Gulf Keystone Petroleum Limited (GKP) Earnings Call Transcript & Summary

Good afternoon, ladies and gentlemen. Welcome to the Gulf Keystone Petroleum Limited Half Year Results Investor Presentation. Throughout this recorded presentation, investors will be in listen-only mode. [Operator Instructions] The company may not be in a position to answer every question it receives during the meeting itself. However, the company will review all questions submitted today and publish responses where it's appropriate to do so and these will be available via your Investor Meet company dashboard. Before we begin, I would like to submit the following poll. And I would now like to hand you over to CEO, Jon Harris. Good afternoon, sir.

Thank you. Good morning, and thank you for joining Gulf Keystone Petroleum's 2023 Half Year Results. I'm Jon Harris, and I'm GKP's, Chief Executive Officer. I'm joined today by Ian Weatherdon, Chief Financial Officer, who will be talking you through our financial performance. I'm also joined by John Hulme, COO; Gabriel Papineau-Legris, Chief Commercial Officer; Alasdair Robinson, Chief Legal Officer; and Aaron Clark, Head of Investor Relations and Corporate Communications. Over the next few slides, we'll run through our operational and financial performance in the half year and year-to-date, talk about the current situation on the ground in Kurdistan in Iraq and explore the outlook for Gulf Keystone Petroleum in the second half. Following that, we'll open the lines up for questions. Slide 2 disclaimer. I'd like to remind you that presentation slides are available to you on our website. I will leave you to review the legal disclaimer in your own time. Next slide, please, highlights. We entered 2023 following a year of record profitability, cash generation and shareholder returns and with strong momentum in the Shaikan field, driving increases in profitable production growth. On the 25th of March, the world changed. With the closure of the Iraq-Turkey pipeline and the suspension of Kurdistan crude exports, our operational and financial performance were materially impacted with reduced profitability and cash flow generation in the first half of the year, driven by the suspension of oil sales and continued delays to Kurdistan regional government's payments. In response, we moved quickly to preserve liquidity, suspending all expansion activity, reducing the organization and canceling the 2022 final dividend. Decisive action has placed us in a much better position to manage the current situation. Deep cost cuts have reduced our average monthly run rate of net CapEx, operating costs and other G&A to around $6 million in the second half of the year. We have also started and increased local sales to around 23,000 barrels of oil per day towards the end of this month, selling over 0.5 million barrels of crude to local buyers since the 19th of July. At current volumes and realized prices, we're able to cover our monthly costs and manage our accounts payable with greater flexibility. The economic and political environment on the ground remains complex and continues to evolve. However, we have seen steps in the right direction. Slide 5, please. Overview of current operating environment. Crude exports from Kurdistan have been suspended for over 5 months following the closure of the Iraq-Turkey pipeline on the 25th of March. The pipeline was shut in by Turkey following the award to Iraq of its long-standing arbitration against Turkey at the International Chamber of Commerce in Paris, which dates back to 2014. No official time line has been announced for the reopening of the pipeline, negotiations remain active between the Kurdistan Regional Government, Iraq and Turkey. Recently, meetings with senior officials from all 3 governments have taken place in Erbil, Baghdad and Ankara. The supportive statements made regarding the need to resume exports as soon as possible. The prolonged suspension of exports has in turn put pressure on the Kurdistan regional government's finances and extended delays to international and company payments. Overdue receivables to Gulf Keystone Petroleum amount to $151 million net based on the KBT pricing mechanism with the last door sales payment received in March 23 for the month of September '22. The approval of the 2023 to 2025 Iraqi budget marks significant political progress in creating a framework for the exchange of Kurdistan production or budget transfers potentially paving the way for the Kurdistan regional government to broadly cover its monthly expenditures, including ongoing international oil company receivables. However, negotiations are ongoing between Kurdistan and Iraq regarding its final implementation as well as regarding the creation of a new Iraqi oil and gas law. As the situation continues to evolve, we have to respond -- we have responded in 3 ways, focusing on what we can control. Firstly, we have proved aggressively to preserve liquidity, which I will talk about on the next slide. Secondly, we have commenced local sales with domestic demand for Shaikan crude from local buyers emerging in July. While the market remains unpredictable their science demand is increasing in the continued