Pharos Group Farms-Out interests in the El Fayum and North Beni Suef Concessions in Egypt

Wednesday, September 15, 2021

Pharos Energy plc, an independent oil and gas exploration and production company, is pleased to announce that the Pharos Group has entered into conditional agreements for the farm-out and sale of a 55% working interest and operatorship in each of the Egyptian El Fayum and North Beni Suef Concessions (the Assets) to IPR Lake Qarun Petroleum Co. (IPR Lake Qarun), a wholly owned subsidiary of IPR Energy AG (IPR) (the Transaction).

The consideration implies a gross (100%) value of up to $115 million for the Assets and consists of $5 million cash at completion of the Transaction, funding of the Pharos Group’s retained interest share of the cost of future activities on the Assets for $38.425 million net (subject to working capital and interim period adjustments from the economic effective date of July 1, 2020), and contingent consideration of up to $20 million dependent on Brent oil prices in each of the 4 calendar years from 2022 to 2025.

Transaction Highlights

• Pharos to sell a 55% working interest and operatorship in the producing El Fayum Concession and in the North Beni Suef Concession
• The Transaction implies a gross value of up to $115 million for the Assets, dependent on the Brent Price contingent consideration
• Firm consideration of $5 million upon completion of the Transaction
• Disproportionate funding by IPR Lake Qarun of $38.425 million of costs net to Pharos (to be adjusted for working capital and interim period adjustments from the economic effective date of 1 July 2020)
• Additional contingent consideration of up to $20 million dependent on the Brent Price from 2022 to the end of 2025 (with floor and cap at $62 / bbl and c. $90 / bbl, respectively)
• Expected to strengthen the Pharos Group’s balance sheet and enable a more comprehensive and quicker development of the El Fayum Concession, as well as testing of the low-risk North Beni Suef Concession at low cost to Pharos through a sustained drilling program
• Completion currently expected Q1 2022

Ed Story, Chief Executive of Pharos, said: “I am extremely pleased to be able to announce the farm-out of a 55% operated interest in each of our Egyptian Concessions, El Fayum and North Beni Suef, to IPR, a group which has extensive experience in Egypt. The farm-out, while instantly boosting our balance sheet, will allow the entry of a partner who has committed to carry Pharos on a capital program on these Egyptian assets, which will in turn lead to increased production, helping to fulfil the full potential of the concessions

« GO BACK

You may also like

" alt="First LNG Realized at the Greater Tortue Ahmeyim Project">

First LNG Realized at the Greater Tortue Ahmeyim Project

" alt="United Energy Acquires Western Desert Producer APEX">

United Energy Acquires Western Desert Producer APEX

" alt="Baker Hughes Announces Major Gas Technology Orders for Venture Global LNG">

Baker Hughes Announces Major Gas Technology Orders for Venture Global LNG

" alt="ReconAfrica: Naingopo Results Demonstrate a Working Petroleum System">

ReconAfrica: Naingopo Results Demonstrate a Working Petroleum System

" alt="Tullow Highlights 2025 Operational Plans in Ghana">

Tullow Highlights 2025 Operational Plans in Ghana

" alt="TotalEnergies to Supply 1.5 TWh to STMicroelectronics in France Over 15 years">

TotalEnergies to Supply 1.5 TWh to STMicroelectronics in France Over 15 years

" alt="Rockhopper Reaches Final Settlement with United on Egypt’s Abu Sennan Concession">

Rockhopper Reaches Final Settlement with United on Egypt’s Abu Sennan Concession

" alt="Oil & Gas Crucial for African Growth: AEC Calls for Industry Support to Defend African Market">

Oil & Gas Crucial for African Growth: AEC Calls for Industry Support to Defend African Market