Pharos Energy plc, an independent energy company, has released its Trading and Operations update ahead of the annual general meeting (AGM). Jann Brown, Chief Executive Officer, highlighted the company's strong operational and financial position, with production for the first four months of the year in line with guidance. Notably, the company received $13.8m from EGPC, enabling the payment of $21m of outstanding debt, leaving the total Group debt at $13m and a net cash position at $8.7m.
In terms of operational highlights, the Group's working interest production for the four months to the end of April 2024 was 5,755 boepd net, with Vietnam and Egypt contributing as expected. In Vietnam, the company is preparing for a two-well drilling program on TGT, with significant progress on licence extensions discussions. In Egypt, preparations are underway to drill in both El Fayum and NBS later this year, with a consolidation of concessions into one to deliver several benefits.
Financially, the Group's revenue for January to April 2024 was approximately $39m, with cash balances at around $49m and a net cash position of $15m. The Egypt balance sheet receivable position was at $31.0m, having received $12.4m in the four months to 30 April 2024. The company also highlighted a forecast cash capex for the full year of $32m, with costs in Egypt mainly settled in EGP.
In terms of corporate highlights, Pharos Energy plc continues its share buyback program and expects to pay the final dividend for 2023 of 0.77p per share on 19 July, subject to shareholder approval at the AGM. The company also announced changes in Board composition and governance, including the appointment of Dr. Bill Higgs as a new independent Non-Executive Director and the retirement of Jann Brown as Director on 30 April 2024, with a search process underway for her successor.
The company also appointed Ernst & Young to succeed Deloitte as the external auditor, subject to shareholder approval at the 2024 AGM. Pharos Energy plc plans to publish a Trading and Operations Update on 18 July 2024, ahead of the Interim Results announcement in September.