WTI (Mar) $60.62 +26c, Brent (Mar) $65.25 +33c, Diff -$4.63 +7c.

USNG (Feb) $4.88 +97c, UKNG (Feb) 102.5p +13.5p, TTF (Feb) €38.88 +€3.04.

Oil price

Oil is a bit easier today but the real talking point, again, is the natural gas price. Last night’s Henry Hub close of $4.88 was up 57% on the week, as I write it is $5.88 up 80% on the week. UK gas producers are also seeing great realisations but not quite like the US where Texas is due to freeze over…

Pharos Energy

Pharos has provided the following Trading and Operations Update for recent operational activities and performance in respect of the financial year to 31 December 2025, and outlook guidance for 2026. This is in advance of the Company’s Preliminary Results to be published on 25 March 2026. The information contained herein is not audited and may be subject to further review and amendment.

Katherine Roe, Chief Executive Officer, commented:

“2025 was a year of achievement for Pharos as we successfully delivered many key milestones to unlock further value from our existing asset base. In Vietnam, we are pleased to be drilling offshore again with a significant six-well infill and appraisal drilling campaign on TGT and CNV that is expected to increase production from these assets by c.20%, with appraisal well successes adding to reserves. We are proud that our successes to date on these operationally challenging wells have been achieved on time and on budget. On Blocks 125 & 126, approval of the two-year extension to the PSC Exploration Period in June strengthened our position as we progress discussions with potential farm-in partners in a structured process. In Egypt, we were pleased to receive approval from EGPC in September of a consolidated Concession Agreement which provides an attractive investment framework for both Pharos and our partner IPR. Most notably, I am delighted we ended the year with a $20 million payment from EGPC, doubling our year-end cash balance and reducing our outstanding receivables balance to $7.4m, its lowest level since December 2021.”

“We are excited to start 2026 from a position of strength, progressing our important Vietnam drilling campaign and preparing for the committed work programme in Egypt. In parallel, we are stepping up our efforts to identify opportunities beyond our existing portfolio that will drive further growth and returns for shareholders. The Board will continue to consider the appropriate level of returns to shareholders given the strength of the balance sheet whilst managing capital allocation for growth. We thank our shareholders for the ongoing support throughout 2025 and look forward to a successful year ahead.”

This is a very strong update from Pharos and production last year of 5,398 boe/d was in line with guidance and gave revenues of $115m. Net cash at the year end was $40m and this was helped by a payment of $20m from Egypt which reduced receivables to only $7.4m, its lowest level since December 2021. 

Although the historic news was good, such as the PSC Concession Agreement in Egypt it is the future that is most exciting. In country they have a programme of six development wells and recompletions at El Fayum and North Beni Suef  all aided by the asset consolidation and improved fiscal terms.

In Vietnam there is much to look forward to, a six well campaign is already underway with success at H1 and H5 which will increase production and reserves and similar results in ongoing drilling should add as much as 20% to the guided numbers.

As for guidance the company has increased the numbers and now advise that overall numbers are for Group Working Interest of 5,200-6,400 boe/d split between Vietnam at 4,000-4,950 boe/d and Egypt at 1,200-1,450 boe/d. 

At Block 125 & 126 the formal, structured process to identify a farm-in partner is ‘well advanced’ and the company plan to update the market in mid-2026, long lead items have been ordered and the rig market is being monitored.

The analysts meeting was upbeat and spirited and the company is clearly in a strong place both operationally and financially. Following the receivables payment last month the balance sheet is robust and gives Pharos scope to move inorganically should the right opportunity present itself. 

There is also a six well drilling programme in Egypt and it too has many opportunities to add to both reserves and production.

Operational Highlights                                

·      Group working interest 2025 production totalled 5,398 boepd net, in line with guidance:

o  Vietnam 4,095 boepd

o  Egypt 1,303 bopd

·      In Vietnam:

o  Fully funded six-well offshore drilling programme commenced operations on 18 October 2025:

§ TGT infill wells: completion of two infill wells on the H1 and H5 fault blocks by year end with encouraging initial results in line with pre-drill expectations. Both wells have already been brought into production. Drilling of the final infill well in the sequence on the H4 fault block is expected to commence in February and finish in March

§ TGT-18X appraisal well: drilling is ongoing. Targeting the block’s untapped south-western area, this well is scheduled to complete in February

