Panoro Energy ASA

OSE:PEN

Earnings Call Transcript 2021-Q1

[John Andrew Hamilton, Chief Executive Officer]

Good morning, everybody. This is John Hamilton, and welcome to our trading and financial updates for the first quarter of 2021. I'm joined today by our colleagues Richard Morton, our Technical Director; Nigel McKim, our Projects Director, Qazi Qadeer, our CFO. I'll take us through some slides and following which we'll be open for some Q&A. 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, perception of historical trends, current conditions, expected future developments and other factors that we believe are appropriate to make on of 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. So the current slide you're seeing is the way in which you can ask questions either during the slide presentation, in which case, we'll pick them up if you write them in or you can raise your hand using the hand icon, and we'll try and take your verbal questions as well. Next slide, please. So a quick overview of the company. We believe this is our most important quarter ever in the history of Panoro. We completed the acquisitions from Tullow in Equatorial, Guinea and in increasing our stake in Gabon. That transaction should close soon in the Gabon. And what we have now is what we believe to be that truly a full-cycle E&P company. We have operations from the North Africa write-down from the In South Africa, we have production diversified across 3 different countries. We have 2P and 2C resource number in excess of 70 million barrels. We have a long reserve life on our assets, and we hope to be producing somewhere in the range of around 9,000 barrels a day during the course of this year. So we believe through these transactions and over the past couple of years, we have built a very sustainable business in E&P in Africa. I'm very proud of that. Next slide, please. So some of the key messages we want to get across in terms of the equity story here are 3 key messages. One is that we are in production growth mode. We have organic production growth in our portfolio. We hope to be producing around 9,000 barrels a day this year on average. We're drilling 5 new production wells still this year, 3 in Equatorial Guinea and 2 in Gabon to be brought onstream. We hope to have an exit rate in excess of 9,500 barrels a day at the end of the year, and we're on target to produce in excess of 12,000 barrels a day during the course of 2023. So we have within the portfolio of production growth. We also have near-term triggers. We have an exploration well in the Gabon North. We have an exploration well in South Africa, which we hope fill by the end of the year. And we also have PetroNor dividend -- PetroNor shares, which we hope to complete that transaction in the near future. And on a cash flow basis, we can start being judged now on a cash flow basis. We have very strong free cash flow in this business. We are fully financed for the growth that we have announced. And we're well positioned to pay dividends in 2023. These are the key messages we want to get across. Next slide, please. So on a pro forma basis, our 2021 First quarter highlights. We obviously announced the transformational acquisitions our group net production was 8,000 barrels a day on a pro forma basis. By pro forma, we mean, including the effect of the increased stake in Gabon and the new asset in Equatorial Guinea.We have production growth activities across the portfolio, which I'll touch on. We had a big quarter in terms of liftings. We had 3 crude liftings, 1 Indonesia, 1 in Gabon and a big 1 in EG. $59 million cargo in EG. And although it get kind of repetitive to talk about these days, we still are working in a COVID environment, and we're pleased to say that our systems, our health and safety record and our protocols improved, again, resilient in the quarter. On the financial side, you can see the effect on a pro forma basis of our revenue line and also our EBITDA, which is $25 million has been reduced by $31 million simply on an accounting basis, given the overlook position in Equatorial Guinea when we lifted that cargo. So that will unwind during the course of the year. So it's hard to look at on a quarterly basis because of but it gives you a feeling on the EBITDA side, about the strength of this business now with very strong numbers coming through, which you'll see, again, that overlook position from an accounting perspective on one, that $31 million recovered back in through EBITDA. And again, we have a lot going on, on our balance sheet at the end of the quarter. It's kind of hard to describe it because we have all the movements around the completion of the acquisitions and drawdowns of debt and all that. And we also have this huge receivable, $59 million from EG. We've received the cash for that now in April. But -- so the balance sheet is quite different as well. Next slide, please. Here are all financials in some more detail. I won't go into them in a huge level of detail here. But as you can see, what we're doing is we're reporting our IFRS reporting in 1 column, showing the effect of the pro forma the acquisitions and on a pro forma basis, showing the financials, where, again, you can see $77 million of pro forma revenue, with EBITDA of $25 million, recognizing the $31 million over lift that comes through. So we're in a very, very strong position financially. Next slide, please. So what we'd like to do is take you through, at a high level, each of the assets we have now. At Equatorial Guinea, we produced net 4,300 barrels a day. On a gross basis, this is 30,000 barrels a day, which is exactly on target from what we anticipated. Equatorial Guinea now represents more than 50% of