Capital Markets Day 2019 Return to growth 29 October 2019
Introduction Ed Story President and CEO
Pharos Energy Capital Markets Day 2019 29 October 2019 / 4 A new name to signify a A diverse and refreshed business complimentary portfolio with new growth opportunities in Egypt, Vietnam and Israel A robust and disciplined…
Pharos Energy Capital Markets Day 2019 29 October 2019 / 5 Vietnam - a valued asset - Supportive relationships developed at the highest levels of government - Organic growth opportunities Egypt - evolving energy hub for the…
Contents INTRODUCTION Ed Story, President and CEO A SUSTAINABLE BUSINESS Jann Brown, Managing Director and CFO EGYPT Jason Stabell, President, El Fayum Egypt Mohamed Sayed, Group Head of Technical Ian Halstead, General Manager, Egypt…
A sustainable business Jann Brown Managing Director and Chief Financial Officer
Pharos Energy Capital Markets Day 2019 29 October 2019 / 8 Operating a sustainable business Responsibility Framework Environment Society Business Ethics People Reduction initiatives c.6 million total training levy 972m taxes and…
Egypt Pharos El Fayum Jason Stabell President El Fayum Egypt
Pharos Energy Capital Markets Day 2019 29 October 2019 / 10 Pharos El Fayum - Egypt Overview The El Fayum and North Beni Suef Blocks Pharos El Fayum in Numbers E&P company focused on Egypts Western Desert Oil 20+ year in-country…
Pharos Energy Capital Markets Day 2019 29 October 2019 / 11 Unique and Attractive Growth Opportunity in MENA 1 An Attractive and Stable E&P Environment 2 Opportunity of Scale within Resilient Western Desert 3 Operated Onshore…
Pharos Energy Capital Markets Day 2019 29 October 2019 / 12 An Attractive and Stable E&P Environment 25 50 70 Global Liquids Breakeven (US/bbl) Stabilised & Convertible Strong Operating FX Reserves (bn) 20 40 Kazakhstan…
Pharos Energy Capital Markets Day 2019 29 October 2019 / 13 Opportunity of Scale within Resilient Western Desert Resilient Operating Environment Fragmented Acreage Holding MAP COVERAGE Western Desert Nile Delta Gulf of Suez Zohr…
Pharos Energy Capital Markets Day 2019 29 October 2019 / 14 Operated Onshore Oil Facilities and Infrastructure Overview Surrounded by analogue productive fields and existing infrastructure Location Gindi Basin geologic province,…
Pharos Energy Capital Markets Day 2019 29 October 2019 / 15 Many Ways to Win Through Multiple Reservoir Targets Stratigraphic Column Stratigraphic Description Primary hydrocarbon source rocks: Productive Reservoir Reservoir…
Pharos Energy Capital Markets Day 2019 29 October 2019 / 16 FDP In Place To Reverse Historical Under-investment Limited capital RBL restriction Looking No drilling 2016 No new waterfloods since 2015 Forward One rig from February…
Pharos Energy Capital Markets Day 2019 29 October 2019 / 17 One of the Largest Unexplored Areas of the Western Desert El Fayum Exploration Overview El Fayum Exploration Play Trends Provide near field additional production to existing…
Pharos Energy Capital Markets Day 2019 29 October 2019 / 18 New Exploration Block Award North Beni Suef (EGPC Block 5) Signing expected Q4 2019 Pharos announced as winning bidder for North Beni Suef (NBS) Concession in February 2019…
Egypt Pharos El Fayum Mohamed Sayed Group Head of Technical
Pharos Energy Capital Markets Day 2019 29 October 2019 / 20 Unique and Attractive Growth Opportunity in MENA 1 Detailed Full Field Development Plan Overview - Runway to Growth 2 Geology Overview - Proven Basin in Prolific Western…
Pharos Energy Capital Markets Day 2019 29 October 2019 / 21 Full Field Development Plan Provides Detailed Runway to Growth Longer-term strategy Silah Field Grid drilling with optimized well spacing Expand water floods across the…
Pharos Energy Capital Markets Day 2019 29 October 2019 / 22 Operated Onshore Oil Facilities and Infrastructure Overview Surrounded by analogue productive fields and existing infrastructure Location Gindi Basin geologic province,…
