Thank you, Alison. Good morning, everyone, and welcome to VAALCO Energy’s first quarter 2020 conference call. After I cover the forward-looking statements, Cary Bounds, our Chief Executive Officer, will review key highlights along with operational results. Liz Prochnow, our Chief Financial Officer, will then provide a more in-depth financial review. Cary will then return for some closing comments before we take your questions. During our question-and-answer session, we ask you to limit your questions to one and a follow-up. You can always re-enter the queue with additional questions. I'd like to point out that we posted an updated investor deck on our website this morning that has additional financial analysis, comparisons, and guidance that should be helpful. With that, let me proceed with our forward-looking statement comments. During the course of this conference call, the Company will be making forward-looking statements. Investors are cautioned that forward-looking statements are not guarantees of future performance and those actual results or developments may differ materially from those projected in the forward-looking statements. VAALCO disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Accordingly, you should not place undue reliance on forward-looking statements. These and other risks are described in yesterday's press release, the presentation we posted on our website, and the reports we file with the SEC, including the Form 10-Q that was filed yesterday. Please note that this call is being recorded. Let me now turn the call over to Cary.

Thank you, Al. Good morning, everyone, and welcome to our first quarter 2020 earnings conference call. Before I discuss our results, I would like to reflect on the extraordinary challenges that we are facing as an industry and how VAALCO is decisively responding to these challenges. Thus far, VAALCO's operations have not been materially disrupted by the global COVID-19 pandemic. We have managed through the logistical challenges that we have faced since the outbreak and continue to put the safety of our employees, contractors, and local stakeholders first. Back in March, we implemented stay-at-home initiatives for all the critical staff and put into place social distancing measures. In addition, we actively screen and monitor employees and contractors that come onto our facilities in Gabon. In accordance with government guidelines, all our workers in Gabon must undergo a 14-day quarantine before going offshore. We are also engaging in regular company-wide COVID-19 updates to keep employees informed of key developments. Finally, we have contingency plans in place in the event we are directly impacted. The combination of the worldwide shutdown due to COVID-19 and its impact on oil demand, coupled with the Saudi and Russian supply disagreement, have driven oil prices to historic lows. In response to the decline in Brent pricing, we are taking action to minimize capital expenditures and lower operating costs to preserve our balance sheet and maximize cash flow. We are working with our vendors and suppliers to implement cost-cutting measures, and we're partnering with other operators to reduce costs by sharing services and equipment such as support vessels and helicopters. We have reduced compensation for our directors by 25%, executive compensation by 20%, and non-executive employee compensation by an average of 8%. We released the Vantage rig in early April, following the completion of our successful 2019-2020 drilling campaign, and we have no material capital expenditures remaining in 2020. While we have deferred all discretionary capital expenditures including drilling until the global oil pricing environment improves, we remain confident in the long-term viability of our inventory of drilling opportunities. Despite this uncertain environment, we remain focused on operational excellence, which was demonstrated in our first quarter 2020 results, which I will turn to now. In the first quarter, we produced an average of 4,944 net barrels of oil per day, which was near the high end of our guidance range of 4,700 to 5,000 net barrels of oil per day, as a result of strong production from the 2019-2020 drilling program. The first quarter benefited from having three full months of production from the Etame 9H, nearly three months of production from the Etame 11H, and a few weeks of production from the Southeast to Etame 4H. The first quarter production volumes from the new wells demonstrate the