phase one was postponed as well, but less to do with COVID nineteen than the state of the oil price. It's a multimillion $100,000,000 project with existing reserves. Now these reserves are very economic even at low oil prices, but prudence dictated that we delay when oil prices were at 20.
I think a lot of people delayed things like this. But the teams are using this period very constructively when investigating possible cost savings on that development while we wait out the oil price drop. We hope to resanction this valuable project in due course. On the right side of the slide, exploration. Exploration wells were also canceled during the crisis.
We'd intended to drill probably two wells prior to the rig being sent back. But these very much remain part of our strategy. And hopefully, we'll see these getting drilled perhaps as early as Q4 this year or Q1 when the rig returns to finalize the Tortue Phase II DTM-seven well. Next slide, please. So the big news yesterday, and hopefully today still, and hopefully for for a little while, is Hibiscus.
It continues to be very exciting, this area. And as a reminder, we drilled this discovery about a year ago. And at the time when we made the discovery, it was four to five times bigger than the predrill estimate. As you may recall, we've been working on a seismic reprocessing project using modern techniques, taking the the the seismic that Panoro acquired in 2013 and using all the modern techniques to get this most the the most we can out of it and using the new wells that we've drilled to help calibrate that. BWE, the operator, came out yesterday with their mapping, and the picture is being shown here, which suggests there could be a much larger structure linking Hibiscus with Hibiscus South and Mupale, which were other prospects that we had on the inventory.
And their initial estimates suggest that three times larger oil in place volumes and also potential recoveries and about three times as big as the current book reserves, so in excess of 150,000,000 barrels. Now appraisal wells will be required to prove these volumes into reserves, but Hibiscus was already a game changer on the block and now appears to potentially be much bigger. Hopefully, we can drill a well or two on Hibiscus, Hibiscus South, and Lupale when the bore rig comes back towards the end of this year or early next year. Next slide, please. And exploration doesn't stop with Hibiscus.
The map on the left shows the location of the existing fields in green, including Hibiscus, and the outlines of the main prospects in Leeds in orange, yellow and brown. As you can see, we have plenty of potential left on the block. We have defined 13 prospects with a total P50 gross perspective resource of another two eighty one million barrels. Reserve auditor, Nederland Soule, has attributed a geological chance of success to the prospects of between 3690% chance of success. We have been working on this reprocessing project, which I referred to, which is going to improve the definition across the entire license.
And we intend to use the result of this work to modify the portfolio and identify new prospects. Dushku will remain an exciting exploration province, and we fully intend to drill additional wells in combination with our production drilling operations over time. Next slide, please. So moving on now to Tunisia. As a reminder, we entered Tunisia through two transactions in 2018, one production led deal and the other an exploration deal.
In doing so, we were able to establish a strong position in probably the best operating area in Tunisia. We are one of the top oil producers in the country. Tunisia attracted us as we saw the theme of oil majors exiting due to the size of the assets not ranking against their larger global portfolios. Private equity were moving in. Other smart operators were moving in to fill the void.
And we're active in the Pelagian Basin, which the Pelagian Basin is located in the Central Eastern onshore and offshore Tunisia, and the region comprises large and shallow continental shelf sequences. This area that we're in has already produced over 400,000,000 barrels, so we're in a good, mature area. We have an active operational program in Tunisia, which was temporarily delayed during the COVID pandemic, and we have restarted that with a number of well workover operations. Tunisian travel restrictions are still in place, so some activities are still taking some time. But we're finding our way, and we're now underway with some new activity which have been parked and delayed for three or four months, which I'll tell you more about now.
The Aberfrost production for second quarter was just under 4,000 barrels a day, consistent with our first quarter results. And this was an increase from last year, which averaged in the fourth quarter around 3,500, so about 15% increase. And we do have plans to get to 5,000 barrels a day gross underway. Operating costs in the region, are very, very good, less than $15 a barrel. Next slide, please.
