Buccaneer Energy plc. (BUCE) Earnings Call Transcript & Summary

Good afternoon, and welcome to Nostra Terra Oil and Gas Investor Presentation. I'm joined today by Paul Welch, CEO of Nostra Terra. Questions are encouraged throughout the presentation [Operator Instructions] I'd now like to hand you over to Paul to begin the presentation. Paul, over to you.

Okay. Thanks very much, Scott, and thank you, everyone, for joining. It's a pleasure to give everyone an update as to where we are at the company. Hopefully, everyone can see our slides. Again, the title of this presentation is kind of building momentum because we think we're on a very important road and building credibility, equity value and sustainability in the company. So with that, I'd like to run through a few slides. First, our disclaimer, our counsel needs to see that. Okay. Why isn't that changing? All right. Okay, here we go. So at Nostra Terra, as it says here, profit growth continues. We've changed the business up beginning in kind of the mid part of last year. We focused on our biggest asset, which is called Pine Mills. It's a shallow long-life, low-decline field. And at the moment, we're averaging about 90 barrels a day, actually, I think probably up on that, probably about 99 barrels a day from 70 producers and 4 injectors. The NPV10 of this asset is $9.8 million based on the last reserve report or GBP 8 million. But we still have some idle wells that we need to return to production. So we've already got 8, and from those 8 that were returned, we have -- we saw a peak production of about 106 barrels a day, which was almost double from where we were before we started the workover program. The current corporate production rate is running somewhere between 130 and 140 barrels a day depending on the day. And from our perspective, the workover program has delivered better-than-anticipated results, and we'll talk a little bit more about that in some upcoming slides. As I said just a few seconds ago, we have a new management team. Again, I came on board mid-2004. I took over for the original founder after 15 years he was on the job. When I came on board, we were in a kind of a desperate place. So we started to make some changes. We cut our operating costs by 25%. We increased our production at Pine Mills by 60%, and that allowed us to increase our netbacks, so the amount of profit we make per barrel by about 50%. So we went from a kind of a money-losing company at the time that I got involved to now a cash flow positive company at both the operating level and the corporate level. So we are making money these days at current oil prices. We've done 8 workovers. They have delivered 40 barrels a day. We're also seeing some additional production from an enhanced recovery scheme that we had restarted. We're expecting 15 to 30 barrels a day from this. We're probably seeing at the moment, somewhere between 5 and 10 on a daily basis. I'll talk more about that in a second. And as a result of that increase in the restart of the waterflood, we had to upscale or upsize a couple of our pumping units to handle the increased volumes, and that has led to increased production. So that was a good thing. We have 2 additional workovers to complete, and I'll give you the status on those, and those have another 18 barrels a day that I think we can deliver from. And we have one more location that we intend to drill in the Fouke area. And the Fouke area is a new Fouke block. It's in the southeastern part of the field that we drilled a well in 2022 that came in at over 120 barrels a day. So then we drilled a second one, again, the same thing, and we believe we have room for a third. That location has now been submitted to our partners, and they're looking at it. So from our perspective, we believe the workover program has transformed the company, both from a production and a cash flow standpoint, and it's ahead of schedule, which is a good thing. So let's talk a little bit about our assets. The main asset that we have is the Pine Mills field. It's about 100 miles east of Dallas. It's an old field. It was discovered in 1949. It's produced about 12.5 billion barrels. It's a conventional production. So it comes from a number of shallow East Texas reservoirs, and it's 100% operated by us. We're averaging at the moment, 90 barrels a day, as I said, probably closer to 99 now, and we have another 15 to 30 to go. We have 2 wells that we're going to -- remaining to work over. And then we have 3 potential infill opportunities. We'll talk about one of those today. If you look at a map of the field, again, on the left-hand side of the slide, this is a map of the field itself. These brown lines here represent the [ faults. ] The field was originally discovered and developed using 2D seismic in a number of wells. A big -- a large portion of the field now has 3D seismic. And with the 3D seismic, it has opened up a number of opportunities, of which Fouke was one that implies that this original view of the field was very simplistic. There's -- it's a lot more faulting. And because there's a lot more faulting, a lot more of these brown faults exist, we have areas in the field that have been isolated from others and are essentially at original reservoir conditions. So we can drill a new well in this area that comes in at 120 barrels a day at original reservoir pressure and conditions, whereas the average well in the field is probably making closer to 10. So it's -- there's a lot of potential in those type of opportunities here. The stats of the field, again, are shown on the right. I think the most important thing to point out here is that we have multiple horizons that we're chasing. The quality of this reservoir is incredibly good, high porosities and very high permeabilities. And what that means is that we've produced -- or there's 38 million barrels in place. To date, we've produced about 12.5 million, which is a 33% recovery. Again, this is in our active waterflood. So given the quality of this reservoir, we expect to produce about 50% of what's in place. So that means we have another 6.5 million barrels, we believe, to be recovered. And that doesn't include any of these other fault blocks that we are finding that are what's called [ Fouke ] analogs at this point. All right. Let's look at some production. So the field was acquired by the company back in 2018 -- sorry, 2019. And from that point, it was used as kind of a cash cow. So if you look