Pharos Energy Share Discussion Threads

[oilinvestoral] 27/3/2024 11:13

Ohisay: "Bill Higgs just joined as non exec ..is he an option ?"--------OhisayI prefer a fresh pair of eyes and someone higher caliber. Higgs' previous record does leave a lot to be desired. But anything will be a step up from Jann!

[nigelpm] 27/3/2024 10:53

That RNS was very positive in many ways.

[ohisay] 27/3/2024 09:41

Bill Higgs just joined as non exec ..is he an option ?

[geckotheglorious] 27/3/2024 09:36

Stepone68
Apologies, I stand corrected. You are spot on.

[ohisay] 27/3/2024 09:34

FWIW Shore Capital (House broker now ) has risked NAV at 48p.
Am in today for a few (Egypt and BOD and net cash going in the right direction and 125 farm out for a possible share catalyst)
On Block 125, ongoing discussions with another operator to secure a well drilling slot during their multi-well drilling programme in the region

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

[stepone68] 27/3/2024 09:33

Gecko - disagree on the share price going nowhere... it's been very clearly going down!

[oilinvestoral] 27/3/2024 09:27

The previous $37.3m receivables balance that was mentioned in January is worth 7 pence per share on its own. Based on the $32 million CAPEX announced today, as long as oil prices remain firm, the company should generate somewhere between $25-30 million in FCF this year! The EV should gradually continue to fall going forward...The shares are too cheap at 20p IMHO!

[geckotheglorious] 27/3/2024 09:16

Interesting moves by the CEO.
The stress of the share price going nowhere clearly finally got to her.

Wonder who will get parachuted in.

[glavey] 27/3/2024 09:06

Today's resignation news would, perhaps, explain the recent share price activity. Also maybe suggest vessel somewhat leaky.

[oilinvestoral] 27/3/2024 08:34

Of all the things to do with Pharcical Energy be annoyed about, their came of inclusivity and diversity would not be one of things I'm spitting feathers about! How dare an international oil company hire people from different backgrounds & nationalities!! #saracasm

[oilinvestoral] 27/3/2024 08:30

I only got 2/5 from the expected key points I was looking out for.Really disappointed about the meagre divi! Good news about the the $10m from EGPC & net cash position Progress in Vietnam seems slow ... both in 125 & the CNV/TGTGoing forward, a lot will rest on who the new CEO is and what his strategy is. I don't think Jann will do an investor meet co webinar following the sacking ...

[nigelpm] 27/3/2024 08:28

For once we agree - the pressure has probably got to her.

[oilinvestoral] 27/3/2024 08:26

Ding dong the Jann is gone! Without the support of her best friend (the founder) , it was only a matter of time! Surprised it took Radoff & the BOD this long! I have zero doubts that this was a result of Radoff turning the screws! Surprised she isn't even fulfilling a small part of the usual notice period! Essentially they've given her 4.5 weeks to clear her desk and move on! This is a SACKING in all but name! Here's hoping we get a first class CEO! Next let's deal with Sue! She hasn't had her nose in the trough long enough...

[nigelpm] 27/3/2024 08:03

Now Net Cash with $10m received from Egypt - shares should be higher on that alone!

[dunderheed] 27/3/2024 07:16

About bloody time, I assume Radoff helped her leave this particular gravy train?

[cwa1] 27/3/2024 07:14

And Prelims...



27 March 2024

Pharos Energy plc

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

2023 Preliminary Results

Pharos Energy plc, an independent energy company, announces its preliminary results for the year ended 31 December 2023. A conference call for analysts will take place at 11.00 GMT today.





Jann Brown, Chief Executive Officer, commented:

"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.

"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 $6.6m and cash balances of $32.6m, from revenues of $168.1m. We are also delighted that we have now received $10m 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. A strong balance sheet provides us with the foundation to continue our track record of delivering shareholder returns, adding $8.4m through a combination of share buyback programmes ($2.8m of which was completed in 2023) and dividend payments in 2023.

"Today, the Board have recommended a final dividend for the 2023 financial year of 0.77 pence per share, subject to shareholders' approval at the Company's 2024 AGM. This would take the 2023 full year dividend to 1.10 pence per share, an increase of 10% on the prior year.

"Looking ahead, we are advancing plans to drill the potentially transformational Block 125 in Vietnam, and we look forward to updating shareholders on progress. In the meantime, we continue to execute on our strategy, including continuing on our recently published roadmap to net zero, of delivering value for all stakeholders in 2024 and beyond."