our production. So this is now our most important asset by far in terms of production. And what's quite exciting about Equatorial Guinea, we believe, is that we're really on the cusp of the operator finally drilling new wells and trying to boost production here. So the past 3 years, the operator, Trident bought this asset 3 years ago. And they spent those 3 years upgrading the facilities, if not be many new wells. And in fact, there've been no wells drilled in Equatorial Guinea since 2015. So the real task from when they bought the asset from Hess was to improve the infrastructure, work on debottlenecking, a sort of -- if I can put it this way, kind of boring stuff, a resting decline in wells looking to do things smarter and better. And so now it's the harvest time. And the first of those will be 3 wells to be drilled this year. The first will spud in June, in the Elon field. And again, these are the first wells to be drilled in -- since 2015. I mentioned the cargo that we've already lifted, which is brilliant. So we had a $59 million cargo 1 week after completing the transaction where we paid $88 million for those assets. So again, you can show at these oil prices, how cash generated this can be for Panoro. The Okume upgrade project is nearing completion. There's additional power, water injection, gas lift capacity being installed. So again, things that are improving production and the operations. We also have commenced the second phase of the ESP program there. So we're going to start seeing production growth in those assets during the course of this year. And perhaps just as importantly, the JV is very focused on production growth in 2022 and beyond. So we're really, again, at the point here where the joint venture is now focused on boosting production, having spent 3 years investing in this asset. Next slide, please. In Gabon, on a pro forma basis, we produced 2,380 barrels during the quarter. So that concludes the effect of the additional 10% from Tullow. But really this is production from 4 wells. As those of you who follow us will know, we are busy now drilling the Tortue production well DTM-7, which is the well is ongoing now, and we plan to hook that well up and DTM - 6H which is the lower drill right at the time COVID really hit. And bring those online during the end of the third quarter, probably at Tortue. So we should see production growth coming in towards the back end of the year in Gabon. We did lift 1 lifting in that 56,000 barrels during the quarter. That does not -- that number does not include the effect of the Tullow 10%, but just the pure Panoro one. And Hibiscus/Ruche development, first oil is now targeted for the fourth quarter of 2022, BW Energy, the operator, announced their results last week and the good news here that we've moved up the first oil target from that development from the first quarter of 2023 down to the fourth quarter of 2022. So there've been some very good news, very good progress on that particular project, which will see production get towards up -- towards the FPSO capacity of 45,000 barrels a day or more. We're going to be drilling with the Hibiscus North prospect in the third quarter. So we have another exploration trigger in there. The Hibiscus extension where we drilled in May did not encounter hydrocarbons. And lastly, we're expecting the closing of the Tullow acquisition during the second quarter, so in other words, in the next couple of weeks. So we look to complete that one soon. Gabon now represents approximately 35% of our production. Tunisia, next slide, please. Tunisia, we produced a little over 1,300 barrels a day net to Panoro, 4,500 barrels a day gross. Production is frequently in excess of 5,000 barrels a day. So over a period of a quarter, you get certain shut-ins of wells or temporary shutdowns that might impact the average over a quarter. But it's fair to say that production is frequently in excess of 5,000 barrels a day. And I think it really demonstrates what we've done since we've taken over the asset where we've managed to boost production by 30% or 40% from the time that we bought it from [indiscernible]. So again, we're very, very happy with our Tunisian asset and the production growth we've managed to achieve. We also had a lifting in the quarter for about 96,000 barrels at about $60 a barrel. And we continue with the production growth story in Tunisia with workovers planned and airline and so seen are the ones that are right in front of us now. So we hope to be able to continue the production growth story in Tunisia as we go. We're also looking at the longer-term potential of the asset working with ETAP, our partner, to update the subservice models and plan further developments in some of the deals, including, most importantly, in the field, although this is true for all of the fields in Tunisia as well. Next slide, please. So in South Africa, we recently announced the completion of that transaction. We got the industrial consent there, which is good. It took a little while to come. The focus is now really on getting after the well and procuring a rig for the Gazania-1 well, which we hope to spud by the end of the year. This is a very significant prospect. It's an existing discovery, the A-J1 discovery made back in 1988. Back in the times. And what we're trying to do here with this well is to come up-dip of that and targeting 2 different geological prospects within this basins coming up-dip from the discovery. The success case has the potential to be in excess of 300 million barrels gross in terms of prospective resource. So it's a very meaningful well. And we -- again, we hope to spud that well by the end of this year. So we have a very interesting exploration