Pharos Energy Share Discussion Threads

[yasx] 05/12/2024 09:04

What on earth is Radoff’s plan - is he simply going to sit here patiently thinking one day this lot will achieve something?

At the very least they ought to increase the dividend. Althought they imply higher production targets in due course, don’t necessarily expect that, certainly not substantially higher.

It is as though thecentire Board have been consuming copious amounts of sedatives. It seens they don’tceven have a pulse.

[cwa1] 05/12/2024 08:55

And Shore Capital...

Pharos is bringing a productive year to a close with an in-line trading update that confirms FY24F net production is near the mid-point of guidance. The business is debt free, continuing to receive payments from EGPC in Egypt, and reiterating the strategy to combine further investment in its assets with sustainable shareholder returns. Our revised 47p/share Tangible NAV implies potential upside of over 100%. House Stock.

[cwa1] 05/12/2024 08:50

Snippet from Auctus Research this morning:-

Delivering payments from EGPC • Production from January to the end of November 2024 was 5,760 boe/d. This is line with our expectations. • FY24 production is expected to be around the same level. This is in line with our forecasts and within the FY24 production guidance range of 5.2-6.5 mboe/d. • The new wells at TGT are also performing in line with expectations and production in Vietnam from January to the end of November was 4,324 boe/d. This is in line with our forecasts. • The approval of the 5 year extension to the TGT and CNV licences is in its final stages. This is expected to allow Pharos to sanction additional wells and convert contingent resources into the reserves category. Pharos holds 11.9 mmboe 2C resources in Vietnam. • Net cash (zero debt) at the end of November was ~US$18 mm. This is in line with our YE24 net cash forecasts. An additional US$10 mm has been paid by EGPC since the end of June (total of US$24 mm at the end of November) and the trade receivables with EGPC are unchanged since the end of June (US$31 mm). • We reiterate our target price of £0.50 per share. The company has reiterated its commitment to the dividend and the US$3 mm share buyback programme will provide support to the share price. Valuation The key near terms newsflow includes (1) the 5 year extension of the TGT and CNV licence with the existing 2C resources having an unrisked value of £0.18 per share, (2) securing a rig and a farm-in partner on blocks 125 and 126 in Vietnam and (3) the continued stabilization of payments in Egypt. Finalizing the consolidation of the Egyptian concessions would also allow the company to commit more capital to Egypt and grow production. Our Core NAV and ReNAV are broadly unchanged at £0.32/sh and £0.51/sh respectively.

[cwa1] 05/12/2024 07:21

Trading and Operations Update December 2024

Pharos Energy plc, an independent energy company with assets in Vietnam and Egypt, issues the following Trading and Operations Update to summarise recent operational activities. The information contained herein is not audited and may be subject to further review and amendment.



Katherine Roe, Chief Executive Officer, commented:



"The second half has been busy for the Company with drilling activities commencing again in both Vietnam and Egypt, with successful results. Our strengthened balance sheet, following the repayment of all outstanding debt in September, has enabled us to support an active drilling work programme, delivered on time and on budget and in line with pre-drill expectations. These additional wells are already adding to our existing production and will help underpin exit rates as we approach the end of the year. They will also help manage production decline and contribute to next year's guidance which we will share in the new year.

"I would like to thank our in-country teams for their dedication and strong collaborations with partners and stakeholders to achieve these successful results. With production maintained, we feel confident we can continue to fund future capital investments whilst also maintaining our sustainable returns to shareholders."



Financial Highlights

· Strengthening balance sheet: Pharos is debt free having repaid all outstanding facilities in September 2024; cash balance at 30 November 2024 of c.$18m

· Continuing receipt of payments in Egypt: received $24m from EGPC year to date, with balance at 30 November 2024 of $31.1m



Operational Highlights

· Year to date average production of 5,760 boepd net, in line with 2024 annual guidance of 5,200 to 6,500 boepd. We expect full year production delivery to align with the YTD average production

· Active 2H 2024 with successful drilling campaigns in both Vietnam and Egypt

· In Vietnam:

o TGT: successful completion of two-well infill drilling programme in October on time and under budget; both wells are on production with initial rates in line with pre-drill estimates

o Approval process for the TGT and CNV five-year licence extensions by the Vietnamese Government now at final stages; once received this will enable further investment in both fields

o Discussions continue with potential farm-in partners and rig contractors required to progress Block 125 & 126

o Working interest production as at 30 November 2024 of 4,324 boepd net

· In Egypt:

o El Fayum: successful drilling of second exploration commitment well in September, encountering oil-bearing reservoirs in Abu Roach G formation; the well will be tested in December 2024

o One development well is being put on production

o NBS: expected completion of 3D seismic data processing in 1Q 2025, with data interpretation and mapping to follow

o Consolidation discussions of the Egyptian concessions are progressing well, with EGPC and IPR fully engaged and aligned

o Working interest production as at 30 November 2024 was 1,436 boepd net

[yasx] 02/12/2024 13:35

Well, I think it can be agreed that what we do not need is another scripted investor event in which they reaffirm they are in advanced negotiations but it is subject to rig availability and that, they aver, is difficult due to Ukraine, Covid, Brexit, US elections and everything else unrelated to the same.

