Hello, ladies and gentlemen. Welcome to the PetroTal Q3 2021 results webcast. Your speakers today will be Manolo Zúñiga-Pflücker , President and CEO, and Douglas Urch, the CFO of PetroTal. Please submit any questions you might have, and Manolo and Doug will do their best to answer them all within the time constraints. Please take it away, Manolo.
Thank you. Good day, everyone, and thank you for joining the PetroTal third quarter webcast, where we will provide a brief summary of our Q3 2021 operational and financial results. If anyone wants further information on the company, please see our website for additional materials. My name is Manolo Zúñiga-Pflücker, and I am the President and CEO of PetroTal, and I'm joined by my colleague, Douglas Urch, Executive VP and CFO. If you have clicked on the link in last evening's press release, you should hopefully have signed up to the webcast, so you may see the slides on your screen. If you are having issues seeing them, please contact petrotal@celicour.co.uk and they will be able to assist you.
Before I begin, I need to mention that there are some disclaimers towards the end of the presentation, which I would urge you to read at your own leisure. For those that are new to this story, as shown in slide one, PetroTal is an onshore Peru-focused oil company. The company is listed on London's AIM market and the Toronto Stock Exchange, and it has a market cap of approximately $268 million and net debt of around $32 million, and is trading at under 1.5 times internal estimated 2022 EBITDA. We have a 100% working interest in the Bretaña oil field, which we have expanded from minimal production to over 10,000 in late 2019 and reaching over 16,000 this past quarter.
The Bretaña field has 2020 year-end 2P reserves of 51 million barrels, and now has nine producing wells, with the 10th well to be completed in early December. In short, we have a great asset that will deliver a beautiful combination of growth and yield, and that is resilient down to under $30 per price. We also have a proven technical team in place with a track record that delivers operational excellence. We are excited to communicate Q3 2021 results and want to introduce the upcoming theme that will be important for shareholders. This is to remind shareholders that PetroTal is pivoting to 2022 as a material free cash flow generator at current rate prices. Therefore, we're excited to be introducing some fresh capital allocation goals we hope current and future shareholders will be excited for.
The top left chart in slide 2 shows that Q3 2021 production averaged just over 9,500 barrels of oil per day, which was materially on guidance at PetroTal's fifth straight quarter of production growth, with more recent current production of approximately 11,800 barrels of oil per day. Production was initially constrained early in the third quarter as water disposal modifications were being completed. Shortly thereafter, we brought on well 8H, which nearly set company records from an IP standpoint and brought corporate production as high as 16,000 barrels per day for a few days, proving our current infrastructure could handle the associated fluid. We continued drilling well 9H, now nearing the end of the final lateral section, with the readings looking very good.
For the 9H drill, we were testing out a new mud system that needed recalibrating early in the drill, creating the need to sidetrack the well and losing 20 days of time. We need to keep in mind that this will be a record-setting well lengthwise, with a total cost now estimated at $15.5 million. We anticipate performance in line to the recently drilled 8H well. From a reserve report perspective, we're excited about working with NSAI to incorporate all the new data from our wells and recent core data from our 3WD water disposal well. We anticipate a nice shift in reserve from 3P to 2P to narrow the gap between reserve profiles, effectively de-risking and lengthening the capacity of our future programs for shareholders.
Our revised average 2021 production guidance range is now between 9,500 and 10,500 barrels of oil per day. The guidance revision was largely due to deferring approximately 170,000 barrels from the well 9H into early 2022, as the 9H well will not be in production until early December. Once the well is completed, we will proceed to drill the 10H well that is expected to be completed in mid-January, and then the rig will move into a short maintenance program before resuming drilling operations in mid-February 2022. It is important to note that we're quoting exit production in our press release as a December average and not something significantly shorter like we have done in the past.
Therefore, we're cautiously estimating 15,000-16,000 barrels of oil per day, which is down a few thousand barrels, and also incorporating some conservative estimates for downtime we hope to avoid. Also note on slide two is Q4's 2021 CapEx program, which is shaping up to be the largest in history, at $36 million as we complete CPF2 and drilling and completion operations on 9H and start drilling the 10H well. Slide three highlights our revised 2021 EBITDA range at $105 million-$110 million from $140 million, and it's still up from our original budget of $90 million. Doug will provide additional details on this.
