Bill Dezellem: Great. Thank you. And then the BW consortium was not referenced in the press release or your opening remarks. Would you please update us relative to what’s happening there?
George Maxwell: Yes, of course, I will. I mean, and the reason we didn’t update it has basically been no movement. There’s been a lot of discussions with partners and the DGH, and those are ongoing. I think we have a few points still to resolve. But as I said in the last call, I mean, given that we’ve been on this mouthful for about 18 months with G&H, the activity levels in the last six to eight weeks have certainly intensified. There’s been multiple meetings between the partners and with the DGH and we had follow-up meetings in the last week or so. So, I’m still confident that we’ll come to resolution in the very near future over the outstanding issues, which are surrounding some of the legal and contractual terms and be hopeful to be able to give an announcement on that soon. The only reason we didn’t give an update is there hasn’t been any significant movement other than additional meetings.
Bill Dezellem: And the 10-K gave the impression that the government seems far more interested in interacting than they have in the past?
George Maxwell: I would say that’s probably true. We’ve been, since there has been obviously, as everyone’s aware, change in administration and our interaction with the new administration, then we’ll see [indiscernible] has been more than 100 million in past. So, to the point where we as a company have met directly with the head of state, that has happened and we have had dialogue at that level. So yes, there is a lot more activity with the governmental institutions in the last six months than perhaps we’ve seen previously.
Bill Dezellem: And then one additional question, you referenced the Equatorial Guinea and having made some good progress there. I don’t think that, I appreciate now the amount of time it takes to go from where you’re at today through the next stages. Would you walk us through timeline, if you would, please?
George Maxwell: Yes, I can do that. So, obviously, we’ve been, as a company, we’ve been ready to start this journey for some 18 months since we’ve been trying to get resolution in the partner group. And that has been partly facilitated by the MMH in Equatorial Guinea. That resolution has now been completed as I outlined with a change in commercial terms, which included ceding additional equity to VAALCO in that process. So, in that time line, we’d always from the plan of development to then go into a detailed engineering study. And there’s two purposes for that study. One is to plan to development are conceptually based on both our subsurface analysis and cost price analysis done at desktop level for the engineering side. The FEED study will then go ahead and test those concepts in the marketplace both from a timeline and a cost perspective and look to optimize both the CapEx spend and/or reduce the CapEx spend with other mediums of how we can source the equipment at a lower cost or at a leased cost.
So, we reduce our CapEx sink and that’s certainly part of the plan for the FEED study. We estimate to get there will take us about eight months to 10 months to complete the FEED and that gets us to a final FID position. And at that point, we’re locking in not just the detailed steps forward for development, but also locking in the contracts and all the economics for the development. It’s as equipment and as our industrial environment changes around us, FEED studies are always essential before you make commitments to major projects such as Venus. The objective we’re trying to get to is to reduce the CapEx spend, replace that CapEx potentially with OpEx on a lease basis and therefore make the project even more attractive from a return standpoint.
So that’s the main objective of project of between study in addition to insuring that the equipment would require to execute the project is available.
Operator: Next, we have a follow-up question from Stephane Foucaud with Auctus Advisors.
Stephane Foucaud: Thank you. It’s a bit of a follow on, on your question from Bill about acquisition and cash available. So, ODR would be CapEx intensive for the coming years. But I guess, PG as well, so how are you thinking about cash deployment or cash resources in the context of perhaps two very large projects having to be developed at the same time?
Ron Bain: Hi, Stephane. Yes, if I got your question clearly, sorry, your line is a little bit vague. Basically, obviously, operating cash flow for us this year before FPSO goes off station. Our operating cash flows should be strong between now and the end of the year. Yes, we got CapEx in there, but we’re more than covering those CapEx spends. At the same point in time, we are talking to a number of different financial institutions in relation to your facilities. We’ve got a facility in place, but we’re looking we’re three years up the track in that. We’re looking at new facilities. And I basically see a mixture of both operational cash flow first and foremost being utilized as well as financing cash flow for these development projects because there will be time periods through ’25 or ’26 where we’re going to have some spiky CapEx spend.
So that’s what we’re looking at, Stephane. Can’t really go into the detail of that at the moment. We’re still working with those institutions.
Al Petrie: Operator, I have a question that I received by email that I’m opposed to George and Thor. And that is, when do we expect to get results on the new wells that we drilled in Canada that we said were coming online soon?
Thor Pruckl: Yes. So, I can answer that. So, the drilling program completed, the completions program has completed first two wells actually the first three wells are online, two wells cleaned up and are flowing, the third well is on cleanup flow, and the fourth well we expect on in about a week. Both two wells that are stabilized are above [indiscernible] group. The third well is still in cleanup, and the fourth well will know a bit more in about a week.
Al Petrie: Okay. Thank you, Thor. Operator?
Operator: This concludes our question-and-answer session. I would like to turn the conference back over to George Maxwell, CEO for any closing remarks.
