Pharos Energy Share Discussion Threads

[oilinvestoral] 16/1/2024 08:51

Why do they need the cost associated with another joint broker???? I smell a fish. Jann is cooking something IMHO!!!

[oilinvestoral] 16/1/2024 08:47

Haven't fully digested the 2023 update but upon initial read it's terrible! Will post more once I have delved deeper and plugged the new numbers into my spreadsheet.Net debt was previously estimated by Sue at around 0 , ends the year at $6.5 million. Egypt receivables situation was always going to get worse until the free carry was utilised. Hopefully gets fully utilised in Q1 and we can see the balance starting to reduce.The production outlook for 2024 is a horror show! I significantly underestimated just how operationally shambolic this mob are ! Vietnam could be as low as 3,900 bopd and Egypt could drop to 1,300 bopd!! You've got 1 well to drill and local drilling contractors need more than a 1 well commitment. Only now have they decided to partner with a local operator ! Who would have thunk* it! Jeeezus!!!!! Egypt 2nd exploration well is a duster .... Other than the above, the company is making very good progress and Jann, Sue & Mo are doing an excellent Job!

[oilinvestoral] 16/1/2024 08:42

Ed Story Sad news ! May he RIP and my condolences to his family & friends.

[cwa1] 16/1/2024 07:39

Pharos Energy plc

("Pharos" or the "Company" or, together with its subsidiaries, the "Group")

Trading and Operations Update January 2024

Pharos Energy plc, an independent energy company, issues the following trading and operations update to summarise recent operational activities and to provide trading guidance in respect of the financial year to 31 December 2023 and outlook guidance for 2024. This is in advance of the Company's Preliminary Results on 27 March 2024. The information contained herein has not been audited and may be subject to further review and amendment.

Jann Brown, Chief Executive Officer, commented:

"Pharos delivered a strong operational performance across the portfolio in 2023 and there is significant operational momentum going into 2024. The Group had success on drilling in both Vietnam, with the CNV well coming in strongly, and in Egypt, with discoveries on the first NBS exploration well and the El Fayum exploration well. On Block 125, parallel discussions with several potential farm-in partners are ongoing and we have joined forces with another operator in the region to enhance our position in the rig market.

"The Company has built solid foundations of sustainable cash generation from a robust and diverse production base, which enabled us to make returns of $8.4m to shareholders, invest in our assets and reduce our net debt to c.$6.5m, despite the ongoing payment lags in Egypt. Alongside this solid base, in Block 125 in Vietnam we have an exploration prospect which offers significant upside potential and we are progressing plans to drill as quickly as possible. We continue to execute on our strategy of regular returns to shareholders plus growth, and we look forward to delivering value for all shareholders in 2024 and beyond."

Operational Highlights

-- Group working interest 2023 production was 6,508 boepd net (2022: 7,166 boepd net), in line with 2023 guidance:

o Vietnam 5,127 boepd (2022: 5,418 boepd)

o Egypt 1,381 bopd (2022: 1,748 bopd)

-- In Vietnam:
o On TGT, Revised Field Development Plan ("RFDP") approved by MOIT on 9 January 2024

o On CNV, strong performance from first new lateral well, delivered on time and under budget and put on production in 1Q 2023

o CNV RFDP submitted to partners for approval, with discussions ongoing

o Initial positive feedback received from PVN and MOIT on five-year extension proposals to the TGT & CNV licences

o On Blocks 125 & 126, two-year PSC extension granted to 8 November 2025

o CPR for Block 125 published in July 2023, confirming a range of gross unrisked prospective oil resources of between 1,178 MMstb (1U) and 29,785 MMstb (3U) with a Mean value of 13,328 MMstb

-- In Egypt:
o Three new wells (2 producers and 1 injector) put on production and injection in 2023 in line with expectations

o On El Fayum, exploration success with the first commitment well in the Abu Roash G and Upper Bahariya formations in July 2023. The well is set up for re-entry and testing in 2024

o On NBS, first exploration commitment well (NBS-SW1X) declared a commercial discovery in April 2023 and put on production in December 2023, opening up a new area for production and development

o Second NBS exploration commitment well was drilled in the Abu Roash G formation at a deeper depth and failed to encounter oil-bearing sands. The result of this well does not hinder other mapped prospects in the concession

o Approval received from EGPC in December 2023 for the grant of a 20 year development lease for NBS-SW1X

o 3D seismic survey acquired on time and on budget in 2H 2023

Financial Highlights

-- Group revenue for 2023 was c.$168m with minimal hedging losses (2022: $221.6m before hedging loss of $22.5m)

o Vietnam c.$149m

o Egyptian c.$19m (1)

