TIDMPHAR
RNS Number : 5818A
Pharos Energy PLC
25 May 2023
25 May 2023
Pharos Energy plc
("Pharos" or the "Company" or, together with its subsidiaries,
the "Group")
2023 AGM Trading and Operations Update
Pharos Energy plc, an independent energy company, issues the
following Trading and Operations update in advance of the Company's
annual general meeting (AGM) today at 14.00 BST. The information
contained herein has not been audited and may be subject to further
review and amendment.
Jann Brown, Chief Executive Officer, commented:
"Our 2023 work programme has started well with strong
operational delivery across our repositioned portfolio, including
an encouraging drill result at the CNV field in Vietnam and a
commercial discovery at the first of two exploration wells in the
North Beni Suef concession in Egypt.
"The active drilling programme in Egypt continues targeting a
total of nine wells on El Fayum in 2023 and a second well on North
Beni Suef. In Vietnam, we remain focused on extending the life of
our assets and maturing exploration prospects. The Revised Field
Development Plan for TGT has been submitted to the regulator to
support drilling two development wells in 2024, and good progress
is being made with the application for an extension of our licences
at both TGT and CNV. We remain excited by the basin opening
potential of Blocks 125 & 126 and the delivery of a new partner
remains a priority for management, with discussions ongoing with a
number of interested parties.
"Our focus remains on operational delivery, sustainable cash
generation and capital discipline to deliver regular shareholder
returns, and we look forward to recommencing regular dividend
payments this year alongside our ongoing share buyback
programme."
Operational Highlights
-- Group working interest production for the four months to end
of April 2023 was 6,805 boepd net. Group working interest 2023
production guidance of 6,050 - 7,500 boepd net remains unchanged
from the Preliminary Results announcement on 22 March 2023 :
o Vietnam production 5,477 boepd. Vietnam 2023 production
guidance 4,700 - 5,700 boepd net
o Egypt production 1,328 bopd. Egypt 2023 production guidance
1,350 - 1,800 bopd net
-- In Vietnam:
o On Block 9-2 - CNV Field, well CNV-2PST1 was completed and put
on stream. Initial production results are highly encouraging at c.
3,000 bopd (gross) compared to pre-drill estimates of c. 1,000 bopd
(gross); the well is under close monitoring and will continue to be
evaluated. The new lateral was drilled from an existing well, which
significantly reduced the well cost and established the potential
for additional low-cost drilling in the field
o TGT Revised Field Development Plan (RFDP) for two new wells
has been submitted to the regulator for approval. Drilling expected
to commence in Q2/Q3 2024
o Application for extensions to TGT & CNV licences.
Discussions ongoing between partners and PVN on licence terms and
work programme commitments for the extension period
o Application for an extension to the exploration phase of the
Blocks 125 & 126 production sharing contract is with the Prime
Minister's office for approval
o Progressing work on rig availability and securing a farm-in
partner with a number of interested parties, to drill the
commitment well on Block 125
o In addition, an independent assessment by ERCE for Block 125
has commenced, evaluating prospect sizes with encouraging initial
results. We look forward to update the market at the July Trading
& Operations Update
-- In Egypt:
o The first commitment exploration well in North Beni Suef
concession (NBS-1X) was declared a commercial discovery after
encountering multiple pay zones in Abu Roash G Formation. The well
stabilised production test rate pre-frac is 470 bopd (gross)
o Acquisition of c.110 km(2) of additional 3D seismic at NBS is
ongoing and the second commitment exploration well is expected to
be drilled in Q3
o Two development wells were drilled on the El Fayum Concession
and completed in Q1 before the rig was dispatched to NBS to drill
NBS-1X. The rig is now back in El Fayum and drilling the third of
nine wells in a multi-well development programme
o Two commitment exploration wells in the El Fayum Concession
expected to be drilled in Q2/Q3
Financial Highlights
-- Group revenue for January to April 2023 was $49m and there
were no realised hedging profits/losses
-- Cash balances as at 30 April 2023 of c. $44m, net debt of c. $29m
-- Egypt receivable position stands at $29m (Dec 2022: $24m). The continuing volatility of the macro-economic environment in Egypt and further devaluation of EGP against the US dollar since year end means that it remains preferable to hold USD denominated receivables
-- Forecast cash capex for the Group for the full year remains
unchanged at c. $23m, with continuing benefit of IPR carry over
Egyptian assets
Corporate Highlights
-- Continuation of $3m share buyback programme announced in January
-- Final dividend for the 2022 financial year of 1p per share to
be proposed to shareholders at the AGM and, subject to their
approval, expected to be paid on 12 July 2023
-- Net Zero roadmap to be published in H2 2023
-- A Trading & Operations update will be published on 20
July 2023, ahead of the Company's Interim Results announcement in
September
Enquiries
Pharos Energy plc Tel: 020 7747 2000
Jann Brown, Chief Executive Officer
Sue Rivett, Chief Financial Officer
Camarco Tel: 020 3757 4980
Billy Clegg | Georgia Edmonds | 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. 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.
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