figure later this year in South Africa. Next slide, please. So this is our guidance. This is unchanged from what we provided at the time of our February Q4 -- our 2020 results. We haven't changed anything here. The production around 9,000 barrels a day, again, benefiting from the fact that we have diversified production from 3 different assets here. We've not changed our production guidance. The capital expenditure side and not changed this number. In particular, Gabon is a little susceptible to exact timing differences because the Hibiscus Ruche development is an 18-month project, basically. So exactly when CapEx gets spent, whether it's in December 2021 or January '22, you might find some differences in these numbers. But overall, over the next couple of years, I think we've provided good guidance on the CapEx on that. But we and our CapEx guidance, a number of liftings, we also not done that. We had 3 liftings this quarter. In the second quarter, we will have 2 liftings in Gabon and 1 in Tunisia. And then the fourth quarter is when we probably had another EG lifting, that's probably a 650,000 barrel lifting probably in the fourth quarter as well. So as you -- one can see with our Equatorial Guinea lifting that we've just had, those are quite lumpy affairs. When they come, they're big numbers. And when they fall exactly in the quarter, we recognized revenue at the time of lifting. So you could see on a quarterly basis, so quite some difference, but the important thing is to look out over a period of a financial year. Next slide, please. So here's a summary of the near-term triggers that we have and everything going on in the company. Again, in Gabon, we're drilling the DTM-7 well hooking at DTM-6, but all happen probably towards the end of the third quarter. We are drilling an exploration well on Hibiscus North. We plan to drill wells every year in Gabon. The Hibiscus North prospect is unaffected by what happened in the Hibiscus. It's a very robust structure, and we're looking forward to drilling that one. In Equatorial Guinea, as I mentioned, the first 3 infill wells are being drilled this year. We will see this trend, we believe, continue into 2022. Those additional wells in EG have not been sanctioned yet by the joint venture. That typically happens in the third quarter. But we would fully expect to see a number of production wells being drilled every year in the Equatorial Guinea trying to, again, increase production there. In Tunisia, we continue with our well work over activity. So it could be some news flow there coming through on the production side. With the PetroNor dividend, which we intend to distribute to our shareholders upon completion of that transaction. And we have the exploration well in South Africa. So we have a busy year ahead of us. Next slide, please. And just a comment on where we are currently in terms of our market cap, which has obviously taken a bit of a hit on Hibiscus extension well, the strengthening of the NOK, perhaps some other factors as well in there. But our market cap has come down quite a bit from where it was prior to drilling that well, which is surprising to us. What we've done here on this slide is to kind of just take some of the analyst projections, taking average of where we see the analysts are pointing and trying to compare that against our market cap. And what you can see here is on an operating cash flow basis, at $60 Brent, we'll be generating over the next 3 years, $260 million, according to the analysts assumptions, like an average of them and $450 million in operating cash flow over the next 5 years. If we look at free cash flow, which is the only difference between the $2 million is it's capital expenditure, we're obviously spending quite a bit of money in Gabon at the moment for the Hibiscus Ruche development. So you can see over the next 3 years that we'll be generating about $150 million of free cash. And I think over the next 5 years, considerably more. And when you compare that against our market cap, we would argue that this is quite a compelling valuation story. I don't think you'll find many other companies with this kind of cash flow versus market cap dynamic. Analysts are estimating free cash flow yields of between 20% and 40% over the next 4 years, as we go forward. And again, the important point is that we have free cash flow any starts taking off in 2023 as we get through the CapEx period in the Hibiscus Ruche development. So we're going to come a very, very strong free cash flow generating company. And beyond that cash flow in that period, we obviously have -- we're planning to pay dividends. We're fully financed. We have reserved life that is well in excess of 10 years here. We've got 33 million barrels of 2C resources, which are not included in any of these assumptions. So we don't include any contingent resource on our production assumptions and our cash flow assumptions. Those are things that have not yet been sanctioned to be produced, and most of those resigned with an Equatorial Guinea. We can come back to that in Q&A. So there is considerable upside here from these numbers. And on top of that, we have other triggers every year. We have exploration wells each year. We have a growth strategy to complement the return of cash to shareholders. So we think we have quite a dynamic company that's going to be a significant cash flow generator with many other triggers on it against to rather, what we believe, is a modest market capitalization. So with that, I'm finishing up, and I will open up to questions. Qazi is going to chair the questioning. [Operator Instructions] And we're happy to take questions, and my colleagues may join in some of those as well.