-- Cash balances as at 31 December 2023 were c.$32.6m; net debt c.$6.5m (2022: cash balances $45.3m; net debt $28.9m)

-- Egypt receivable position as at 31 December 2023 stood at $37.3m (31 Dec 2022: $24.2m). The continuing volatility of the macro-economic environment in Egypt and further devaluation of EGP against USD during the year, plus the lack of ability to convert EGP into USD, means that it remains preferable to continue to hold USD denominated receivables, other than where they can be used to fund ongoing expenditures on expiry of the carry from IPR

-- The December redetermination process under the RBL completed with a principal repayment of $12.6m made in December 2023

-- Following that repayment, the remaining amount drawn under the RBL stands at $30.0m
(1) (Egyptian revenues are given post government take including corporate taxes.)

Corporate Highlights

-- $3m share buyback programme substantially completed by year end 2023
-- Final dividend for the 2022 financial year of 1p per share, totalling $5.6m, paid on 12 July 2023

-- Net Zero roadmap published on 6 December 2023
-- Appointment of Dr Bill Higgs as a new independent Non-Executive Director, as announced separately today

-- Appointment of Shore Capital Stockbrokers Limited (Shore Capital) as the Company's joint broker with immediate effect

2024 Outlook

-- Group working interest production guidance of 5,200 - 6,500 boepd net:
o Vietnam 3,900 - 5,000 boepd

o Egypt 1,300 - 1,500 bopd

-- In Vietnam:
o Planning underway for a two-well TGT drilling programme, expected to commence 2H

o On Block 125, ongoing discussions with another operator to secure a well drilling slot in connection with their proposed multi-well drilling programme in the region

o Parallel discussions with several potential farm-in partners for Block 125 in progress

-- In Egypt:
o Continuation of modest and measured approach to capital allocation and drilling in El Fayum and NBS, with an eye on the receivables balance

o Focus for this year's work programme in El Fayum is low cost recompletions and waterflood

o Processing and interpretation of c.130km(2) of 3D seismic data on NBS is underway and expected to be completed in 2H

o Development drilling in the NBS SW field planned to start in 2H

-- Forecast Group cash capex in the year is expected to be c.$32.2m (c.$27.3m after Egyptian carry by IPR)

-- Continuation of share buyback programme, with a further $3m committed as announced on 6 December 2023

-- Interim dividend in relation to the financial year ending 31 December 2023 of 0.33p per share declared on 6 December 2023, amounting to c.$1.8m, to be paid out on 24 January 2024. Final dividend, in line with the Company's policy announced in September 2022, to be paid in July 2024, subject to shareholder approval

Ed Story

The Company noted with great sadness the death of its founder, Ed Story, in December 2023. Since retiring as CEO in March 2022, Ed had remained active as part of the team dealing with Vietnam and his responsibilities will now pass to Vincent Duignan, the Group Exploration Manager & General Manager South East Asia. Vinny will be supported at Board level by Dr Bill Higgs, whose appointment as Non-Executive Director was announced today.

[cwa1] 16/1/2024 07:26

16 January 2024

Pharos Energy plc

("Pharos" or the "Company" or, together with its subsidiaries, the "Group")

Appointment of Non-Executive Director

Pharos Energy plc is delighted to announce the appointment of Dr Bill Higgs as an Independent Non-Executive Director with immediate effect.

Bill has over 30 years of global exploration, development and operations experience, including more than 10 years in executive roles for listed independent exploration and production companies. He is a qualified geologist with extensive expertise in all engineering and other technical and commercial aspects of hydrocarbon exploration, development and production. Most recently, Bill was Chief Executive Officer of Genel Energy between 2019 and 2022, having served as Chief Operating Officer from 2017. Preceding his roles at Genel, Bill was Chief Operating Officer for Ophir Energy plc, responsible for managing the global asset portfolio. Before that he served as Chief Executive Officer of Mediterranean Oil and Gas, overseeing the successful sale of the company in 2014. Bill began his industry career at Chevron, spending 23 years across a number of global roles.

