Pharos Energy PLC (LON:PHAR) is entering a pivotal phase in its growth strategy, with promising developments in Vietnam set to drive future production and shareholder value. According to a recent research note by Auctus Advisors, analyst Stephane Foucaud outlines a favourable outlook for the London-listed energy company as it leverages lower capital expenditure and high-impact drilling to bolster performance.
From January to April 2025, Pharos recorded a production rate of 5,757 barrels of oil equivalent per day (boe/d), staying comfortably within its full-year guidance of 5.0–6.2 mboe/d. This output included 4,216 boe/d from Vietnam and 1,541 bbl/d from Egypt, maintaining a balanced portfolio across its core operating regions.
Capital efficiency remains a highlight for Pharos. The company has revised its 2025 capital expenditure guidance down from a range of US$37–66 million to US$33–40 million, citing lower rig rates and reduced drilling activity in Egypt. This optimisation has freed up an additional US$17 million for early 2026, laying the groundwork for sustained investment.
The upcoming infill drilling campaign in Vietnam is a central focus. The four-well programme, three at Te Giac Trang (TGT) and one at Ca Ngu Vang (CNV), has the potential to boost Vietnamese production by approximately 20% in 2026. Furthermore, additional development wells and extended production beyond current licence expiries could convert up to 5.5 million barrels of 2C contingent resources into active reserves.
Stephane Foucaud commented on the scope and impact of the programme: “The key near term newsflow remains the drilling programme in Vietnam… Success at the 18X appraisal well (TGT), could add 1-3 mmboe of reserves in the western area of the field. Meanwhile, the 5X appraisal well at CNV could extend production into the northern part of the field.”
In parallel, Pharos continues to manage its financial position carefully. It reported US$22 million in cash at the end of April 2025, aligning with Auctus’ forecasts, and received US$4.9 million from the Egyptian General Petroleum Corporation. While receivables from Egypt rose to US$31.7 million, the cash flow remains robust.
Auctus Advisors has adjusted its target price for Pharos shares to £0.45, reflecting updated oil price assumptions and a revised production timeline for Egypt. Despite this, the valuation remains compelling. Pharos’ Core Net Asset Value (NAV) is estimated at £0.25 per share, with a Risked NAV (RENAV) of £0.45 per share. Notably, the aggregate unrisked value of Vietnamese contingent and prospective resources stands at £0.31 per share, over 150% of the current share price.
Final thoughts, Pharos Energy is well-positioned to unlock substantial value through strategic capital deployment and resource development, particularly in Vietnam. Investors looking for a balanced play in the oil and gas sector with near-term catalysts may find Pharos’ disciplined approach and upside potential particularly appealing.