However, from a high level, the difference of 170,000 barrels in inventory is nearly $10 million of the variance with the remainder of EBITDA deferred due to delay in receiving the true-up revenue associated with the production still in the ONP. From a CapEx perspective, our total 2021 spend is revised down approximately $8 million as we look to defer some non-core infrastructure work into next year. As slide 3 demonstrates, with the EBITDA table out, our run rate EBITDA as at unconstrained production levels is vast and sets the company up for material free cash flow delivery in 2022 and beyond. To summarize, we have recently been setting records operationally with daily production highs and near-record individual well production rates.
We are anticipating 2022 will be a year where we will be raising the bar and setting additional records in almost every operational category. We now turn our attention to our reserve report and de-risking the perceptions of our 3P program, which we feel confident, with additional time and data, we will be able to deliver on. Thus far, we have had excellent technical sessions with NSAI to present our new well data and technical interpretations from the past year. In slide 4, we're now showing a menu of potential type curves and resulting economics. We have calibrated our well actual horizontal well performance into a type curve view and provided an economics comparison for some internal estimates we use for our budgets. Please note that all of our producing wells have paid out at this time.
Performance comparables on our horizontal wells, like, line up closely to 3P report performance, which conservative estimates EUR between 4 and 4.5 million barrels, depending on the technical parameters of the well. At current rate levels, our newly drilled wells pay out in under two months. From an economic and return standpoint, we want to point out that in all type curves and scenarios, the economics are robust, and paybacks are industry-leading at current Brent prices. We want investors to use this data to recalibrate their models and NAV estimates based on real performance with an anticipated and significant upgrade from a 3P risk profile to a 2P profile. Slide 5 provides guidance to investors on the drilling roadmap for next year.
Subject to approval by our board, this is a rough layout of next year's drilling plan, but not yet putting rates and numbers, which will be finalized in early January and subject to changes. As previously discussed, next year's capital program is looking to be on par or slightly larger compared to the 2021 plan, with some previously delayed projects from 2021 being finalized in early 2022. As seen in this slide, we're potentially staying ahead in our water disposal capacity, so larger fluid volumes materially higher from now would be possible. Before I turn over the call to Doug, I would like to take a brief moment on slide 6 to highlight a few important ESG points that the team has been allocating a lot of time.
We have developed a robust two-, five-, and 10-year plan with objectives, milestones, and measurable outcomes that will be included in our 2021 sustainability report released next year. We're listening to capital market suggestions, and we continue to evolve our ESG story and footprint. The challenge is to prioritize internal ESG projects against the challenges of being only a three-year company and quickly bringing our policy up to peer levels that have been evolving their ESG re-reporting from 5-7 years. We're up to the challenge and feel we are doing many things in Peru that investors will learn about in the coming year. Our mandates and initiatives can be summarized as follows. Funding over 35 community projects next year in the education, health, infrastructure, employment, and environment areas of community. Quantifying our carbon reduction plan mathematically for investors while providing a project roadmap for achievement.
Renewable energy investments, discharge goals, and monitoring, and promoting the creation of a 2.5% social fund, and promoting a fair distribution of the Canon for the benefit of all and without discrimination. As a pump stations update, as of right now, Pump Station 5 is not yet operational, with Pump Station 1 also ceasing operations. We're encouraged by the open communication, and as always, we play an active role in brokering communication and implementing policy to help the two sides achieve alignment and hope for a resolution soon. We're extremely happy that the company was able to keep production materially flowing by using internal storage and the Brazil route to market to sell crude. Going forward, we plan on maximizing the sales to Brazil to minimize the downtime impact on future closures in the ONP, which will further be explained by Douglas Urch. Douglas Urch, go ahead.
Thank you, Manolo. I'm Doug Urch, PetroTal's CFO, and would like to start off highlighting a few select financial items from our recent press release. With visual support in current slide seven, and from our recent press release. From a balance sheet standpoint, PetroTal exited the quarter with over $57 million of total cash compared to $79 million in the prior quarter. The decrease is substantially due to our increased CapEx program in Q3.
The company had another strong quarter from a net operating income perspective, delivering $29.6 million or $35.88 per barrel with an average contracted sales price of $71 per barrel and realized price of $53 per barrel. Compared to Q2 2021, which delivered net operating income of $29.7 million or $36.90 per barrel with a contracted Brent price of $66.55 per barrel and realized price of $53.20. This comparison demonstrates the impact of quarterly changes where Bretaña shipments have been realized versus quarters that didn't have any exports through Bretaña , which include a larger fee and differential charge to contracted Brent price due to the Bretaña route being FOB Bretaña.