§ CNV: drilling of the CNV-8P infill well commenced in December and is expected to take 90 days to complete. Appraisal well, CNV-5X, is expected to commence in March and finish mid-2026

o  Blocks 125 & 126: Two-year extension to the Exploration Period to November 2027 granted in June 2025. Formal, structured process to identify a farm-in partner is well advanced with further updates expected to follow in mid-2026

·      In Egypt:

o  Approval received in September from EGPC for the consolidated Concession Agreement, with improved fiscal terms effective from 5 October 2025

o  North Beni Suef (NBS): 3D seismic data processing and interpretation is complete, with a number of targets now identified and included in the committed work programme

Financial Highlights

·      Group revenue for 2025 c.$115m:

o  Vietnam c.$100m

o  Egypt c.$15m 1

·      Continued debt free position with healthy cash balances as at 31 December 2025 of c.$40m

·      Year-end cash balance enhanced by $20m receivables payment from EGPC on 31 December 2025; total payments received in Egypt amounted to $37.7m in 2025, with receivables balance at 31 December 2025 of $7.4m

·      Group cash capex for 2025 was $28m

·      Sustainable dividend policy continued to deliver with $6.5m returned to shareholders during the year

1 Egyptian revenues are given post government take and includes gross-up for corporate income taxes to be paid by EGPC on behalf of Pharos. 

2026 Outlook

·      Group working interest production guidance increased from 2025 to 5,200 – 6,400 boepd net:

o  Vietnam 4,000 – 4,950 boepd

o  Egypt 1,200 – 1,450 bopd

·      In Vietnam:

o  TGT & CNV: Continuation of six-well drilling programme currently underway; the final four wells expected to finish by mid-2026

o  The four infill wells in the programme will maintain production at 2025 levels.  Successes at the two appraisal wells, TGT-18X and CNV-5X, could deliver up to a 20% increase in Vietnam production volumes and derisk additional development opportunities

o  Blocks 125 & 126: formal process ongoing with discussions at advanced stage; further updates expected by mid-2026

·      In Egypt:

o  Drilling rig now secured and preparations underway for the agreed work programme of six wells in El Fayum and North Beni Suef 

·      Group cash capex for 2026 is expected to be $50m:

o  c.$31m of which is carried forward from 2025 to complete the Vietnam TGT and CNV drilling campaign and Blocks 125 & 126 long lead items

o  Additional cash capex of c.$19m includes a six-well drilling campaign in Egypt and abandonment provisions in Vietnam

·      Returns to shareholders to be maintained with interim dividend for the 2025 financial year of 0.3993 pence per share, totalling $2.2m, paid on 21 January 2026 

Angus Energy 

Fourth Quarter 2025 Production, Operations, Corporate and Finance Update

·    Substantial increase in Saltfleetby production through improved operational performance contributed to higher revenue levels.

·    Hedging profit of £539,000

·    Increased production at Brockham

·    Production from the Saltfleetby Field in the Fourth Quarter of 2025 was 446 million standard cubic feet of natural gas and 7,739 barrels of gas condensate.

·    Gas sales of 4.98 million therms were achieved in the Quarter from the Saltfleetby Field.

·    Estimated revenues of £4.12m for the Quarter.

·    Production uplift driven by improved well performance, enhanced well management, and optimisation of Booster Compressor operations at lower wellhead pressures.

·    Initiation of Saltfleetby well workovers, supporting the Company’s strategy to enhance production and operational performance.

Production and Operations Update

Saltfleetby

Gas sales from the Saltfleetby Field were 4.98 million therms in aggregate during October, November and December 2025, compared to 4.16 million therms sold in the third quarter of 2025, an increase of circa 19%. Fourth quarter 2025 production equates to an average of 1.66 million therms per month (up from 1.39 million therms per month in the third quarter of 2025). Gas condensate (liquid) production averaged 84bbl/day, up circa 20.9% against an average of 69.5 bbl/day in the third quarter 2025. Saltfleetby operational efficiency was 94% for the Quarter, up from 87% in the third quarter 2025.  

Higher production at Saltfleetby during the Quarter reflects increased equipment uptime, improved well performance, enhanced well management, and optimisation of Booster Compressor operations at lower wellhead pressures.

Focus during the quarter was given to preparation for the well workovers on two of the three producing wells with detailed reviews of site readiness and workover procedures to minimise the production impact of the well interventions whilst ensuring the workovers deliver improvements in well performance.