at the figure that I'm showing here on the left, what I'm showing is the green dots represent the weekly average production numbers and then the orange circles represent the yearly average annual. So you can see it started out at about 107 barrels a day. And then through 2024 before the workover program started, it was a very steep decline. As I said upfront, it's a shallow declining field. However, the company was using the cash generated from this to go look for other opportunities, whether they be in the U.S. or overseas, and wasn't investing back into the field. So when a well that was making 7, 8 barrels a day came off production, sometimes it wasn't returned to production. So that essentially accelerated the decline. We felt that, that was in error and there was a better way to go. And so what we started to do as this red line shows here is start a workover program. So if we look at what that workover program has done, here we go. Now we're looking at just production in 2024 and 2025. Again, similar scheme here. The -- what we're showing now is weekly numbers in the green dots and then monthly averages in these kind of orange circles. So you can see, prior to the startup of the workover program, the field was averaging about 54 barrels a day. Phase 1 workover program was initiated. We got up to about 90 barrels a day. We started phase 2, it dropped and now we're back up again over 90 barrels a day, and we peaked, as I said, about 106. The reason for the drop-off here is when we start tearing into these wells and putting them back on production, sometimes you have to take the power down for a while to work over well when we're next to another one, we have storms come through. There's a lot of things happening. But once we start this workover program, now we're back up. We've got 2 more wells to go. We think we should get up above over 120 barrels a day in the field, and that will be an important milestone because we will be back above the rate at which the field was originally picked up, which we think is very important and also quite profitable. If we look at the phase 2 workovers, these are the 5 that we had scheduled. We did the first 3, and now we're working on the next 2. Again, one of these in this group needed an upgraded pumping unit, and that was installed this week. So that is now up and running. In the first day that we pumped that well, it was originally making 6 barrels a day and the first day it came in at about 22. We don't think that's going to be sustainable, but it just shows you that there is a lot of upside potential there. We think it will probably settle down at somewhere between 10 and 15 barrels a day. But these -- upsizing these units allows us to move more fluid through the field, more fluids through the pumping units and then allow us to capture a higher volume of oil as we produce it. So I said we have 2 to go, the [ 701 ] and the [ 2802. ] The [ 701 ] is essentially done at the moment. We are just now waiting for a pumping unit to be moved in, and that will be -- happen next week, and then we will move on to the [ 2802. ] So things are definitely progressing in the right direction. At that point, I think we probably have identified most of the idle wells once we complete the [ 2802, ] most of the idle wells in the field that needed workover kind of immediately that we could quickly get our hands around. The first group of wells were relatively simple. They didn't require much work. The second group, this last 5, we're a little more involved because we had to run casing strings in these, they -- a lot of them have corroded pipe in the wells. So they're a little more expensive, a little more challenging, but they were all successfully -- 4 of the 5 were all successfully done. So moving on from here, we're going to look for other types of opportunities, and that will come from this next group. So if you look at this slide, I'm sure not everyone on the call is going to be a geologist, but what we're looking at here is kind of a cross-section from the surface through the reservoir section of the field. These lines here represent the faults that I showed you on Slide #5. And then these yellow horizontal stripes represent the individual reservoirs that we encounter in this field. So there are 4 of them primarily and then some of these have multiple units within. And so as we -- the field has been drilled and developed, economics have changed over time. So in a lot of cases, we have drilled through reservoirs, maybe tested them, maybe haven't. But in the case of, let's call this well here, we'll have some [ Woodbine ] behind pipe. and we'll have potentially to deepen down to the [ Paluxy ] or we've drilled down into a deeper [ Woodbine ] sand, but we didn't produce it because at the time, it was making 16 barrels a day when an uphole section was making closer to 100. So what we've asked the technical team to do now is now that we've essentially established that we have a good location for the Fouke is to go back and start looking for these behind-pipe opportunities. Now these are going to be a lot cheaper than working over wells. We can recomplete a zone, again, if it's a simple behind-pipe thing for anywhere between $5,000 and $15,000, we can add anywhere between 5 and 20 barrels a day. So this is our next undertaking from a technical perspective is to go back into these wells, if a well is making 3 or 4 barrels a day, is there a potential to increase that to 20 by adding a pay section here. It's a painstaking effort. It will take some time. But we think ultimately, it will pay out because there are a lot of, we believe, opportunities that have been bypassed over the years. And so that's kind of the next step in the process. The other thing I want to talk about is the Fouke 3 location. So as I said, there's 3D seismic covering essentially the bottom half of the field. What we're looking at on the right-hand portion of the slide is a kind of a snapshot of one of the interpretations of that 3D seismic. The main body of the field sits here. If you remember from Slide 5, this is that main fault. This is that secondary fault. And what you didn't see on Slide 5 is this fault that sits here. This fault, you can only see on the 3D, it was mapped by our partner, Cypress. They identified this as a ceiling fault and then drilled 2 wells right snug up against it. And these are the wells that came in at 120 barrels a day each. You can see the