Net operating costs per barrel increased quarter-over-quarter to $12.6 million from $10.8 million respectively, due to increased barge and standby, coupled with increased diesel and diluent costs. Royalties for the quarter were $2.6 million, representing 3.10 per barrel, compared to $2.3 million, 2.90 per barrel in Q2. The increase was due to higher production for Q3 2021. PetroTal has delivered an estimated $6 million of free cash flow before changes in working capital for the nine months ended 2021. We are excited to be finally pivoting to a consistent free cash flow generating entity in 2022 and expect to be free cash flow neutral in 2021 due to the lower EBITDA estimates from the deferred 9H production and true up oil sales revenue at the port of Bayóvar.
As mentioned above, the 2021 EBITDA guidance is now at $105 million-$110 million, including an additional expected in December of $4.5 million in true up revenue related to the restructured barrels in the pipeline, realizing the journey through the pipeline is complete. The combination of the 170,000-barrel deferral from well 9H and the pipeline closure and related delay in true up revenue has contributed to the EBITDA revision. Total CapEx amounts to $26.1 million for the quarter, of which approximately 65%-70% was drilling-related. Due to COVID-19 slowing operational and construction pace and the lower EBITDA revision, we have been able to defer approximately $8 million of non-core CapEx projects into 2022. This will better match with deferred production from 9H.
We will continue to demonstrate capital flexibility should cash flow have future volatility. PetroTal booked $15 million in net income for the quarter versus $11.4 million in Q2 2021. PetroTal's low DD&A charges and small sunk capital base create a robust forward profile for net income. Note that this is PetroTal's sixth consecutive quarter with net income booking and which will contribute to having a sustainable return of capital program in the future. Also of note is PetroTal's strong working capital and corresponding net debt positions. We had a working capital surplus of $56.5 million versus $62.6 million in the prior quarter. Bond calculated net debt of $53.2 million on the quarter underpinned a Q3 2021 leverage ratio of 0.54 times, well under the covenant levels.
From a valuation perspective, and including derivative balance sheet items, Q3 2021 net debt was approximately $32 million, which when divided into a projected 2022 EBITDA of over $200 million at current Brent prices, generates a negligible leverage ratio and a below-peer average trading multiple. At September 30, 2021, PetroTal's corporate hedge position for 2022 stands at approximately 860,000 barrels, with strike prices around $70 per barrel using put structures. Currently in the pipeline, there are over 3.4 million barrels hedged via swaps between $60 and $70 per barrel. In summary, strong liquidity, negligible net debt, robust cash flow generation, and production growth underpinned by a prudent risk management program highlight the financial considerations we think make us an attractive operator.
On slide 8, I would like to emphasize that we executed an export to Brazil in Q3 of around 260,000 barrels. This allowed us to use available storage and keep production flowing during the recent protests and pipeline shutdown. This is an exciting time for PetroTal as we continue to drive home our unique value proposition of material production growth and free cash flow yield together at the same time. Going forward, PetroTal will try and maximize the sales through Brazil to avoid disruption exposure from the pipeline route. On slide 9, we want to emphasize our pivot to free cash flow strategy. Finally, PetroTal would like to announce that the company is anticipating a significant free cash flow profile for 2022.
Therefore, to be able to initiate a dividend or share buyback policy, PetroTal will look for the appropriate cash window in mid-2022 and will repay, consider repayment of the bonds early. From here, that will allow a distribution of future free cash flows to be prioritized as dividends and/or share buybacks, all while being able to grow production out of cash flow. An estimated profile of this is summarized in Slide 9. As you can see, forecast free cash flow building to over $360 million over three years at current strip, with each $5 Brent shift equating to $82 million in addition of cash, free cash flow. On Slide 10, lastly, we have a revised and more detailed netback profile for each of our three markets. Assuming a normal run rate cost structure and no downtime are the ordinary cost items.
As you can see, Bretaña is anticipated to overtake the pipeline in terms of economic value in 2022, assuming we execute our maximum shipments next year. As you can see, we sensitized anticipated downtime on the pipeline at 50% downtime, and assumption impacts EBITDA by 23%, which should give investors confidence PetroTal has materially mitigated the cash flow risk from future social events that could impact ONP. Thank you to all of our investors who called in, and I will turn it back over to the call operator for questions.