Successful Phase 1 of Saltfleetby Well Workovers

Coil tubing operations have been successfully completed on Saltfleetby-B2 where the Company cleaned and stimulated the well with an acid and mutual solvent treatment. We are now in a flowback phase of the operation with gas, condensate and water flowing back to the production facility. Initial results are positive; however, as referenced in the initial RNS, the well requires time for production to stabilise post-workover before the full quantum of production uplift can be assessed. The workover spread has been mobilised to Saltfleetby-B7, with Phase 2 of the workover operations having commenced on 15 January 2026. As previously advised, the Company expects to be in a position to assess the results of the workovers in March following the post workover clean up phase.

Brockham

Oil volumes produced from the Brockham Field equalled 4,577 barrels in aggregate for the months of October, November and December 2025, with an average of 50 bbl/day. This is an increase of circa 26.0% compared to 3,632 barrels for the third quarter of 2025 averaging 39 bbl/day. Brockham operational efficiency was 99% for the Quarter, down from 100% in the third quarter. Improvements in production rates have been made through operational optimisation and a reducing water cut.

Finance Update

Estimated revenues during the quarter were £4.12m (Quarter 3: £3.21m), a circa 28% increase on the third quarter due principally to higher production volumes.

As previously advised, low priced legacy hedging volumes rolled off in June 2025. Hedged volume for the quarter was 3.22 million therms at an average price of £0.91 per therm, resulting in a hedging profit of £0.539m during the quarter.     

Further to previous announcements (most recently 20 November 2025), Angus Energy confirms that positive discussions with its creditors regarding restructuring of its debt remain ongoing. While the Board is encouraged in respect of the continued progress in these discussions, the Company cautions that if a suitable agreement is not reached, it would create a material uncertainty around the Company’s ability to continue to operate as a going concern. The Company will inform the market once an agreement has been reached and the terms of such agreement, and in the meantime continues to carefully manage its working capital position in conjunction with its lenders.

The Company’s shares are expected to remain suspended from trading on AIM pending the conclusion of its financial restructuring.

This update has very positive news on production in the 4th quarter from Saltfleetby where Angus has delivered on its previous updates and as a result increased operational efficiency to a very creditable 94% for the period, up from 87% in the 3rd quarter.

As indicated previously the company have been working on operational efficiency and this has been reflected in ‘increased equipment uptime, improved well performance, enhanced well management and optimisation of Booster Compressor operations at lower wellhead pressures’. 

In addition the work continues on well workovers in order to minimise any production impact caused by such interventions but that will deliver overall improvements in operational efficiency. With a gain of £539/- from hedging giving revenue estimates of some £4.12m the sum gain is good and increased production at Brockham also helps.

The company also say that ‘positive discussions with its creditors and that positive discussions with its creditors regarding restructuring of its debt remain ongoing’. They also warn that if a suitable agreement is not reached it would ‘create a material uncertainty around the Company’s ability to continue to operate as a going concern’ which is a clear analysis for all concerned. 

With the operational outlook looking very positive and the natural gas price giving a fair wind it seems that with continued demand for gas at least the short term is actually looking good for Angus.

Gulf Keystone Petroleum

Gulf Keystone has provided an operational and corporate update. The information contained in this announcement has not been audited and may be subject to further review.

Jon Harris, Gulf Keystone’s Chief Executive Officer, said:

“2025 was a strong year for GKP, with production towards the top end of our tightened guidance range. Capex and cost discipline helped deliver material free cash flow generation underpinning $50 million of dividend payments. Kurdistan pipeline exports restarted in September 2025 after over two and half years and regular exports liftings and associated payments, which commenced in Q4 2025, have continued into 2026 following a smooth extension of the interim agreements.

Looking ahead, we expect 2026 to be a pivotal year. Assuming continued consistent exports payments and a return to international prices, we intend to swiftly resume drilling later in the year. This will position us to organically grow production in 2027 as additional volumes from the installation of water handling are also expected to come on stream. We will remain disciplined, coupling incremental capital investments with shareholder distributions to continue delivering value for all stakeholders.”

Whilst the historic production numbers are good and payments from the local market delivered ‘material cash flow’ despite liftings continuing this year, some payments are clearly on account with the KRG. 

This means that ‘the Company is accruing a receivable for exports sales under the interim agreements to account for the differential between realised prices for cash received to date and the expected reconciliation to international prices’. 

The decision to rely on the KRG for payments was always somewhat of a risk, at the moment it is not paying off whilst those who have elected to sell locally are getting paid and so that probably says it all for the time being. 