absence of export availability, realized prices for Shaikan crude to-date have averaged around $30 a barrel, which is in line with what we are currently seeing in local market considering different crude qualities. Payments are made in advance eliminating payment risk. And Gulf Keystone Petroleum keeps us entitlement share currently at around 36%. Thirdly, Gulf Keystone Petroleum and other international oil companies are making our collective voice heard with the Kurdistan regional government and other key stakeholders through the association of the petroleum industry of Kurdistan or APIKUR. APIKUR was established at the beginning of this year with Gulf Keystone Petroleum as one of its founding members. The association advocates for the common interest of its members towards all stakeholders and provides a forum to share industry information and best practices. Regarding the current situation, APIKUR is emphasizing the importance of restarting pipeline exports, resuming timely oil sales payments and in general, protecting the contractual rights embedded in our production sharing agreements, which are governed by English Law. We continue to be encouraged by assurances from the Kurdistan regional government that production sharing contracts have sanctity in line with the Kurdistan regional government's historic track record. Next slide, please, operational activity. Gulf Keystone Petroleum's operational activity in 2023 has shifted rapidly from a focus on driving profitable production growth with record production levels achieved in March, to a focus on liquidity preservation following the suspension of exports. Following the ITP closure, production was curtailed and diverted into storage, the Shaikan field shut-in on the 13th of April when storage was full. We also suspended all expansion activity, including drilling, well workovers, facilities expansion and well pad preparation and regrettably reducing the organization, including a 55% reduction in our expat workforce and a reduction in working hours for our local workforce. While our focus has been aggressively reducing CapEx and OpEx costs, we have maintained sufficient operational capability to both quickly resume exports and to restart more labor-intensive trucking operations for local sales. On the 19th of July, we commenced local sales and from PF-1 with sales starting at PF-2 in August. We have sold crude from storage whilst restarting a number of PF-1 and PF-2 wells. To-date, we have seen no degradation to well performance from the extended shut-in, but continue to ramp up production gradually to limit drawdown on the reservoir. Since we started, we have steadily increased volumes with gross average sales of around 23,000 barrels of oil per day between the 19th and 29th of August. We are focused now on increasing sales, and there appears to be significant demand for Shaikan crude. Nonetheless, volumes and pricing remain difficult to predict, and we continue to retain significant flexibility to dial operational activity up or down. If we are unable to maintain sustainable local sales, we have identified options to reduce monthly costs by a further $2 million. However, these could potentially delay a timely return to full production. Next slide, please, local sales. It's excellent to be producing and selling crude again. And the teams at PF-1 and PF-2 have done a fantastic job in a challenging operating environment to transition smoothly and safely from pipeline operations to trucking operations, which were last implemented in 2019. We are currently loading over 120 trucks per day and looking to move to 24/7 operations when local sales increase. Throughout the period, we have maintained a rigorous focus on safety even in the face of new operational challenges presented by trucking operations and temperatures on the ground have approached 50 degrees Celsius. Next slide, please, GKP and the Shaikan field. Given the challenging operating environment at the moment in Kurdistan, it is easy to forget the price we have in front of us once the situation stabilizes. Looking back, we have overcome several challenges to generate profitable growth from the Shaikan field substantial reserve base and significant shareholder value. Despite the current situation, there remain a number of attractive fundamentals to note about the Shaikan field and our track record. First, we continue to operate a large long-life asset with over 800 million barrels of both gross 2P reserves and 2C resources as confirmed by the 2022 Competent Person's Report and external independent audit. Second, production is low cost and GKP has consistently had one of the lowest operating costs and G&A per barrel amongst Kurdistan and international peers. Third, we have a strong track record of profitable production growth with over 117 million barrels produced to date and 40% production growth between 2018 and 2022. Fourth, we have demonstrated a commitment to shareholder distributions with $440 million distributed in dividends and buybacks since 2019. This adds up to a considerable upside potential should the operating environment improve. Now with that, I will now hand you over to Ian for the financial review. Ian?

