(Alliance News) - Pharos Energy PLC on Wednesday said interim revenue increased despite a decline in production, and it announced a share buyback of up to USD3 million.
The Egypt and Vietnam-focused oil and gas production company achieved a net working interest production of 7,961 barrels of oil equivalent per day in the first half of 2022, down 13% from 9,147 boepd.
The latest figure includes 2,100 barrels of oil per day from production in Egypt and 5,861 boepd from production in Vietnam.
For the full-year, the company's working interest production guidance remained unchanged at between 1,350 to 1,800 bopd from Egypt and between 5,000 to 6,000 boepd in Vietnam.
"In Egypt, following the farm-out to IPR, investment has recommenced and production levels are starting to rebuild. Securing a rig on long-term contract positions us for continuous drilling in El Fayum over the next year and beyond, to monetise the significant 2P reserves base under the enhanced fiscal terms secured," said Chief Executive Jann Brown.
"In Vietnam, the three well development drilling programme is on track to commence in September, focused on sustaining production levels in the current high netback, fast payback environment," the CEO continued.
Revenue in the half totalled USD129 million, prior to a hedging loss USD17 million. The previous year, revenue stood at USD72.9 million, prior to a hedging loss of USD13.7 million, representing a 77% increase year-on-year.
In a separate announcement, the company also announced the start of a share buyback for up to USD3 million. The programme is expected to take three to six months and begins immediately.
Pharos said it has initiated the buyback as it believes its current share price is at a "material discount" to its underlying net asset value.
Shares in Pharos Energy were up 0.5% at 20.00 pence on Wednesday morning in London.
By Heather Rydings; heatherrydings@alliancenews.com
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Pharos Energy (PHAR)