(Alliance News) - Pharos Energy PLC on Wednesday said it expects to make maiden distributions to shareholders in 2020 despite missing production targets in Egypt.
The oil and gas company has set the dividend to be paid in 2020. Pharos expects to distribute a total dividend of 2.75 pence a share in two equal tranches.
This will be put to shareholders for approval at the May 20 annual general meeting, Pharos said.
Pharos completed the acquisition of Egyptian assets in April, with production from the El Fayum concession averaging 5,055 barrels of oil per day from April 2 to the end of 2019.
The exit rate of 6,007 barrels of oil per day achieved at December 31 was, however, short of the guided exit rate of 6,500 barrels of oil per day due to operational delays.
Since completion of the acquisition, ten development wells and three injector wells have been drilled within El Fayum, the company noted.
In Vietnam, Pharos said production in 2019 from the TGT and CNV fields averaged 7,081 barrels of oil equivalent a day net, which was in line with guidance. In 2018, output averaged 7,274 barrels of oil equivalent a day net.
No further drilling activities in CNV took place in 2019, Pharos noted, as the activities in Vietnam were focused on increasing well productivity.
Pharos said Egyptian production guidance for 2020 is between 6,500 and 7,500 barrels of oil daily net. Vietnam production guidance for 2020 is in the range of 5,500 to 6,500 barrels of oil equivalent daily net.
In addition, Pharos has appointed Geoffrey Green as a non-executive director effective from May's AGM. On the same date, Non-Executive Director Ettore Contini will step down following eighteen years at Pharos.
Green currently serves on the board of Vedanta Resources Ltd, a metals and mining company. He retired as a partner of Ashurst LLP in 2013, a law firm, after 30 years as a partner and ten years of service as the senior partner and chair of its management board.
"Geoffrey brings a wealth of experience and expertise that will help the company deliver on our principal strategy of sustainable long-term growth," said Pharos Chair Rui de Sousa. "I'd like to thank Ettore for his service to the company over the years, and we wish him all the very best for the future."
The stock was trading 6.2% lower in London on Wednesday morning at 54.20p a share.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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Pharos Energy (PHAR)