Pharos Energy Capital Markets Day 2019 29 October 2019 / 23 Unique and Attractive Growth Opportunity in MENA 1 Detailed Full Field Development Plan Overview - Runway to Growth 2 Geology Overview - Proven Basin in Prolific Western…
Pharos Energy Capital Markets Day 2019 29 October 2019 / 24 Geological Framework Geology Overview El Fayum positioned in the Western Geologic Desert South of the Kattaniya Uplift Summary Main producing reservoirs within the N Fayum AR-E…
Pharos Energy Capital Markets Day 2019 29 October 2019 / 25 Primary Reservoirs Detailed Review Stratigraphic Column - Primary Reservoirs Focus Primary Reservoirs Description Reservoir The main oil-bearing reservoirs are the Late…
Pharos Energy Capital Markets Day 2019 29 October 2019 / 26 Stacked Pay: North Silah Deep Field Example N SILAH DEEP 1X N. S. Deep 1-1 North Silah AR A North Silah Deep W NSD-1 E AR A: Deep Stratigraphy 70bopd 20API Seismic Line AR B…
Pharos Energy Capital Markets Day 2019 29 October 2019 / 27 Unique and Attractive Growth Opportunity in MENA 1 Detailed Full Field Development Plan Overview - Runway to Growth 2 Geology Overview - Proven Basin in Prolific Western…
Pharos Energy Capital Markets Day 2019 29 October 2019 / 28 El Fayum Well Inventory Summary Summary Overview Well Inventory Summary 1 Silah 7 Ain Assillen Roughly spilt 1/3 exploration and 2/3 appraisal and 2 North Silah 8 West…
Pharos Energy Capital Markets Day 2019 29 October 2019 / 29 Greater Silah Development Lease Greater Silah Field: Top UB Sand Depth Map Discoveries in the Upper and Lower Abu Roash G, and Upper and Lower North Silah Bahariya, Kharita.…
Pharos Energy Capital Markets Day 2019 29 October 2019 / 30 Satellite Field Development Lease Satellite Fields: Top UB Sand Depth Map 10 different Satellite fields, with average wells from 1 well field to 4 wells fields Discoveries…
Pharos Energy Capital Markets Day 2019 29 October 2019 / 31 Waterflood Response NS Field: Top L AR G Sand Depth Structure Map NSD Field: Top L AR G Sand Depth Structure Map LKO: -7,568 Production Well Injection Well OWC -6807…
Pharos Energy Capital Markets Day 2019 29 October 2019 / 32 Unique and Attractive Growth Opportunity in MENA 1 Detailed Full Field Development Plan Overview - Runway to Growth 2 Geology Overview - Proven Basin in Prolific Western…
Pharos Energy Capital Markets Day 2019 29 October 2019 / 33 Development Plan - Summary Summary Workflows and Outputs Key Perspectives Summary Forecasting off historical performance Workflows Diverse Moderate Staged, Geologic static…
Pharos Energy Capital Markets Day 2019 29 October 2019 / 34 Methodology Simulation Modelling Simulation Modelling Summary Testing 90-Acre Spacing Pattern Select sector simulation models created Greater Silah Area (8 in total) Honors…
Pharos Energy Capital Markets Day 2019 29 October 2019 / 35 El Fayum Concession Reserves and Resources Progression Current (pre Oct - 2019) 2019 2020 Focus Future Development Plan One drilling rig (1 well/month) Two driling rigs…
Pharos Energy Capital Markets Day 2019 29 October 2019 / 36 Local Analogue Fields EUR Recovery Factor Benchmarking Analog Fields El Fayum Average (excl. El Fayum) of 18 fields in the Western Desert Khalda 32% 21% 24% 30%…
Pharos Energy Capital Markets Day 2019 29 October 2019 / 37 Unique and Attractive Growth Opportunity in MENA 1 Detailed Full Field Development Plan Overview - Runway to Growth 2 Geology Overview - Proven Basin in Prolific Western…
Pharos Energy Capital Markets Day 2019 29 October 2019 / 38 Scalable and efficient development operations Relatively low risk development operations Infill drilling, workover and TD Reached on Average Within 20 Days waterflood…
Pharos Energy Capital Markets Day 2019 29 October 2019 / 39 Low Cost Operating Environment Dramatic Cost Deflation Since 2014 Reduced scope in certain Increased use of local operations (e.g logging) operators and locally manufactured…
Pharos Energy Capital Markets Day 2019 29 October 2019 / 40 Egypt Oil Infrastructure Overview Summary Overview Infrastructure Map Operated by Petroleum Pipeline Company (50% owned by EGPC) SUMED Made up of two parallel 320km lines…