Great. Thanks very much, Jon, and good day, everyone. Moving to Slide 10. Building on our strong financial performance in 2022, in which we generated record profitability and cash flow, distributed $215 million of dividends to shareholders and repaid a $100 million bond, we are on track for another strong year in 2023 until the closure of the Iraq-Turkey pipeline. As Jon mentioned, the suspension of export and continued delays to KRG payments materially impacted our financial performance in the first half of the year, reducing profitability and cash generation. In response, we moved quickly to preserve liquidity, aggressively reducing our costs with a significant step-down in activity from 1Q to 2Q, which is evident in the bottom right net CapEx chart. Today, increase in local sales are enabling us to cover our estimated monthly expenditures, which I'll talk about shortly. Next slide, please. Adjusted EBITDA, which is a good measure of underlying cash flow from operations in the first half of the year decreased from just over $200 million in the first half of 2022 to $34 million, primarily reflecting the suspension of exports and lower realized prices in the first quarter. While we enjoyed record production levels in the first quarter, gross average sales in the first 6 months of the year, almost halved relative to 2022 to 23,256 barrels of oil per day with no revenue from the 25th of March. Dated Brent prices decreased from $108 per barrel in the first half of 2022 to $80 per barrel in the first quarter of 2023. The Brent price impact was compounded by the KRG unilaterally changing the reference price for Dated Brent to Kurdistan blend, resulted in an increase in the discount per barrel of about $6. Combining these impacts, our realized price was down $33 per barrel from the first half of 2022 to $51 per barrel in the first quarter of 2023. Next slide, please. The impact of lower adjusted EBITDA and increasing delays to KRG payments drove a significant reduction in free cash flow from $177 million in the first half of 2022 to a cash outflow of $10 million in the first half of 2023. The closure of the pipeline towards the end of March has resulted in only 2 KRG payment receipts this year with the last payment being received in March for September 2022 sales. Accounts receivable totaling $151 million net to Gulf Keystone for October 22 to March 23 oil sales are now all overdue. The resumption of pipeline exports and consistent budget transfers from Iraq to Kurdistan are likely required before we see a return to more normalized KRG payments and the KRG providing international oil companies a plan to address the outstanding arrears. Net capital expenditures were $47 million in the first half. Capitalizing on the momentum from 2022, we had a very active drilling and facilities expansion program in the first quarter with delays in the reopening of the pipeline, we quickly reduced expenditures to preserve liquidity, resulting in a 2/3 reduction in net CapEx from $35 million in 1Q to $12 million in 2Q. Following the payment of a $25 million interim dividend in March, we canceled the payment of the 2022 final dividend to preserve liquidity. We continue to believe dividends are important to reward shareholders and we will review reinstating the dividend when the environment and our liquidity position improved. In July, we restarted local sales, which, along with cost reductions and managing accounts payable have supported our liquidity position. Our cash balance as of yesterday was $82 million. To manage credit risk, buyers are required to prepay for all local crude purchases. Gulf Keystone, as operator, has collected sales proceeds on behalf of MOL and the KRG. Prepayments for crude not yet lifted in amounts due to MOL and the KRG totaling $8 million are included in our current cash balance. Next slide, please. Gulf Keystone has consistently maintained strict control of its costs and has one of the lowest operating cost in G&A per barrel amongst Kurdistan and international peers. While costs have been increasing in the first quarter of the year reflect an increased operational activity and investment in the Shaikan field, following the suspension of exports, we moved quickly to reduce our cost to preserve liquidity. Operating costs in the first half of the year were flat relative to the prior period, reflecting increased cost in 1Q related to higher production, offset by a 36% decrease in 2Q as production was shut in and nonessential maintenance deferred. After adjusting for nonrecurring corporate G&A costs of $2 million, and an increase in noncash depreciation of $1 million. Other G&A expenses were flat from the first half of 2022. We continue to review our cost structure and look for further reduction opportunities. Next slide, please. Deep cost cuts have been key to preserving liquidity. Our estimated aggregate net CapEx, operating costs and other G&A monthly run rate is currently around $6 million for the second half of the year, which is down 2/3 from the first quarter of the year. The decline in run rate reflects a steep reduction in CapEx guidance from initially $160 million to $175 million (sic) [ $70 million to $75 million ] to the current $60 million to $65 million. Current guidance reflects $10 million of cost savings realized in June. We now forecast less than $15 million in net capital expenditures in the second half of the year. Assuming the continuation of gross average sales of around 23,000 barrels per day and average realized prices of around $30 a barrel, our entitlement share of 36% covers our estimated monthly run rate of around $6 million net and provides us with increased flexibility to manage the timing of payment of our accounts payable. While the demand for Shaikan crude is promising, and we are targeting further increases, sales volumes and prices remain unpredictable. As a result, the sustainable local sales do not materialize, we have considered taking additional liquidity actions. This includes identified options to reduce our monthly expenditures by up to $2 million. We would take this decision carefully as it could potentially impact our operating capacity and delay the time it takes to return to full production when conditions improve. While good progress has been made, we continue to pursue further cost reductions and inventory sales and will consider further sources of liquidity as necessary. With that, I'd like to now hand it back to you, Jon.