production on the left, and they have declined over time. And now we're producing flat at 100 barrels a day since May, and with very little decline. So what it indicates to us is that there is more reservoir potential up here to the north. Our technical team has mapped a new location. We have given that to Cypress, our partner. They're 2/3, we're 1/3. Cypress is reviewing it. They would like to drill a well in the area. Now we're just deciding on what part of the area we're going to drill. And so we have included this well in our 2025 budget. At the moment, it's slated to be drilled in July and then on production in August. Again, we've made a lot of progress on this. The fault interpretation has been remapped and it's what we're showing here. And so we believe that there's either 1 or 2 more locations in this area to the north. The volume is roughly 300,000 barrels, which is kind of double what we produced so far. And again, we think the rates are going to be very similar to what we produced from the original Fouke wells, which is the field allowable or the maximum amount that the Railroad Commission will let us produce, which is 120 barrels a day. So we are very excited to do this at some point in 2025 when our partner agrees. And we are, again, in daily discussions with them about when we can drill this well, where we want to drill it, how much it will cost that sort of thing. We don't think costs have changed very much. The original Fouke locations were drilled for $1.1 million, and we think that's about what this -- completed cost -- we think that's what about these wells will cost. So now how does that look from a cash flow perspective? Because really, that's what we've been focused on since we came to the company. So what we're showing here is kind of the buildup of our cash flows. The existing production and the phase 1 workovers, again, at $75 a barrel, allows us to generate a revenue of about almost $200,000 a month. If you look at our operating costs and our G&A, that gives us a profit now at about $22,000 a month. Once the phase 2 workovers are complete and we are successful when we get all the 54 barrels that we're targeting, that will allow us to increase our revenue to $276,000 a month, while our LOE and our G&A really don't change very much because everything is in place. So each well that we turn on, we add additional barrels. We don't see much change in our cost base. And then if we look to add the Fouke location, Fouke 3 kind of midyear, given that it's such a productive well, adding another 40 barrels a day, which will be our net -- that will allow us to increase our revenue to almost $360,000 a month or a net to us of almost $200,000. So through the Phase 1, 2 and 3 and Fouke 3 program, we'll take our revenue, again, at $75 a barrel from $23,000 a month up to $183,000. So it's a significant step-up in cash flow. This is what the company has been needing for a long time, and that is what we are focused on at the moment. The reason we're focused on that is that these investments, if you look at the next slides, are very profitable. So we have an existing wellbore. We have to go in and sometimes change a pump, add a pumping unit, run pipe in the hole, whatever it may be. But if you look at what these -- the phase 2 workover program economics look like, the IRRs are very high. Most of the payouts are within a year. And so the overall program has an IRR of over 200%, which is fantastic. The only thing that's better than that program is Fouke 3 location. And this is our net. So given the fact that these wells come in at 120 barrels a day, we have 1/3 of that, the payout here is in 6 months and the IRR is incredible. So again, that's kind of the nature of East Texas. We're in an area that's shallow, costs are low, services are relatively cheap when you compare them to the rest of the industry. And so we can turn things around relatively quickly and relatively profitably. One thing I didn't point out on Slide 11, which I'll do now is that, again, at $75 a barrel, if you look in the upper left-hand portion of this slide, the profit that we make for individual barrels shown here. So in Pine Mills proper, the main asset, we make almost $50 a barrel in profit for each barrel that we produce. In Fouke, it's much higher because the water cut is very low. And so at $75 a barrel, we make almost $68 in profit. And in West Texas, an asset we're not going to talk about today, our netback for the asset that we retained, we didn't sell is about $50 a barrel, which is why we haven't sold it. So these are very, very healthy margins. And the more of this production we can put on, the better for us. It's just the cost at which we do it. To date, we believe that the cost and the money that we've invested has been well spent. It's generated a significant return, and we're starting to see that in our cash flow numbers, which are shown here. Okay. So to sum up, we believe the Pine Mills workover program is delivering. We've got 40 barrels to date. It's probably getting closer to 50 now with the startup of the waterflood. The company is profitable at both the operating and corporate levels. The waterflood restart, we believe, will continue to pay dividends in the future as we upsize units and see the flow-through of these barrels into these higher volumes. We've reduced our cost by 25%. We've increased production by 80%, and we've increased the amount of profit per barrel by 50%, which we think is important. We believe the focus on Pine Mills has paid off. The field hadn't seen significant investment in 5 years. It needed it. And we believe that both the phase 1 and phase 2 workover programs will be successful. This success has transformed the company. And when phase 2 is complete, again, this is prior to drilling of the Fouke 1, we will see a step-up of about 5x in our cash flows. The objective here is to close this gap between what our reserve report says we were worth, which is GBP 8 million pounds and what our market cap is, which is GBP 1.53 million today. And so that's our focus is to grow the value of this company, grow the cash flow of this company, focus everything on making this as successful as we can before we move on and look for any other opportunities. We believe there's a lot to play for here. We're focused on making it happen, and we're focused on making it happen in the very near term. And with that, I will turn it over for questions. So thank you very much.