[Qazi Qadeer, Chief Financial Officer]

We have a question from Stephane Foucaud.

[Stephane Guy Patrick Foucaud, Head of Research]

Question for me. First, an accounting one. The $6.7 million current payable, I assume that refers to the expected payments of Gabon in closing? That's my first question. My second question around Equatorial Guinea. And I was wondering whether, one, the 3 wells that would be drilled in 2021 would have an impact on reserves, particularly whether some of the 2C are being targeted? And related to EG, how do you see the potential reserve addition with the booking moving forward with the 2C conversion? Is it a progressive affair? Or would you see a point where you would be starting sanctioning heftier drilling program that would suddenly boost the 2C reserves?

[John Andrew Hamilton, Chief Executive Officer]

Qazi, do you want to take the first 1 on the payable position? And then perhaps, Nigel, you can answer the EG one, in particular, the conversion 2C to 2P reserves?

[Qazi Qadeer, Chief Financial Officer]

Yes, certainly, John. I will start with the payable position. The explanation for that, Stephane is the consolidation of Equatorial Guinea business, which was supposed to be at fair value as of the completion date of 31 March. So as part of the acquisition, we've done 2 things. One is that we have acquired or assets and abilities at fair value. By fair value, I mean that all the over lift position was also fair valued as well. So we mentioned about a $31 million over lift position, which basically ends up in our kind of accounts payable or trade payables liability as well and hence you would see a jump in the payables. But we expect that to unwind as we produce more [indiscernible] .A few of the changes, you are correct that our payable we haven't booked the Gabon lease payable yet. That will only happen on completion, but there are some items like differed consideration of $5 million and some the other payments in relation to the positions that we need to do in the future which are included.

[John Andrew Hamilton, Chief Executive Officer]

Right. Richard, Qazi -- I'm Richard and Nigel, do you want EG and Nigel, do you want to start and maybe Richard can jump in as well with this?

[Richard Morton, Technical Director]

Certainly. So on the question of drilling campaigns and reserves versus resources what has been booked as a reserve on this asset is committed projects. So the forthcoming Elon well drilling campaign is part of the reserves that we carry for the asset. But we recognize there's significant additional drilling potential in this asset. And John mentioned the substantial 2C resource that we have that we carry on the project. The nature of the work on this asset is that there's an awful lot of subsurface work on the go at present to work up and prioritize future drilling targets. Now the nature of reserves bookings is that we cannot book those opportunities as reserves until the joint venture partnership have committed funds and agreed to drill those opportunities. So we will be progressively transferring 2C resources into reserves as those future drilling programs mature. John touched on the fact that we believe late in 2022, there's going to be a further drilling campaign on this asset. The joint venture partnership have not committed to that as yet, but we envisage that will happen during the course of this year. And indeed, beyond that, we already see an opportunity for a further drilling campaign out in '23, but those are notional plans at this stage that will mature over time.

[Stephane Guy Patrick Foucaud, Head of Research]

So maybe what you're saying is that there maybe assumption taking place in 2021, which could have an impact on open reserve, and then there will be some more later down the line?

[Richard Morton, Technical Director]

That is correct. Yes.

[Qazi Qadeer, Chief Financial Officer]

Thank you, Stephan. We have the next question from Teodor Nilsen.

[Teodor Sveen-Nilsen]

I have 3 questions, if I may? And first one, just on -- as far as I understand, you will -- of course, you have already received the cash of the EG listing in Q1. And that you also will have a lifting in Q4. Could you indicate the size, the expected size of that lifting? That's my first question. Second question is on dividend level. And I think you discussed that previously as well. But what basis will you set the dividend from 2023 and going forward? Will that be a percent of free cash flow or EPS or some kind of other number? Any thoughts around how we should think around dividend forecast would be useful? And the third question, could you just remind us of the pre-drill resource estimate for the Hibiscus North well and the Gazania well?

