Financial Data and Key Metrics Changes - In 2025, the company achieved a production rate of 182,000 barrels of oil equivalent per day, exceeding guidance, while the forecast for 2026 is a decrease to 171,000 barrels per day [10][11] - Lease operating expenses were reduced by 20% year-over-year, and capital expenditures were kept below guidance due to efficiency gains [6][10] - The company reported a successful exploration and appraisal success rate of 80% in 2025 [14] Business Line Data and Key Metrics Changes - The Eagle Ford Shale production is expected to remain flat in 2026 with a 25% reduction in capital spending [11] - The Tupper Montney natural gas volumes are expected to decline due to higher gas prices leading to increased royalties, but the cash flow impact will be muted [10][11] Market Data and Key Metrics Changes - The company is expanding its exploration portfolio with new blocks in the Gulf of America and an entry into offshore Morocco [12][13] - The average reserve life in the industry is noted to be 12 years, with a proactive approach to securing new blocks to ensure sustained growth [13] Company Strategy and Development Direction - The company plans to strategically invest in development, exploration, and appraisal activities in the Gulf of America, Vietnam, and Côte d'Ivoire to enhance shareholder value [9][14] - The focus is on intentional investments that set the groundwork for long-term growth, differentiating the company from peers [10][14] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the unpredictable market environment and softening commodity prices but emphasizes the company's preparedness to withstand downturns [10][14] - The company expects challenges in 2026 but remains committed to investing in future growth and long-term shareholder value [14] Other Important Information - The company reported a 103% overall reserve replacement rate, maintaining reserves around 700 million barrels [94] - The royalty rate for Tupper Montney is projected to increase from 4.6% in 2025 to approximately 8.4% in 2026 due to commodity price fluctuations [62] Q&A Session Summary Question: Inquiry about Hai Su Vang 2X stem test and CapEx flexibility - Management confirmed that the Hai Su Vang appraisal well produced at a rate of 12,000 barrels per day without facility constraints and discussed the flexibility of 2026 CapEx, indicating a potential 10% reduction if necessary [19][23][29] Question: Details on Civette drilling failure and its impact on future prospects - Management explained that the Civette well tested multiple objectives but did not yield commercial quantities of oil, emphasizing that the learnings will not negatively impact the Caracal and Bubal prospects [33][36] Question: Clarification on Vietnam production potential - Management stated that while the Hai Su Vang field could potentially exceed current Eagle Ford production, they are cautious in their estimates and will provide more clarity after further appraisal [39][41] Question: Discussion on 2027 production outlook - Management indicated that modest oil growth is expected from 2026 to 2027, with the Chinook well anticipated to contribute significantly in the second half of 2026 [46][72] Question: Details on Lac Da Vang ramp-up period - Management outlined that the Lac Da Vang development will see initial production in 2026, with a peak expected in late 2027 or early 2028 [76][78] Question: Exploration plans in Morocco - Management expressed excitement about the Morocco entry, highlighting the low cost of entry and the potential of the untested structure [85][87]