EGYPT: Pharos Energy Provides 2021 Preliminary Results

2021 Operational Highlights

Total Group working interest 2021 production 8,878 boepd net (2020: 11,373 boepd), in line with production guidance:
- Egypt production 3,318 bopd (2020: 5,270 bopd)
In Egypt:
- Return to drilling with Batran-1X exploration commitment well and three-well development drilling programme
- El Fayum Phase 1B waterflood programme commenced with one workover rig, with a second workover rig dedicated to the maintenance programme
- Conditional agreements for the farm-down 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 Co. (IPR)

OPERATIONAL HIGHLIGHTS:

2021 production averaged 12,854 boe/d (Egypt 11,336 bbls/d) a decrease of 4% from 2020 primarily attributable to natural declines in Egypt, partially offset by the re-commencement of Eastern Desert drilling and well optimization activities;
Inventoried entitlement crude oil in Egypt decreased to nil as at December 31, 2021 from 227.9 Mbbls as at December 31, 2020;
Ended the year with 46.1 MMboe of 2P reserves, up 19% from 2020 year end of 38.9 MMboe;
Drilled and completed eight development oil wells and performed six recompletions in the Eastern Desert in Egypt;
Drilled one exploration well and performed one recompletion in the Western Desert in Egypt;

2022 Highlights and Outlook

Signature of the Third Amendment to the El Fayum Concession Agreement, with retroactive application of the improved fiscal terms from November 2020 and a three and a half year extension to the exploration period
Modest hedging programme to capture the higher oil price environment
Phase Two of Task Force on Climate-related Disclosure (TCFD) project completed in Q1 2022, with ongoing work on future TCFD alignment
Appointment of Jann Brown as Chief Executive Officer on completion of the transaction with IPR
Additional directorate changes upon completion of the transaction with IPR and at the 2022 AGM, resulting in a reduction in the size of the Board from nine Directors to six, with a much lower cost base
In Egypt
Pharos and EGPC have finalised all necessary documents to be presented to the Minister of Petroleum and Natural Resources to approve the transaction with IPR and this approval is expected shortly
The three-well drilling programme, which commenced in November 2021, is ongoing
Commencement of the main El Fayum multi-year and multi-well development programme in Q2 2022
Production forecast for 2022 will be evaluated following completion of the farm-down to IPR and transfer of operatorship. Guidance will be given at the AGM