Manolo, Doug, thank you. I'll start with the first question. Given that 8H was higher than anticipated, do you expect a boost to both original oil in place and recovery factor at the year-end reserve update?
You know, the answer to that is we believe that should be the case, and we sort of hint that in our presentation where we talk about upgrading from 3P to 2P. You know, we foresee that. Oil in place, for sure, the recovery factor. That's something of course Netherland Sewell has to do their own estimates, but our data shows that should be the case. You know, we'll see what NSAI has to say. Yeah, we're very positive.
The recovery factor for the Bretaña field is currently at 15% while analogous fields in the basin have much higher recovery factors. In the original Netherland, Sewell CPR report, there is no reason given why the recovery factor is estimated to be so small. What is the reason for this?
The reason is that initially when you don't have much data, of course, a firm like NSAI that is known for being conservative is gonna use more conservative assumptions. The results of the production in the future will show otherwise. However, you know, the importance of having this core on the 3WD to understand, you know, some of the implications of how easily the water will break through, all of those concepts, you just needed more data. Something important to highlight. This is very important to keep in mind. If we do increase the oil in place, the recovery factor not necessarily has to go up much because you are now comparing to a larger pool of oil.
You know, to have a larger oil in place and a larger recovery factor, that'll be a win-win, and you know, that may not happen. They may keep it at the same, but with a larger pool of oil, the reserve will go up. You know, all of that you know needs to be analyzed carefully by NSAI, again, which is known for being very conservative in their approach, which I like a lot.
Thank you. If local communities keep blocking the ONP after November thirtieth, will PetroTal be obligated to completely shut down production, or will it keep a reduced level of production to be exported to Iquitos or through Brazil?
We never like to completely shut production, so we would probably constrain production. Eventually if things are not resolved, then we will have to shut production. There's no question about that. We have mentioned this to the government and we have mentioned that also to our indigenous brothers, you know, that there needs to be a settlement soon. Something else that concerns us is in what shape will they return those pump stations to, back to Petroperú. Hopefully, they are in good shape and very quickly we can put back the pipeline into operation.
Petroperú has had to halt pipeline operations due to protests affecting two of its pumping stations and has delayed the startup of its Talara refinery expansion. Will the ongoing political instability in Peru affect PetroTal's investment plans in any way in 2022?
You know, as we have shown in the last slide that Doug discussed, we have positioned PetroTal in such a way that any social disruption should not affect much our operations, just basically delaying production of course, or impacts on a quarterly basis our cash flows. On a long-term basis, I think things should be okay. We have put forward a couple of key initiatives that I have been discussing with our indigenous brothers to make sure that they are empowered to take care of themselves in the future under the concept that they have a plan post petroleum that will allow them to flourish once oil production drops in the future.
You know, we have known all along that we promote the idea that if everybody invests right now in Loreto could once again produce more than 100,000 barrels per day and this time done in such a way that will benefit all of the communities. That's something that did not happen in the past and I am very much committed to making sure that this time they will benefit from that. That's why they see us as their champion vis-a-vis the government. We of course, you know, promote this discussion with the government. I'm very confident that we will reach a point that everybody should be happy in the future.
Why wasn't the issue relating to the synthetic mud anticipated so the delay could be avoided?
Well, again, you know, this is the first time we were using the synthetic mud. There were many analyses done to optimize the formula. The service company that we use is well-known in the industry, and actually the largest service company in the world. But they had to improve on it, and now as we went back to drilling, we have seen that now we have the proper formula. It's unfortunate the delay, you know, when you have wells that come in so strong at the IP, and we expect this one to be as strong, it impacts our forecast as we have explained in the presentation. Again, it's a delay.
You know, the well will come in at the end of the first week of December. We are almost done drilling the well, the horizontal section, and it's looking very good.
Thank you. What was the outcome of the meeting yesterday around the pipeline protests?
