Pharos Energy completes first phase of TGT drilling programme

Independent oil and gas exploration and production company Pharos Energy announced on Thursday that the first phase of the TGT infill development drilling programme in Vietnam had finished.

The London-listed firm said the four-well infill development drilling programme, which began on 21 July, finished on 10 November, with the PVDII drilling rig “waiting on weather” to move from the H1 platform and be released off contract, which was expected in the coming days.

It said all four infill development wells were drilled within schedule, and well under budget.

Looking at the production rates for the first three of the wells, H4-34P had an initial rate of 1,590 barrels of oil per day (bopd) and a current rate of 760 bopd, while 12XPST had an initial rate of 1,910 bopd and a current rate of 1,770 bopd, and H1-33P had an initial rate of 2,880 bopd and a current rate of 2,540 bopd.

The final well in the sequence, TGT-4PST1, would be perforated shortly and then also brought on production.

Pharos said the estimated final cost for the initial four-well programme was around $11m net to the company, representing a saving of around 35% on the HLJOC original budget.

Two additional firm infill development wells, pending budgetary approval at upcoming management committee meetings, were planned to be drilled in a second phase in the third quarter of next year.

“I am delighted to announce that the TGT infill development drilling programme has safely completed ahead of schedule and well within budget,” said president and chief executive officer Ed Story.

“Three of the wells are already on production and the fourth well is presently being completed before being perforated and brought onto production.

“A further update on production performance will be given shortly once all four wells are on stream.”

Story said Pharos was looking forward to completing the firm infill programme with the final two wells in the second phase next year.

“The TGT development programme represents a welcome and timely return to optimising production and value in Vietnam as we increase our exposure to attractive oil prices.”

At 1137 GMT, shares in Pharos Energy were up 5.85% at 21.49p.