Here's a slide which kind of tells a story. Before I tell you about our restarting activity and our and our goal to get to 5,000 barrels a day, I thought I'd walk you through the context of this. The first half of this slide on the left shows you last year the second half of last year, 2019. As you can see there, we were concentrating as new owners of the asset on a comprehensive asset review and looking for quick wins. When we achieved this, as you can see, we were able to bring, production at the 2019 up from about 3,500 barrels a day gross to over 4,000.
And during the following months, we managed to get the peaks around 3,000 4,300, 4,400. Then COVID struck, and we were forced to delay certain work. Amazingly, into our credit and our partners' credit and our team, we managed to keep production going through the period, which not cannot be said of, all of our peers, and we managed to to lift and sell and collect money for all of our crude sales. You can see a little drop recently. We had during just as we're coming out of COVID, we needed to replace two pumps on two of our most productive wells, each of them doing about 500 barrels a day.
So we had a very we have a drop there. We're busy bringing those back online as we speak. One of them is already completed. The other one is be back online in about about a week or or or two weeks. And that should reestablish us back to where we sort of our our state for for 2020 is around 4,000 barrels a day.
Next slide, please. So thankfully, since, since June, we've been able to resume operational activities. Again, slowly, trying to deal with COVID restrictions has been a challenge operationally, but we have restarted. The first priority, as you can see in the top part of this slide, was to restore these two wells that I told you about, these routine replacement pumps. Each of these wells is about 500 barrels a day.
So these are important wells for us, and they really did need new pumps. So we took the opportunity to replace those pumps. These have almost now been completed. One's already online, and the other one, we're literally in the well as we speak. So we should be stabilized back at 4,000 where where we believe steady state is, at the moment.
But more importantly, we're able to to commence our new production activities. So the second half of the slide details five different things that we're either in the process of doing, have completed, or are expected in the very short term. On the aligned field, the first thing there, we have completed two, two workovers there, and we tested production rates in excess of five five hundred barrels a day. This production is is, waiting a pipeline, work before we can really actually count it as as production, but we basically have completed the subsurface work, and these wells are ready to be produced. In Guebiba, we are working on, two workovers, Guebiba number four and number five, which I'll touch on a little bit more.
Those two wells are, ongoing, in progress as we speak, and collectively, did, in a success case spend about, five 700 barrels a day. And we've also now spud the very exciting Whippie Bit 10 sidetrack. I'll tell you a little bit more about that, which is the first drilling activity on these assets for for five or six years now. So it's really quite exciting. And we hope that this operation will deliver new production of approximately 500 barrels a day.
And we're also busy planning a workover in Susinas, our off field, which is a well stimulation, which we're waiting some permits on. That will probably happen a little bit later into early fourth quarter, but also looking for about 500 barrels a day. So as you can see, if we, on aggregate, take that portfolio of activities, we believe on a risk basis, we should be able during the fourth quarter to get from, what we think steady state 4,000 to to 5,000 barrels a day. So we put ourselves in a in as good a position as we can to realize that, that ambition to get to 5,000 barrels a day. And we have the activity going.
We have the rigs on-site. I'll show you some pictures as well. If we could go to the, next slide, please. Again, this is, maybe not terribly exciting, but for us, it was exciting because this is the first activity we're able properly to resume, coming out of the COVID and travel restrictions. This is our offshore field, Sarcena.
And here's a picture of the pump replacement activity that we recently executed. Again, the the pump needed to be replaced on this on this particular well. We reestablished production at between five and six hundred barrels a day on this well. It's a very successful operation. It was our first test case in trying to reestablish normal business.
Next slide, please. Yes. Sorry. So this is the, this is the very exciting slide for people in Tunisia. I I I I'm not sure if I if I can convey that excitement, but this is not something we've seen for many, many years.
We have two rigs working at the same time on the TPS assets. In this case, the Rubiva Field. The smaller rig is, working on the two workovers that I talked about. So it's Gueviba number, number four and number five. That those that's seeking to establish production of about 700 barrels a day in total on those two.
The big rig is for the Gueviba 10 sidetrack. This is one of the preeminent rigs in the country, the CTF rig zero six. Gueviba 10 is a is a well that's been shut in for many, many years, and our plan had always been to try and sidetrack the original withheld bore into a no separate fault compartment. We are underway with that well now. We're in about 1,800 meters depth at the moment, and we hope to complete this well in October established rates somewhere around 500 barrels a day gross.
