REG - Pharos Energy PLC - Approval for PSC Consolidation

Pharos EnergyAnnouncement

23/09/2025 07:00

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RNS Number : 3368A  Pharos Energy PLC  23 September 2025

Pharos Energy plc

("Pharos" or the "Company" or, together with its subsidiaries, the "Group")

Approval from EGPC's Executive Board for a new consolidated Concession
Agreement

Pharos Energy plc, an independent energy company with assets in Vietnam and
Egypt, is pleased to announce that it has received approval from the Executive
Board of the Egyptian General Petroleum Corporation ("EGPC") for the
consolidation of the El Fayum ("EF") and North Beni Suef ("NBS") Concession
Agreements into a new consolidated concession agreement (the "Consolidated
Concession"). Pharos will retain a 45% working interest in the Consolidated
Concession, with IPR Lake Qarun Company ("IPR") continuing as operator with a
55% working interest. In addition to the 12 development leases of the EF and
NBS concessions, the Consolidated Concession will include three new
exploration areas.

 

 

Katherine Roe, Chief Executive Officer, commented:

 

"The approval by EGPC's Executive Board of the new Consolidated Concession is
a significant milestone for our Egyptian business. The improved fiscal terms
have the potential to unlock long-term value for all stakeholders and drive
organic growth opportunities across the concession areas. I would like to
thank IPR's and Pharos's in-country teams for their tenacity and diligence in
concluding negotiations, and the Egyptian authorities for their positive
engagement throughout the process. We look forward to planning the start of
our drilling campaign to increase production."

 

 

 

The Consolidated Concession will unlock significant value in the Western
Desert by improving certain fiscal terms, extending the duration of the
licenses, and committing the Contractor parties (Pharos Group and IPR) to
additional work programmes to deliver production growth. Based on Pharos'
Competent Person's Reports ("CPR") as at 31 December 2024, the Consolidated
Concession could result in moving 3.1 MMstb from contingent resources to 2P
reserves, or a 25% increase from year-end 2024, net to Pharos working
interest.

 

The Consolidated Concession is subject to customary approvals and to Egyptian
Parliamentary ratification, which is expected to take place in late 2025 or
early 2026, but the new set of terms will start imminently.

 

The improved terms of the Consolidated Concession reset our investment into
the assets in order to unlock further value.

 

 

Highlights of the new Consolidated Concession:

 

·      The 12 development leases currently under the EF and NBS
concessions have an extended term of up to 20 years, comprising an initial
15-year term, plus one five-year extension subject to Minister's approval

·      A commitment to an 11-well work programme (8 development wells, 2
exploration wells, and 1 water injector) to be drilled during the four-year
period that commences imminently

·      The award of three exploration areas under the Consolidated
Concession, namely, West Silah, Beba, and South Wadi El Rayan

·      New development leases awarded from the three exploration areas
will have up to a 30-year term through an initial 20-year period, plus two
five-year extensions each subject to Minister's approval

·      Improved fiscal terms to promote increased production through
investment, including an increase in Cost Oil to 40%, a Profit Oil share of
27-29% (in the key production and oil price tiers) (as opposed to 18-22.5%
currently) and an Excess Cost Recovery share of 15%

·      In addition to committing to the 11-well investment programme,
the Company has agreed to waive 30% of the carry forward cost pool

·      Post-ratification, the Company and IPR will pay EGPC a signature
bonus of $3.5m (with the Company's share of the bonus expected to be offset
against its receivables balance), with other customary bonuses also applying
(including at agreed production rate levels and extension milestones)

 

Enquiries

 

Pharos Energy plc
 
Tel: 020 7747 2000

Katherine Roe, Chief Executive Officer

Sue Rivett, Chief Financial Officer

 

Camarco
 
 
Tel: 020 3757 4980

Billy Clegg | Georgia Edmonds | Violet Wilson | Tamsin Howard

 

Notes to editors

Pharos Energy plc is an independent energy company focused on delivering
sustainable growth and returns to stakeholders, with a portfolio of stable
production, development and exploration assets in Vietnam and Egypt. Led by an
experienced team, Pharos is a cash generative business with a robust balance
sheet and an established platform to deliver both organic growth and inorganic
opportunities.

Pharos is listed on the Main Market of the London Stock Exchange. For further
information please visit www.pharos.energy
(https://url.avanan.click/v2/r02/___http:/www.pharos.energy___.YXAxZTpzaG9yZWNhcDphOm86M2ZlOGY5MzIzN2I4MzA0YjM4NDE3ZWYwN2JjNzliNzU6Nzo0MGI5OjcxYjczOWQzMDk1MWVhNDc1MjRhYjA1YWM3Y2EwZTc1ZTc2MmYyNDI5N2FmZWRiOTdjYzI4ZmJiN2Y5OTAzNDg6cDpGOk4)
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