No Intent to Acquire Shell Western Desert Assets

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO

WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF SUCH JURISDICTION

FOR IMMEDIATE RELEASE

Pharos Energy plc

("Pharos" or the "Company" or, together with its subsidiaries, the "Group")

No Intention to Acquire Shell Western Desert Assets

On 6 March 2020, Pharos Energy plc ("Pharos") confirmed that it was in the preliminary stages of evaluating the acquisition, as part of a consortium, of Shell Egypt NV's (an affiliate of Royal Dutch Shell plc) ("Shell") upstream portfolio in the Western Desert in Egypt ("Western Desert Assets").

The Board of Pharos evaluates M&A opportunities with reference to strict strategic, financial and operational criteria. In light of current market conditions, the Board of Pharos has determined that an acquisition of the Western Desert Assets is unlikely to be in shareholders' best interests and has accordingly decided to withdraw from the consortium that is evaluating that opportunity.

The Board remains committed to its strategy of delivering sustainable long-term growth, and our strategic ambition is to deliver value for all our stakeholders through the responsible management of our current portfolio and the careful selection of growth opportunities.  

Enquiries

Pharos Energy plc                                                                                                                                   Tel: 020 7747 2000

Ed Story, President and Chief Executive Officer    

Jann Brown, Managing Director and Chief Financial Officer

Mike Watts, Managing Director

Sharan Dhami, Group Head of Investor Relations

Camarco                                                                                                                                                  Tel: 020 3757 4980

Billy Clegg | Owen Roberts | Monique Perks

Notes to editors

Pharos Energy is an independent oil and gas exploration and production company with a focus on sustainable growth and returns to stakeholders, headquartered in London and listed on the London Stock Exchange.

Pharos has production, development and exploration interests in Egypt, Israel and Vietnam.

In Egypt, Pharos holds a 100% working interest in the El Fayum oil concession in the low-cost and highly prolific Western Desert, one of Egypt's most established and prolific hydrocarbon basins. The concession produces from 10 fields and is located 80 km south west of Cairo and close to local energy infrastructure. It is operated by Petrosilah a 50/50 JV between Pharos and Egyptian General Petroleum Corporation (EGPC). Pharos is also an operator with 100% working interest in the North Beni Suef (NBS) Concession which is located immediately south of the El Fayum concession. 

In Israel, Pharos together with Cairn Energy plc and Israel's Ratio Oil Exploration, were successful in their bid for eight blocks in the second offshore bid round in Israel. Each party has an equal working interest and Cairn is the operator.

In Vietnam, Pharos holds a 30.5% working interest in the Te Giac Trang (TGT) Field in Block 16-1, which is operated by the Hoang Long Joint Operating Company. Block 16-1 is located in the shallow water Cuu Long Basin, offshore southern Vietnam and a 25% working interest in the Ca Ngu Vang (CVN) Field in Block 9-2, which is operated by the Hoan Vu Joint Operating Company. Block 9-2 is located in the shallow water Cuu Long Basin, offshore southern Vietnam. Pharos also holds a 70% interest in and is designated operator of Blocks 125 & 126, located in the moderate to deep water Phu Khanh Basin, north east of the Cuu Long Basin, offshore central Vietnam.