considerable impact that the drilling program has had on our overall production. This increase in volume has helped drive down our unit operating cost per barrel and improve our breakeven margins. As we said before, approximately 90% of our costs are fixed, and we can add production with minimal increase in cost, which significantly improves our overall margins and will help generate cash flow in a low price environment. In the first quarter, we reported adjusted EBITDAX of $6 million. The first quarter also marked the culmination of our successful 2019-2020 drilling campaign. We released the Vantage rig on April 9th, and as part of the drilling campaign, we brought online three new horizontal development wells, drilled two successful appraisal wellbores, and completed two workovers. The drilling campaign had a 100% success rate and has increased production by 35% in the first quarter of 2020, compared to the fourth quarter of 2019. The entire program was completed as planned, on time, within budget, and with no safety or environmental incidents. Unfortunately, in mid-April 2020, the South Tchibala 2H well was shut in due to a downhole mechanical failure, not related to the electric submersible pump. Prior to going offline, the well was producing approximately 830 gross barrels of oil per day or 225 net barrels of oil per day. Given the nature of the mechanical failure, it is unlikely that we will be able to repair the well until the next drilling campaign when a rig is on location. Taking into account all of the production from the drilling campaign in the South Tchibala 2H well, we believe that our second order production will be approximately 5,000 to 5,400 barrels of oil per day net. For the full-year 2020, we are reaffirming the guidance we gave you earlier this year, which was 4,400 to 5,000 barrels of oil per day net. At this point in time, we have not curtailed any production, and we will keep the market informed of any material changes in that regard. I would now like to give you a quick update on our activity in Equatorial Guinea. On November 12, 2019, the Equatorial Guinea Ministry of Mines and Hydrocarbons approved VAALCO's appointment as operator of Block P. We are currently awaiting an amendment to our production sharing contract to finalize our appointment as operator and begin activities in Block P. In the first quarter, VAALCO acquired additional working interest from Atlas Petroleum, which increased our working interest from 31% to 43%. The cost for acquiring the additional Block P working interest is a potential future payment of $3.1 million that will only be made if there is commercial production from Block P. The Equatorial Guinea Ministry of Mines and Hydrocarbons has already approved this assignment of interest to VAALCO. We are having ongoing discussions with Levene Hydrocarbon Limited on a potential farm-out. Under the farm-out terms, Levene will potentially cover all or substantially all of VAALCO's costs to drill an exploratory well in exchange for an assignment of a portion of VAALCO's working interest in Block P to Levene. VAALCO would also serve as a non-owner operator under a service agreement with Levene on blocks 3, 4, and 19 in Equatorial Guinea. We have executed a non-binding memorandum of understanding with Levene regarding the commercial discussions. However, we do not have binding agreements in place, and government approval of the agreements between VAALCO and Levene must be obtained prior to completing the transaction. Given the current pricing environment, we have asked the Equatorial Guinea government for an extension to the contractual requirement to either drill a well by December 31, 2021 or relinquish the license. We are optimistic that we will finalize the agreements with Levene and prepare for a drilling campaign in the next couple of years with minimal financial exposure to VAALCO. In summary, we are committed to maintaining business continuity in these challenging times. We have a strong debt-free balance sheet, $61 million in cash, and a stable production base, all of which provides stability in the near-term and flexibility for the future. Before I turn the call over to Liz to share our financial results, I would like to mention that we have published our Inaugural Sustainability Report, and it is available on our website. We believe the sustainability report reflects our commitment to our employees, to the people who live in the communities where we operate, and to the environment.