Wonderful, Paul. [Operator Instructions] We've got a number of questions that have been submitted. We'll go to the first one, which is when will you be renegotiating your loans?

So the loan was just extended for 3 years in January of this year. So we won't touch that for another 3 years. It does -- the loan does change term over time. The coupon rate is tied to the Fed funds rate here. So as the Fed in the U.S. is intending to drop its lending rate, our rates will come down. Our coupon at the moment is 7.5%. And as the Fed steps the rate down, we move in lockstep with that. So we will see the coupon rate decrease over this year and next, and then we'll see what happens. But we have 3 years on the loan, and we don't -- there's no reason to renegotiate at this point.

Super. The next question is -- sorry, 150 barrels per day by midyear, how likely is that?

I think it's likely. I mean, again, 150 barrels a day, it depends on where you're saying, 150 barrels a day from -- overall from corporate is very likely. 150 barrels a day from Pine Mills itself is what we're targeting. That would take the overall corporate number up to about 100. I mean, I think it's highly likely. Again, it will depend on the success rate of these last couple of workovers and how much we get from the waterflood, but that's our target, and that's what we're shooting for. So we think we have a better than 50% chance of making that probably higher than that. But we view our modeling as kind of a P50 case, and that's our target. So again, I think it's highly likely that we'll get there.

Pine Mills opportunity is limited. What additional prospects do you have to take the company to the next level?

Okay. Well, it depends. I think a lot of people will -- depends on how you define the next level. There's a lot of potential within Pine Mills and the area surrounding Pine Mills. So if we look at Pine Mills itself, we think we can add more to the story. If you look at what the Fouke area can do, we have at least well, which will add another 120 barrels a day, potentially 2. So that would be net to us of 60 -- sorry, of 80 if we get both of those running. So that would take the local production up to over 200 barrels a day. Beyond that, I think I would agree with whoever asked the question that there's only so much upside we can see in Pine Mills. So beyond that, where we're going to look are in and around the area that we are operating in. So we have a very good footprint in East Texas. There are a lot of opportunities in and around the area with a declining oil price, we think there are going to be people that are going to want to sell at reasonable prices. So we're looking in East Texas, and we're also looking in West Texas. We haven't looked anywhere beyond that at the moment because we think we are in a good position in Texas from a profitability standpoint and opportunity standpoint. Where we won't be looking in the near term is overseas, like my predecessor did is looking in Egypt or Tunisia or any other spots like that. We will be focused, I would think -- well, for the moment in the domestic U.S. and primarily in Texas. So that will be East Texas, in West Texas. And East Texas might extend somewhat into a little bit into Louisiana, which is just next to East Texas. But those -- that's where we're going to focus. So there'll be opportunities that will be accretive immediately, that will be producing. We're only looking -- when we look for other opportunities, they're only for producing assets. So we don't intend to get into exploration. We may get an asset that needs some development, but we're really focused on growing production and growing cash flow. So those are the types of things that we will be looking for. And again, they're competitive, so we have to get them at the right price. But we continually look and see if there are opportunities out there, but that's our focus.