Thanks, Ian. Final slide outlook. To summarize, the suspension of exports and continued delays to the Kurdistan regional government's payments have had a material impact on our performance in the first half of the year. In response, we have taken rapid and aggressive action to preserve liquidity, enabling us to reduce average monthly CapEx and cost to around $6 million in the second half of the year. With current local sales and prices, we are generating enough cash to cover our monthly costs and increase our flexibility to manage our accounts payable. Nonetheless, while demand for Shaikan crude appears significant, the market remains unpredictable, and we would take further liquidity actions without sustainable sales as we remain relentlessly focused on cost reductions and preserving our liquidity. Looking at the bigger picture, we continue to believe the suspension of exports will be temporary and that Kurdistan regional government payments will normalize in due course. As an industry, we are continuing to engage with the Kurdistan regional government and other key stakeholders to make our voice heard with the objective of it protecting the interest of our stakeholders and returning our industry to its role of generating significant economic value for Kurdistan, Iraq and our shareholders. When conditions improve, we look forward to returning to a balance of growth and returns. With that, we'll now move on to look at our list of questions, and we'll try and answer those as best we can.

Jon and Ian, that's great. Thank you very much indeed for your presentation this afternoon. [Operator Instructions] But just while the team take a few moments to review those questions that were submitted already. I would like to remind you that a recording of this presentation along with a copy of the slides and the published Q&A can be accessed via your investor dashboard. Ian, Jon, as you can see, we have received a number of questions today throughout your presentation, and thank you to all of those on the call for taking the time to submit their questions. But guys, if I may just hand back to you just to read out those questions and give your responses where it's appropriate to do so and then I'll pick up from you at the end.

Yes. Great. Thank you. I guess the first question, what we can see is, can you please provide more background information on the issues on the Kurdistan issues and what brought it to ahead. I think, okay, so I think originally, the constitution was written after Iraq was liberated in 2005, which allowed Kurdistan region to develop its own oil and gas law, and that allowed it to issue production sharing contracts, which we did very successfully and brought in a large number of oil and gas players to Kurdistan. However, in terms of looking at exporting that oil to international markets following Isis' involvement in Iraq, in border area of Iraq. Kurdistan started exporting through the Ceyhan pipeline, Iraq to Ceyhan pipeline. And at that time, Baghdad disagreed with the interpretation of the constitution and put in place an arbitration in Paris, which finally ruled last year, which made an award to Iraq. So Turkey shut the pipeline in, which has resulted in ongoing negotiations to resolve that on pass between Turkey and Iraq. And what we've seen is that whilst it's shut in, I believe that all both Turkey and Iraq and Kurdistan, everybody is losing out because 400,000 barrels a day, which would be accessing international markets [indiscernible], and that's losing revenue to all of the people of Iraq. So I actually think that, that will be -- that will come to result soon. There are some other political issues, of course, which surround it. Because you've got a long-dated history between Turkey, Iraq and Kurdistan, and those actually need to play out before we see a resolution. But I think I've been encouraged certainly by the heads -- well, the foreign ministers and the energy ministers being in each other's capital, so Ankara, Erbil and Baghdad, as recently as last week and some very positive statements were coming out of that. I believe it may -- so we'll see where that goes, and there's also reported a rumored a meeting of the President, Erdogan from Turkey going to be in Baghdad fairly shortly to hopefully resolve any outstanding issues. So sorry, quite a long-winded one, but it's quite complex politically. We now have another question we can see. Whilst uncertain, given the current local market conditions, do you expect to become cash flow positive in the coming months, regardless of the state of the pipeline. I think what we can say in terms of our outgoing costs, our outgoing costs we stated in this presentation, and it's in the RNS, is in the order of $6 million net to GKP and actually our current production rate is over the last few days has been 23,000 barrels a day. And if you multiply 23,000 barrels a day by 30 days by our net share of 36% and $30 a barrel, you get to somewhere in the order of $7.5 million. So you could argue on an ongoing basis, we are already in a positive cash flow situation. Of course, we do have some accounts payable that we will need to pay over the next few months. So I will say that we are actually in a cash flow positive situation, but we are, of course, striving to increase local sales further, such that we can increase that headroom and also give us some flexibility about managing accounts payable going forward. Thanks.