Pharos Energy Capital Markets Day 2019 29 October 2019 / 41 Flow Assurance / Oil Shipping via Truck Average blank pour point of all fields is 35C Flow Flow assurance utilises electric heat trace Assurance Tanks equipped with electric…
Pharos Energy Capital Markets Day 2019 29 October 2019 / 42 Water Management and Supply Prolific water source reservoirs (Kharita and Abu Roash E) Sources of throughout the El Fayum Concession with high reservoir water for water…
Pharos Energy Capital Markets Day 2019 29 October 2019 / 43 El Fayum Concession Facilities Summary Production Facilities General Facilities Layout Multi-well pads equipped with modular production facilities unless the well can be…
Pharos Energy Capital Markets Day 2019 29 October 2019 / 44 Unique and Attractive Growth Opportunity in MENA 1 Detailed Full Field Development Plan Overview - Runway to Growth 2 Geology Overview - Proven Basin in Prolific Western…
Pharos Energy Capital Markets Day 2019 29 October 2019 / 45 2019 Production Performance Second rig El Fayum 2019 Daily Production started mid El Fayum concession production has been on decline due to historical July 2019 9000 Deal…
Pharos Energy Capital Markets Day 2019 29 October 2019 / 46 2019 2021 Strategy: Focus on Development Development Stabilize base production, offset production decline Sustainable production growth (2020/2021) (2019/2020) In-fill…
Pharos Energy Capital Markets Day 2019 29 October 2019 / 47 El Fayum Indicative schedule, exact dates not shown Drilling and Workover Schedule 2019/2020 YEAR 2019 2020 QUARTER Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 MONTH JAN FEB MAR APR MAY JUN JUL…
Pharos Energy Capital Markets Day 2019 29 October 2019 / 48 Key Investment Highlights Reserves & Resources Drilling Operations - Large resource to be developed - Low cost operations - Geology is well understood - Simple, repeatable…
Operating a sustainable business Ian Halstead General Manager - Egypt
Pharos Energy Capital Markets Day 2019 29 October 2019 / 50 Environment Case Study To protect the environment and conserve biodiversity Reduction in GHG emissions Through Phase One utilization of associated-gas powered AggrekoTM…
Pharos Energy Capital Markets Day 2019 29 October 2019 / 51 Reduction in GHG emissions El Fayum GHG Reduction Initiatives 7,000 El Fayum GHG Reduction Initiatives 6,000 Phase One AggrekoTM associated-gas generator 5,000…
Pharos Energy Capital Markets Day 2019 29 October 2019 / 52 Society Case Study To consult with and enhance the wellbeing of our host communities Working in harmony with our community Contributed to the upgrading of public roads in…
Pharos Energy Capital Markets Day 2019 29 October 2019 / 53 Upgrading our Egypt organisation - progress Business Rolled out Business Risk Management System across all Departments July 2019 New corporate new vendor on-boarding process…
Egypt Q & A
Vietnam TGT & CNV Tony Roche Deputy General Manager, HLHVJOC
Pharos Energy Capital Markets Day 2019 29 October 2019 / 56 A valued asset Growth opportunity in Vietnam 1 Vietnam Overview 2 TGT and CNV Field Schematics and Production History 3 Highlights and Opportunities Vietnam 4…
Pharos Energy Capital Markets Day 2019 29 October 2019 / 57 Vietnam Overview Vietnam Sedimentary Basins and Petroleum Infrastructure 1996 Zero 1 billion Active in Vietnam since Lost Time Injury since Invested in Vietnam over 19 1996…
Pharos Energy Capital Markets Day 2019 29 October 2019 / 58 Interests in Vietnam Cuu Long Basin Phu Khanh Basin 70% W.I. and Operator of Exploration Blocks 125 & 126 30.5% W.I. in Block 16- 1; TGT Field 25% W.I. in Block…
Pharos Energy Capital Markets Day 2019 29 October 2019 / 59 Field Schematics TGT Field CNV Field Hoang Long Joint Operating Company (HLJOC) Hoan Vu Joint Operating Company (HVJOC) Partners: 30.5% - Pharos; 28.5% - PTTEP; 41% - PVEP…
Pharos Energy Capital Markets Day 2019 29 October 2019 / 60 TGT Production History TGT First Oil on 22nd August 2011 from H1-WHP H4-WHP online on 6th July 2012 H5-WHP online in August 2015 Field presently has 29 producers, 1 water…