Well, I understand, because I spoke to them, a positive discussion with the prime minister. Although they did not achieve yet the results that they wanted, they are actually, I understand as I'm speaking right now with you guys, they are meeting with the prime minister's office again, and hopefully finding a good resolution. Which, as I mentioned in my presentation, we have put forward two key initiatives, and the other one that they are looking for is to set up a trust that will manage
For them to be able to properly manage the funds that were promised at the end of last year under the plan this year, the breaches or the plan to close the gap, the wealth gap, and they want to have a trust set up. These three initiatives, including that one, will not cost the government any new money. It's a trust for funds that were committed at the end of last year. The Canon, which is the way the government shares of their income with the regions, is just a redistribution in such a way that a better percentage goes into the producing districts, and that happens in northwest Peru very successfully. The law needs to be changed. The other one is us offering to set up a social fund, so the...
that comes out of the production. It doesn't cost the government any new money. We are pressing the government, because we ourselves do not understand why the government's taking so long to take action and resolve these issues. Always the concept is these indigenous people are not well prepared, and they may not be able to use the money properly. I can assure you, this group of people are very well prepared, well organized, they know exactly what they want to do, and they've been asking. They want to do it by setting up trust that will be managed fully with full transparency. I'm pushing the government to get these things done. It will really change Peru. I truly believe that.
Thank you. What can be done to increase the Brazil export option?
We have been discussing with the trading company that we've been using the possibility of increasing the shipments. I'm hopeful that we can announce in the near term such a you know possibility. In such a way that then more than half of the production will be going east either to Iquitos and Brazil or than going west into the pipe. That, of course, that graph that Doug showed at the end, it will improve even more.
Why is PetroTal management not investing more in the company?
Well, I would like to point out that the management of the company invested money at the startup of the company, so currently hold a significant number of shares personally and have invested along the way. In fact, in Q3, some of the officers and directors purchased additional shares at the market.
Will the company prioritize capital returns to shareholders before spending larger sums on exploration?
Yes. As stated in our materials, that is certainly our intent. Continue on with development of the Bretaña development wells and increase production there. From that cash flow, look to repay debt and then look at return to shareholders, and the timing that we've indicated is the latter part of 2022.
Is 240,000 barrels per month the maximum that can be exported to Brazil? Or is there the potential that one export can be made per month? Sorry, that more than one export can be made per month?
Well, I just mentioned before that we are actually in discussion with the trading company to be able to do more than 240 per month.
When will the reserves update be communicated?
Reserves are usually reported in February of every year. That we expect to have the same timing this time around.
Since most 3P wells seem to be in the southern part of the field, do you see most further 3P potential in the southern part of Bretaña?
You know, usually, as you drill a proved location, the probable locations, they turn into proved locations and the possible locations into probable locations. The 8H was extremely successful. We believe that we should be able to upgrade it to the proved category, giving some of the possible category locations and which is why we've been indicating that we expect a good revision on an upgrade of the 3P reserves into the 2P and 1P categories. That should change.
If PetroTal makes a discovery in one of the Block 95 leads, can you connect that lead to the existing facilities at Bretaña?
There is a prospect nearby, and the logical thing to do will be to tie it to the existing facilities. You look at the map, as you go south, there are some. There's gonna be a limit, I believe, where we may need to set up new facilities, especially the leads D and E that are way south. Of course, we are gonna explore going north to south following that trend. All of these explorers, you look at the map, they are in trends. It's something that we also expect, as we in the future drill in Block 107, following that trend.
Have you contracted a further Brazil shipment for December?
Yes, we do have another shipment in place on the back of a smaller shipment that we've just completed in November. It will be headed to the Brazil export route.
This is a two-part question. If the ONP shutdown is sustained into 2022, what could Q1 2022 production be limited to? If production is forced to be curtailed, will PetroTal maintain its current rate of drilling of circa one well per quarter in 2022?
Yeah. That's actually a you know, very detailed question. As we have shown in the last slide that Doug presented, with the possibility of going to Brazil and increasing the shipments via Brazil, plus the volumes that we deliver at the Iquitos refinery, you know, we will have. And especially we are able to increase the deliveries via Brazil, we could be managing 12,000-13,000 barrels of oil per day via Brazil. You know, that could be then a good estimate of what we could do in the first quarter. I don't expect the situation to last too much longer, especially with the initiative that we have put forward and the fact that the government knows that.
As we have mentioned in the presentation, to carry out the CapEx program for next year, it'll be an increase in CapEx, which of course the government is looking for investments. For them not to take action, especially when it's not costing them any more money, it'll be truly surprising. You know, that's why I don't expect that. The drilling, we have a drilling rig that we need to use. I think that we should maintain the drilling campaign because the mob of the rig is extremely expensive, and that's why we're carrying out and trying to complete the drilling campaign.
