Pharos Energy Plc (LSE: PHAR): Operations on track. Six well drilling programme to commence in Vietnam in 3Q25
• 1H25 production was 5,642 boe/d, broadly in line with our expectations of ~5,800 boe/d. This also compares well with production of 5,757 boe/d from January to April.• Production in Vietnam remained stable at 4,183 boe/d in 1H25, compared to 4,216 boe/d over the January–April period.
• The company has reiterated its full-year production guidance of 5.0–6.2 mboe/d, with capital expenditure expected to range between US$33–40 mm.
• The key near term newsflow remains the drilling programme in Vietnam. The four-well campaign at TGT is now scheduled to commence in late 3Q25, ahead of the previously anticipated 4Q25 start. This includes the 18X appraisal well, which could unlock 1–3 mmboe of additional reserves in the western part of the field.
• A two-well programme at CNV is set to begin in 4Q25, featuring the 5X appraisal well aimed at extending production into the northern area of the field.
• Overall, production is expected to grow by 20% and the contingent and prospective resources in Vietnam represent over 100% of the company’s existing 2P reserves in that country.
• We re-iterate our target price of £0.45 per share.
Balance sheet
While receivables in Egypt increased from US$31.7 mm at the end of April to US$33.5 mm at the end of June, Pharos’ cash position of US$22.6 mm at the end of April is slightly above the cash position reported at the end of April.
Valuation
Our Core NAV and ReNAV are respectively £0.27 per share and £0.49 per share. The aggregate unrisked value for the Vietnam contingent and prospective resources is £0.30 per share, representing 140% of 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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