The next one makes reference to Reuters article that was published this morning with quite a headline, in fact. And the question says Reuters have reported this morning that Gulf Keystone fears for its future viability in Kurdistan crude wells. Do you think this is a fair reading of today's announcement? I think that really building on Jon's comments there and the comments that we've just made, we've made significant progress in, number one, reducing our costs. We brought down our run rate significantly by about 2/3 from the beginning of the year. We are increasing local sales. We have talked also today about the step-up in local sales that we have been achieving from 5,000 barrels a day to the end of July up to around 23,000 barrels a day towards the end of August on average. And our objective is to continue to increase that. And with that, as Jon just noted, cash flow positive in terms of our ongoing operating costs. Now, I think the one thing that the Reuters did pick up is in our financial statements, we have a growing concern disclosure and there is some caution signaled in that. So maybe a bit of background on that to help you understand that. When we prepare an assessment of our growing concern, which is in effect, our ability to continue operating for the next 12 months, we look at a number of scenarios. And under those scenarios, we, of course, see ourselves as an ongoing entity, being able to meet our obligations as they become due. And in fact, as we continue to look to drive local sales, the cash balance is relatively healthy. Now in that growing concern statement, there was a reference to an extreme downside. So as I said, when we test the growing concern, we test a range of outcomes. And we test the extreme downside, which in effect means as of today, we have zero revenues going forward. And of course, that is not where we're at today, but we're just signaling that in the event of absolutely zero revenues, we would have to look at taking further actions. And those further actions have already been signaled. We already have options to reduce our run rate by $2 million a month. We are actively pursuing inventory sales, so we're actually, as always, trying to be ahead of this, driving down our costs and looking for sources of liquidity. So I think that while in the stricter sense, we have one mine in the entire release. I think you have to look at in the context and you have to look at it in terms of the overall judgment and we very much see ourselves as a growing concern proactively focusing on the things that we can control.

Thanks, Ian. The next question is will trucking and local sales persist if the pipeline is open? I think you'll have seen via APIKUR, we've made it very clear that we really don't wish to start exporting crude oil again, unless it's very clear that we're going to get paid for both that current production and historic arrears. Obviously, you'll be aware of, we are allowed -- we're entitled to sell our production and the state is entitled to sell their production separately under the production sharing agreement that we have with them. So it is quite possible that you'd see both exports and trucking operations in parallel, but our sincere belief is that Kurdistan will give us the assurances and give us the money for ongoing production once we resume exports. [indiscernible] Next question, with 21,300 barrels of oil per day at $30 per barrel sales into local markets, means that around $20 million revenue at $36 per share, this covers the $6 million cost a month or $6 million a month cost. Why would the company need to cut costs further? I think what we said in this is around production, local sales has been fairly erratic is the best word I think I can use. And the price that we get paid for it has been fluctuating. So we, therefore, are focused on if local sales reduces, then we'd have to reduce costs, as Ian just explained. If production continues to grow, then we'll need to use $6 million a month to run our full production facilities. So we wouldn't be if that's the situation. So I think that answers that question. If the pipeline open now, how quickly can you get back to 55,000 barrels of oil per day? So how quickly can we get back up to previous production levels. We believe that we could get to sort of 40,000 to 45,000 barrels a day within 4 weeks and to get back above 50,000 barrels a day, it will take us about 4 to 8 weeks. The primary reason for this is around bringing our pumped wells back on, and we are trying to treat them with kit gloves essentially. If you put too much drawdown on these high large fractures, you tend to shop fractures and we're concerned that we may pull water and so it's -- we're basically we're bringing them back on slowly. I hope that answers your question. Can you please comment on the recent APIKUR statement regarding Iraq offering a payment of $6 per barrel of oil produced. What prompted the going concern language in the press release. Okay. So the first part of that is, firstly, the $6 a barrel is reported in the press, and the APIKUR statement effectively is saying that we're unsure about where the $6 comes from. It's kind of -- it's alluded to it's the average production cost of some oil fields in Iraq, but the oil fields aren't actually stated and the $6 operating cost, we don't know what the basis for that. So it seems somewhat arbitrary in its creation. And clearly, it is far short of anything that we could find possibly acceptable bearing in mind that this is a payment of -- this is a mechanism to calculate a budget transfer payment between Iraq and the Kurdistan regional government. We're also conscious that the Kurdistan regional government is paid somewhere we always planned to be paid around 12.67% of the entire Iraqi budget, less sovereign expenses. So in our calculations, if they were paid $6 for all the oil that was produced or exported, plus the 12.67% that's reported that they will get under the budget law. They have more sufficient costs to cover their ongoing payments and the payments that we required under our production sharing agreement. The second part, I think, was covered by Ian previously in the previous question, regarding growing concern language. Do GKP receive all the current local crude sales at $30 per barrel directly before any distribution goes to other parties such as KRG's percentage owed. If so, can GKP offset the KRG moneys owed from local sales against the $351 million, thus reducing the amount of moneys owed to help our cash flow going forward.