2023 Operational Highlights

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

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

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

· In Vietnam:

- Strong performance from first new CNV lateral well, put on production in 1Q 2023

- CNV Revised Field Development Plan (RFDP) submitted to partners for approval, with discussions ongoing

- Continuing positive feedback received from PetroVietnam and the Ministry of Industry and Trade (MOIT) on five-year extension proposals to the TGT & CNV licences

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

- Competent Person's Report (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:

- Three new wells (2 producers and 1 injector) put on production and injection in 2023, in line with pre-drill expectations

- 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

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

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

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



2023 Financial Highlights

· Group revenue of $168.1m 1,2 (2022: $221.6m 1,2)

· Cash generated from operations $88.8m (2022: $110.7m)

· Operating cash flow $44.9m 3 (2022: $53.4m)

· Cash operating costs of $15.70/bbl 4 (2022: $16.36/bbl 4)

· Cash balances as at 31 December 2023 of $32.6m (2022: $45.3m)

· Net debt as at 31 December 2023 of $6.6m 4,5 (2022: $28.9m 4,5)

· Loss for the year of $48.8m (2022: profit $24.4m)

· Net debt to EBITDAX of 0.06x 4 (2022: 0.23x 4)



2024 Outlook and Highlights

· Group working interest production guidance of 5,200 - 6,500 boepd net:

- Vietnam 3,900 - 5,000 boepd

- Egypt 1,300 - 1,500 bopd

· In Vietnam:

- TGT RFDP approved by MOIT on 9 January 2024

- Planning underway for a two-well TGT drilling programme, expected to commence 2H 2024

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

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

· In Egypt:

- Continuation of modest and measured approach to capital allocation and drilling in El Fayum and NBS, with potential to ramp up activity this year and beyond in response to the improving economic environment

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

- Processing and interpretation of c.130km2 of 3D seismic data on NBS is underway and expected to be completed in 2H 2024

- Development drilling in the NBS SW field planned to start in 2H 2024

- Ongoing engagement with EGPC regarding payment of receivables, and more favourable outlook following $57 billion support packages

- Concession terms in Egypt being reviewed following award of 20-year development lease over NBS

· Forecast Group cash capex in the year is expected to be $32m ($27.1m after Egyptian carry by IPR)

· Egypt cash opex and capex expected to be substantially funded in EGP from historical receivables

· Notification of $10m to be received today from EGPC in USD against receivable balance following payment delays through 2023

· Continuation of share buyback programme, with a further $3m committed for 2024

· Interim dividend in relation to the financial year ending 31 December 2023 of 0.33 pence per share, amounting to $1.7m, paid out on 24 January 2024. Final dividend of 0.77 pence per share for the year to be paid on 19 July 2024, subject to shareholder approval

· Appointment of Dr Bill Higgs as a new independent Non-Executive Director

· Jann Brown to retire and step down from the Board, effective 30 April 2024

· Appointment of Shore Capital Stockbrokers Limited (Shore Capital) as the Company's joint broker

[cwa1] 27/3/2024 07:13

Beee...limey...

27 March 2024



Pharos Energy plc

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

Directorate change

Pharos Energy plc, an independent energy company, announces that CEO Jann Brown has informed the Board of her intention to retire and step down from the Board effective 30 April 2024. The search for a replacement CEO will commence shortly and Jann has agreed to stay in her position as CEO to effect a managed and smooth transition.





John Martin, Chair, commented:



"I would like to take this opportunity to thank Jann for her significant contribution to Pharos over the years. Since the events of Covid-19 rocked the energy markets, Jann has overseen a dramatic stabilisation of the Company, a significant reduction in debt levels, a substantial increase in free cash flow generation and a return to shareholder distributions. Jann will be leaving the Company in a strong position, both financially and operationally. On behalf of the entire Board, we wish Jann well in her retirement.



"A process to appoint a successor will commence shortly."

[yasx] 27/3/2024 01:12

That would be a boost…

[oilinvestoral] 25/3/2024 14:33

Volume hitting 3 months high this afternoon, I would guess that Mr Radoff is in the market for some more today!

[nigelpm] 25/3/2024 13:37

Radoff over 16% and market seems to have woken up

[oilinvestoral] 25/3/2024 13:34

5 Key things I'm looking out for this week in the annual results update: 1. cash position in March will hopefully show the company is now net cash (for the first time since 2019 / since the Merlon cluster)! 2. Egypt receivables starting to stabilise or unwind! 3. Progress made with Block 125 discussions and clarity on drilling the well in 2025. 4. Confirmation of the start date of Vietnam drilling campaign. 5. A dividend of 1.25p/ share I am not holding my breath given the history of the company and the management team but would hope for at least 4/5 of the above!We should also get confirmation of another investor meet company webinar.