[yasx] 26/11/2024 22:29

OilAl,

For me, there were a few indicators suggestive of a continuation of complacency and even a worsening of the situation, as follows:

1: KR had a poor resume
2: Sayed got promoted into a key role despite his lack of achiement in a lesser role
3: Radoff was not in the market for more shares despite a well flagged notifiable seller offloading

Joining the above dots led me to conclude nothing was on the horizon this year.

[oilinvestoral] 25/11/2024 17:20

Credit where credit is due! I've got to admit , you've called this much better & more accurately than I have Yasx! I honestly (and possibly naively) thought that the departure of Jann would herald a change and that once KR had 3-4 months in the job we would be seeing positive changes appearing. Announcement of the farm out, operational reviews / optimisations being conducted or simply more cost cutting to improve margins.I can't think of 1 positive over the past 5-6 months (same old same old). The share price languishes at 21p!

[yasx] 21/11/2024 10:56

Another week without any adequate action.

[adam] 18/11/2024 12:42

“Towards the end of this decade, deepwater will be the key, if not the only, source of non-Opec oil growth,” says Erlingsen.“ (FT - Offshore oil is back. At what cost?)

[steved9] 15/11/2024 08:29

If Pharos was a dog it would have been put down! We all need releasing from this bloody company!

[yasx] 15/11/2024 07:25

Another week of inactivity…..

[yasx] 14/11/2024 11:16

It seems KR is continuing the theme of hitting the ground running.

As for Sayed, the Board are probably tryingvto understand whatbhe is saying when he mumbles a few lines-perhaps google translate might assist.

I just cannot believe this bunch are steering a listed Co. Radoff has gone silent and is not increasing his position despite the availability of shares from the recent seller - perhaps he really is backing KR. If that is the case, well, it will need a miracle to get a result here.

[yasx] 01/11/2024 12:08

Another week of complacency comes to an end……..

[yasx] 31/10/2024 13:25

OilAl,

Rapidly explored!! Chuckle chuckle. The dud failed politician really is detached from reality.

Fischer selling has weoghed on the price and Radoff seems not to be intetested in taking more. An enlatged, more aggressive buyback may be useful.

[glavey] 30/10/2024 11:14

Combined with the buy-back policy that LTIP is pretty effective then...

[adam] 30/10/2024 10:46

I’m guessing Radoff must be inside and there is an overhang. Otherwise why would we not see him increasing here? As far as I can make out he is worth perhaps in the order of $100m - $200m, so this is a substantial investment for him.

[cwa1] 28/10/2024 18:16

Shareholder Announcement...

[oilinvestoral] 25/10/2024 06:24

Small correction in my post below : after the effective shares in issue had dropped to just over 414 million shares , we are now back over 416 million shares because of the free LTIPs that were handed over to Sue and Jann this week! They've just undone weeks worth of buybacks! The dynamic duo are worth every penny! Despite the free LTIPs , I still own more shares in this mutt than the CFO!!!!

[oilinvestoral] 24/10/2024 20:34

YasxYour old friend the failed politician has opined that "Block 125 will be one of very few opportunities that could be rapidly explored and developed"! I honestly kid you not! This is the same BLOCK 125 that was awarded to us around 6-7 years ago! The same block that he expected to be farmed out and drilled by the summer of 2022! He then goes on to opine that he thinks "Exxon will come back for another look"!

[oilinvestoral] 24/10/2024 20:31

I definitely share your frustrations and the frustrations of many others who have held this dog while the shares have done nothing or in most cases lost a lot over the past 5 years ! The appointment of Mo to the BOD is certainly a step backwards! There seems to be no light at the end of the 125 tunnel. In saying all that, the balance sheet is significantly stronger, the Egyptians seem to be drip feeding us cash and if oil prices stay at these levels, the FCF between now and 2027 is more than the current enterprise value of the whole company. Even without taking Vietnam licence extensions or potential farm out in to account, the shares are way too cheap at these levels. The buyback is slowly but surely starting to remove shares from circulation and we are now below 415 million shares ...

[yasx] 23/10/2024 10:47

Adam,

There will be no bid given the inappropriate diversification of assets following the misconceived foray into Egypt.

125 is unlikely to ever get drilled with the existing team - that to me seems fairly clear. They simpmy don’t have the skills to negotiate or deliver.

The outlook depends on Radoff shaking things up but despite now acquiring around a fifth of the Co he has made no move. Before anyone suggests the displacement of Jann, to be honest it would have been better to retain her than having KR appointed and MS promoted.

I still hope for some announcement to take this to 30p so I can bank very tidy profits and move on.

[adam] 23/10/2024 09:31

I haven’t formed a view on the new management. However there is the small matter of a new rather large and activist shareholder that I hope underwrites the value here. Most investors here are not interested in the dividend so much as the risk/reward if 125 gets drilled. The biggest risk seems to me to be a cheap bid.

[yasx] 23/10/2024 09:10

One has to consider the opportunity cost of holding Pharos - unless the dividend is increased substantially it brings into play the logic of holding on to the shares given the very low probability of the current team doing anything beyond the basics. While Jann was there hope existed that she may be replaced. Her replacement is, in my view, a backward step and I was hardly a supporter of Jann.

An even bigger blow has been the appointment of Sayed - I simply cannot see him making any progress on any front. He is not only complacent but completely useless.

[yasx] 18/10/2024 16:28

Another week with no progress.