Pharos Energy plc (LON:PHAR) has reported a solid first-half operational performance, supported by production growth, strong oil price realisations and a strengthened net cash position.
The Auctus Advisors report highlights progress across the company’s operations in Vietnam and Egypt, while also pointing to further drilling opportunities that could add reserves and support future production.
Pharos Energy’s net production averaged 5,650 barrels of oil equivalent per day during the first half of 2026. This comprised 4,583 boe/d from Vietnam and 1,067 boe/d from Egypt. The total was slightly ahead of the 5,561 boe/d average recorded between January and April.
Research analyst Stephane Foucaud wrote: “The company has reaffirmed FY26 guidance of 5,200–6,400 boe/d.”
This reaffirmed guidance provides a clear indication of the production range that management expects to achieve across the full year.
Pharos Energy first-half 2026 highlights
- Net production averaged 5,650 boe/d, including 4,583 boe/d from Vietnam and 1,067 boe/d from Egypt.
- The TGT-18X appraisal well averaged 1,850 barrels per day gross, equivalent to 550 barrels per day net, during June.
- The CNV infill well contributed approximately 700 barrels per day gross and 175 barrels per day net.
- The CNV-5X well was expected to be completed by the end of July.
- Oil realisations averaged US$99 per barrel in Vietnam and US$86 per barrel in Egypt.
- Net cash reached US$45.2 million at the end of June.
- First-half capital expenditure was US$29.5 million.
- Full-year production guidance remained unchanged at 5,200 to 6,400 boe/d.
Vietnam drilling continues to support production
Vietnam remains the largest contributor to Pharos Energy’s production. The TGT-18X appraisal well delivered an average gross rate of 1,850 barrels per day in June, with 550 barrels per day attributable to Pharos on a net basis.
The CNV infill well, which was completed in mid-March, has also added production. It is contributing approximately 700 barrels per day gross and 175 barrels per day net.
Further activity is continuing, with completion of the CNV-5X well expected by the end of July.
Pharos is also considering an additional appraisal well, TGT-20X, at an estimated cost of approximately US$4 million. The well would target an undrilled structure in the H3 fault block, directly beneath the H4 wellhead platform.
According to the research note, the proposed well could be tested and brought into production immediately after completion, in a similar manner to TGT-18X. A successful result could add reserves and create further follow-up drilling opportunities.
Strong oil prices support cash generation
Pharos Energy benefited from firm oil price realisations during the first half. Average realisations were US$99 per barrel in Vietnam and US$86 per barrel in Egypt.
The company also secured premiums to Brent crude for its TGT production, including US$14.75 per barrel for July and US$9 per barrel for August. In Egypt, the June price discount was US$6.14 per barrel.
These pricing levels, together with controlled capital expenditure, helped Pharos build a net cash position of US$45.2 million by the end of June.
The company’s base capital expenditure programme for 2026 remains unchanged at US$50 million, excluding the possible additional TGT-20X appraisal well.
Egypt programme moves forward
In Egypt, Pharos is progressing a six-well drilling programme during 2026. The first well, Silah 8-2, is expected to be connected to production in the coming weeks.
This programme provides additional operational activity alongside the company’s larger production base in Vietnam and gives Pharos several opportunities to maintain or improve output during the year.
Auctus Advisors maintains its target price
Auctus Advisors has retained its target price of 27p per Pharos Energy share, compared with the 26p share price stated in the research note dated 20 July 2026. The broker said the target remained in line with the implied offer value.
Auctus has withdrawn its forecasts during the offer period. The research note also states that Pharos Energy is a corporate client of Auctus Advisors and that Auctus receives compensation for certain services, including the production of research on the company.
Final Thoughts
Pharos Energy entered the second half of 2026 with production slightly ahead of its earlier-year average, a substantial net cash balance and several active drilling opportunities. Vietnam continues to provide the majority of production, while the Egypt drilling programme adds another source of potential output. The proposed TGT-20X appraisal well could provide an additional operational catalyst, although its outcome will depend on drilling results.