In parallel with this appointment, Bill will continue his role as Chairman of Chappal Energies Mauritius Limited, a West Africa-focussed energy company that has recently embarked on building a portfolio of upstream assets.

Bill will serve as a member of the ESG Committee, with further committee assignments to be discussed at the next scheduled meeting of the Board. Bill will also be the Board representative with responsibility for oversight of the Group's technical work and output.

John Martin, Chair, commented:

" I'm delighted that Bill is joining the Pharos Board as an Independent Non-Executive Director. Bill is a very high calibre appointment that will bring a wealth of technical and commercial experience to the Board. I expect him to add significant value to the business as it develops and implements its strategic objectives, with his initial focus to include maximising value from our exciting exploration prospects in Vietnam Blocks 125 and 126."

The Company confirms that there are no additional matters requiring disclosure under LR 9.6.13 of the Listing Rules.

[oilinvestoral] 13/1/2024 09:42

ot: re the other companies I actually don't think the rise in AET has even started yet. They should be producing more than Pharos this year and they have a smaller EV. Their assets are increasing production YOY vs the terminal decline in PHARcical and they are on the lookout for more deals in Africa ....Kist : Decom liabilities are actually relatively small comparing to peers. Out of similar companies, only SQZ, has a better situation re decom.The political situation is an annoyance right now but by 2026, 75% of production will be from Norway which is much more welcoming to oil & gas investment than Netherlands and UK!

[oilinvestoral] 13/1/2024 09:34

By default Egyptian receivables should start to reduce as they will be drawing down the balance to fund Egypt development this year as the free carry has been fully utilised (and wait for it: over the past 12 months, the the free carry has resulted in a reduction of 22.7% of PHARcical's share of Egypt production). Make it make sense! Mohammed also needs to go unfortunately! Anything positive coming from Egypt is a bonus as I have mentally written that off. Radoff probably has some ideas there as he was very vocal towards Valco in Egypt. Hopefully he can extract something out of it.This is a pure play on getting as much value out of Vietnam as possible and securing some value out of 125 before the current production assets are given back to PetroVietnam later in the decade. The extension in Vietnam licence should spark some analyst upgrades as well as the farmout on 125. The return to drilling in H2 after an extended hiatus will also be a positive. The 2P reserves should also be getting a small increase at the 23 end of year audit. Biggest catalyst will be the removal of Jann & Sue IMHO. But unless Radoff can garner some support from institutional investors, I'm not sure he has enough votes to do it. He has 60 odd million shares + some millions of shares from PIs. We probably required double that and hope that the vote turnout is poor.Luckily I own more shares in this company than Sue so can probably cancel out her vote! Talk about not eating your own cooking! Shocking lack of skin in the game !!!

[yasx] 12/1/2024 00:58

Only three catalysts to really cause a significant shift in the fortunes of this company; a farm-out of 125 and/or Egypt recievables start to reduce markedly and/or Radoff throws down the gauntlet.

No sign of any of the above yet. I am giving it until the end of this quarter before losing my patience. I don’t mind sitting on the shares for considerably longer than the next quarter, but not if Jann is allowed to continue receiving her ludicrous salary (in the context of her avhievements)

[yasx] 04/1/2024 14:42

OilAl,

I am in Pharos until no later than end Q1 and so hope Radoff pulls the trigger prior to that - if so, I will remain invested otherwise will cut my position.

Re AET I have sold and banked profits.

I have taken KIST recently at between 164p and 167p. I think that is due a bounce despite the political factors weighing upon it not to mention the decommom liabilities.

Re the comment on the other thread re Jeffries - I think they have never called Pharos well - at 11p they were suggesting best case outcome of 7p a few years ago. That did not age well....

[thdba0] 04/1/2024 12:47

Not just here from Jefferies, e.g.EnQuest 14p from 20pTullow 27p from 35pCapricorn Energy 160p from 225p

[tyler19] 04/1/2024 12:30

Oil price forecasts have been cut by 10% for 2024.For Pharos there’s the additional risk of Middle East tensions which are reducing revenue for the Egyptian government and may result in an increase in receivables for Pharos. Let’s hope not.

