Pharos
Energy plc
("Pharos"
or the "Company" or, together with its subsidiaries, the
"Group")
2024 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:
"The Company has entered 2024 in a strong operational and
financial position. Production for the first four months of the
year is in line with guidance, with both Vietnam and Egypt
contributing as expected. A significant milestone for Pharos was
the receipt of $13.8m from EGPC, over $10m of which was paid in
USD, 37% of our year-end receivables balance. These payments are a
testament to the strength of our relationships with key
stakeholders and our persistence in lobbying. Together with the
strong cash generation from operations, this has enabled us to pay
down $21m of our outstanding debt, leaving our total Group debt as
at 23 May at $13m and net cash position at $8.7m.
"We remain committed to the on-going share buyback programme
and, subject to shareholder approval at today's AGM, expect to pay
the final dividend for 2023 of 0.77p per share on 19 July, having
paid the interim dividend of 0.33p per share on 24
January.
"In Egypt, we are preparing to drill in both El Fayum and NBS
later this year, while in Vietnam, preparations are well advanced
for our 2H two-well drilling programme on TGT. I am pleased
with the recent progress made on the licence extension discussions
on both TGT and CNV, while in Egypt we are pursuing a consolidation
of our two concessions into one to deliver a number of benefits. On
Blocks 125 & 126 in Vietnam, we are progressing options to
secure a drilling slot for Prospect A, the key catalyst for parties
interested in farming in to these licences.
"Finally, I announced my intention to retire as CEO of Pharos
at the Preliminary Results in March and will remain in the post
until my successor has been appointed to ensure a smooth
transition. The Company will inform the market once that
appointment has been made."
Operational Highlights
· Group
working interest production for the four
months to end of April 2024 was 5,755 boepd net.
Group working interest 2024 production guidance of
5,200 - 6,500 boepd net remains unchanged from the Preliminary
Results announcement on 27 March 2024:
o Vietnam production 4,347
boepd. Vietnam 2024 production guidance
3,900 - 5,000 boepd net
o Egypt production 1,408
bopd. Egypt 2024 production guidance 1,300
- 1,500 bopd net
· In
Vietnam:
o TGT
RFDP approved by the Ministry of Industry and Trade (MOIT) on 9
January 2024. CNV RFDP submitted to partners for
approval
o Significant progress on TGT and CNV licence extensions
discussions with regulators
o Planning underway for a two-well TGT drilling programme,
expected to commence 2H 2024
o On
Blocks 125 & 126, several interested farm-in parties awaiting
confirmation of timing of rig slot and clarity on well
cost
· In
Egypt:
o On
El Fayum, preparation underway to drill a further commitment
exploration well in 2024 following success of the well in July
2023
o Processing and interpretation of c.130km2 of 3D
seismic data on NBS underway and expected to be completed in 2H
2024
o Multi-well development drilling programme in the NBS SW field
planned to commence in 2H 2024
o Evaluation of conventional deep exploration and unconventional
AR-F potential
o Egypt consolidation project initiated and proposal sent to
EGPC
Financial Highlights
· Group
revenue for January to April 2024 was c.$39m
· Cash
balances as at 30 April 2024 of c.$49m (Dec 2023:
$32.6m)
· Net
cash as at 30 April 2024 of $15m (Dec 2023: net debt
$6.6m)
· Egypt
balance sheet receivable position at $31.0m (Dec 2023: $37.4m),
having received $12.4m in the four months to 30 April
2024
· Forecast cash capex for the Group for full year of $32m ($27m
after Egyptian carry by IPR), with costs in Egypt mainly settled in
EGP
Corporate
Highlights
· Continuation of share buyback programme, with a further $3m
committed in December 2023
· Interim dividend in relation to the financial year ending 31
December 2023 of 0.33 pence per share, amounting to $1.7m, paid out
on 24 January 2024. Final dividend of 0.77 pence per share for the
year to be paid on 19 July 2024, subject to shareholder approval at
the 2024 AGM today
· Recent
changes in Board composition and governance:
o Appointment of Dr Bill Higgs as a new independent
Non-Executive Director in January 2024 and his appointment,
effective today, as the initial Chair of a newly created Reserves
Committee of the Board
o Retirement of Marianne Daryabegui as an independent
Non-Executive Director at the conclusion of the 2024 AGM
o Retirement of Jann Brown as Director on 30 April 2024,
following which she remained in office as full-time CEO and will
continue to do so until a successor is in place; search process
underway
· Appointment of Ernst & Young to succeed Deloitte as
external auditor, subject to shareholder approval at the 2024 AGM
today
· Publication of a Trading and Operations Update scheduled for
18 July 2024, 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 | Andrew Turner | 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 premium segment of 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 holds the remaining 55% working interest in the NBS
Concession, with development operations on the Concession currently
undertaken by Petrosilah on behalf of the newly formed joint
operating company, Petro Beni Suef. The first exploration phase
under the NBS Concession expired in March 2024 with all work
programme commitments completed. 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, exploration
Blocks 125 & 126, located in moderate to deep water in the Phu
Khanh Basin, north east of the Cuu Long Basin, offshore central
Vietnam.