EGYPT: Pharos EneregyTrading and Operations Update July 2023

Operational Highlights

  • Group working interest H1 production was 6,915 boepd net. Group working interest 2023 production guidance of 6,050 –
    7,500 boepd net remains unchanged from the Preliminary Results announcement on 22 March 2023:
    o Vietnam H1 production was 5,566 boepd. Vietnam 2023 production guidance 4,700 – 5,700 boepd net
    o Egypt H1 production was 1,349 bopd. Egypt 2023 production guidance 1,350 – 1,800 bopd net
  • In Egypt:
    o In addition to drilling new wells, the operations team has focused on recompletions to bring new zones to production and implement new water injection projects, which have supported production in the first half and are expected to continue to contribute to production in the second half
    o Full year guidance remains unchanged due to higher production level expected in H2 2023 following work done to date
    o Two development wells were drilled on the El Fayum Concession and completed in Q1 before the rig was dispatched to NBS to drill NBS-1X. The rig is now back in El Fayum where it has completed another development well before moving to drill an exploration commitment well
    o The first exploration commitment well in the North Beni Suef Concession (NBS-SW1X) was declared a commercial discovery after encountering multiple pay zones in the Abu Roash G formation. The stabilised production test rate pre-frac is 470 bopd (gross). The operator has requested approval from EGPC for the grant of the NBS Development Lease with a view to starting production in Q4 2023
    o Acquisition of c.110 km2 of additional 3D seismic at NBS is ongoing and the second exploration
    commitment well is expected to be drilled this year
    o The first exploration commitment well in the El Fayum Concession has reached total depth and
    encountered oil-bearing reservoirs in the Abu Roash G and Upper Bahariya formations. The well will be put on test to confirm deliverability over the coming weeks using one of the workover rigs

Jann Brown, Chief Executive Officer, commented:
“In Egypt, the first exploration well on the North Beni Suef Concession was declared a commercial success and is expected to start production in Q4. The group also delivered in line with its overall production guidance in the first half and expects to do the same for the full year, helped by increasing Egyptian production in the second half reflecting the continued focus on recompletions and new water injection projects.
“We are also delighted to have made the first payment under our new dividend policy, the foundation of our commitment to regular shareholder returns.”

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