WTI (Feb) $57.42 -53c, Brent (Mar)* $60.85 -6c, Diff -$3.65 +27c*
USNG (Feb) $3.69 -28c, UKNG (Feb)** 75.0p +2.11p, TTF (Feb) €28.46 +€28.46 +€0.385
*Expiry of Brent February contract. **Expiry of UKNG January contract

Oil price

Oil ended the year with lowest closes since 2020 when it was $48.52, at $57.42 and $60.85 for WTI and Brent they were down 20% and 18.5% on the year respectively. Interestingly US natural gas fared better being up small on the year but UKNG was down 40% and TTF fell 41% on the 2024 close.

Good news for Donald Trump has come with the associated fall in gasoline prices, last week’s price of $2.811 overall is down 3 cents on the week, 17.4 cents on the month and 19.5 cents year on year. Even the rig count improved, slightly.

Pharos Energy

Pharos has announced that it has received today $20 million from the Egyptian General Petroleum Corporation (EGPC) against its outstanding receivable balance in Egypt.

Katherine Roe, Chief Executive Officer, commented:
“We are pleased to announce that we have received a $20 million payment from EGPC, reducing our outstanding receivable balance to $7.4m, inclusive of estimated revenues to December 2025. This is our lowest receivable balance since December 2021. This very welcome progress towards recovery of our receivables, together with the improved fiscal terms from our consolidated Concession Agreement approved by EGPC in September, will allow us to benefit from the attractive investment framework across our Egyptian assets and further unlock long-term value for all stakeholders.

“I would like to thank EGPC and the Egyptian authorities for their positive engagement and continued support. We look forward to starting our drilling campaign in cooperation with our partner IPR and to increasing production from our assets, in line with the target of the Egyptian Ministry of Petroleum & Mineral Resources.”

This is very good news from Pharos, especially coming as it did just before the year end. With the outstanding receivables balance now at  only $7.4m, a low since December 2021, serious credit must go to Pharos management as they have worked very hard to build up strong relationships in-country which have now been rewarded.

Earlier last year Pharos announced the improved fiscal terms which came with the consolidated Concession Agreement which as CEO Katharine Roe states ‘will allow us to benefit from the attractive investment framework across our Egyptian assets and further unlock long-term value for all stakeholders’.

So, a large strengthening of the company’s financial position ahead of the drilling campaign with IPR and thus hopefully, a significant increase in production from the Egyptian assets later this year. 

Add to that the inevitable excitement that is bubbling up around the substantial drilling programme in Vietnam, which has the optionality of  increasing short and longer term production as well as being a potential game changer for the company. 

Pharos thus goes into the new year in great shape, and with a fantastic following wind, it will surely remain in the Bucket List and my current TP of 50p does not look demanding given the huge potential upside. 

Europa Oil & Gas

Europa has announced that William Holland, Chief Executive Officer, has purchased 417,285 ordinary shares of £0.01 each in the Company at an average price of 1.792 pence per Ordinary Share.

Following the purchase, Mr Holland is beneficially interested in a total of 8,665,711 Ordinary Shares, representing approximately 0.903% of the Company’s issued share capital.

Notification and public disclosure of transactions by persons discharging managerial responsibilities and persons closely associated with them.

This came out on New Year’s Eve and whilst it is not a momentous event, it only takes Will Holland to less than 1% of the company, it is a cash purchase which should be welcomed and also shows confidence in the recent farm-out in Equatorial Guinea. Other directors should follow suit, on the website there are four listed but interestingly five pictured…..

Original article   l   KeyFacts Energy Industry Directory: Malcy's Blog