UK's Pharos Energy obtains licence extensions
Pharos Energy plc, an UK independent energy company, announced on December 20 that it has received five-year licence extensions to the company’s two producing assets in Vietnam, the Te Giac Trang (TGT) and Ca Nu Bang (CVN) offshore fields.
The licence extensions have been formally granted by the Vietnamese government to Hoang Long Joint Operating Company and Hoan Vu Joint Operating Company respectively. The partners in the companies will now formally approve and enter into supplementary documentation to finalise the extensions. This will result in extension of the licence for the TGT field to December 2031, and extension of the licence for the CNV field to December 2032.
These licence extensions provide the catalyst for initiating the planned work schedule, expected to commence with the drilling of an appraisal well in the TGT field in the fourth quarter of 2025. The extensions also unlock value with the drilling of additional infill wells. The extensions are expected to result in an increase to the TGT and CNV 2024 year-end, proven and probable reserves of approximately 10 per cent, with potential to further increase reserves through appraisal success and infill wells.
There is scope for further reserve increases of approximately 70 per cent following additional infill drilling and success in the appraisal.
Based on internal management analysis, the extensions can increase the net present value of TGT and CNV by more than 50 per cent.
Katherine Roe, CEO of Pharos Energy, said, "The granting of the TGT and CNV licence extensions is a significant milestone for the company and a key catalyst to unlocking untapped potential within our existing portfolio. This is very welcome news and allows us to prioritise future investment to extract and grow value from our assets."
"Pharos is well positioned for future growth, and we remain committed to continue supporting the Vietnamese government's energy security agenda through our investments in TGT and CNV, as well as progressing our exciting position in Blocks 125 and 126," she added.
The extensions are accompanied by an agreed work commitment of 3D seismic reprocessing and one appraisal well on each field. Certain other licence terms have been revised to be consistent with precedent extensions granted to other operators by the Vietnamese government and are in line with the current Petroleum Law provisions.
By Thanh Van
Source: VIR
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