Pharos wraps up Egyptian farm-out to IPR
Pharos Energy announced on March 24 that it had completed the farm-out of 55% interests in its El Fayum and North Beni Suef concessions to fellow Egyptian player IPR.
The Egyptian petroleum ministry has signed the deeds of assignment for the assets, which Pharos said was the final condition necessary to complete the deal, first signed in September last year. Pharos will also transfer operatorship to IPR of the permits, which are situated southwest of Cairo and contain 10 known fields. It will receive an initial payment of only $5mn, but IPR will also cover $38.4mn of Pharos' future work costs and pay up to $20mn each year between 2022 and 2025, depending on oil prices.
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Pharos CEO Jann Brown, who took on the role on March 23, described the transaction as "a key step in reshaping both [the company's] portfolio and financial position, and one which sets Pharos on a path to a new phase of growth in Egypt."