Thank you, Cary, and good morning, everyone. First quarter 2020 results were significantly impacted by several non-cash charges as well as non-cash gains, totaling a net $59.7 million of charges that were to the sharp decrease in oil prices. As a result, we had a net loss of $52.8 million or $0.91 per diluted share for the quarter. The non-cash charges for the quarter included a $30.6 million charge for impairment of our proved oil and gas property and deferred income tax expenses of $35.6 million. These charges were partially offset by unrealized mark-to-market gains of $6.6 million related to the Company's crude oil swaps. Excluding these items, we had adjusted net income for the quarter of $6.9 million. Adjusted EBITDAX of $6 million in the first quarter of 2020, which was lower than the same period a year ago, as well as the fourth quarter of 2019, primarily due to lower oil prices. Production for the first quarter of 450,000 net barrels was significantly higher than both the first quarter of 2019 and the fourth quarter of 2019, due to the impact of the new wells coming online in late 2019 and early 2020. First quarter 2020 oil sales of 294,000 net barrels, however, were lower than both the first quarter of 2019 and the fourth quarter of 2019, as a lifting of 85,000 barrels that was scheduled for March 2020 was delayed until April 1st. This was not a result of any impact on operations associated with COVID-19 but rather it was due to poor weather conditions at the time of the lifting. We had only two liftings during the quarter, whereas we would typically have three liftings during the quarter, i.e., one per month. The delay in the scheduled March lifting also resulted in the average oil price received in the first quarter being higher than expected, as it reflected prices for just January and February, before the most significant declines in Brent crude oil prices experienced in March. For the second quarter of 2020, we expect sales to increase over the first quarter of 2020 and the comparable second quarter of 2019, as a result of the extra lifting on April 1st. We also will benefit from a full quarter of production from all the wells for the 2019-2020 drilling program and recent workovers. Barring any unforeseen increase in Brent prices between now and June 30th, average realized crude oil prices in the second quarter will significantly lower, however. In the first quarter, we had gains on our crude oil swaps of $7.3 million. This included non-cash mark-to-market unrealized gains of $6.6 million that reflected a significant change in oil prices between December 31, 2019 and March 31, 2020, as well as realized cash gains of $0.7 million on swaps which settled during the quarter. These swap agreements had a Dated Brent weighted average price of $66.70 per barrel. As of March 31, 2020, there were monthly swap contracts outstanding for 172,000 barrels for April through June 2020, which had a fair value of $7.3 million. We will continue to evaluate ways to mitigate price risk and protect cash flow through our hedging program. Turning to expenses, total production expense excluding workovers for the first quarter of 2020 was $6.9 million or $23.39 per net barrel of oil sale. The amount was lower for the quarter due to the lower sales volume. On a unit basis, we were near the midpoint of our guidance for the quarter of $23 per net barrel. Our unit cost was less the entire quarter due to the increase in production volume and the fact that about 90% of our production costs are fixed and don't rise with higher volume. For the second quarter of 2020 and the full year of 2020, we expect our unit costs should be between $20 and $24 for net barrel of sales. While low crude oil prices certainly have an effect on our financial results, from an operational standpoint, we have not been materially impacted by the worldwide COVID-19 pandemic. Our guidance, however, excludes any potential future impacts not currently being experienced. During the quarter, we completed one workover and had an additional workover that was nearing completion at the end of the first quarter of 2020, whereas we performed no workovers throughout 2019. As a result, workover expense during the first quarter of 2020 was $2.8 million. We had some costs for the 2020 workovers that will carry over to the second quarter, and we expect it to be no more than $1 million. We had initially provided guidance of $6 million to $8 million net to VAALCO for workovers in 2020, but canceled the started workover originally planned for 2020. As a result, the workover expenses we incurred in the first and second quarters are all the workover expense we currently expect for 2020. DD&A for the first quarter 2020 was $3.1 million or $10.55 per net barrel of oil sold, which was slightly above our original guidance. First quarter 2020 DD&A expense per barrel increased over both the first quarter of 2019 and the fourth quarter of 2019, reflecting the additional costs associated with the new Etame 11H well, South East Etame 4P appraisal wellbore, and South East Etame 4H well. During the first quarter of 2020, impairment testing was performed using our estimated reserve