Pharos Energy Capital Markets Day 2019 29 October 2019 / 61 H1 Water Handling TGT Field Layout (65k BWPD) Fluid Processing incl. Online Sep-2017 remaining water in 3- phase stream Tie-In Agreement Negotiations ongoing H1-WHP Gaslift…
Pharos Energy Capital Markets Day 2019 29 October 2019 / 62 CNV Production History CNV First oil was 25 July 2008 Field presently has 5 producers Scheme - CNV Development Well
Pharos Energy Capital Markets Day 2019 29 October 2019 / 63 Vietnam TGT and CNV Fields H1 2019 Net production average of 7,274 boepd TGT production average 5,686 boepd net CNV production average 1,588 boepd net Activity and…
Pharos Energy Capital Markets Day 2019 29 October 2019 / 64 Highlights and Opportunities TGT & CNV Net 2P Reserves Excellent Outstanding c.4/bbl Safety Record uptime 23m Manhours 99% for both TGT Premium to Brent without an LTI and…
Pharos Energy Capital Markets Day 2019 29 October 2019 / 65 Future TGT Wells H1.1 Infill TGT-15X TGT-H1-33P H1.2 H2 Appraisal/Producer Appraisal/Producer H3N Infill H3 Appraisal/Producer H4 Infill…
Pharos Energy Capital Markets Day 2019 29 October 2019 / 66 TGT-15X Completion TGT D1 and E Opportunity Well will further appraise the deeper D1 and E structures Dual completion- will allow production from deep appraisal zones and…
Pharos Energy Capital Markets Day 2019 29 October 2019 / 67 Society Case Study To consult with and contribute into our host communities Education Support for Hearing Impaired Children Founded and managed by the Hanoi Red Cross, the…
Pharos Energy Capital Markets Day 2019 29 October 2019 / 68 People Case Study To ensure the health, safety, security and welfare of our employees and those with whom we work Excellent HSE performance Safety programmes build and…
Pharos Energy Capital Markets Day 2019 29 October 2019 / 69 Key Highlights Strong focus on safety Intensive well intervention and excellent record has enabled meeting production targets despite delayed drilling Updated FFDP…
Vietnam 125 & 126 Vincent Duignan Group Exploration Manager and General Manager South East Asia
Pharos Energy Capital Markets Day 2019 29 October 2019 / 71 Phu Khanh Basin The last remaining frontier in Vietnam New Frontier Area Shallow to Deep Water Basin (water depth 50m-2500m) Undrilled in the main basin area, but a few…
Pharos Energy Capital Markets Day 2019 29 October 2019 / 72 Phu Khanh Basin Blocks 125 & 126 Geological observations indicate: demonstrated source, generation and migration of oil in this basin; risk of gas Tertiary & Basement…
Pharos Energy Capital Markets Day 2019 29 October 2019 / 73 Phu Khanh Basin Blocks 125 & 126 Processing and interpretation of existing and new 2D seismic data are currently underway 3D seismic acquisition planned for 2020 - 2021…
Pharos Energy Capital Markets Day 2019 29 October 2019 / 74 Blocks 125 & 126 Ongoing Interpretation Frontier exploration geologically very analogous to the Cuu Long Top Basement TWT Basin (ms) Multiple plays in both shallow and…
Vietnam Q & A
Egypt & Vietnam fiscal terms Vimal Shah Commercial Manager
Pharos Energy Capital Markets Day 2019 29 October 2019 / 77 El Fayum Fiscal Take Indicative Illustration Fiscal Take Waterfall Assumptions 65 Brent per bbl Breakdown Pharos El Fayum 100% Working Interest 100% Oil Revenues Operated…
Pharos Energy Capital Markets Day 2019 29 October 2019 / 78 TGT Fiscal Take Indicative Illustration Fiscal Take Waterfall Assumptions 65 Brent per bbl Breakdown Pharos has 30.5% WI (PTTEP 28.5%, PVEP 100% Total Revenues 41.0%) in…
Pharos Energy Capital Markets Day 2019 29 October 2019 / 79 CNV Fiscal Take Indicative Illustration Fiscal Take Waterfall Assumptions 65 Brent per bbl Breakdown Pharos has 25% WI (PTTEP 25%, PVEP 50%) in 100% Total Revenues Block…
New business & organic growth Mike Watts Managing Director
Pharos Energy Capital Markets Day 2019 29 October 2019 / 81 Strategic Value Creation and Growth Opportunities Organic EGYPT VIETNAM ISRAEL Potential El Fayum conventional exploration TGT deep HPHT Eight blocks El Fayum unconventional…