[John Andrew Hamilton, Chief Executive Officer]

Sure. The first question around EG listing, we received the cash in April, Teodor, not in March. Just to clarify. So we sold the cargo in March, so it gets reflected in those pro forma numbers that you see. We receive the cash in April. The lifting in EG in the fourth quarter is currently targeted for around November, just see exactly when it falls. And that's likely to be a 650,000 barrel lifting at the moment. The one we had in March was a 950,000 barrel lifting. So this one is probably going to be a slightly smaller lifting is our current estimate, that could change, and I'll certainly update you in the market when we have a little bit more visibility on that lifting and the parcel size. But that's our current working assumption. Your second question, sorry, was?

[Teodor Sveen-Nilsen]

That was around dividend. How to think about...

[John Andrew Hamilton, Chief Executive Officer]

Yes. So the dividend policy -- it's a great question, and it's one that we -- what we've identified, obviously, is cash flow we have, particularly at these higher levels. Again, we designed this dividend strategy around time when we've completed these acquisitions, and we've designed it around sort of long-term oil price, $45, $50 a barrel. So obviously, at these higher prices, it's looking even better. But what we decided to do is to just try and get through some of this CapEx, make sure that the Hibiscus Ruche development is on track and all that and to debate the dividend strategy, which we'd like to articulate to the market because it's the right question to ask, we're not quite in a position to define it yet for you. But clearly, there's going to be -- particularly these oil prices, quite a bit of cash, and it's likely to be indeed a metric along the lines that you've suggested. We're not quite ready to kind of define and frame that yet, but that is very much in the Board's mind to find that better. But as you can see, there's quite a bit of free cash available to pay a substantial dividend. The last question is on Hibiscus North. BWE, the operator have guided a range of between 10 million and 40 million barrels of prospective resource on the Hibiscus North structure. It doesn't take much to be commercial here because we can tie it back in eventually, it's quite close by the Hibiscus. So even at the lower end of that range, the discovery is highly commercial. On Gazania, Richard, can you refresh the memory because we have 2 different targets there [indiscernible] prospective resource in that well?

[Richard Morton, Technical Director]

Yes. So Teodor on Gazania. That well was targeting 2 separate stack prospects. The highest chance success one is the Gazania prospect itself, which is 168 mean, 168 million barrels and one above that is called the macro land, which has got a lower chance of success, but that's slightly larger at 186. So combined, slightly over 300 million barrels.

[Qazi Qadeer, Chief Financial Officer]

Thank you, Teodor. The next question -- we don't have any live questions, but there are some from the web. [indiscernible] this one is from Daniel [indiscernible]. Which is roughly how much do we expect OpEx per barrel draw with Ruche and Hibiscus on stream, both included and excluding the lease?

[John Andrew Hamilton, Chief Executive Officer]

Well, Daniel, the big operating cost in is the FPSO lease. Obviously, there are other elements to operating cost as well. But it is largely, it's a fixed cost. So what you're seeing right now in terms of the operating cost being announced by the operator is as a result of the lower production at the moment. We expect to go through our growth now over the next couple of years. And so the unit cost comes down quite dramatically. I think the guidance once the Hibiscus Ruche is online is close to $10 a barrel, and that includes the lease. So really, there is some variable cost as your production increases, but the lion's share of it really is a fixed cost and more production you're putting across. So you hopefully see operating cost per barrel coming down from the early $20s at the moment down to $10, $12, $12 a barrel, something like that, once Hibiscus Ruche comes online. I don't have the breakdown of exactly if we exclude the lease, how much operating cost would be, but it is by far and away, the largest portion of that the lease plus the O&M contract on that.

[Qazi Qadeer, Chief Financial Officer]

Thank you, John. I think it was question. I hope it answers it, John. There is another one from Daniel, which basically as in about, what would roughly be the OpEx demand for the EG assets, if 2C resources are converted to 2P, and we see strong production growth from 2023 onwards?

[John Andrew Hamilton, Chief Executive Officer]

I mean, Nigel, do you want to have a crack at the operating cost if -- on EG if you're able to boost the production coming across the next couple of years?