and forward price curves as of March 31, 2020. Due to the lower forecasted oil prices, we recorded a non-cash impairment charge of $30.6 million to write down our investment in the Etame to the fair value of $15.6 million. Due to this impairment, we now expect our DD&A per net barrel to decrease during the remainder of the year and have lowered our guidance to $4 to $6 for net barrel for the full year. There were no impairment charges to capitalize costs for oil and gas properties taken in either the first or fourth quarters of 2019. General and administrative expense for the first quarter of 2020, excluding non-cash stock compensation expense was $3.4 million. The G&A decrease from both first and fourth quarters of 2019 was primarily related to higher professional fees. For the full year of 2020, we continue to forecast our G&A to be between $10 million and $12 million. Non-cash stock-based compensation expense was a credit of $2.6 million during the three months ended March 31, 2020, due to the change in the SARs liability as a result of the decrease in the Company's stock price between December 31st and March 31st. For both the first and fourth quarters of 2019, our stock price increased, resulting in additional expense during those periods. Turning now to taxes. Current income tax expense is primarily attributable to the Gabon taxes, which is settled by the government taking their oil in-kind. Current income tax expense for the first quarter of 2020 included a $3.4 million favorable oil price adjustment as a result of the change in value of the government’s allocation between the time it was produced and the time it was taken in-kind. After excluding this impact, overall current income taxes were $1.9 million for the period. Overall deferred income tax for the first quarter of 2020 was $35.6 million. This included $46.9 million related to increases in valuation allowances on both the U.S. and Gabon deferred tax assets, and a deferred tax benefit of $11.8 million resulting from the tax effect of the loss for the period. Valuation allowances are recognized, and it’s no longer likely that the deferred tax assets to be realized in the future. As a result of the lower crude oil prices at the end of the period, future estimated taxable earnings declined significantly, and we now have full valuation allowances against our deferred tax assets as of March 31, 2020. As detailed on slide 25 in the presentation deck posted this morning on our website, we currently estimate that VAALCO's operational breakeven 2020 is approximately $27 per net barrel of oil sold and our free cash flow breakeven price in 2020 is approximately $35 per net barrel of oil sold. Keep in mind that our realized prices are benchmarked to crude oil prices. Both amounts include workover expense but do not include any impacts from hedges. These estimates are lower than the $31 and $38.50 per net barrel of oil sold previously estimated in our March 2020 investor presentation. The lower breakeven costs reflect cost-cutting measures that we have implemented over the past months. In general terms, we estimate that each $5 increase in realized oil price increases our annual adjusted EBITDAX by approximately $8.5 million. This clearly shows our strong leverage to higher oil prices. As mentioned earlier, our guidance excludes any potential future impacts that are currently being experienced as a result of the COVID-19 pandemic. As of March 31, we had an unrestricted cash balance of $61 million, which includes $11.3 million of cash attributable to non-operating joint venture owner advances. This does not include an additional $13.1 million in short-term and long-term restricted cash related primarily to deposits in Gabon for future abandonment costs. Adjusted working capital from continuing operations at March 31, 2020, totaled $25.8 million, an increase of $7.5 million from December 31, 2019. Despite the sharp decline in oil prices, VAALCO's cash and adjusted working capital provisions remained very strong. We fully funded our 2019-2020 drilling program at Etame from cash on hand and cash flow from operations. In the first quarter of 2020, net capital expenditures totaled $12 million on a cash basis and $9.4 million on an accrual basis primarily related to the 2019-2020 drilling program at Etame. As Cary discussed, we do not expect any remaining material capital expenditures for the balance of 2020. And as has been the case since the second quarter of 2018, we are carrying no debt. Turning to our share repurchase plan. Since its inception in June 2019 through March 31, 2020, we purchased 2,549,639 shares at an average price of $1.75 for $4.5 million. In the very beginning of the second quarter, we purchased 191,000 additional shares at an average price of $0.99 per share. All of our share purchases have been funded using cash on hand. No purchases were made after April 2nd, and on April 13, 2020, to preserve the Company's cash resources and liquidity, our Board terminated the program, which was scheduled to expire in June. The Company will revisit instituting the share repurchase program in the future when commodity markets stabilize at higher levels.

