IPR is well capitalised to fund the proposed work programme on both Concessions and its existing in-country presence and relationships with the Egyptian government and regulatory authorities are expected to facilitate a rapid expansion of operational activity following completion.IPR has achieved 90% growth in net production with reserve replacement ratios consistently exceeding 100% year on year since 2012. IPR has proven itself to be both a technically proficient and effective and low-cost operator and has agreed to cap initial operator G&A to around half of current levels, saving ~US$2 million gross per annum. IPR has been present in Egypt for 40 years, currently with 8 concessions and operating 5 (both onshore and offshore) and active in all 4 key producing regions, namely the Western Desert, the Nile Delta, the Gulf of Suez and the Eastern Desert.
NGU INDUSTRIES FARMING FULL
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 programme on these Egyptian assets, which will in turn lead to increased production, helping to fulfil the full potential of the concessions.” “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. 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 programmeĮd Story, Chief Executive of Pharos, said:.
The Transaction implies a gross value of up to US$115 million for the Assets, dependent on the Brent Price contingent consideration.Pharos to sell a 55% working interest and operatorship in the producing El Fayum Concession and in the North Beni Suef Concession.The consideration implies a gross (100%) value of up to US$115 million for the Assets and consists of US$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 US$38.425 million net (subject to working capital and interim period adjustments from the economic effective date of 1 July 2020), and contingent consideration of up to US$20 million dependent on Brent oil prices in each of the 4 calendar years from 2022 to 2025. ("IPR Lake Qarun"), a wholly owned subsidiary of IPR Energy AG (“IPR”) (the “Transaction”). 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. Farm-out of the Pharos Group's interests in the El Fayum and North Beni Suef Concessions, Egypt
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