Financial Data and Key Metrics Changes - The company reported a CapEx of approximately $170 million for 2025, down about 65% from 2024, with a full-year CapEx forecast reduced from around $400 million to approximately $350 million [9][10][33] - Production was higher sequentially due to the ramp-up of the GTA project and strong performance in the Gulf of America, although it was lower than guidance mainly due to timing issues [31][32] Business Line Data and Key Metrics Changes - In the Gulf of America, net production was around 19,600 barrels of oil equivalent per day, driven by strong performance from the Kodiak and Oddjob fields [16] - Jubilee gross production was around 55,000 barrels of oil per day, lower than expected due to planned FPSO shutdowns and underperformance of some wells [14][15] Market Data and Key Metrics Changes - The company has hedged 7 million barrels of oil for 2026 with a floor of $66 per barrel and a ceiling of $75 per barrel, taking advantage of higher prices in late Q2 and early Q3 [12][35] Company Strategy and Development Direction - The company aims to grow production, reduce costs, and enhance the resilience of its balance sheet, with a focus on free cash flow generation [5][37] - Future expansion opportunities are being explored, particularly in the GTA project, which is now fully operational, and in the Jubilee field, where consistent drilling is planned [20][38] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges faced in Q2, including production declines and operational issues, but expressed optimism about the potential for recovery through improved data and regular drilling [44][49] - The company is focused on maximizing cash flow and reducing net debt, with expectations of continued production growth into 2026 [33][37] Other Important Information - The company has agreed on indicative terms for a term loan of up to $250 million secured against Gulf of America assets, aimed at addressing upcoming debt maturities [11][34] - A Memorandum of Understanding (MOU) was signed with the government of Ghana to extend licenses, which is expected to facilitate long-term investments in the Jubilee field [15][76] Q&A Session Summary Question: Concerns about Jubilee production decline - Management acknowledged the 40% decline in Jubilee production and emphasized the need for regular drilling to maintain production levels, with plans to bring additional wells online [42][48] Question: Cost reduction strategies for GTA - Management discussed exploring various operating models to reduce costs, including refinancing the FPSO and optimizing operations [50][55] Question: CapEx guidance and sustainability - Management confirmed that the reduced CapEx guidance of $350 million is sustainable, focusing on maximizing free cash flow while progressing key projects [60][64] Question: License extension details - Management clarified that the MOU includes a commitment to increase gas volume while maintaining existing fiscal terms, allowing for a consistent drilling program [75][76] Question: GTA costs and future cash flow - Management provided insights into GTA costs, indicating that they expect to normalize costs and achieve a breakeven of $50 to $55 per barrel, with free cash flow sensitivity linked to oil prices [81][86]

Financial Data and Key Metrics Changes - The company reported a CapEx of approximately $170 million for 2025, down around 65% from 2024, with a revised full-year CapEx forecast reduced from $400 million to $350 million [8][34] - The company is generating free cash flow as production increases and CapEx and NOC funding wind down [34][41] - OpEx per BOE, excluding GTA, was higher in the quarter due to the timing of lifting costs, but G&A expenses were lower due to overhead savings [33][34] Business Line Data and Key Metrics Changes - In the Gulf of America, net production was around 19,600 barrels of oil equivalent per day, driven by strong performance from the Kodiak and Oddjob fields [15] - Jubilee gross production was around 55,000 barrels of oil per day, lower than expected due to planned FPSO shutdowns and underperformance of some wells [13][14] - The GTA project achieved commercial operations with a net production of just over 7,000 barrels of oil equivalent per day in the second quarter [12] Market Data and Key Metrics Changes - The company lifted 3.5 gross LNG cargoes in the second quarter, with expectations to reach a full-year guidance of 20 gross cargoes [12][17] - The company has hedged 7 million barrels of oil production for 2026, with a floor price of $66 per barrel and a ceiling of $75 per barrel [37] Company Strategy and Development Direction - The company aims to grow production, reduce costs, and enhance the resilience of its balance sheet, focusing on free cash flow generation [40][41] - Future expansion opportunities include leveraging existing infrastructure to double gas production at GTA and consistent drilling at Jubilee to access significant reserves [20][41] - The company is exploring alternative lower-cost operating models to drive down costs across projects [10][56] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges faced in the second quarter, including production declines and operational issues, but expressed optimism about improved data and drilling programs to stabilize and grow production [46][50] - The company is focused on maintaining a regular drilling cadence at Jubilee to offset production declines and maximize field potential [28][76] - Management emphasized the importance of securing gas sales agreements to optimize the GTA project and meet domestic gas demands [97] Other Important Information - The company signed an MOU with the government of Ghana to extend licenses, allowing for long-term investments in the Jubilee field [14][78] - The company is progressing additional financing activities to address upcoming debt maturities and enhance liquidity [10][105] Q&A Session Summary Question: Concerns about Jubilee's production decline - Management acknowledged the 40% decline in Jubilee production and highlighted the need for regular drilling to maintain production levels, with improved data aiding in identifying new drilling opportunities [46][50] Question: Cost reduction strategies for GTA - Management discussed exploring various operating models to reduce costs, emphasizing the need to optimize operations and refinance the FPSO lease [52][56] Question: CapEx guidance and sustainability - Management confirmed that the revised CapEx guidance of $350 million is sustainable, focusing on key projects and maintaining growth without compromising future potential [62][66] Question: Importance of gas sales agreements for GTA - Management stated that securing gas sales agreements is crucial for optimizing the GTA project and meeting domestic gas needs, with ongoing discussions with the government [97] Question: License extension details - Management clarified that the MOU includes a commitment to drill up to 20 wells and a slight decrease in gas prices, but no changes to fiscal terms [78]