Happy to take that, Jon. Currently, as we've noted, all crude sales, there's buyer repayments that is a key stipulation. So that is for the -- for a large proportion of the sales, currently, there is an element that the stage is taking in kind, which is fine. They manage a portion of it. But at the current moment, as we noted, we have received $8 million, which includes buyer prepayments and amounts due to MOL and the KRG. We -- as a matter of routine, we pay our partner on a monthly basis. You make a very good point regarding the $151 million that the KRG owes us and the fact that we're also holding monies that we owe them, that would be a discussion in due course. At this point in time, we have the monies and it's bolstering our short-term liquidity.

Very good, Ian. Thanks for that. I think the next question is when was the last point of contact with the KRG in relation to sanctity of production and contracts and the pending oil and gas law? So the last meeting we had, as you say, on the 23rd of August, the Kurdistan regional government said that they held meetings with us, and that was, in fact, true. We met with Umed Sabah, who's the President of the Cabinet. Amanj Raheem was there, the Justice Minister was there. The acting Minister of Natural Resources, Dr. Kamal Atroshi, plus also some other members of the Ministry of Natural Resources were also present and we kind of -- we have dialogue ongoing with most of those people. In fact, on a continual basis, and we have very good access to those individuals that we can talk about. In that meeting, it was stated again that our contracts have sanctity and that they see very much see our contracts as a partnership for the good of Kurdistan and Iraq and the international oil companies. On the 28th, you say APIKUR released a statement which talked about us not producing oil into the pipeline unless it's clear how we get paid for that. So we've represented that to the Ministry of Natural Resources and to Umed Sabah, when we were having these conversations about we really need to understand how we're going to get paid and when we're going to get paid for -- well, we're expecting to be paid for ongoing production under the terms of the contract. And for our arrears, we really want to understand when we're going to get paid for those arrears. What is the maximum you can produce without the pipeline being open? We have a physical limit, we believe, on our trucking. We have 2 trucking stations one at each of the production facilities. And we believe it's in the order of kind of 40,000 to 44,000 barrels of oil a day if we're just trucking. And the difference in those numbers is really around with 44,000 around have perfect operations, but there's always some downtime with trucking operations because you've got -- you've got a lot of trucks coming and going, as you can imagine. So that we've kind of -- that's about 90% of our theoretical maximum. So 40 to 44 is around the number. I think that concludes the questions, actually. So back to you mediator.

Jon and Ian, thank you very much indeed, absolutely. And thank you for addressing all of those questions that came in from investors and of course if there are any further questions that do come through, we'll make these available to you immediately after the presentation has ended, just for you to review, and to then add any additional responses, of course, where it's appropriate to do so. But Jon, perhaps before just really looking to redirect those on the court to provide you with their feedback, which I know is particularly important to yourself and the company. If I could please just ask you for a few closing comments to wrap up with, that would be great.

Yes. Great. Thank you very much. Firstly, I would say if people do have questions, obviously, they can access our website and post questions to Aaron Clark, our Head of IR and Communications. So please feel free to direct questions to him. I'd just like to thank everybody on the call. Current investors, I very much appreciate your continued support. People listening in to think about investing well, hopefully, you'll be enamored with our story and our potential and potentially think about investing. And really, thank you for your time today and hope it's been informative. Thank you very much.

Jon, that's great as well. Thank you once again for updating investors today. Could I please ask investors not to close this session as you'll now be automatically redirected for the opportunity to provide your feedback in order that the management team can better understand your views and expectations. It Is going to take a few moments to complete, but I'm sure will be greatly valued by the company. On behalf of the management team of Gulf Keystone Petroleum Limited, we would like to thank you for attending today's presentation. That now concludes today's session. So good afternoon to you all.