The 4Q was good for the company, which ended the year with an EBITDA of US$96M, above the US$81M, we estimated and down 44% YOY, due to the Covid effect on the economy. The improvement over our estimates is mainly due to a surprise reduction in costs. Lifting costs dropped to US$8/bl in Q4, compared to US$9.9/bl in the previous quarter and SG&A expenses for 4Q were US$3.2/bl, bringing the 2020 average to US$5/bl, down -20%20% YOY. Meanwhile, revenues were in line with the estimatedestimate at US$274M, as was production, with 28 kboe/d.

By 2021, the company expects to get 16 new wells and should reach 36 shale oil wells. An – an assumption that seems feasible to us given that as of February 2021, 2 pads of 4 wells each are already under construction. Regarding the lifting costs, the company expects to lower them from US$9/bl last year to US$8/bl in 2021. We do expect to see a cut in expenses this year, but we would like to be more conservative. However, we expect an oil realized price of US$49/bl in 2021, while the company made its projections with US$45/bl. We expect an EBITDA of US$292M. CAPEX level estimate is US$275M, +22% YOY.