Pharos’s President and CEO Ed Story announced that the signing of the Egyptian farm-out and the Infill Development Programme in Vietnam indicate that the medium-term outlook for the Company is a return to free cash flow and distributions to shareholders, according to a press release.
Pharos Energy Plc has entered into conditional agreements for the farm-out and sale of a 55% working interest and operatorship in each of the Egyptian El Fayum and North Beni Suef Concessions to IPR Lake Qarun Petroleum Company, a wholly owned subsidiary of IPR Energy AG. The transaction implies a gross value of up to US$115 million for the assets, dependent on the Brent Price contingent consideration. The transaction is expected to be completed during Q1 2022.
In this regard, the Chief Executive of Pharos commented, “The farm-out, while instantly boosting our balance sheet, will allow the entry of a partner who has committed to carry Pharos on a capital programme on these Egyptian assets, which will in turn lead to increased production, helping to fulfil the full potential of the concessions.”
He, then, noted that The Infill Development Drilling Programme in TGT Field in Vietnam is well underway; the first well drilled is already on production with initial flow rate at 1,600 bopd, the second well is currently being completed, and the third well in the sequence is due to spud shortly.