Next question, did Premier Miton participate in the last fund raise of GBP 0.5 million? If so, have they maintained their percentage holding? Or have they increased it? Or are they still diluted?

They participated -- they have participated up to their -- they maintained their position. We haven't seen a Tier 1 from them because they did maintain their position, but they have stayed where they were prior to the raise. So yes, they did participate. They were the biggest participant in the raise. And so they are a big supporter of the company, and they will continue to be, we believe, as we move into the future.

Okay. Next question that's coming up at the moment is, I understand the oil price needs to be circa $43 a barrel to breakeven. Is that correct?

No. If we go to this slide here -- next slide. Okay. So this is the amount of profit we make per barrel. So at $75 in Pine Mills, our operating costs are around $20, $25. So it depends on how you define profitability, but we need to -- for us to be profitable, it needs to be north of $30 in Pine Mills. Here in the Fouke area, it needs to be above $10 basically. And in West Texas, again, it's -- our operating costs are about, let's call it $20, $24 a barrel. So those are the numbers that we need to look at to maintain profitability. If you add in overhead and that sort of thing, obviously, that number will go up. But for the moment, those are the numbers that we're looking at to maintain operational profitability.

A similar question here. Oil price is critical to your assumptions. What's your view on where it will go over the next 6 to 12 months?

These are -- it's a good question. So we've done our budget at 3 prices. We did it at $75 per barrel. We did it at a strip price, which varied from $74 down to like $62, and then we did a sensitivity case at $50 a barrel. Our -- the corporate view at the moment is that we will maintain a price somewhere between $65 and $68 per barrel. And depending upon what happens with a number of things to do with the new U.S. President, Iran, Venezuela, there's a lot of uncertainty out there. But at the moment, we are forecasting it depending on the month between $65 and $68 a barrel. That's what we expect. We'd like to be surprised on the upside. The new President has been a big promoter of expansion of the sector. Expansion of the sector from our perspective at prices lower than $60 a barrel will be difficult because most of the increased production comes from unconventional wells that are in West Texas. And it's our understanding that they need north of $65 to $70 a barrel to be attractive to expand. And so that's where we think the lower limit of the oil price will go. So -- but again, we're just one company out of many that are forecasting this, but that's our view at the moment.

And next question, was the last GBP 0.5 million fundraise sufficient to complete phase 2?

Yes.

Short and sweet. Perfect.

I can expand, but yes, it was.

I think that's exactly what they need to know. There's been a number of fundraises over the last 12 months. Can investors expect further fundraises in the near future? And is the company looking at alternative financing options for the business going forward?

So again, it's a good question. So when we came on board, there was a very desperate need for funding because we were essentially an unprofitable business, and we needed to turn that around. So we did a number of fundraises, but they were all focused on the workover program. And at the moment, they are in the portion -- being completed -- the funds that are needed to complete that program have been raised. The question then is timing on the Fouke 3 well. If the Fouke 3 well were to be drilled tomorrow, then we would more than likely need to either tap our credit line or raise additional equity. And that would be a question we have with our bank. The way it sits at the moment is that the current credit facility, which has a maximum amount of $10 million, but based upon the reserves of the company at any particular time has been fully drawn. That will go through a process -- well, that goes through a process of redetermination every 6 months. The next redetermination will be in May. So in May, assuming that we've increased our production from the last, which is about 60 barrels a day up to over 100, we believe that we will see expansion in the ability to tap that credit line. So that would forestall any need to raise additional equity if Fouke 3 essentially came early, we could fund it through our credit facility. So it will depend on a number of things. Also, it will depend on the oil price. If the oil price drops and we still think the Fouke 3 is something to do, then perhaps we'd have to go back to the market. It will depend. But at the moment, we have no plans to do additional fundraising. The funds that we have raised to date have been sufficient to get the company profitable again, and we would prefer to do everything else going forward through cash flow. Now if we come across an acquisition that we believe is accretive, then we would go back to the market because that will be something that would require a lot more funding. We have nothing in the cards at the moment like that. So for the moment, we would much prefer, and we intend to live within our means and pay out anything -- any other workovers or any other things we do in the field through cash flow. And we believe we're generating sufficient cash flows at current prices to do that.

