Pharos Energy plc, an independent oil and gas exploration and production company, has announced its interim results for the six months ended 30 June 2023. The company reported strong operational performance in the first half of the year, with successful drilling in Vietnam and Egypt. In Vietnam, a lateral well drilled on CNV exceeded expectations and is now being factored into future development plans. In Egypt, the first exploration well on the NBS concession was successful, and efforts are underway to secure approval for production to commence in the fourth quarter of this year. Additionally, an exploration well in a new zone of the El Fayum asset in Egypt was also successful.
Vietnam continues to deliver robust revenues and cash flows for Pharos Energy, and the company is progressing license extensions to prolong the lives of its fields. In Egypt, capital allocation is being done carefully to reflect the economic situation. Pharos Energy is supported by the terms of the deal struck with IPR, with full carry plus oil price-based contingent consideration. The company received the first contingent payment of $5 million from the deal in June. The potential of the company's Egyptian assets has been enhanced with exploration successes delivered this year.
Pharos Energy has secured a two-year extension to the term of its frontier exploration position in Blocks 125/126 in Vietnam. This extension allows the company to bring in the right farm-in partner and complete the necessary work to drill this basin-opening play. The company plans to pursue drilling on Block 125 as soon as a partner and rig are secured.
The company remains focused on delivering returns to shareholders through regular dividends, ongoing share buybacks, and driving value throughout its portfolio to grow the business.
In terms of financial highlights, Pharos Energy reported a final dividend of 1p per share for the 2022 financial year, totaling $5.3 million, which was approved by shareholders and paid out in July 2023. The company also continued its $3 million share buyback program, with $0.7 million spent as of 30 June 2023. Pharos Energy received the first contingent payment of $5 million from the deal with IPR. Group revenue for the first half of the year was $86.2 million, with a net loss of $14.3 million, including a non-cash impairment charge. Cash generated from operations was $43.4 million, and operating cash flow was $21.3 million. Cash balances as of 30 June 2023 were $35.9 million.
Overall, Pharos Energy has reported strong operational performance in the first half of 2023, with successful drilling in Vietnam and Egypt. The company is focused on delivering returns to shareholders and continues to manage its financials carefully.