[cwa1] 04/1/2024 07:49

This morning Jefferies have downgraded Pharos from BUY to HOLD and at the same time cut their target price from 30p to 24p. No further information re their reasoning

[cwa1] 02/1/2024 13:33

Thanks for that oiA

Interesting stuff and I'll certainly be happy if some pressure is exerted on management...


Best wishes to all for a very healthy, happy and prosperous New year!

Cheers

[oilinvestoral] 02/1/2024 12:55

Happy new year everyone Bradley L. Radoff has been very busy with Pitney Bowes ( a shipping & mailing company which is also one of his other large holdings) over the past few months where he has requested the removal of Mr. Lautenbac from their board due to underperformance & misleading statements. Once he has dealt with Pitney Bowes & Mr Lautenbac, his attention will once again revert to Jann & Sue (most likely Q2). The old guard won't like this one.....Full letter to Pitney Bowes management below :https://www.businesswire.com/news/home/20230821278975/en/Bradley-L.-Radoff-Issues-Letter-to-Recently-Appointed-Directors-Steven-Brill-and-Darrell-Thomas-Regarding-the-Need-for-Urgent-Action-at-Pitney-Bowes

[nigelpm] 23/12/2023 17:09

Quite - a much nicer board now. Merry Xmas All.

[oilinvestoral] 23/12/2023 11:35

Yes!!! Merry Christmas to one & all!


Best wishes to you & yours CWA1!


Here’s hoping for the a better year for ALL soco investors in 2024!


PS: might I say a BIG THANK YOU to you for your admin work on this BB. What a delightful (focussed & on-topic) discussion board this is now become since the antagonists have been forcibly removed or moved on to trolling holders of other shares eg POLX, SQZ & TRIN (to name a few)!

[oilinvestoral] 23/12/2023 11:23

"When I was talking about other opportunities the other day, HBR was such a case. In this market there are many Co's offering good value"--------Indeed! Where I struggle with pharcical is where is the growth going to come from? Not much drilling planned in Vietnam (q4 2024 earliest).AET has quickly increased in size to become large part of my PF JSE looking good over next 12 months PTAL will show steady growth and multibag in next few years KIST plan to commence dividends and are working on various asset deals +Many others

[oilinvestoral] 23/12/2023 11:17

"Incidentally, I forgot to mention Pharos contacted me recently indicating they wished to discuss the Co. with me (I had not approached them this year although have had several discussions with Sue in the past) - I have not bothered to reply since it serves no purpose."-----Must say , that's a bit bizarre on both counts. Only way it would make any sense is if they are trying to muster support .

[cwa1] 22/12/2023 16:10

Best wishes to one and all for a very Merry Christmas!

Cheers

[yasx] 22/12/2023 15:10

Incidentally, I forgot to mention Pharos contacted me recently indicating they wished to discuss the Co. with me (I had not approached them this year although have had several discussions with Sue in the past) - I have not bothered to reply since it serves no purpose.

[yasx] 22/12/2023 15:08

When I was talking about other opportunities the other day, HBR was such a case. In this market there are many Co's offering good value and Pharos limping along thinking a buyback effort is all they need to do is an example of them not reading the room. They ought to consider the possibility that Radoff and the Board can't live together in the same room.

[oilinvestoral] 22/12/2023 12:10

The buybacks and divi is keeping me in for now but will continue to reassess. As long as they can keep Vietnam production flat, that should support the share price and provide enough FCF for buybacks and dividends. I've mentally written Egypt off a long time ago. Anything that comes out of that is a bonus.

[oilinvestoral] 22/12/2023 12:07

Took some HBR for a trade after the deal announcement! The 360p issue price (significant premium) caught my attention ! Made more paper profit holding that for less than 24 hours than years of PHARcical Energy ! I expect Radoff to show his hand in 2024 and let's hope Jann is not at the helm this time next year!

[yasx] 22/12/2023 00:25

Remarkable dealannounced by HBR, one of my other holdings in the energy sector. Meanwhile Jann continues her work from home campaign in which she can never secure a rig let alone strike a deal.

[yasx] 19/12/2023 11:13

I think I will give this until end Q1 to demonstrate some activity - either via the Co. making progress re Block 125 (unlikely) or Radoff initiating something. Otherwise this flatlining while the market is throwing up many good opportunities is detrimental.