Pharos Energy Receives Concession Agreement Amendment El Fayum area, Western Deser
Pharos is pleased to announce that it has received provisional approval from the Egyptian General Petroleum Corporation’s (EGPC) Main Board to an amendment of the fiscal terms of its El Fayum Concession, which is now subject to the approval of the Egyptian Government.
Under the new terms, the Cost Recovery Petroleum percentage (i.e. the share of gross revenues that is available for the Contractor to recover its costs) will be increased from 30% to 40%, allowing Pharos a significantly faster recovery of all its past and future investments.
In return, Pharos has agreed to
(i) waive its rights to recover a portion of the past costs pool ($115 million) and
(ii) reduce its share of Excess Cost Recovery Petroleum from 15% to 7.5%.
El Fayum phased water flood programme Work for phase 1b water flood programme in El Fayum has commenced, utilising the funds raised in the equity placing earlier this year.
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