Pharos
Energy plc
("Pharos"
or the "Company" or, together with its subsidiaries, the
"Group")
Trading
and Operations Update July 2024
Pharos Energy plc, an independent
energy company, issues the following Trading and Operations Update
in advance of the Company's Interim Results on 18 September 2024.
The information contained herein is not audited and may be subject
to further review and amendment.
Katherine Roe, Chief Executive Officer,
commented:
"We are delighted to report a solid first half, both
operationally and financially. Production remains within previously
set guidance underpinning our strong net cash position and our
commitment to sustainable shareholder returns through the Company's
dividend policy and share buyback programme.
"The positive macro environment in Egypt has seen a
significant improvement in our receivables position with c. $19
million received to date, substantially reducing our receivables
balance. Further discussions
continue regarding
outstanding
payments. The recent ratification of
five petroleum agreements for onshore and offshore acreage further
demonstrates the new Government's commitment to our
sector.
"In parallel, we remain focused on near-term drilling and
finalisation of the licence extensions for TGT and CNV in Vietnam
to enable us to prioritise future investment to deliver additional
volumes. We also continue to progress rig and farm-out discussions
for Blocks 125 and 126, our significant exploration prospects."
Operational Highlights
· Group
working interest 1H production was 5,851
boepd net. Group working interest 2024
production guidance of 5,200 - 6,500 boepd net remains
unchanged:
o Vietnam 1H production 4,456
boepd. Vietnam 2024 production guidance
3,900 - 5,000 boepd net
o Egypt 1H production 1,395
bopd. Egypt 2024 production guidance 1,300
- 1,500 bopd net
· In
Vietnam:
o TGT
Revised Field Development Plan (RFDP) was approved by the Ministry
of Industry and Trade (MOIT) on 9 January, enabling the two-well
drilling programme to commence in 3Q
o CNV
RFDP agreed by all Partners and awaiting formal approval
o Positive progress towards obtaining TGT and CNV licence
extensions
o Discussions continue with several interested parties in
preparation for the drilling programme on Block 125
· In
Egypt:
o Preparation underway to drill an exploration commitment well
on El Fayum in 3Q
o Processing and interpretation of c.130km2 of 3D
seismic data on NBS underway and expected to complete in
4Q
o Multi-well development drilling programme in the NBS SW field
planned to commence during 2H
o Discussions on Egypt consolidation proposal held between
Pharos, our partner IPR, and EGPC
Financial
Highlights
· Group
1H revenue of $65m
· Cash
balances at 30 June of c.$31m (31 Dec 2023: $32.6m)
· Debt
as at 30 June of c.$13m (31 Dec 2023: $39.2m)
· Net
cash position as at 30 June of c.$18m (31 Dec 2023: net debt
$6.6m)
· Egypt
receivable position at 30 June of $31.3m (31 Dec 2023: $37.4m),
having received $14.8m in 1H 2024 with an additional $4m received from EGPC on 1
July
· Forecast cash capex for the Group for full year remains
unchanged at $32m ($27m after Egyptian carry by IPR), with costs in
Egypt mainly settled in EGP
Corporate
Highlights
· Recent
changes to the Board and senior management:
o Appointment of Katherine Roe as the new Chief Executive
Officer, effective 1 July 2024, and as member of the Board and the
ESG Committee
o Appointment of Mohamed Sayed as the new Chief Operating
Officer, effective 1 July 2024
· Continuation of current phase of share buyback
programme
· Approval by shareholders at the 2024 AGM of a final dividend
in respect of the year ended 31 December 2023 of 0.77 pence per
share, amounting to $4.1m and to be paid on 19 July 2024. Including
the payment of the interim dividend of 0.33 pence per share on 24
January 2024, the full year 2023 dividend was 1.10 pence per share,
amounting to $5.9m in total
· Appointment of Ernst & Young LLP to succeed Deloitte LLP
as external auditor to the Company with effect from the financial
year commencing 1 January 2024, following approval by shareholders
at the 2024 AGM
Enquiries
Pharos Energy plc
Tel: 020 7747 2000
Katherine Roe, Chief Executive
Officer
Sue Rivett, Chief Financial
Officer
Mohamed Sayed, Chief Operating
Officer
Camarco
Tel: 020 3757 4980
Billy Clegg | Andrew Turner | Violet
Wilson | Rebecca Waterworth | Kirsty Duff
Notes to
editors
Pharos Energy plc is an independent
energy company with a focus on sustainable growth and returns to
stakeholders, which is listed on the London Stock Exchange. Pharos
has production, development and/or exploration interests in Egypt
and Vietnam. In Egypt, Pharos holds a 45% working interest share in
the El Fayum Concession in the Western Desert, with IPR Lake Qarun,
part of the international integrated energy business IPR Energy
Group, holding the remaining 55% working interest. The El Fayum
Concession produces oil from 10 fields and is located 80 km
southwest of Cairo. It is operated by Petrosilah, a 50/50 joint
stock company between the contractor parties (being IPR Lake Qarun
and Pharos) and the Egyptian General Petroleum Corporation (EGPC).
Pharos also holds a 45% working interest share in the North Beni
Suef (NBS) Concession in Egypt, which is located immediately south
of the El Fayum Concession. The first development lease on the NBS
Concession was awarded in September 2023 and production started in
December 2023. IPR Lake Qarun operates and holds the remaining 55%
working interest in the NBS Concession. In Vietnam, Pharos has a
30.5% working interest in Block 16-1 which contains 97% of the Te
Giac Trang (TGT) field and is operated by the Hoang Long Joint
Operating Company. Pharos' unitised interest in the TGT field is
29.7%. Pharos also has a 25% working interest in the Ca Ngu Vang
(CNV) field located in Block 9-2, which is operated by the Hoan Vu
Joint Operating Company. Blocks 16-1 and 9-2 are located in the
shallow water Cuu Long Basin, offshore southern Vietnam. Pharos
also holds a 70% interest in, and is designated operator of, Blocks
125 & 126, located in the moderate to deep water Phu Khanh
Basin, north east of the Cuu Long Basin, offshore central
Vietnam.