Business
Completion of Farm-Out Transaction
Completion of Farm-Out Transaction.
About this update from Pharos Energy Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 8314F\n Pharos Energy PLC\n 24 March 2022\n \n \n \n \n \n \n \n 24 March 2022\n \n \n \n \n \n Pharos Energy plc\n \n \n (\"Pharos\" or the \"Company\" or, together with its subsidiaries, the \"Group\")\n \n \n Completion of the Farm-Out Transaction and Transfer of Operatorship of Egyptian Assets to IPR\n \n \n Pharos Energy plc, \n an independent oil and gas exploration and production company, \n is pleased to announce that it has been notified of the signature by the Egyptian Minister of Petroleum and Mineral Resources (the \"Minister\") of the Deeds of Assignment in relation to its Egyptian El Fayum and North Beni Suef Concessions (the \"Assets\"). The Minister's signature of the Deeds of Assignment, which occurred on 21 March 2022, was the remaining condition to completion of the farm-out and sale of a 55% working interest share and operatorship in each of the Assets to IPR Lake Qarun Petroleum Co (\"IPR Lake Qarun\"), a wholly owned subsidiary of IPR Energy AG (\"IPR\") (the \"Transaction\"). Accordingly formal completion of the Transaction has now taken place. \n \n \n \n \n \n As set out in the announcement of 15 September 2021, the firm consideration payable to the Group at completion is US$5 million, US$2 million of which was received as a deposit on signing of the farm-out agreements relating to the Assets. The Group will also receive, going forward, a disproportionate funding contribution from IPR Lake Qarun of US$38.425 million net to Pharos (to be adjusted for working capital and interim period adjustments from the effective economic date of 1 July 2020). In addition, the Group will be entitled to contingent consideration depending on the average Brent Price each year from 2022 to the end of 2025, capped at a maximum total payment of US$20 million. Pharos will continue to receive its retained 45% working interest share of all revenues, both cost oil and profit oil, throughout. \n \n \n \n \n \n As announced on 13 January 2022, Jann Brown assumed the role of Chief Executive Officer with effect from 23 March 2022, the date of \n receipt of the signed Deeds of Assignment from the Minister\n . Jann is now one of two executive directors of Pharos, alongside Chief Financial Officer Sue Rivett. On the same date, Ed Story and Dr Mike Watts resigned as directors of Pharos, wi...