Pharos Energy reports 5,650 boepd first-half production and $82m revenue as Ratio Petroleum takeover offer advances
AI-madePharos Energy posted a group working interest production of 5,650 boepd for the first half of 2026, keeping the independent oil and gas company squarely within its full-year guidance range. Revenue for the period hit $82 million.
The update, published ahead of Pharos’s interim results on September 23, 2026, also confirmed that a recommended acquisition offer from Ratio Petroleum Energy LP—valuing Pharos shares at up to 28 pence each—is still moving forward.
First-half production meets full-year guidance
Pharos’s 5,650 boepd for the first half of 2026 lands comfortably inside the company’s full-year guidance range of 5,200 to 6,400 boepd. Vietnam did most of the heavy lifting at 4,583 boepd, with Egypt adding 1,067 bopd.
For the second half of 2026, the hedging book secures an average floor price of around $60.7 per barrel and an average ceiling of approximately $81.5 per barrel.
Group revenue came in at $82 million, though that includes a hedging loss of $3.7 million. Realized prices looked quite different across the two regions — Vietnam averaged $99 per barrel for the half, swinging from $72 in January up to $126 in April, while Egypt averaged $86 per barrel over the same stretch.
Cash balances moved in the right direction too, rising to $45.2 million at June 30, 2026 from $40.2 million at end-2025. That’s a decent signal that operations are generating real free cash flow, even with drilling activity picking up.
Vietnam drilling program nears completion with additional well proposed
Five of the six planned wells in Vietnam have been drilled on time and on budget, with all five producing in line with pre-drill expectations. The final appraisal well, CNV-5X, is on track to wrap up by the end of July 2026.
One well stands out. TGT-18X averaged 1,850 barrels of oil per day gross during June 2026—or 550 bopd net to Pharos. On the CNV side, an infill well completed in mid-March is now running at around 700 bopd gross, roughly 175 bopd net. TGT’s pricing premium to Brent also reached $14.75 per barrel for July deliveries, which speaks to the commercial quality of the asset.
With the current campaign winding down, Pharos has proposed an extra sidetrack appraisal well—TGT-20X—to be drilled later in 2026. Supplies already on hand from the existing campaign would be used, keeping the incremental cost to about $4 million in additional capex. The proposal has been submitted to partners for approval.
Egypt’s drilling resumes under improved fiscal terms
Egypt’s 2026 drilling program kicked off in early July. The first well of a planned six-well campaign, Silah 8-2, finished drilling on July 9, 2026, and will be tied back to production using a workover rig in the coming weeks.
A new rig, DASCO 45, has been secured and will move next to a target in the Aboud field before heading to the North Beni Suef area. Pharos cited improved fiscal terms as the key factor behind the resumption of drilling—something the market had anticipated but that’s now confirmed and operational.
Egypt’s receivables situation also cleaned up considerably. The outstanding balance dropped to just $1.7 million at June 30, 2026, down sharply from $7.4 million at end-2025. Pharos collected $13.7 million from Egyptian receivables during the first half, effectively clearing the backlog.
Ratio Petroleum takeover offer and shareholder dividend confirmed
The biggest corporate storyline hanging over Pharos is the recommended acquisition offer from Ratio Petroleum Energy LP. Under terms announced on June 24, 2026, shareholders who qualified for the full-year 2025 final dividend are entitled to receive a total value of up to 28 pence (approximately $0.38) per share (trading on the London Stock Exchange).
That 28 pence breaks down into four components: 23.0683 pence in cash per share from Ratio, a 4.0 pence special dividend, and the full-year 2025 final dividend of 0.9317 pence per share, with record and payment dates for the special dividend aligned to those used for Ratio’s cash consideration.
Shareholders have already signed off on the 2025 final dividend. The 0.9317 pence per share payment—around $5.2 million in total—is scheduled to land on July 17, 2026. Combined with the interim dividend of 0.3993 pence paid in January, the full-year 2025 dividend totals 1.331 pence per share, or $7.4 million in aggregate. The scheme document for the ratio offer is expected to be published in due course.
Hedging position and capital expenditure outlook
Pharos has hedged roughly 38% of its 2026 forecast entitlement production through a mix of zero-cost collars, fixed-price swaps, and put options. For the second half of 2026, the hedging book secures an average floor price of around $60.7 per barrel and an average ceiling of approximately $81.5 per barrel. Swap hedges within the portfolio are fixed at an average of roughly $88.4 per barrel.
Heading into next year, about 17% of first-half 2027 forecast entitlement production is already hedged—a floor of approximately $67.30 per barrel and a ceiling of around $85 per barrel.
Full-year 2026 capex stays on budget at roughly $50 million. Should TGT-20X get the green light, that figure climbs to about $54 million, with expenditures so far standing at about $2.5 million in Egypt and $27 million in Vietnam. Production is on track, the balance sheet is in better shape, and a takeover offer is progressing—giving Pharos shareholders a fairly clear read on where things stand heading into the second half.
Kelly is an experienced writer with 15 years of experience exploring the big stories that shape our world, from tech breakthroughs and space exploration to climate, energy, and the fascinating quirks of science. She has a talent for turning complex ideas into sharp, memorable insights that stay with readers long after they’ve finished reading.