So again, very, very exciting for everybody involved NASA to have this kind of level of activity happening in Tunisia, particularly when in a world where very few people are doing very much about production growth, Panoro and our partners in TPS are going forward at the moment. So we're getting a lot of credit for that in the country as well. Next slide, please. There's a little more technical slide here, but alongside all the intense operational activity, we've also been able to initiate some some technical work. And we have to invest in time, resource to understand our fields in great detail because we need to plan for additional development activity for the future.
And Nora's future is not just the five activities I just talked to you about. It's it's about long term production at this field this set of fields. And to this end, we've started a work of programming, updating our subsurface mapping, and remodeling. And this slide, although it's very technical, shows the work that we've progressed during 2020. In fact, the project work was conducted during lockdown with staff and consultants in SPACs, Tunis, London cooperating remotely to remap the top reservoirs of the field and construct static and dynamic models.
Now the the the punch line on this is that these are important bits of work that we need to do on each of the fields we have. We started with the Golubba field, and these provide the basis for further reserve bookings once we define the projects here. We we have always believed that there are additional reserves to be booked, and this work is showing that that is the case. We obviously need to plan that activity for them to be counted as reserves. But the work is ongoing to make sure that we have a longer term plan on these assets, not just the short term the short term work that we've discussing up until now.
Next slide, please. So, some further corporate updates, South Africa and Nigeria. In South Africa, for those of you who follow us, we ended into a farm in the agreement for an exciting well in South Africa together with Africa Energy and Azimem. The deal is subject to government consents and to, the Azimem, farm in also completing. These government consents have been impacted by COVID nineteen.
We've we've seen this across the board with regulators and the ministries that we rely on, each of the countries we operate in is that, that they have slowed down. So, we've had to kinda fill in the time by reworking some of the subsurface, working together with partners. Panora have done all their our own extensive work on this. And we're targeting an updip location from the discovery made in 1988 during the apartheid times. That well discovered good quality light oil, and the plan is to drill updip from there.
The timing of that is is is is unclear at the moment, but we are hoping to get some clarity on the regulatory process during the course of this quarter and and into next quarter. For OML one one three, Adjieh, as announced in October, we have an agreement with PetroNor to sell them our Nigerian assets in exchange for $10,000,000 of PetroNor shares. This is always thought to be a win win solution for all parties because it allows PetroNor to bring their technical leadership to be brought to the project where they're working together with the operator. And Petronor have been working hard on on this on the next phases of Aje. The sale is subject to consent of the regulators and the ministries in Nigeria approving this, and the process is underway.
Again, it had been impacted over the summer due to COVID. But our intention at closing is to distribute these PetroNor shares to our shareholders as a dividend. And now for the final slide, please. So this is the summary slide. You know, in times of crisis, it's easy to forget what makes an interesting equity story.
I think, I think, along with our peers, we we we're sort of putting out fires and and worrying about business and production and liftings and partners and all these things during the summer. So you you kinda lose sight of what makes an interesting equity story. But, you know, share prices were down, and then they'd only go up or down depending on what happened with the oil price. And and to some extent, we're still a little bit in that environment, but we're starting to find the first foothold of normality, we think, in the sector. And we, as Panoro, we believe we're very well positioned.
We have a solid balance sheet. We have good low cost production assets. We believe we have a good strategy, a good board supporting us. In the near term, we can look forward to production increases in both Gabon and Tunisia as as I as I laid out. We have the dividending of the Petronor shares to the shareholders, which we can look forward to.
On the exploration front over the next twelve months, we have likely wells in the Biscus area in Gabon. We have Salloum in Tunisia, which has also been slightly delayed due to due to COVID and and and the circumstances around that, block two b in South Africa. So we remain entirely focused on growing our business. And the prices had put a pause on some of this, but we remain committed to achieving those short and longer term goals that we've set out. So with that, I would like to go to the next slide and encourage any, questions you may have.
