Egypt: Pharos Energy H1 Operational Update

Despite the global COVID-19 pandemic, Pharos continues to manage its operations carefully with the Group adhering to the procedures and restrictions put in place by its host countries, with negligible disruption to business in the period.

Operational Summary

Egypt 1H 2020 production 5,979 bopd (2 April – 30 June 2019: 5,262 bopd)

The three drilling-rig programme in Q1 2020 increased production in April, production averaged 6,396 bopd and production peaked at 7,009 bopd on the 23 April 2020

Production operations in Egypt have continued, focusing on well intervention and water-flood enhancement following scaling back of drilling activity

Reductions agreed on both El Fayum oil price discount ($1/bbl reduction) and refinery handling charge ($0.80/bbl reduction), initially for six months while technical review continues.

Outlook

2020 Production guidance of 5,000-6,000 bopd unchanged

Continue with workover programme and waterflood deployment

Assess the results of recent waterflood pilot projects in Greater Silah area

Continuation of work on the subsurface dynamic and static models to improve future well drilling campaigns and future waterflood implementation

Continued assessment of Egypt drilling programme in relation to oil price environment

Pharos holds a 100% working interest in the El Fayum oil Concession in the Western Desert.The Concession produces from 10 fields and is located 80 km south west of Cairo. It is operated by Petrosilah, a 50/50 JV between Pharos and the Egyptian General Petroleum Corporation (EGPC). Pharos is also an operator with a 100% working interest in the North Beni Suef (NBS) Concession, which is located immediately south of the El Fayum Concession.