Ann: Walyering Production Update, page-84

It's very difficult to forecast dividend payouts for a company transitioning into an infant producer. A lot of depend on its forward drillable inventory. I personally don't see any dividend payout at least until after 2028, which is when they would have finished with all their development capex and have all four fields online. I have put some ballpark figure in my model for OH development with the assumption it will be similar to Walyering, but who knows how far off I am with that assumption.

Development capex aside, it will also depend on Arrino and Kadathinni. As you can see in my model, they are drillable candidates but the drilling costs have not been factored in as no formal decision or date has been allocated to their drilling just yet. If those are successful, then we will need to allocate more capex towards their development and therefore, further postponing any potential dividend payouts.

With c.2.8bn SOI assuming a successful TPD acquisition scenario, every 1c dividend will cost the company 28mn. While it is nice to have dividend payouts, I'd rather see them allocate the money towards growing the company and ensuring the Reserve Replacement Ratio (RRR) is maintained at a healthy level. My personal view on dividends, share buybacks and capital returns is such that companies should only execute them if and when they do not have a better commercial option to deploy those capital.

That being said, I think it is only a matter of time before they will issue a stable stream of dividends given the large projected stream of FCF it will generate in the coming years.

Hope this makes sense

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