Here is a reminder of how it works from your side. I hope that I'm able to navigate it from my side. Let me just see here. I believe we have a question. Just give me a second here.
From. Let's see here. So a question from the Fernley analyst. Do we have an updated, timeline on the Salloum one well? Is it fair based on Africa Energy's recent comments that Block two d will close towards the end of the year, so you position drilling in q one?
Jorgen, thank you for the question. Yeah. Salloum, you know, I think we've been guiding towards the end of this year. That's probably still okay. But I I think, realistically, it's gonna slip into next year.
There have been a a number of smaller issues around, COVID, around suppliers, around various ministerial consents, working with municipality. We can't blame everything on COVID, but, but, but nonetheless, I think it has been the priority for us has been to maintain production and try and grow production. Obviously, exploration activity is interesting, and Salloum falls into that. But we have sort of less priority on that over the past few months, and so that's now catching up with us. So I think there is a little bit of a time lag on that.
I wouldn't put a 2020 date on that. I would move that into 2021. In respect of Africa Energy and Block two b, yes, I think it will probably close towards the end of the year. Again, the the the closing conditions are twofold. One is ministerial consent in South Africa.
That process is ongoing. It first has to go through the regulator, and then the ministry, it is in the process of going through the regulator as we speak. I believe I heard from somebody that the minister actually himself had COVID. So I I think that's a realistic timetable that Africa Energy had given, And that that should position us to drill in in quarter one as long as, as as long as those approvals come through in due course. You know, I think, we are seeing wells being drilled in South Africa now, but, but, again, we need to get the rig and and the suppliers in, and I think people are still being cautious.
But I think q one is is is what's Africa Energy have got, and we have no reason to, to to say anything different from that. Right. We have a question from Tom Erik at Pareto Securities. Can we add some additional color on the likelihood of success at the appraisal well of Hibiscus? Do the results from the reprocessed seismic also have a positive read through on the existing exploration potential on the block?
Richard, do you want to add some color to the chance of success on Biscayasau, Nopalay, and any comment you can make on on the reprocessed seismic?
Yes. Thanks, John. So you'll have seen that we finished that project in the recent months. And initial work has been done by the operator. We, Panora, ourselves are getting our hands on the data now and doing our own work to verify and compare with the operator's interpretation.
So it's a little bit early days. I think the thought here is to bring it to everyone's attention because it could be potentially interesting, of course. But we haven't really defined any risking on the wells yet. We haven't defined the location of possible wells. So slightly early to say anything definitive about drilling at Hibiscus and the likelihood of success.
I can say that the reprocessing has been over the entire block. So we're evaluating the existing prospect portfolio. You saw from John's earlier slide that there's a significant potential prospective resources available in the block, and we're going through each of those prospects in detail to see how they've been affected by the processing. So there's plenty more to come on that subject.
Thanks, Richard. I've a question from Theodore as well from SP1. Is the current Adolo capacity any limitation for the viscose development? How can capacity be increased? Yeah.
The the the Adolo has a name capacity of about 40,000 barrels a day. You know, I think the the engineering work still needs to be done, but BWO believe that the nameplate capacity can be brought to about 60,000 barrels a day through some debottlenecking, so not not big, big CapEx, some CapEx, but not much, to about 60,000 barrels a day. And it can be taken bigger than that as well. That would require more CapEx on it. But I think in the short term, at least, the the assumption is that we should be able to get to 60,000 barrels a day through some limited some some limited debottlenecking.
Let's see. I have a question from Stefan from Octus. Stefan, I think I've just unmuted you. I'm trying to unmute you. Some reason, I can't it's not unmuting you.
Sahira, do you think you can try and unmute Stefan there? I don't think he's actually able to unmute him. I don't know how he's connected. Okay. Maybe maybe he's connected by the phone.
Okay. Stefan, if you can send your, your your question in, maybe we'll try and get it on on the q and a module. Should we expect 2021 production from Teodor close to 3,000 barrels a day on average? Yes. So, I mean, I think what we'll have is an uptick, hopefully, in Indonesia and hopefully in in Gabon.
