Business
Trading and Operations Update January 2021
Trading and Operations Update January 2021.
About this update from Pharos Energy Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 4623L\n Pharos Energy PLC\n 13 January 2021\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 Trading and Operations Update January 2021\n \n \n Pharos Energy plc, an oil and gas exploration and production 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 2020. This is in advance of the Company's Preliminary results. The information contained herein has not been audited and may be subject to further review and amendment. \n \n \n Summary\n \n \n · \n Group working interest 2020 production 11,373 boepd net, in line with production guidance:\n \n \n - Egypt production 5,270 bopd\n \n \n - Vietnam production 6,103 boepd net\n \n \n · \n Egypt 2P reserves expected to be upgraded by approx.40% \n \n \n · \n TGT drilling programme start date brought forward from Q4 to Q3 2021 \n \n \n · \n Two year field licence extensions for TGT and CNV formally granted by the Ministry of Industry and Trade in Vietnam\n \n \n · \n Cash balances as at 31 December 2020 were approx. $24m; net debt $33m \n \n \n · \n Group revenue for 2020 was c.$140m, including the benefit of our hedges of $23m\n \n \n · \n Vietnam revenues for the year were c. $87m\n \n \n · \n The average realised oil price per barrel from Vietnam was just under $45/bbl, representing a premium to Brent of just over $3/bbl\n \n \n · \n Egyptian revenues for the year were circa $30m*\n \n \n · \n The average realised oil price per barrel from Egypt achieved was approx. $37/bbl, representing a discount to Brent of circa $4/bbl \n \n \n · \n Cash cost savings on total group expenditure for the year of c.23% against the budget. Group reduction of G&A costs 35%\n \n \n \n *\n \n Egyptian revenues are given post government take including corporate taxes.\n \n \n Egypt resources upgrade \n \n \n McDaniel & Associates (a third-party reserves auditing company) is certifying 2020 year-end reserves which include improved waterflood performance based on recent field data, and a new drilling and workover plan for 2021 onwards based on an enhanced field development plan created by the company and ERCe. An upgrade of approx.40% in the prove...