EGYPT: Pharos Energy Expects Continued Drilling & Testing in 2025
Operational Highlights
Strong safety record with no LTIs
o Egypt 1,440 bopd
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
o Egypt c.$19m 1
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
2025 Outlook
Group working interest production guidance of 5,000 – 6,200 boepd net:
o Egypt 1,400 – 1,600 bopd
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
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 Egypt.
“Our transformed and resilient debt-free balance sheet underpins our 2025 work programme in 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.”