Thanks, Liz. Over the past several years, we've worked diligently to build a solid foundation for the future and to strengthen our financial position. Even in the challenging environment we face today, we remain focused on operational excellence. VAALCO has a stable producing asset with significant upside in Gabon. We have taken actions to drive down our operational costs and improve our margins, which will allow us to generate cash flow to fund future drilling campaigns. While we have deferred capital expenditures including drilling until the global oil pricing environment improves, we remain confident in the long-term viability of our inventory of drilling opportunities. We continue to plan for the future where we hope to repeat the successful 2019-2020 drilling campaign with similar drilling campaigns and continue adding reserves and production through the life of our PSC at Etame. With the debt-free balance sheet, approximately $61 million in cash on hand at March 31st, and strong production from our recently completed drilling program, we have positioned VAALCO to weather the near-term uncertainties. We expect that 2020 will be a challenging year for our industry, but we will continue to carefully manage our business with a focus on protecting our balance sheet and optimizing cash flow. Thank you. And with that, operator, we are ready to take questions.

Thank you. Our first question today will come from Charlie Sharp of Canaccord. Please go ahead.

Yes. Good morning, everybody. Thank you very much for the detailed update, much appreciated. I had sort of two questions in one, really, if I may. Obviously, you had a very successful drilling campaign in 2019 and 2020, which you talked about in the presentation. Perhaps you could just outline a little bit more in detail what it is that you've learned from that and how much more confident you may be in the potential of the Etame license? And then, the follow-on is what has to happen with the COVID virus and oil prices for you to turn what you would like to do next in terms of operations into concrete plans for new drilling? Thank you.

Thank you, Charlie. I'm glad to discuss what we learned from our recent drilling campaign. First and foremost, we successfully identified oil in place and resources in areas where we had some uncertainty, particularly in the Dentale reservoir beneath the Gamba at the Etame field. This gives us confidence to pursue development wells in the Dentale. At South East Etame, we also completed a successful appraisal well and a development well in this new reservoir. As we observe the new well's production, we may find opportunities for further development there. These are the key insights that will influence our future drilling efforts. On the operational side, we gained significant experience. We hadn't had a drilling rig at Etame for five years and restarted operations last September. While we encountered initial cost overruns, we quickly learned to manage those issues and ended up saving money towards the end of the campaign. This demonstrates that we can drill wells in Gabon without major cost overruns or significant operational challenges, which is as important as the success of our appraisal wells. Regarding what is required to initiate another drilling campaign in light of the COVID-19 pandemic and oil prices, the main issue is the logistical challenges we face now that Gabon borders are closed to expats. The first step is the opening of Gabon’s borders, allowing for safe movement of personnel. Currently, we've managed operations without direct impact apart from these logistical challenges. We are waiting for the Gabon government to reopen their borders and economy, similar to what is happening in the United States. In terms of oil prices, we're looking for long-term confidence. If oil prices stabilize in the 40s, that will give us the momentum we need to finalize our drilling campaign plans. So, Charlie, does that answer your questions?

Yes. That’s very helpful. Thank you.

Our next question today will come from Bill Dezellem of Tieton Capital. Please go ahead.

Great. Thank you. A couple of questions. I'd like to start with your $35 free cash flow number. And I think of the difference between free cash flow breakeven and operational breakeven as being CapEx. So, I guess, the first question is, is there something more besides CapEx? And if that is the difference, what CapEx are you using with your assumption of that difference between $27 and $35 breakeven?

Yes. The main difference between the two is G&A and then also the asset retirement obligations. So in the operational breakeven, that's limited to OpEx, tax, and workovers. And then when you get to the free cash flow, it's the OpEx, cash, G&A, workovers, and asset retirement obligations. We haven’t included CapEx for the wells because that fluctuates particularly based on whether you have a drilling program in place or not. And so, it kind of distorts the overall numbers. And so, we felt like it was more informative to have something excluding well costs.

Great. Thank you, Liz. And then, secondarily, the Q1 production expense, when you exclude workover and add back the 85,000 barrels that were delayed from the weather. So, those really should have been in Q1. I end up with production expense of $18.34. So, taking the initial production expense of $9.7 million, subtracting off the $2.8 million of workover brings to $6.9 million of production expense. And then, taking the 294,000 barrels of sales, adding in the 85,000 that were delayed a day because of the weather, that's where I get the $18.34. And your guidance is $20 to $24 a barrel. And so, what's the difference and why is your guidance for production expense so much higher than what you would have experienced in Q1, had you not had that daily weather delay?

