Pharos Energy PLC, an independent energy company, has released its trading and operations update for January 2024. The company's Chief Executive Officer, Jann Brown, highlighted the strong operational performance in 2023 and the significant operational momentum going into 2024. The Group achieved success in drilling in both Vietnam and Egypt, with notable discoveries and developments in various projects.
In 2023, the Group's working interest production was 6,508 boepd net, with production in Vietnam at 5,127 boepd and in Egypt at 1,381 bopd. Notably, the Revised Field Development Plan for TGT in Vietnam was approved, and the CNV well came in strongly, delivering positive results. Discussions for a five-year extension to the TGT & CNV licenses are ongoing, and a two-year PSC extension was granted for Blocks 125 & 126 in Vietnam. Additionally, the CPR for Block 125 confirmed significant prospective oil resources.
In Egypt, three new wells were put into production and injection in 2023, and there was exploration success with the first commitment well in the Abu Roash G and Upper Bahariya formations. The first NBS exploration commitment well was declared a commercial discovery, and a 3D seismic survey was acquired on time and on budget in the second half of 2023.
Financially, the Group's revenue for 2023 was approximately $168m, with cash balances at $32.6m and net debt at approximately $6.5m. The company's Egyptian receivable position stood at $37.3m as of 31 December 2023. The Group also completed a $3m share buyback program and made a principal repayment of $12.6m in December 2023.
Looking ahead to 2024, the Group's working interest production guidance is set at 5,200 - 6,500 boepd net, with plans for a two-well TGT drilling program in Vietnam and ongoing discussions with potential farm-in partners for Block 125. In Egypt, the company aims to continue a modest and measured approach to capital allocation and drilling.
The company also highlighted its commitment to sustainable cash generation, returns to shareholders, and growth, as well as the publication of its Net Zero roadmap and the appointment of a new independent Non-Executive Director.