(Alliance News) - Pharos Energy PLC on Wednesday said revenue declined in 2020, with production in Vietnam lower than the year before but still in line with guidance.
The company's revenue for 2020 was around USD140 million, including a USD23 million benefit from hedging. In 2019, Pharos posted revenue of USD189.7 million, which would put the 2020 total 26% lower.
The company's working interest 2020 production was 11,373 barrels of oil equivalent per day net, which was in line with production guidance and 6.3% below 2019's figure of 12,136 boepd.
The 2020 figure included production in Egypt of 5,270 barrels of oil per day, up from 5,055 bopd the year before and in line with Egypt production guidance from May of between 5,000 and 6,000 bopd.
In Vietnam, 2020 production was 6,103 boepd, down from 7,081 boepd the prior year but in line with Pharos's 5,500 to 7,500 boepd guidance.
More positively in Egypt, third-party reserves auditing firm McDaniel & Associates is certifying 2020 year-end reserves, and an expected 40% upgrade in the proven and probable reserves at the El Fayum concession is now expected.
This upgrade follows improved waterflood performance based on recent field data, plus a new drilling and workover plan from 2021.
In Vietnam, the drilling of four development wells at the TGT field has been approved in the 2021 budget cycles and will start in the third quarter of 2021, a quarter earlier than previously announced. The remaining two wells are to be proposed in the next budget cycle for 2022 driling.
At present, exploration drilling activity is on hold while Paros works on its production and cash flow. The company's net debt as at December 31 stood at USD33 million, with USD57 million drawn under its borrowing facilities plus cash of USD24 million.
Shares in Pharos were up 3.0% at 20.50 pence in London on Wednesday morning.
By Anna Farley; annafarley@alliancenews.com
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Pharos Energy (PHAR)