Pharos
Energy plc
("Pharos"
or the "Company" or, together with its subsidiaries, the
"Group")
Trading and Operations Update
January 2025
Pharos Energy plc, an independent
energy company with assets in Vietnam and
Egypt, issues the following Trading and
Operations Update to summarise recent operational activities,
performance in respect of the financial year to 31 December 2024,
and outlook guidance for 2025. This is in advance of the Company's
Preliminary Results to be published on 26 March 2025. The
information contained herein has not been audited and may be
subject to further review and amendment.
Katherine Roe, Chief Executive Officer,
commented:
"2024 was a year of strong operational and business delivery
with stable production, robust cash flows and successful drilling
in both Vietnam and Egypt. I am delighted we ended the year with
the granting of our licence extensions in Vietnam, giving us the
tenure to plan and pursue the full growth potential of those assets
whilst continuing to support the Vietnamese Government's energy
security agenda.
"Our transformed and resilient debt-free balance sheet
underpins our 2025 work programme in both Vietnam and Egypt as we
focus our capital allocation towards growth and investment that
delivers the highest returns for shareholders whilst remaining
committed to our sustainable dividend policy. We look forward to a
prosperous and successful year ahead and thank our shareholders for
the ongoing support."
Operational Highlights
· Strong
safety record with no LTIs
· Group
working interest 2024 production was 5,801 boepd net, in line with
guidance:
o Vietnam 4,361 boepd
o Egypt 1,440 bopd
· Vietnam:
o Applications for five-year licence extensions to the TGT and
CNV fields formally granted by the Vietnamese Government in
December, immediately increasing year-end 2024 2P reserves in
Vietnam by approximately 10% and enabling further investment in
both fields
o TGT:
successful completion of two-well infill drilling programme in
October on time and under budget; both wells are contributing to
production
o Blocks 125 & 126: detailed drilling engineering studies
for the proposed well on Prospect A commenced in 3Q; orders placed
for long lead items
· Egypt:
o El
Fayum: successful drilling of second exploration commitment well in
September, encountering oil-bearing reservoirs in Abu Roach G
formation
o One
El Fayum development well put on production in December
o North Beni Suef (NBS): ongoing processing of 3D seismic
data
o Discussions with EGPC and our partner on the consolidation of
our Egyptian concessions are progressing well
Financial Highlights
· Group
revenue for 2024 was c.$134m:
o Vietnam c.$115m
o Egypt c.$19m 1
· Cash
balances as at 31 December 2024 were c.$16.5m; all debt fully
repaid since September
· Payments received in Egypt totalled $25.5m in 2024, with
receivables balance at 31 December 2024 of $29.5m. Continued
progress in payments of receivables and consolidation of the
concessions will determine the pace of our future investment in
country
· Tangible returns to shareholders during the year:
o Sustainable dividend policy delivered with interim and final
dividend for the 2023 financial year, amounting to $5.9m
o Current share buyback programme expected to conclude before
the end of January 2025 following full utilisation of the latest
$3m committed to the programme. Since its initiation in July 2022,
30,708,855 ordinary shares have been repurchased by the Company at
an average price paid of 23.65p per share
1
Egyptian revenues are given post government
take including corporate taxes.
2025 Outlook
· Group
working interest production guidance of 5,000 - 6,200 boepd
net:
o Vietnam 3,600 - 4,600 boepd
o Egypt 1,400 - 1,600 bopd
· Vietnam production; following the approval of the TGT and CNV
five-year licence extensions:
o Planning underway for the drilling of a TGT appraisal
commitment well in 4Q; appraisal success would open up an undrilled
area in the field
o Additional drilling potential in TGT and CNV to increase
reserves currently under discussion with partners
o 3D
seismic reprocessing on both assets expected to commence
shortly
· Vietnam exploration; Blocks 125 & 126 discussions continue
with potential farm-in partners and rig contractors
· Egypt:
o El
Fayum: testing of the successful exploration commitment well
planned in 1Q
o Planning underway to commence two-well El Fayum drilling
programme in 2H
o NBS:
expected completion of 3D seismic data processing in 1Q, with
interpretation and mapping to follow
o Discussions on consolidation of the Egyptian concessions
continue to progress
· On
track to achieve our Net Zero interim short-term three-year target
(2024-2026) of 5% emission reduction
· Forecast Group cash capex in the year expected to be
c.$33m, reflecting the drilling of the TGT
appraisal well and long lead items for Block 125 in Vietnam and the
El Fayum programme in Egypt
· Interim dividend for the 2024 financial year of 0.363 pence
per share, totalling $1.8m, paid on 22 January 2025
· Drilling activities in 2025 are expected to deliver
incremental production volumes in 2026 and beyond
Glossary of Terms
CNV
Ca Ngu Vang field located in Block
9-2, Vietnam
Company
Pharos Energy plc
Group
Pharos and its direct and indirect
subsidiary undertakings
LTI
Lost Time Injury
Prospect or prospect
An identified trap that may contain
hydrocarbons. A potential hydrocarbon accumulation may be described
as a lead or prospect depending on the degree of certainty in that
accumulation. A prospect generally is mature enough to be
considered for drilling
Reserves
Reserves are those quantities of
petroleum anticipated to be commercially recoverable by application
of development projects to known accumulations from a given date
forward under defined conditions. Reserves must further satisfy
four criteria: they must be discovered, recoverable, commercial and
remaining based on the development projects applied
Shares
Ordinary Shares
TGT
Te Giac Trang field located in Block
16-1, Vietnam
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 | Georgia Edmonds |
Violet Wilson | 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
currently 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 currently 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. Following the announcement
by Pharos in December 2024 of approval a five year extension to the
terms of the petroleum contracts for Blocks 16-1 and 9-2, together
with associated changes to fiscal terms and participating
interests, Pharos will hold a revised working interest in Block
16-1 (TGT) of 25.33% with effect from 8 December 2026 and a revised
working interest in Block 9-2 (CNV) of 20% with effect from 16
December 2027. 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.
