Pharos Energy Plc (LSE: PHAR): Kicking off high impact drilling programme
• Drilling operations have commenced at the TGT-H1 infill well in Vietnam, with results expected within 28 days. This well is anticipated to enhance production ahead of year-end 2025.• This marks the beginning of a six-well drilling campaign across the TGT and CNV fields, utilizing two rigs operating in parallel. Four wells are planned at TGT. Following TGT-H1, Pharos will proceed with the H5 infill well. Subject to favorable weather conditions, drilling of the TGT-18X appraisal well—targeting the block’s underexplored western area—could begin in early December. This operation is expected to take approximately 40 days, after which the rig will move to the final TGT-H4 infill well. Our unrisked NAV for the western area and remaining 2C resources at TGT is estimated at £0.21 per share.
• At CNV, drilling of the CNV-8P infill well is scheduled to begin in mid-November, with a projected duration of 90 days. The second and final CNV well, the CNV-5X appraisal well—designed to unlock the northern extension of the field—is expected to spud in mid-February and take approximately 108 days to complete. Our unrisked NAV for the 2C contingent resources at CNV stands at £0.07 per share.
• Vietnamese production is forecast to increase by approximately 20% in 2026, driven by the success of this multi-well campaign.
• We reaffirm our target price of £0.50 per share, with the current dividend yield standing at approximately 6%.
Valuation
Our Core NAV and ReNAV stand at £0.32 and £0.52 per share, respectively. Notably, the Core NAV reflects a premium of over 50% relative to the current share price.
Soco International is an oil and gas exploration and production company. Co. has exploration, development and production interests in Vietnam, and exploration and appraisal interests in the Republic of Congo and Angola. As of Dec 31 2016, Co.'s commercial reserves were 33.3 million barrels of oil equivalent.
Auctus Advisors is a specialist Equity Capital Markets and Advisory business with a focus in the Energy Sector.
The partners have complementary skill sets, with decades of experience across Equity Capital Markets, Investment Banking and the Energy industry. We have worked at Société Générale, Canaccord Capital, BMO Capital Markets and Schlumberger. Most recently we have worked together for many years at GMP FirstEnergy.
Auctus has been set up at the beginning of a new decade in which we see significant opportunities in the Energy space. Globally, demand for energy is at record levels and continues to grow. Conversely, investment in traditional energy sources has been severely constrained. We believe this imbalance creates opportunities for both companies and investors.
Auctus provides Corporate Broking, Equity Research and Investment Banking services.
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