Right. I’m going to let…

Yes…

Yes. I'll allow Liz to share some details here, but you are correct, Bill. Overall, we are discovering ways to lower costs, and as a result, the unit operating expense is decreasing. Unfortunately, the adjustment for the 85,000 barrels should have been included in the first quarter calculation, which did not face any weather issues. Adjusting the unit operating costs is somewhat more complex than merely adding the barrels back in because there is an inventory line item within the operating expense that would also change. This inventory line accounts for barrels that have been produced but have not yet been sold. Therefore, according to the calculation, the figure we are reporting for the first quarter does include the 85,000 barrels, even though they were not sold during that period. Liz, do you have anything to add?

That's correct. We have some costs that are capitalized on our balance sheet related to the 85,000 barrels, along with additional barrels that were expected to be in inventory at the end of the quarter. These costs will be reflected in the second quarter results. Therefore, you should see the average cost per barrel aligned between the two quarters.

That’s helpful. Thank you. And I can either step back in queue or hit you with a couple of other quick questions. Your choice.

Why don't you go ahead and ask your question, Bill? We'll try to answer them quickly.

Thank you. Can you explain how the bad debt expense of $810,000 was incurred?

I'm glad to address that. It relates to our receivable in Gabon. Our payments for recoverable amounts have been somewhat inconsistent. We have observed that due to increased stress on the Gabonese economy, as well as not receiving any payments in the first quarter, we deemed it wise to raise the valuation allowance against that receivable.

And that's essentially a refund from the Gabonese government?

Correct.

Great. Thank you. And the South Tchibala 2H mechanical issue. Would you talk to what you think is going on there, please?

The electric submersible pump in the well did not fail, and I want to emphasize that. It was installed in 2018 and was functioning properly. What we observed was a significant drop in the production rate for no clear reason. Until we extract the tubing and the electric submersible pump and use diagnostic tools down the well, we cannot confidently determine why production has decreased. However, we suspect a downhole mechanical failure could be related to a problem with the casing, something becoming dislodged, or obstructing the flow. We need the drilling rig to return so we can retrieve the tubing, extract the electric submersible pump, and diagnose and repair the issue. There seems to be something downhole that has either come loose or collapsed, but we are not sure.

Our next question today will come from Jamie Wilen with Wilen Management. Please go ahead.

With Levene and Equatorial Guinea, is the memorandum of understanding non-binding because it's negotiations with the government that has to be concluded to extend the timeline? Is that the majority of the hold-up at this point?

We need some time to finalize the agreements with the government for approval. We're not quite at that stage yet as we're still negotiating with Levene. Unfortunately, the COVID-19 restrictions have slowed us down. Normally, we would meet in person for a day or two to finalize negotiations, but that option is not available. We are trying to work through teleconferences and video conferences, but it’s taking longer for VAALCO and Levene to reach final terms. The government is not the source of the delays right now, and I want to make that clear.

Okay. The 12-month timeframe has not started, the clock hasn't started ticking on that yet, I assume.

The government has confirmed that we have until December 31, 2021, to either drill a well or give up the license. There is no penalty for relinquishing the license, but we would need to remove the $10 million of value we have recorded for Equatorial Guinea from our books. However, this will not affect our cash position. We have approached the Equatorial Guinea government to request an extension to December 31, 2023, to drill the well, and we are quite confident that we will receive that extension. If not, the deadline remains December 31, 2021.

On your balance sheet, why do your partners in Gabon give you a $10 million advance to sit with?

Yes. This relates to the timing of cash calls. We request funds from our joint owners for the upcoming month's expenses, estimating what we'll need. The cash calls are due on the first day of that month, but often we receive the cash a day or two earlier. As a result, we have cash on our balance sheet that is actually intended for the next month's expenses. It's primarily a timing issue. We emphasize this point to ensure everyone understands that part of this cash is meant for settling obligations with joint owners, not for our own use.