Pharos Energy Capital Markets Day 2019 29 October 2019 / 82 El Fayum Conventional Exploration ORGANIC POTENTIAL Egypt El Fayum conventional resource play New 3D seismic 50 identified prospects and leads planned (blue outline)…
Pharos Energy Capital Markets Day 2019 29 October 2019 / 83 El Fayum Unconventional Resource Play ORGANIC POTENTIAL Egypt El Fayum unconventional resource play AAl Ayyat Potential AR F Studies from 2011 indicate the AR F has high…
Pharos Energy Capital Markets Day 2019 29 October 2019 / 84 North Beni Suef Existing 2D and 3D Coverage ORGANIC POTENTIAL Egypt North Beni Suef North Beni Suef award February 2019, signing expected before year end Existing…
Pharos Energy Capital Markets Day 2019 29 October 2019 / 85 North Beni Suef cont. Beni Suef Basin Production Lahun ceased production in 2011 Yusif ceased production in 2014 Azhar expected to produce until 2021 Beni Suef expected to…
Pharos Energy Capital Markets Day 2019 29 October 2019 / 86 TGT deep HPHT Oligocene Play ORGANIC POTENTIAL Vietnam TGT deep HPHT Oligocene play Next appraisal well to be fracked before testing. Test analysis will help determine…
Pharos Energy Capital Markets Day 2019 29 October 2019 / 87 Blocks 125 & 126 ORGANIC POTENTIAL Vietnam Blocks 125 & 126 2D seismic acquired 2019 3D seismic planned 2020-2021 Phu Khanh Basin Seismic Lines overlain with…
Pharos Energy Capital Markets Day 2019 29 October 2019 / 88 Israel 2nd Offshore Bid Round 8 Blocks Awarded ORGANIC POTENTIAL Israel Eight Blocks Highlight of commercial terms Key fiscal terms: Concession with a royalty and profit…
Pharos Energy Capital Markets Day 2019 29 October 2019 / 89 Eastern Mediterranean An Industry Success Story Tamar Play Lower Miocene deep-water clastic fans sealed by overlying shales and Messinian evaporates in Eratoshenes Levant…
Pharos Energy Capital Markets Day 2019 29 October 2019 / 90 Nile Delta and Levant Basin Creaming Curves Levant Basin 70 65 TCF discovered since 2008 60 Pliocene DHI play 50 Zohr Cumulative TCF 40 Nile Delta Basin 30 60…
Pharos Energy Capital Markets Day 2019 29 October 2019 / 91 East Mediterranean Egypt Regional Energy Hub In The Making Egypt is becoming an energy hub for the eastern Mediterranean The most significant economic co-operation between…
Pharos Energy Capital Markets Day 2019 29 October 2019 / 92 M&A Strategic Value Creation and Growth Opportunities Merger / RTO Transformational Bi-lateral Paper / paper mergers third party negotiations . 250 million Re-rating…
Finance Jann Brown Managing Director and Chief Financial Officer
Pharos Energy Capital Markets Day 2019 29 October 2019 / 94 Funding Cycle Balance Maximising Sheet production Capital Growth Cash Flow Investing Growth from in our through Operations business developments Free Cash Flow Debt…
Pharos Energy Capital Markets Day 2019 29 October 2019 / 95 Revenues and Operating Cash Flow Revenue Stability through Hedging Capital Structure Protect RBL covenants plus cushion RBL over Vietnam - 125m Provide continuity to underpin…
Pharos Energy Capital Markets Day 2019 29 October 2019 / 96 Disciplined Capital Investment Production & Developments Low cost exploration Total Egypt Vietnam Egypt Vietnam Israel 1H 2019 7m 6m 1m 8m 22m FY 2019 19m 16m 3m 12m 50m FY…
Pharos Energy Capital Markets Day 2019 29 October 2019 / 97 Finance Summary Funding Flexibility in Commitment to Robust Allocation Sustainable Dividend Strong operational cash flow Low commitments Integral part of approach to cost…
Conclusion Ed Story President and Chief Executive Officer
Pharos Energy Capital Markets Day 2019 29 October 2019 / 99 Competitive edge in Portfolio of low risk Vietnam, Egypt and Israel organic growth through close local opportunities coupled relationships with potential…
Q&A
Investor Relations Pharos Energy plc Tel: 020 7747 2000 48 Dover Street London W1S 4FF Company No: 3300821 United Kingdom www.pharos.energy
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