[Richard Morton, Technical Director]

Yes. John, I don't have the numbers to handle that in the fingertips, but I guess the important thing to say here is that the OpEx itself on this asset won't be increasing significantly with new wells. I mean, the beauty of this project now is that we've got a series of platforms from which to drill new development targets and processing facilities to tie those back into. And so the costs required will be CapEx to undertake the drilling and tie back operations. There would be some small incremental increase in the OpEx, but nothing significant. So as we drill further tranches of development wells, we would expect the production to be boosted and the OpEx per barrel to be reduced proportionate to that production increase. I hope that answers the question?

[Qazi Qadeer, Chief Financial Officer]

Yes. I think -- yes. Thank you, Nigel. Then we have another question about the offshore, what are our thoughts about the drilling permit.

[John Andrew Hamilton, Chief Executive Officer]

Yes. So it's a little bit the same as it was last quarter, which is we have plans to West well in Tunisia. That's been held up for quite some time now on government approvals. We've also had obviously COVID something in the meantime. So we've been working with the regulator in Tunisia to try and come up with the best solution on that. So we we don't have much of an update on it. I don't think it's a very near-term well to be drilled. I think COVID situation in parts of -- most of Africa now is still quite live. The ability to get people in and out of the country from service providers and things like that for drilling a well, it's not the perfect environment to do it. So we still kind of have that thing on pause at the moment. We'll definitely update the market when that situation changes.

[Qazi Qadeer, Chief Financial Officer]

Thank you, John. One last question from another investor. It's about Equatorial Guinea, which asked us to elaborate on what the operator is doing with these infill wells? And how it may impact production levels?

[John Andrew Hamilton, Chief Executive Officer]

Nigel, I know you've touched on it a little bit. Do you want to just address the question, which is just what is the operator looking at these infill wells and again, looking forward, just to make sure we answered the question?

[Nigel Bruce McKim, Projects Director]

Absolutely, John. Yes, yes. So it's a very exciting stage in this asset's life, in fact. So typically, what one does, at this stage in a project's life is create subsurface static models of the geology and run dynamic simulation models of the fluid displacement within the reservoirs. And on that basis, you identify targets for new development well drilling. The rather unusual thing about this asset and what makes it so fascinating is that the seismic data is really very clear. And we cannot only see the reservoir subsurface, but we can see fluid movement subsurface. And the fact we've just been involved in a meeting with the joint venture partners, where that type of information is becoming apparent and a new set of seismic data that was acquired last year. So the subsurface teams have created these dynamic models and they're now beginning to bring in that seismic data that can show where the water is, where some gas breakout has occurred and where the optimal target would be for development drilling of the wells. And it's that work that's now informing the ranking of new development well targets for subsequent drilling campaigns. And we're confident that we're going to be able to share more information on that in the months and quarters ahead as we begin to firm up those plans and sanction the forthcoming drilling projects. In the meantime, I think as part of your question, you're asking about how the infill wells will impact production levels? What has been committed to this year is the 3-well campaign on the Elon field. And the total incremental production is expected to come through at start-up of those wells is in the range of 4,000 to 5,000 barrels a day. So that's indicative of the type of impact that we can expect to see from these wells. But clearly, as modeling work proceeds and we firm up the next drilling campaign, we'll have more detail on precisely what we expect in subsequent activities.

[John Andrew Hamilton, Chief Executive Officer]

Thank you, Nigel.

[Qazi Qadeer, Chief Financial Officer]

Thank you, Nigel, again. This was the last question I had. Hold on, there's one from Oddvar Bjørgan.

[Oddvar Bjørgan, Research Analyst]

We have been waiting for the completion of the Gabon part of the transaction. Did you say now that you expect finalization of this within the next couple of weeks?

[John Andrew Hamilton, Chief Executive Officer]

Yes.

[Oddvar Bjørgan, Research Analyst]

That's great.

[John Andrew Hamilton, Chief Executive Officer]

[indiscernible] answer. Yes. We always guided the end of the second quarter, it really just has to do with getting it through the Ministry of Consent, basically, and that's all in good shape. So we would expect to be able to announce the closing of that transaction certainly by the end of this quarter and perhaps earlier.

[Oddvar Bjørgan, Research Analyst]

Thanks.Okay. Well, thank you, everybody, for joining. We've got a good-sized crowd here today and very much appreciate everybody following us. And again, we're available if anybody has any individual questions, you can always come through directly to us. Again, thank you very much for joining. Goodbye.