Oil and Gas Co. Shares Production Update
Research Report

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Disclosures for Auctus Advisors, Pharos Energy Plc., December 5, 2024

Pharos Energy plc (“PHAR” or the “Company”) is a corporate client of Auctus Advisors LLP (“Auctus”). Auctus receives, and has received in the past 12 months, compensation for providing corporate broking and/or investment banking services to the Company, including the publication and dissemination of marketing material from time to time. MiFID II Disclosures This document, being paid for by a corporate issuer, is believed by Auctus to be an ‘acceptable minor non-monetary benefit’ as set out in Article 12 (3) of the Commission Delegated Act C(2016) 2031 which is part of UK law by virtue of the European Union (Withdrawal) Act 2018. It is produced solely in support of our corporate broking and corporate finance business. Auctus does not offer a secondary execution service in the UK. This note is a marketing communication and NOT independent research. 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Auctus Advisors analyst Stephane Foucaud, in a research report published on December 5, 2024, maintained his target price of £0.50 on Pharos Energy Plc. (PHAR:LSE).

The report follows the company's operational update, showing production in line with expectations.

Foucaud highlighted that "Production from January to the end of November 2024 was 5,760 boe/d," noting this was "in line with our expectations." He added that "FY24 production is expected to be around the same level" and within the company's guidance range of 5.2-6.5 mboe/d.

The analyst pointed to positive developments in Vietnam, stating, "The new wells at TGT are also performing in line with expectations, and production in Vietnam from January to the end of November was 4,324 boe/d."

He noted that approval for the 5-year extension to the TGT and CNV licenses "is in its final stages."

Regarding the company's financial position, Foucaud stated, "Net cash (zero debt) at the end of November was ~US$18 mm," adding that "An additional US$10 mm has been paid by EGPC since the end of June (total of US$24 mm at the end of November)."

Auctus Advisors' valuation methodology is based on NAV. The analyst explained, "Our Core NAV and ReNAV are broadly unchanged at £0.32/sh and £0.51/sh respectively," with the existing 2C resources in Vietnam having "an unrisked value of £0.18 per share."

The share price at the time of the report of £0.23 represents a potential return of approximately 117% to the analyst's £0.50 target price.