Pharos Energy plc has announced that it produced 1,381 barrels per day (bbl/d) of oil in Egypt during 2023, according to results submitted to the London Stock Exchange.

This comes as three wells were put on production and injection in 2023. A new era of oil production began in Egypt in December 2023 with the North Beni Suef (NBS) exploration well, NBS-SW1X, being declared a commercial discovery and brought online.

Meanwhile, exploration in El Fayum yielded positive results in July 2023 with the success of the first commitment well targeting the Abu Roash G and Upper Bahariya formations. The well is prepared for further evaluation in 2024.

In September 2023, the Egyptian General Petroleum Corporation (EGPC) granted approval for a 20-year development lease for NBS-SW1X.

“Pharos delivered on several fronts in 2023, laying the groundwork for significant momentum going into 2024. The Group had drilling success both in Vietnam, with the CNV production well coming in strongly, and in Egypt, with two discoveries from exploration wells on NBS and El Fayum.

On Block 125, parallel discussions with several potential farm-in partners are ongoing and we are actively working with another operator in the region to enhance our efforts in securing a suitable rig,” Jann Brown, Pharos Energy CEO, commented.

“We have managed the challenges of payment delays in Egypt, thanks in part to our carry, but also by careful cost control and capital discipline. We ended the year in a strong financial position with net debt down to $6.6 million and cash balances of $32.6 million, from revenues of $168.1 million. We are also delighted that we have now received $10 million from EGPC, as they resume payments to foreign oil companies on the back of the substantial support packages committed to Egypt, putting us into a net cash position today,” Brown noted.