Pharos Energy has issued a trading and operations update to summarise recent operational activities and to provide trading guidance in respect of the financial year to 31 December 2022
This is in advance of the company's preliminary results on 22 March 2023. The information contained herein has not been audited and may be subject to further review and amendment.
Jann Brown, CEO, commented, "2022 saw strong cash generation, allowing us to make returns to shareholders through a share buyback programme which will now be extended with a further US$3mn allocated. We are also fully aware of the importance of regular dividends to much of our investor base, and look forward to making the first payment under the dividend policy announced in September as a key part of our overall commitment to returning value.
"Our asset investments are made where we can generate a combination of near-term cash flow and longer-term value from our portfolio. In Egypt, we continue to engage with IPR as the operator to optimise the work programme of both the El Fayum and the North Beni Suef Concessions and we remain fully carried for the first part of the year. In Vietnam, we are focused on sustaining cash generation through development drilling, and further work to enhance value is ongoing. On the TGT and CNV production licences, we are working with partners to refresh our field development plans and extend licence periods. Finally, the scale of the opportunity on Block 125 is becoming clearer as more work is done on it and we are pushing forward with the plans for drilling here, now expected to be in 2024.'
The company witnessed production of 1,748 bopd in Egypt. Seven wells were put on production in 2022, plus one additional well that was drilled in Q4 2022 is awaiting completion. Multi-well development drilling programme continues in 2023, as two drilling rigs commenced drilling new wells in El Fayum. Request for a short extension on North Beni Suef (NBS) has been granted, with work on a further extension request underway.