That's great. [Operator Instructions] Next question, can you talk to the opportunity set for M&A in surrounding areas and the ability to fund this through local banks?

So I kind of touched on that a little bit earlier. There are opportunities out there. And the key to those opportunities to get them at the right price. There -- our bank and other banks are willing to support any kind of additional acquisitions, I would say. But for us, the key is finding the right opportunity and making it happen, and it has to be accretive to shareholders. Now the thing that we are blessed with and potentially cursed with is our operating cost and our base is very low cost. So we make, on average, about $50 a barrel. To find other opportunities out there that make that amount of profit per barrel is a challenge, and that's the challenge that we continue to look for. So we look -- there are opportunities out there, but they need to be priced correctly for us to do that. So it's a continual thing. We probably have churned through, I don't know, 45 or 50 opportunities so far, and we'll continue to look. But most people are very proud of what they own and they -- it's a challenge to find the right combination of opportunity and price, but we will continue to look at it. As I said earlier, we're looking primarily in Eastern Texas and West Texas, but West Texas is -- not the unconventional portion of West Texas. So the conventional portion of West Texas. So those are the 2 areas that we're focused on. And as opportunities come up, we will look at them. But at the moment, we have nothing teed up to go do because in a declining price environment, people need to get their heads around what the price will be when it stabilizes and then some of the uncertainties about the political changes in the U.S., I think, causing some people some consternation about deciding how to view the business going forward. So I think the market generally has slowed down a little bit. But at some point, it will pick up, and we continue to look for opportunities on basically on a daily basis. But again, they're going to be manageable within our, let's call it, our sphere of influence and not bouncing around the globe looking for crazy exploration type things. We're going to be focused on our bread and butter, which are cash flow generating opportunities that are accretive to the current company.

[Operator Instructions] Next question. In terms of catalysts for the market, what's your intended communications, news flow approach to build confidence and close the gap between the market and the theoretical price?

Well, that's a really good question. I think our approach here is to just continually engage, put up presentations, do what we say. We've taken equity from the market to go do these workovers, do the workovers, tell everyone the results, talk about what we're doing, talk about our cash flows, talk about our successes. Just -- I think just an overall general increase in engagement from what the company has traditionally done. Nothing more than that. I think we're going to be a little more active on social media than we have been in the past. We're doing things like this, which are engage with our retail -- our retail shareholder base, which again, hadn't been done in the past. So I think it's going to be just more communication to the market, more information about what we're doing and more talking about the successes that we see in the field and the amount of production we increase and the cash flow we generate. So it would just be, I think, just more engagement than we -- than the company had typically done in the past. For the first probably the 4 or 5 months that we -- I got involved with the company, I had been on the Board but wasn't active on a day-to-day basis. It was just to kind of get our head around what the opportunity set was, how we could progress it, who we should target from an investor perspective to help us generate the cash needed to do that. And so I think that has been successful. And now that, that has essentially been concluded, we can now focus on communicating the story, I think, in a better fashion. So that's what we intend to do.

Wonderful, Paul. We've got no further questions at the moment. So maybe, Paul, if I can hand back to you for closing remarks initially.

Okay. Well again, thank you, everyone, for participating in this presentation. It's been our pleasure to kind of tell you the story of where we are and where we intend to go. Moving forward, we intend to do more of these types of things and much more engagement with our retail investor base. From a corporate perspective, our goal is to grow production and grow our cash flow, keep continuing to bring out costs in the business and to generate a high profit per barrel on the opportunities that we invest in. We would like to do the Fouke 3 in 2025 and add that to the portfolio. Our target is to get our cash flow 10x above where we are at the moment to make us a very, very profitable business. And once that's established, then look for these other types of M&A opportunities in and around the business that we currently own to further enhance the profitability of it. So again, it's a continual build and grow. The goal ultimately is to make this a very successful kind of midsized oil company. The first tier to that would be to grow the business up to about 5,000 barrels a day. That's our target in the next 5 years. It will take a lot of work to get there. It will take not only the organic opportunities we see in Pine Mills, but inorganic ones as well. And so we are prepared for that long haul, and we appreciate you being part of it today. So thank you very much for your time.

Paul, thank you very much for the presentation today, and everybody, thank you for joining us. And that concludes Nostra Terra Oil and Gas investor presentation. If I could just ask you to please take a moment to complete the short survey following the event, and I hope you've enjoyed the event today. Thank you.