Financial Data and Key Metrics Changes - The company ended the quarter with US $45.2 million in cash and receivables of US $26 million, including US $11 million from the second tranche of a PIPE transaction and US $15 million from an acreage sale [5][11] - Cash flow primarily funded the SS2H ST1 stimulation and flow testing, with expectations to receive an additional US $15 million by year-end [11] Business Line Data and Key Metrics Changes - Record flow rates were reported from the SS2H ST1 well, with a 2% increase over the last 30 days of testing without downhole intervention [2][6] - The company has commenced a farmout process for approximately 400,000 acres in the Beetaloo Basin, attracting strong interest from various qualified counterparties [4] Market Data and Key Metrics Changes - The Beetaloo Basin is showing distinct characteristics compared to the Marcellus Shale, indicating lower decline rates supported by higher gas in place and total organic carbon [7] - The company is focused on securing approvals for longer-term production and has received consent from native title holders to sell gas under new legislation [4][10] Company Strategy and Development Direction - The company aims to commence gas sales from the Beetaloo Basin by mid-2026, with plans to ramp up volumes for potential Southeast market distribution [12][30] - The strategy includes pursuing both domestic gas sales and LNG development, with a phased approach to infrastructure development [30][31] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the unique geological characteristics of the Beetaloo Basin, which may lead to better performance than other shale wells [40][41] - The company is actively working on securing financing for infrastructure projects and expects to announce further updates soon [11][62] Other Important Information - The SPCF compression and dehydration facility is on track for completion and commissioning by mid-2026, with the Stuart Plateau Pipeline expected to be completed by year-end [10][11] - The board has been strengthened with the addition of experienced directors from Pioneer Natural Resources [4] Q&A Session Summary Question: Can you provide details on drill times and tool failures? - The company has encountered typical downhole failures but has achieved drilling times as low as 19 days for the best segments of recent wells, indicating potential for improvement [15][16] Question: What is the plan for the upcoming well? - The upcoming well will undergo stimulation and flow testing, with plans to shut it in for a pilot project after testing [17][19] Question: What does a successful farmout outcome look like? - Management indicated it is premature to discuss specifics but noted strong interest from various companies in the farmout process [27] Question: Are both domestic gas sales and LNG development still priorities? - Yes, both markets are being pursued, with a focus on domestic sales first, followed by LNG development as infrastructure allows [30][31] Question: What is the timeline for the farmout process conclusion? - The best-case scenario for concluding the farmout process is around Q1 2026, but timing may vary [38] Question: What explains the unusual production behavior from the SS2H well? - Management suggested unique geological characteristics and reservoir engineering factors may explain the well's performance [40][41] Question: What factors will influence the next drilling program? - The next drilling campaign will largely depend on the farmout process and partner decisions, with plans to start after the wet season [46][47] Question: What is the status of the SPCF funding? - The company is pursuing an infrastructure debt facility and has spent about $20 million to date, with an additional $70 to $80 million needed [61] Question: What is the plan for local sand sourcing? - The company is committed to using local sand and is conducting tests to ensure quality and compliance with regulations [71][72]

Financial Data and Key Metrics Changes - In Q1 2025, the company reported a net income of $7.7 million or $0.7 per share and adjusted EBITDAX of $57 million, driven by NRI production of 17,764 barrels of oil equivalent per day, exceeding guidance [6][20] - Working interest production was 22,402 barrels of oil equivalent, also at the high end of guidance, while NRI sales were 19,074 barrels of oil equivalent per day, matching guidance [6][20] - The unrestricted cash balance as of March 31, 2025, was $40.9 million, down approximately $40 million from year-end 2024 due to elevated capital spending and state lifting bond payments [21] Business Line Data and Key Metrics Changes - In Egypt, five wells were drilled in Q1 2025, with an average initial production rate of about 120 barrels of oil per day, and further drilling is expected in Q2 2025 [13] - Gabon has shown strong production uptime and improved decline curves, with a drilling program planned to begin in Q3 2025 [14] - The FPSO project in Cote D'Ivoire is on schedule, with significant development drilling expected to start in 2026 [11][12] Market Data and Key Metrics Changes - The company has observed a decline in commodity pricing, particularly oil, leading to a 10% reduction in the capital budget for 2025 [9] - The guidance for full-year production and sales remains unchanged despite the capital expenditure reduction [9][22] Company Strategy and Development Direction - The company aims to operate efficiently, invest prudently, and maximize its asset base while seeking accretive opportunities [25] - Long-term projects like the FPSO in Cote D'Ivoire and drilling campaigns in Gabon are continuing as planned, with a focus on enhancing production and reserves [10][11] - The company is also exploring opportunities in Equatorial Guinea, with a FEED study anticipated to lead to a final investment decision in 2025 [20] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the current macroeconomic environment's uncertainty and the need to reduce discretionary capital spending [9] - The company remains confident in its operational and financial performance, expecting to double its size and scale through organic projects over the next few years [24][25] - Management emphasized the importance of maintaining operational excellence and consistent production to support future growth [7][25] Other Important Information - The company paid a quarterly cash dividend of $6.25 per common share in Q1 2025, with plans for a second dividend payment later in June [26] - The company has hedged 70,000 barrels of oil per month in Q2 with a floor price of $65, aiming to mitigate risks associated with commodity price fluctuations [24] Q&A Session Summary Question: Can you comment on the production profile at Gabon over the back half of 2025? - Management indicated no significant planned downtime related to the drilling program for 2025, but there will be planned preventative maintenance downtime in July [29][31] Question: How does the development drilling campaign in Cote D'Ivoire look for 2026? - Management confirmed that the Phase five drilling is scheduled to start mid-year 2026, with the operator actively working on securing a rig [32][33] Question: How would you prioritize projects if oil prices remain low? - Management stated that projects enhancing production through existing facilities are prioritized, with the Equatorial Guinea project being the most attractive due to its favorable terms [36][38] Question: Can you clarify the working capital swing in Gabon later in the year? - Management explained that the state lift in February drove the outflow in working capital, but no further state lifts are expected until 2026, which should improve working capital [48][50] Question: Has the aged receivable issue in Egypt been resolved? - Management confirmed that most of the aged receivables have been collected, and the company is on track to meet its contractual requirements with the Egyptian government [51][53]

Core Viewpoint - Emerita Resources Corp. is actively drilling at its El Cura deposit, part of the Iberian Belt West project, and has reported significant copper-gold mineralization results, indicating strong potential for resource expansion [1][7][20]. Drilling Results - Recent drilling results from El Cura show copper-gold-rich mineralization with associated zinc-lead-silver, confirming continuity of mineralization [2][4][5]. - Drillhole EC050 encountered 10.8 meters grading 4.8% copper, 1.4 g/t gold, and 72.6 g/t silver, while EC046 encountered 8.9 meters grading 1.1% copper, 1.2 g/t gold, and 15.5 g/t silver [5][6]. - Other notable results include drillhole EC039 with 1.5% copper, 1.0% lead, 1.9% zinc, 2.0 g/t gold, and 38.7 g/t silver [5][6]. Objectives of Drilling Campaign - The drilling campaign aims to determine the continuity of mineralization to support conversion to mineral reserves for an upcoming NI 43-101 compliant prefeasibility study and to test the continuation of the deposit at shallower levels and depth [7]. - The results confirm good continuity of grade and width within the deposit, with potential for further growth through additional drilling [7]. Mineral Resource Estimate - Emerita recently released an updated Mineral Resource Estimate (MRE) for the IBW Project, highlighting the significance of El Cura to the overall resource base [8]. Operational Details - The company has four drill rigs dedicated to testing the El Cura deposit, which remains open in all directions, particularly down plunge and to the west [7][20]. - Quality assurance protocols are in place for the drilling process, including sample preparation and analysis at certified laboratories [21][22]. Company Overview - Emerita Resources Corp. focuses on the acquisition, exploration, and development of mineral properties in Europe, primarily in Spain, with its corporate office in Sevilla and administrative office in Toronto [24].