Stefan Fassad

Stefan Fassad from Actis Advisers inquired about the capital expenditure (CapEx) mix across assets for 2025, how 2026 CapEx would compare to 2025, and the potential size and reserve significance of the South Gazala exploration block relative to existing Egyptian reserves.

Answer

CFO Ron Bain explained that the 2025 CapEx reduction included $20 million in permanent discretionary cuts and a shift of Gabon drilling CapEx to 2026, while Egypt achieved eight additional wells for the same budget due to efficiency. CEO George Maxwell detailed that South Gazala wells encountered gas-prone and low-pressure oil zones, requiring further technical and commercial evaluation to determine aerial extent and development potential, noting its location in a prolific area.

Stefan Fassad asked about the CapEx mix across assets for 2025 and how the 2026 CapEx might compare to 2025. He also inquired about the potential size and reserve significance of the South Gazala block relative to existing reserves in Egypt.

Answer

CFO Ron Bain explained that $20 million of the 2025 CapEx reduction was permanent, with a $10 million increase for Côte d'Ivoire and a shift of Gabon drilling CapEx to 2026. He highlighted efficiency gains in Egypt, completing eight additional wells for the same CapEx. CEO George Maxwell detailed that South Gazala wells encountered gas-prone and low-pressure oil zones, requiring further technical and commercial evaluation before a development plan, emphasizing its potential in a prolific area.