REG - Pharos Energy PLC - Trading and Operations Update January 2025

Pharos EnergyAnnouncement

23/01/2025 07:00

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RNS Number : 3563U  Pharos Energy PLC  23 January 2025

 

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.

 

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