REG - Pharos Energy PLC - Trading and Operations Update

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RNS Number : 3818R  Pharos Energy PLC  17 July 2025

Pharos Energy plc

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

Trading and Operations Update July 2025

Pharos Energy plc, an independent energy company with assets in Vietnam and
Egypt, provides the following Trading and Operations Update ahead of the
Company's Interim Results on 24 September 2025. The information contained
herein has not been audited and may be subject to further review and
amendment.

 

Katherine Roe, Chief Executive Officer, commented:

 

"We have had a strong first half of the year with stable production and
healthy free cash flow generation against a backdrop of volatile macro
conditions. This reflects our high-quality asset base and strict approach to
capital discipline. First half performance allows us to reiterate our full
year guidance, and our commitment to sustainable shareholder returns with the
payment of the 2025 final dividend.

"Preparations are fully underway for our Vietnamese infill and appraisal
drilling campaign, now expected to commence in late 3Q, which includes four
TGT and two CNV wells. This is a material and important work programme
designed to maximise the value of our existing assets by sustaining current
production levels and appraising new areas of our blocks. On success, we could
see material incremental volumes from 2026 onwards from current production
levels and a de-risking of additional development opportunities. Allocating
capital responsibly in our core assets will provide growth and longevity to
our business.

"The recent approval by the Vietnamese Government of the two-year extension of
Blocks 125 & 126 has strengthened our position as we progress farm-out
discussions for these important exploration assets.

"In parallel, consolidation negotiations in Egypt continue and we are making
steady progress towards the finalisation of improved PSC terms. Once
concluded, we will benefit from an immediate uplift in the value of our assets
along with a self-funded work programme aimed at increasing production
volumes.

"We have strategically strengthened our portfolio through improved terms and
self-funded active drilling campaigns with a view to maximising value. Our
debt free balance sheet and cash generative assets provides shareholders with
both a robust platform for inorganic opportunities and exciting near term
growth potential."

 

Highlights

·      Group working interest 1H production was 5,642 boepd net. Group
working interest 2025 production guidance of 5,000 - 6,200 boepd net remains
unchanged:

o  Vietnam 1H production 4,183 boepd. Vietnam FY25 production guidance 3,600
- 4,600 boepd net

o  Egypt 1H production 1,459 bopd. Egypt FY25 production guidance 1,400 -
1,600 bopd

·      Vietnam:

o  TGT: Preparations underway for drilling of appraisal well 18X, targeting
the block's western area, with rig contracts recently secured and three infill
wells now expected to commence in late 3Q

o  CNV: Planning continues for the drilling of one appraisal well 5X-L1,
unlocking the northern part of the field, and one infill well expected to
commence in 4Q

o  3D seismic reprocessing on both assets continues, with expected completion
by the end of July

o  Blocks 125 & 126: Approval received from the Vietnamese Government for
the two-year extension of the PSC Exploration Period (from 9 November 2025 to
8 November 2027)

·      Egypt:

o  El Fayum: East Saad-1X well on production from 1 July following commercial
discovery in February

o  North Beni Suef (NBS): Ongoing processing of 3D seismic data expected to
complete in 3Q, with mapping and interpretation to follow

o  Discussions with EGPC in relation to the proposed consolidation of the El
Fayum and NBS concessions continue to progress positively following the
signing of the MOU, with all parties committed to concluding negotiations as
soon as possible

 

·      Group 1H revenue of c. $65.3m(1) (1H 2024: $65.0m)

·      Cash balances at 30 June 2025 of $22.6m (31 Dec 2024: $16.5m);
continued debt free position

·      Egypt receivable balance at 30 June 2025 of $33.5m (31 Dec 2024:
$29.5m), having received $5.5m in the six months to 30 June and an additional
$1m in July 2025

·      Forecast full year cash capex for the Group remains unchanged
between $33m and c.$40m with an additional c.$17m expected to fall into early
2026

·      25% of the Group's 2H entitlement production is hedged with
average floor and ceiling prices of $61.3/bbl and $84.5/bbl, respectively

·      Approval by shareholders at the 2025 AGM of a final dividend in
respect of the year ended 31 December 2024 of 0.847 pence per share, amounting
to approximately $4.7m and to be paid on 18 July 2025. Including the payment
of the interim dividend of 0.363 pence per share on 22 January 2025, the full
year 2024 dividend will be 1.210 pence per share, amounting to $6.5m in total

·      Appointment of João Saraiva e Silva as Non-Executive Chair on 26
June 2025, succeeding John Martin

 

(1  Egyptian revenues are given post government take including corporate
taxes.)

 

 

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 (http://www.pharos.energy) .

 

 

 

Glossary of Terms

 

AGM

Annual General Meeting

CNV

Ca Ngu Vang field located in Block 9-2, Vietnam

Company

Pharos Energy plc

EGPC

Egyptian General Petroleum Corporation, an Egyptian state oil and gas company
and the industry regulator

Group

Pharos and its direct and indirect subsidiary undertakings

IPR

The IPR Energy Group of companies, including IPR Lake Qarun and IPR Energy AG

MOU

Memorandum of Understanding

PSC

Production sharing contract or production sharing agreement

TGT

Te Giac Trang field located in Block 16-1, Vietnam

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