Pharos
Energy plc
("Pharos"
or the "Company" or, together with its subsidiaries, the
"Group")
Vietnam
Production Licence Extensions Granted
Pharos Energy plc, an independent
energy company with assets in Vietnam and Egypt, is pleased to
announce that the applications for five-year licence extensions to
the Company's two producing assets in Vietnam, the TGT and CNV
fields, have been formally granted by the Vietnamese Government to
the Hoang Long Joint Operating Company and the Hoan Vu Joint
Operating Company respectively. The partners in the JOCs will now
formally approve and enter into supplementary documentation to
finalise the extensions. This will result in extension of the
licence for the TGT field to 7 December 2031, and extension of the
licence for the CNV field to 15 December 2032.
Highlights:
· Potential to increase TGT and CNV's Net Present Value by more
than 50%
· Increase to estimated year-end 2024 2P reserves of
approximately 10%* in Vietnam
· Scope
for further reserves increase of approximately 70%* with the work
programme of additional infill drilling and success in the
appraisal programme
Katherine Roe, Chief Executive Officer,
commented:
"The granting of the TGT and CNV licence extensions is a
significant milestone for the Company and a key catalyst to
unlocking untapped potential within our existing
portfolio. This is very welcome news
and allows us to prioritise future investment to extract and grow
value from our assets. I would like to thank our
team in Vietnam for their hard work in securing the approvals; they
are testament to Pharos' long-nurtured working relationships and
our standing in-country as a valued industry participant. I would
also like to thank the Vietnamese Government and we look forward to
working with them throughout the extended period.
Pharos is well positioned for future growth and we remain
committed to continue supporting the Vietnamese Government's energy
security agenda through our investments in TGT and CNV, as well as
progressing our exciting position in Blocks 125 &
126."
These licence extensions provide the
catalyst for initiating the planned work programme expected to
commence with the drilling of an appraisal well in the TGT field in
Q4 2025. The extensions also unlock value with the drilling of
additional infill wells. The extensions are expected to result in
an increase to the TGT and CNV 2024 year-end 2P reserves of
approximately 10%*, with potential to further increase reserves
through appraisal success and infill wells. Based on internal
management analysis, the extensions have the ability to increase
the NPV of TGT and CNV by more than 50%.
In consideration for granting the
licence extensions, Pharos' working interest will reduce after the
current licences expire in December 2026 and 2027 respectively. The
working interest for TGT will change from 30.5% to 25.3% and
likewise, CNV will change from 25% to 20%. The extensions are
accompanied by an agreed work programme commitment of 3D seismic
reprocessing and one appraisal well on each field. Certain other
licence terms have been revised to be consistent with precedent
extensions granted to other operators by the Vietnamese Government
and are in line with the current Petroleum Law
provisions.
For more information on the terms of
the licence extensions, please visit
https://www.pharos.energy/investors/results-reports-and-presentations/.
(*) Estimated reserves are not
audited and subject to further review and amendment. Further
volumes are adjusted for revised working interests and include a
progression of 2C with additional drilling and prospective
resources with appraisal success.
Glossary of Terms
CNV
Ca Ngu Vang field located in Block
9-2, Vietnam
Company
Pharos Energy plc
Group
Pharos and its direct and indirect
subsidiary undertakings
HLJOC
Hoang Long Joint Operating Company,
the operator of TGT
HVJOC
Hoan Vu Joint Operating Company, the
operator of CNV
JOC
Joint Operating Company
NPV
Net Present Value
Reserves
Reserves are those quantities of
petroleum anticipated to be commercially recoverable by application
of development projects to known accumulations from a given date
forward under defined conditions. Reserves must further satisfy
four criteria: they must be discovered, recoverable, commercial and
remaining based on the development projects applied
TGT
Te Giac Trang field located in Block
16-1, Vietnam
Enquiries
Pharos Energy plc
Tel: 020 7747 2000
Katherine Roe, Chief Executive
Officer
Sue Rivett, Chief Financial
Officer
Mohamed Sayed, Chief Operating
Officer
Camarco
Tel: 020 3757 4980
Billy Clegg | Georgia Edmonds |
Violet Wilson | Kirsty Duff
Notes to editors
Pharos Energy plc is an independent
energy company with a focus on sustainable growth and returns to
stakeholders, which is listed on the London Stock Exchange. Pharos
has production, development and/or exploration interests in Egypt
and Vietnam. In Egypt, Pharos holds a 45% working interest share in
the El Fayum Concession in the Western Desert, with IPR Lake Qarun,
part of the international integrated energy business IPR Energy
Group, holding the remaining 55% working interest. The El Fayum
Concession produces oil from 10 fields and is located 80 km
southwest of Cairo. It is operated by Petrosilah, a 50/50 joint
stock company between the contractor parties (being IPR Lake Qarun
and Pharos) and the Egyptian General Petroleum Corporation (EGPC).
Pharos also holds a 45% working interest share in the North Beni
Suef (NBS) Concession in Egypt, which is located immediately south
of the El Fayum Concession. The first development lease on the NBS
Concession was awarded in September 2023 and production started in
December 2023. IPR Lake Qarun operates and holds the remaining 55%
working interest in the NBS Concession. In Vietnam, Pharos
currently has a 30.5% working interest in Block 16-1 which contains
97% of the Te Giac Trang (TGT) field and is operated by the Hoang
Long Joint Operating Company. Pharos' unitised interest in the TGT
field is 29.7%. Pharos also currently has a 25% working interest in
the Ca Ngu Vang (CNV) field located in Block 9-2, which is operated
by the Hoan Vu Joint Operating Company. Following the announcement
by Pharos in December 2024 of approval a five year extension to the
terms of the petroleum contracts for Blocks 16-1 and 9-2, together
with associated changes to fiscal terms and participating
interests, Pharos will hold a revised working interest in Block
16-1 (TGT) of 25.33% with effect from 8 December 2026 and a revised
working interest in Block 9-2 (CNV) of 20% with effect from 16
December 2027. Blocks 16-1 and 9-2 are located in the shallow water
Cuu Long Basin, offshore southern Vietnam. Pharos also holds a 70%
interest in, and is designated operator of, Blocks 125 & 126,
located in the moderate to deep water Phu Khanh Basin, north east
of the Cuu Long Basin, offshore central Vietnam.