Calendar An icon of a desk calendar. Cancel An icon of a circle with a diagonal line across. Caret An icon of a block arrow pointing to the right. Email An icon of a paper envelope. Facebook An icon of the Facebook "f" mark. Google An icon of the Google "G" mark. Linked In An icon of the Linked In "in" mark. Logout An icon representing logout. Profile An icon that resembles human head and shoulders. Telephone An icon of a traditional telephone receiver. Tick An icon of a tick mark. Is Public An icon of a human eye and eyelashes. Is Not Public An icon of a human eye and eyelashes with a diagonal line through it. Pause Icon A two-lined pause icon for stopping interactions. Quote Mark A opening quote mark. Quote Mark A closing quote mark. Arrow An icon of an arrow. Folder An icon of a paper folder. Breaking An icon of an exclamation mark on a circular background. Camera An icon of a digital camera. Caret An icon of a caret arrow. Clock An icon of a clock face. Close An icon of the an X shape. Close Icon An icon used to represent where to interact to collapse or dismiss a component Comment An icon of a speech bubble. Comments An icon of a speech bubble, denoting user comments. Ellipsis An icon of 3 horizontal dots. Envelope An icon of a paper envelope. Facebook An icon of a facebook f logo. Camera An icon of a digital camera. Home An icon of a house. Instagram An icon of the Instagram logo. LinkedIn An icon of the LinkedIn logo. Magnifying Glass An icon of a magnifying glass. Search Icon A magnifying glass icon that is used to represent the function of searching. Menu An icon of 3 horizontal lines. Hamburger Menu Icon An icon used to represent a collapsed menu. Next An icon of an arrow pointing to the right. Notice An explanation mark centred inside a circle. Previous An icon of an arrow pointing to the left. Rating An icon of a star. Tag An icon of a tag. Twitter An icon of the Twitter logo. Video Camera An icon of a video camera shape. Speech Bubble Icon A icon displaying a speech bubble WhatsApp An icon of the WhatsApp logo. Information An icon of an information logo. Plus A mathematical 'plus' symbol. Duration An icon indicating Time. Success Tick An icon of a green tick. Success Tick Timeout An icon of a greyed out success tick. Loading Spinner An icon of a loading spinner.

Pharos farms out Egyptian assets to IPR

Men working in the background with pipe in front
Pharos Energy

Pharos Energy has struck a farm-out and sale agreement for a stake in its Egyptian assets with a subsidiary of IPR Energy.

IPR Lake Qarun Petroleum will pay $5 million at closing and will fund Pharos’ costs for $38.43mn. There is also a contingent consideration of up to $20mn, based on Brent crude prices for the years 2022-25.

The deal involves a 55% working interest and operatorship in the El Fayum and North Beni Suef concessions.

Pharos CEO Ed Story welcomed the deal, saying IPR had “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 programme on these Egyptian assets, which will in turn lead to increased production, helping to fulfil the full potential of the concessions.”

Pharos expects the deal to complete in the first quarter of 2022.

IPR has 40 years of experience in Egypt. It is working on eight concessions, of which it operates five.

The company struck a deal with Dana Gas in October 2020 but the latter abandoned the sale as conditions improved. IPR took Dana to arbitration on the matter but lost in July.

Drilling plans

Pharos reported today that production in Egypt was 3,718 barrels per day in the first half of the year, down from 5,979 bpd in the same period of 2020. It expects production to be 3,200-3,500 bpd in the second half.

The company will launch a three-well programme in October to increase production. In the longer term, it plans a 57 well producer and injector programme, driven by IPR’s funding.

In the fourth quarter of this year, Pharos plans to test the Batran-1X discovery, which it made in June. This found 15.85 metres of net pay in the LARG and UB sands, which it will test.

Recommended for you

More from Energy Voice

Latest Posts