b'high rainfall levels in 2021 led to significantlythrough subsidiary Paradise Oil Company higher water levels in the Afobaka hydroSuriname N.V., as a joint venture non-operating reservoir, allowing us to produce more cost- partner with a 40% stake in the block. In efficient hydro power than originally planned,December, CESL signed a farm-out agreement which enabled Suriname to save more thanwith Shell subsidiary KE Suriname B.V. for Block US$ 20 million on its electricity cost in 2021.5, with Staatsolie retaining its 40% partnership.As a result, the hydro power facility contributedWe are pursuing opportunities to raise funds clean energy to over 70% of Surinames overalland participate in the deep-water projects as electricity requirement during the year. they enter the appraisal and development Our financial results were bolstered by oil pricesphases. In March 2022 Staatsolie succeeded bouncing back from 2020s pandemic-influencedin closing an amend and extend of the current lows to healthier levels in the second half ofcorporate credit facility with a consortium of the year as global demand began returningbanks and with this the company has laid a solid robustly. To help ensure our viability in the facebasis for funding its 20% participation in the of the industrys price volatility, we continueddevelopments offshore.our commitment to remain a low-cost producer.In February of this year, TotalEnergies (TE) Also, our investments in gold mining operationsand APA Corporation announced another continued to provide a measure of diversificationsignificant oil discovery at the Krabdagu-1 well and positive contribution to our Statement ofin Block 58, offshore Suriname. The exploration Financial position. well encountered approximately 90 meters Offshore Promise Deepens of net oil pay in good quality Maastrichtian In addition to the four major deep-waterand Campanian reservoirs. The discovered discoveries of 2020 in Block 58 and Blockresources at Krabdagu-1 are a significant 52 that confirmed Suriname as an emergingaddition to the already discovered resources at hydrocarbon province, the year 2021 addedMaka, Sapakara, Kwaskwasi and Keskesi, in the another significant Block 58 discovery, as wellcentral area of Block 58.as very promising results from an appraisal wellDrill stem testing was completed at the in the Sapakara Field. This may well be justKrabdagu-1 location and preliminary the beginning. We are still in the early stagesresults indicate a significant accumulation of exploring this basin and we believe we haveof hydrocarbons was encountered within yet to unlock further hydrocarbon reserves. Thisgood quality reservoir. This test followed the includes the potential for major natural gas finds.successful DST conducted at the Sapakara Though costlier to develop, we believe naturalSouth-1 appraisal well, where the well flowed, on gas has a significant role in the transition toa constrained basis, at 4,800 barrels oil per day cleaner energy, as well as offering a lucrativeover a period of 48 hours. Preliminary analysis spin-off investment. of the flow test data further shows:Opportunities abound in our Shallow Offshore A single reservoir in Sapakara South-1 with aarea as well, as evidenced by a successfulminimum connected resource of over 400bidding round for blocks in this area, whichmillion barrels of oil in place;generated strong interest from IOCs. I amAn exceptional reservoir with permeabilities in particularly proud of the professionalism our organization demonstrated in upgrading thethe range of 1.4 Darcy;blocks and structuring the bidding process.Black oil fluid with an API gravity of 34-degreeThis led to the signing of a PSC with Chevronand a flowing gas-to-oil ratio (GOR) of Exploration Suriname Ltd (CESL) for nearshoreapproximately 1,100 standard cubic feetBlock 5. This agreement also enlists Staatsolie,per barrel.15'