Operational

  • 2025 gross average production of 41,560 bopd, towards upper end of tightened annual guidance range of 40,000 – 42,000 bopd and a 2% increase versus the prior year (2024: 40,689 bopd)
    • Resilient performance despite trucking and security related interruptions from June to August accounting for losses of c.1.3 million barrels, or c.3,500 bopd annualised
    • Successful transition from trucking sales to pipeline exports via the Iraq-Türkiye Pipeline (“ITP”) on 27 September 2025, with volumes quickly ramped up towards full well capacity
  • 2026 year to 20 January gross average production of c.40,600 bopd
    • Production expected to ramp up towards 44,000 bopd following the recent restart of a well post jet pump replacement and the completion of ongoing well workovers
  • Zero Lost Time Incidents (“LTIs”) for over three years, with c.5.3 million working hours since the last LTI, underlining the Company’s continued commitment to high standards of safety

Financial

  • Total cash collected for 2025 crude sales of $122 million (2024 revenue receipts: $144 million)
    • $108 million proceeds from local sales during the first nine months of the year, paid in advance
    • $14 million proceeds from export sales in September and October 2025 received in December 2025
    • Cash received for 2025 exports sales of c.$30/bbl, an increase relative to the average realised price of $28/bbl for 2025 local sales
    • In addition to the above, the Company is accruing a receivable for exports sales under the interim agreements to account for the differential between realised prices for cash received to date and the expected reconciliation to international prices
  • 2025 capital expenditure and costs in line with annual guidance
    • 2025 net capex of $34 million (2024: $18 million), primarily reflecting PF-2 safety upgrades, well workovers and initial expenditure on the installation of water handling facilities at PF-2
    • 2025 operating costs of $53 million (2024: $52 million), with gross Opex per barrel of $4.3/bbl (2024: $4.4/bbl), primarily reflecting the slight increase in production
    • 2025 other G&A expenses below $10 million (2024: $11 million)
  • $50 million returned to shareholders in 2025 through semi-annual dividend payments in April and September
  • 2025 year-end cash balance of $78 million (31 December 2024: $102 million) and no debt
    • Cash balance as at 21 January 2026 of $88 million which includes recent exports sales payments

Outlook

  • Regular liftings and payments for International Oil Companies (“IOC”) crude exports continue following the recent extension of the interim agreements to the end of March 2026
    • International independent consultant appointed and progressing its review of IOC invoices and contractual costs, expected to be completed during the extended term of the interim agreements
    • A reconciliation to full PSC entitlement at international prices and the negotiation of longer term exports agreements continue to be anticipated following the completion of the review
    • The Company continues to advance its negotiations with the Kurdistan Regional Government (“KRG”) regarding a number of historical Shaikan commercial matters, including the settlement of past oil sales arrears and other KRG-related assets and liabilities, and will provide an update in due course
  • 2026 gross average production guidance of 37,000 to 41,000 bopd
    • Reflects planned activity, including the estimated impact of the PF-2 shutdown later in 2026 of c.1,000 bopd annualised, and natural field declines in the absence of drilling
  • 2026 net capex guidance of $40-$50 million, reflecting work programme focussed on protecting base production from existing wells, upgrading the safety and reliability of the facilities and installing water handling
    • $5-$10 million: Ongoing well workover programme focussed on offsetting field declines
    • $25-$30 million: Programme of facilities upgrades at both PF-1 and PF-2 and recurring maintenance
    • c.$10 million: Remaining upfront expenditure to install water handling at PF-2, targeting incremental gross production of 4,000 – 8,000 bopd above the anticipated field baseline at the beginning of 2027
  • Preparations are underway to restart drilling later in 2026; assuming consistent exports payments and a return to international prices, the Company will proceed swiftly and update capex guidance as required
  • The Company expects 2026 net operating costs of $55-$60 million
    • Primarily reflects higher local diesel costs following the restart of exports, increased usage of diesel in well artificial lift & exports pumps and facilities maintenance related to the planned PF-2 shutdown
  • Expect 2026 other G&A expenses of less than $10 million
  • The Company remains committed to returning any potential excess cash to shareholders via semi-annual dividend payments and opportunistic share buybacks
  • Gulf Keystone continues to actively consider a potential listing of its shares on the Euronext Growth Oslo, subject to favourable market conditions

And finally…

England are back in cricketing action but the result is still the same. They lost today’s first ODI in Sri Lanka in a series they need to win if only for the ranking points..