(Alliance News) - Pharos Energy PLC on Tuesday said it had "significant operational momentum" for 2024, despite modest financial results in 2023.
The London-based oil and gas exploration and production company, with assets in Vietnam and Egypt, reported revenue of around USD168 million for the 12 months to December 31, down 32% from USD221.6 million a year before. USD149 million came from operations in Vietnam, While Egypt accounted for USD19 million.
As of December 31, the group had USD32.6 million in cash balances, down from USD45.3 million in 2022. However, net debt narrowed significantly to USD6.5 million from USD28.9 million over the same period.
Pharos Energy's group working interest 2023 production was down to 6,508 barrels of oil equivalent per day net from 7,166 boepd in 2022. Looking ahead, Pharos has set production guidance at between 5,200 and 6,500 boepd at a roughly 3:1 split between Vietnam- and Egypt-based projects.
Last Tuesday, the Vietnamese trade ministry approved Pharos's revised field development plan at the Te Giac Trang field, in which the company holds a 30% interest.
The company has also been granted two-year extensions to its production sharing contracts for the Block 125 and Block 126 projects, pushing the contracts' deadlines to November 2025.
Following strong performance at its Ca Ngu Vang oil and gas field in southern Vietnam, the company has submitted to partners for approval of a revised field development plan.
Pharos is also undergoing discussions with "several potential farm-in partners" for the Vietnamese Block 125 project, as well as with an unnamed operator for a well drilling slot at the block.
According to Chief Executive Officer Jann Brown, Block 125 holds an exploration prospect with "significant upside potential", and at which Pharos plans to commence drilling "as quickly as possible".
The company noted the "continuing macroeconomic environment in Egypt", and said it will adopt a "modest and measured approach to capital allocation and drilling" at the El Fayum and North Beni Suef concessions. The El Fayum well is set up for re-entry and testing in 2024, following exploration success in 2023, and the company said it will focus on "low-cost recompletions and waterflood" at the northern Egyptian concession in which it holds a 45% working interest.
CEO Brown said: "Pharos delivered a strong operational performance across the portfolio in 2023 and there is significant operational momentum going into 2024. The group had success on drilling in both Vietnam, with the CNV well coming in strongly, and in Egypt, with discoveries on the first NBS exploration well and the El Fayum exploration well. On Block 125, parallel discussions with several potential farm-in partners are ongoing, and we have joined forces with another operator in the region to enhance our position in the rig market."
"We continue to execute on our strategy of regular returns to shareholders plus growth, and we look forward to delivering value for all shareholders in 2024 and beyond."
Pharos will release its preliminary Results on March 27.
Shares in Pharos Energy were down 3.6% at 21.70 pence each in London on Tuesday afternoon.
By Hugh Cameron, Alliance News reporter
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Pharos Energy (PHAR)