So that's probably not not far off. We haven't not yet in stage where we're gonna be providing firm guidance on 2021 yet. I think we'll have that for our November update. But, directionally, that's that's not far off. Stefan has sent in a note now from Okta Securities.
At Hibiscus, what did you miss previously? What triggered the big changes following the reprocessing of the seismic? Hey, Richard. Do you wanna just quickly touch on on, I guess, that the the the the first big change was the were were the two wells themselves at Hibiscus. I think that changed things.
And I don't think we missed anything. But, but do you Richard, do you wanna touch on what changes the reprocessing has brought about?
Yeah. I will. So, yeah, as John mentioned, we we had the success with Hibiscus. That was a, an exploration well drilled to the southwest of a a well drilled a number of years ago. The the difficulty in in this area, the the exploration here is is not straightforward.
It's quite complex in terms of the seismic imaging. That's why we had to do quite a detailed reprocessing project, depth imaging, and the latest techniques to help us. So that's thrown up, you know, the the possibility of having these structures linked together and hibiscus being a little larger than we've previously mapped. But there's a great deal of uncertainty still on on the area because of the complexity of the imaging. We really need to think about the the bits in context of the child's success and the test world program before we can say that we've seen a large change.
So at the moment, it's quite early days. We do see potential here it's worth pursuing and kind of watch this space is the message.
Yes. Stefan, as reminder, the pre drill on Hibiscus was about 11,000,000 barrels, and that's because, Richard said, you know, the imaging, the sub result imaging was was was difficult, and and the was seemed to be, you know, quite quite quite flat, not not a big dramatic structure. And, obviously, the the first well and the and the sidetrack actually showed that it was quite a bit bigger. So, you know, we we are still learning. Obviously, you know, we're quite bullish on on the area, and the successes of of they speak for themselves.
So, you know, we we are looking forward to drilling a couple more wells there. I think that that is it for the questions. Let me just quickly check here. I have a question from Daniel from Arctic Securities. Good morning, Daniel.
Can you give some comment when it comes to how Tullow has influenced the Dusupo partnership and working environment? Do they bring useful complementary competence to the group, or is it a risk that they slow down any workflow or decision making within the partnership? Daniel, it's a good question. Telo are, for those of you who don't know, are a very, you know, long standing, E and P company here in in London. They've been responsible for some of the biggest discoveries made in in Africa.
You know, a lot a lot of the big successes we're seeing in South Africa now with Africa Energy, a lot of the technical people came from Telos, successes in Uganda, Kenya, Ghana, yeah, even Gabon, they, they are excellent explorers. And, for us to have them in the partnership has been, has been very, very good. They work together very well with us. They do their own work on everything. So engineering, production, exploration, finance, you know, they're they're multifaceted, very mature oil company and and, you know, much much bigger in that respect than than than Panoro or or BW.
So they bring a a huge a huge amount of, of of resource and and expertise to the block. So, I don't see any risk if they slow down anything. I think they're they're quite keen to get on with things themselves. Gabon is their second most important country after Ghana in their portfolio. So it's it's it's an it's a country that they they're committed to, and it's a it's an asset that they like.
So I I don't personally see any any any any danger signs with Tullow, on the contrary. Right. I think there's one more question. Does the exploration in Gabon drilling you talked about starting q four twenty twenty, '21 include Hibiscus appraisal, or is Hibiscus on top of these wells? No.
I think that's the wells that we will drill. Again, the partnership has not decided on this yet, but, when we bring the rig back, I think we we will want to drill one or two. We'll be in the Hibiscus, like, Greater Hibiscus area. So Hibiscus South and Mopale. So it's not an addition to those.
It's it it is probably gonna be concentrating on that area, trying to delineate that that area better because that that will very much inform further decisions on the on the Ruche development, if we find more oil in Visca South and Nepala. It's gonna it's gonna influence the way we think about, that phase of development. So I think that's it as far as I can tell from the questions. So I'd like to to thank everybody for joining, and, we look forward to continuing to update update you in the markets, as we go. Thank you very much.