Why didn't the company issue a press release when the pipeline was shut down by protests?
The pipeline was shut down on October fifth, and early indications from Petroperú, the operator of the pipeline, were that it would be resolved within a few days. Once we realized that wasn't coming together, we issued a press release on October thirteenth announcing the closure and the impact on our operations, which was expected to be minimal at that point in time as a result of storage capacity and the Brazilian exports.
Thank you. How has PetroTal's proposed social fund been received by leaders of the local indigenous groups?
Well, they are very happy with the idea. They're very happy. You know, the key now is to ensure that we set up a very transparent trust where the company, I believe, should be involved as well. This should benefit all with no discrimination at all. You know, that's the key now. They're very happy with this and that's why they're meeting now with the prime minister, telling her that this is something that PetroTal has put forward, and they like that a lot.
Would it be possible to purchase or lease more barges to increase the sales in Brazil?
As we have mentioned, we are actually working with a trading company to increase the exports via Brazil. That requires more barges. We prefer not to buy the barges as you have seen in the presentation. Our cost on a per barrel basis is low. We don't wanna incur the risk of anything happening to the barges because we'll be liable for any spills or anything like that. That is the barge companies' you know business. They know what they're doing. Yeah, we don't wanna buy barges. We have been able to, and that's what we're discussing you know for them to increase the number of barges going to Brazil.
Not a question, but someone's written in to say, "Great job by management on community engagement and ESG initiatives.
Well, thank you so much. That, it's truly a team effort, and it's a team commitment. I'm very proud of that everyone in the company wants that, you know. They know that we have to do that. I have mentioned in my presentations, we don't follow ESG practices, we're actually leading in Peru, especially on the S side, as you can imagine.
If protests persist, curtailing offtake capabilities, will you wait with completing 9H?
No, we need to complete that well. You know, these wells cost a lot of money. Having the rig idle would even cost more. You know, we would like to put it on production. What would be a pity is that we complete the well and we are having to curtail production or something worse than that. That'll be a pity, because we would like to see that well flowing.
Are you concerned about the well declines? Do you expect that CPF expansion will help manage the individual well performance and overall oil recovery?
No, the well declines are exactly the way we have predicted. You know, I was actually discussing that with our reservoir manager and he was highlighting how accurately we have been able to project the declines even with the initial data. As you know, we have a team, the senior technical team is very experienced. They have seen these type of fields behave, and we've been very accurate on this. It's all about managing the fluid production, both the oil and the water. It's as simple as that. Keep in mind also that an oil field supported by a strong aquifer that we have in Bretaña usually have the best recoveries, and it's us managing that. We're very happy how things are working out.
Thank you. Does stopping production permanently hurt flow from the wells?
No, it does not. We proved that last year when because all the social unrest and the COVID, we had to shut production for two, three months. When the wells came back, most of them came back with higher oil cuts, you know, so they don't. The only risk of shutting production is the pumps, you know? Because usually if we do shut a pump often, there's always a risk of the pump not coming back to life. Like turning on and off a light bulb, you know. Eventually you do that too often, the light bulb burns. That's why we prefer to keep our pumps producing steady. We want them to produce for three, four, five years each, or more if possible.
The final question, is there now, or has there been any protests at the Bretaña production field? And if so, how do you handle them?
The protests. You may have seen on social media some of the videos that our indigenous brothers post. You know, they are protesting outside the camp. You know, we know about what they're doing, why they're doing it, you know. The government knows that. We are very supportive of their protests. You know, they have the right to protest. They have to because the government doesn't pay attention to them, and we support them. You know, we're fighting with them. You know, I truly believe that we can change Peru for the better. I'm hoping that the new government, especially this government that is more left-leaning. I thought that they would understand better.
Manolo, Doug, thank you very much for taking the time to answer the questions. There's no more, but I'll hand back to you now for any closing remarks.
Well, I just want to appreciate. I see there's been a number of questions, some of them from a technical point of view of how we see the Bretaña reserves developing. I think we have given enough hints that we're very excited about what we foresee coming on the NSAI results on the reserves. Then a lot of questions on the social issues. I'm gonna make sure to mention this to the government about the number of questions related to the social issues. You know, keeping in mind that we trade in both Toronto and London, as well as in the U.S., and they are concerned about the reputation of the country. So they should pay attention to all of these questions. I appreciate them very much.