Okay. Lastly, you've reduced costs, and your operational breakeven is much lower. Is that estimate for the full year? Have all those costs already been realized? Is there more to come? And what would be your ultimate operational breakeven if there are additional costs to be removed?

We are continuously seeking ways to reduce costs. While I can't guarantee it, I believe our team will discover additional cost-saving opportunities. Regarding our guidance for the full year, it is a forecast, and circumstances could change, which might lead to an increase in operating expenses beyond our projections. That's why we provide a range. We are confident in the range we have presented today, which includes both a high and low end, with the high end accounting for potential unforeseen events. Currently, we haven't noticed any effects on our operations from the pandemic, but unpredictable factors could still arise that may raise our operating costs. Therefore, we cannot incorporate such uncertainties into our outlook. Jamie, does that address your question?

Yes, it did. Once again, congrats on the successful drilling program and the wonderful balance sheet you have with basically the stock price all in cash and no debt. It's a wonderful place to be situated during this tough time.

All right. Thank you. Thank you, Jamie.

Our next question is from Ricky Fairchild with RBC. Please go ahead.

Hi. Thank you. Could you provide more insight into the decision to suspend the share repurchase program? It appears that after accounting for the cash advances on the balance sheet, the stock price is nearly equivalent to the cash on the balance sheet. Therefore, even if you're not actively buying back shares, it seems reasonable to keep the program open during periods like this.

The share repurchase program was originally set to expire midyear, but the Board decided to terminate it a bit early. In response to your question, we have significant cash on our balance sheet that can be allocated for various purposes. The Board chose to preserve this cash for other opportunities and to ensure we can endure challenging times. However, the Board can reinstate the share repurchase program at any point. Does that answer your question, Ricky?

It does. And so, as far as reauthorizing the share repurchase program, can that only be done at a formal Board meeting or an impromptu meeting or what are the mechanics of that?

We can convene an impromptu Board meeting at any time and prefer to give the Board 48 hours notice. It can be conducted via teleconference, or we might even reach an agreement through email, provided that it's unanimous regarding the reinstatement of the program. There is a lot of flexibility, and we can act quickly.

And we have a final question today, a follow-up from Bill Dezellem with Tieton Capital. Please go ahead with your follow-up.

Thank you. I would like to follow up on your previous answer. You mentioned maintaining cash for other opportunities, which may include acquisitions. Could you elaborate on what those opportunities are? Additionally, what is the current status of potential acquisitions, and how do you view them considering the current oil price environment?

We appreciate the questions. Regarding mergers and acquisitions, we are actively looking for strategic opportunities, but there is nothing to announce at this moment. Our primary focus is on enhancing our margins and ensuring we manage production costs effectively. This remains our top priority. While we are aware of potential acquisition opportunities, we’re also committed to maintaining sufficient cash reserves on our balance sheet. This is not only for M&A but also to enable us to quickly restart drilling programs if conditions improve. For instance, we might want to conduct seismic studies in Etame to support future drilling efforts. We are strategically planning for the next 18 to 24 months, ensuring we have adequate cash to support our plans.

And then, one additional question. Gabon, I believe, is part of OPEC. Is there any indication that you may in the future need to reduce your production as a result?

So far, we have not been informed that we need to reduce our production due to the OPEC cuts. You are correct that Gabon is a member of OPEC, and we have not received any notification that we will have to limit our production.

Great. Thank you again.

Yes. Thank you, Bill.

Ladies and gentlemen, this will conclude our question-and-answer session. At this time, I'd like to turn the conference back over to Cary Bounds for any closing remarks.

Sure. Thank you, operator. Well, I appreciate everybody joining our call today. And we look forward to our next call after the close of the second quarter. Goodbye.

The conference has now concluded. We thank you for attending today's presentation. And you may now disconnect your lines.