Pharos Energ, an independent energy company with assets inVietnam and Egypt, announces its interim results for the six months ended 30 June 2024.

Katherine Roe, Chief Executive Officer, commented:
"Since joining as CEO in July, I have found a solid operational business with quality assets delivering stable production and robust cash flows, an impressive team, and a strong financial base. Alongside this, the improving macro environment in Egypt has seen our receivables position improve significantly with over $20m received year to date. This financial strength allows us to announce today the intention to pay an interim dividend of 0.363 pence per share for the current financial year, a continuation of the existing share buyback programme and, importantly, the repayment of all our outstanding debt. We are proud of our Company moving to a net cash position of $17.5m at 30 June and, subsequent to that, is now debtfree.

"We have a solid foundation from which to build on and move forward to grow value in bothVietnam and Egypt. We benefit from having assets with catalysts. In Vietnam, actively progressing the license extensions will unlock appraisal potential. In Egypt, our consolidation proposal will provide enhanced fiscal terms to encourage appropriate re-investment. This will all be considered within the framework of a strict and transparent capital allocation policy that is balanced appropriately and with the priority on evaluating opportunities that can deliver the highest return to shareholders.

"I want to thank shareholders for their continued support and look forward to updating the market on our upcoming activity."

1H Operational Highlights

Group working interest 1H production was 5,851 boepd net (1H 2023: 6,915 boepd net), in line with full year guidance:

• Vietnam 1H production 4,456 boepd (1H 2023: 5,566 boepd)
• Egypt 1H production 1,395 bopd (1H 2023: 1,349 bopd)

In Vietnam:

• Surface and subsurface optimisation to ensure stable TGT and CNV 1H production
• Approval of the TGT Revised Field Development Plan (RFDP) by the Ministry of Industry and Trade (MOIT)
• Agreement between Partners and PetroVietnam (PVN) on the terms and work programme commitments for the extension period of the TGT and CNV five-year licence extension applications; which now await formal approval
• Progressing the opportunity in Block 125 with long lead items ordered in August 2024

In Egypt:

• Focus on workovers, recompletions, and water injection to bring low-cost barrels to production and build reservoir energy for future drilling
• Preparation for exploration and development drilling programmes
• Processing and interpretation of the recently acquired 3D Seismic in NBS

1H Financial and Corporate Highlights

• Net cash as at 30 June 2024 of $17.5m (30 June 2023: net debt of $16.4m)
• Group revenue $65.0m (1H 2023: $86.2m)
• Net profit $15.3m (1H 2023: $14.3m net loss), including $12.6m of restructuring expenses, remeasurements and impairments (1H 2023: $(15.2m))
• Cash generated from operations $44.3m (1H 2023: $43.4m)
• Egypt receivables reduced with $14.8m received from EGPC in 1H 2024 and an additional $4m received on 1 July 2024
• Operating cash flow $27.9m (1H 2023: $21.3m)
• Cash operating costs $17.09/bbl (1H 2023: $14.14/bbl)
• Cash balances as at 30 June 2024 of $30.7m (30 June 2023: $35.9m)
• Forecast cash capex for the full year is $31m ($26m after Egyptian carry by IPR), of which $6.8m had been incurred by 30 June 2024
• Katherine Roe appointed CEO and Mohamed Sayed promoted to COO effective 1 July 2024
• Commitment to shareholder returns continues with an interim dividend of 0.363 pence per share in respect of the year ended 31 December 2024 and continuation of the current phase of the share buyback programme, with $1.1m of the $3m incurred by the end of June 2024

Outlook

2024 production guidance of 5,200 - 6,500 boepd net remains unchanged:

• Vietnam 2024 production guidance 3,900 - 5,000 boepd net; Egypt 2024 production guidance 1,300 - 1,500 bopd net

Vietnam

• Two-well TGT infill drilling programme commenced on 26 August 2024
• Awaiting CNV RFDP approval, expected in Q4 2024, enabling further development drilling on CNV to commence in 2025
• TGT and CNV five-year licence extensions well advanced; once signed, this will enable commitment to further investment in both fields
• Discussions ongoing with potential farm-in partners and rig contractors required to progress Block 125

Egypt

• Expected completion of the exploration commitment well on El Fayum in 4Q
• Processing of c.130km² of 3D seismic data on NBS underway and expected to complete in 4Q
• Discussions ongoing on the consolidation proposal following the initial feedback from EGPC

Vietnam Production

Production for the first half of 2024 from the TGT and CNV fields net to the Group's working interest averaged 4,456 boepd (1H 2023: 5,566 boepd).

TGT 1H 2024 production averaged 11,086 boepd gross and 3,289 boepd net to Pharos (1H 2023: 13,423 boepd gross and 3,983 boepd net). CNV 1H 2024 production averaged 4,667 boepd gross and 1,167 boepd net to Pharos (1H 2023: 6,333 boepd gross and 1,583 boepd net).

Egypt Production

Production for the first half of 2024 from the El Fayum and NBS fields net to the Group's working interest averaged 1,395 bopd (1H 2023: 1,349 bopd).

El Fayum 1H 2024 production averaged 2,867 bopd gross and 1,290 bopd net to Pharos (1H 2023: 2,997 bopd gross and 1,349 bopd net). NBS 1H 2024 production averaged 232 bopd gross and 105 bopd net to Pharos.

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