Pharos Energy PLC Concession Agreement Amendment El Fayum area (8758T)
March 30 2021 - 1:00AM
UK Regulatory
TIDMPHAR
RNS Number : 8758T
Pharos Energy PLC
30 March 2021
30 March 2021
Pharos Energy
("Pharos" or the "Company" or, together with its subsidiaries,
the "Group")
Concession Agreement Amendment El Fayum area, Western Desert,
Egypt
Ed Story, President and Chief Executive Officer, commented:
"I am very pleased with the outcome following our constructive
negotiations with EGPC/ MOP concerning potential improvements in
the Concession Agreement terms in order to support a return to
operational investment. We have arrived at an agreement that
mutually benefits both Pharos and EGPC. The improved cost recovery
terms mean past and future investments in El Fayum can be recovered
thanks to a significant increase in Pharos' total share of gross
revenues. Together these new fiscal terms mean an improvement of up
to $5.7/bbl in the breakeven price. We appreciate the cooperation
and commitment of the leadership team at EGPC and the support that
we have received from the Egyptian Ministry of Petroleum and
Mineral Resources, we look forward to working with them to realise
the significant mutual benefits of these new arrangements".
Pharos is pleased to announce that it has received provisional
approval from the Egyptian General Petroleum Corporation's (EGPC)
Main Board to an amendment of the fiscal terms of its El Fayum
Concession, which is now subject to the approval of the Egyptian
Government.
Under the new terms, the Cost Recovery Petroleum percentage
(i.e. the share of gross revenues that is available for the
Contractor to recover its costs) will be increased from 30% to 40%,
allowing Pharos a significantly faster recovery of all its past and
future investments. In return, Pharos has agreed to (i) waive its
rights to recover a portion of the past costs pool ($115 million)
and (ii) reduce its share of Excess Cost Recovery Petroleum from
15% to 7.5%.
El Fayum phased water flood programme
Work for phase 1b water flood programme in El Fayum has
commenced, utilising the funds raised in the equity placing earlier
this year.
El Fayum Farm-out
The Company has been encouraged by the level of interest and is
currently reviewing a number of attractive bids. An update will be
provided to the market in due course.
Enquiries
Pharos Energy plc Tel: 020 7747 2000
Ed Story, President and Chief Executive Officer
Jann Brown, Managing Director and Chief Financial Officer
Mike Watts, Managing Director
Sharan Dhami, Group Head of Investor Relations
Camarco Tel: 020 3757 4980
Billy Clegg | Owen Roberts | Monique Perks
Notes to editors
Pharos Energy plc is an independent oil and gas exploration and
production company with a focus on sustainable growth and returns
to stakeholders, headquartered in London and listed on the London
Stock Exchange.
Pharos has production, development and/or exploration interests
in Egypt, Israel and Vietnam.
In Egypt, Pharos holds a 100% working interest in the El Fayum
oil Concession in the Western Desert. The Concession produces from
10 fields and is located 80 km south west of Cairo. It is operated
by Petrosilah, a 50/50 JV between Pharos and the Egyptian General
Petroleum Corporation (EGPC). Pharos is also an operator with a
100% working interest in the North Beni Suef Concession, which is
located immediately south of the El Fayum Concession.
In Israel, Pharos together with Cairn Energy plc and Israel's
Ratio Oil Exploration, has eight licences in the second offshore
bid round in Israel. Each party has an equal working interest and
Cairn is the operator.
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 (CVN) 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.
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