Egypt: Pharos Energy Provides El Fayum Concession Update

El Fayum Production

Production for the first half of 2020 from the El Fayum Concession averaged 5,979 bopd. This is in line with the Egypt 2020 production guidance given on 12 May, which remains unchanged at 5,000-6,000 bopd.

El Fayum Development and Operations

As announced earlier in the year, the discretionary drilling programme in Egypt was scaled back to preserve capital in the prevailing uncertain macro-economic environment. Pharos is using the break in drilling activity to reduce the cost base, whilst aiming to maintain productivity and the revenue stream.

Production operations in the field have been centred on well intervention and water-flood enhancement, utilising the remaining active workover rig. Forward operations will be focused on further enhancing productivity from existing wells through recompletions, the addition of new producing zones, and the conversion of selected existing production wells to injector wells.

In addition, work to update the subsurface static and dynamic models to incorporate the results of the 2019 and 2020 drilling campaigns has progressed well. This work will allow further optimisation of the water-flood pattern and facilitate optimised reservoir management through better well spacing when drilling recommences, which will further improve sweep efficiency, well deliverability and lead to an increased recovery. Target secondary recovery factors for water-flood activity in the El Fayum fields remain c.24%; current primary recovery factor is 8 to 12%.