LONDON (ShareCast) - (Sharecast News) - Pharos Energy announced a return to drilling in its El Fayum concession in Egypt on Monday, with the start of an interim three-well development programme.
The London-listed firm said operations had started on the first well, targeting the oil-bearing sandstones of the Abu Roash 'G' and Upper Bahariya formations, in a "structurally-optimal position" within the North Silah Deep field.

Drilling operations were expected to take 24 days, with the well to later be tested, completed and brought on to production using one of the workover rigs on contract.

Operations for the initial three-well programme were expected to finish in February, with Petrosilah, on behalf of the joint venture, currently tendering for two drilling rigs to continue the drilling campaign, for a start in the first half of 2022.

The estimated capital spend for the three-well programme was around $2.4m (£1.79m) net to Pharos.

Meanwhile, the company said the Batran-1X exploration well, drilled in May inside the Tersa development lease, was currently being tested by the SDF-1 workover rig.

The Upper Bahariya UB-1 zone in the well tested oil at rates between 25 and 90 barrels per day during partial clean-up.

Pharos said the well was now in the process of being completed for a longer-term production test.

There was an additional oil-bearing formation, Abu Roash Lower G, which could be tested at a later date.

"I am pleased to announce that, after a significant period of restricted activity in Egypt, we have recommenced development drilling operations in El Fayum," said president and chief executive officer Ed Story.

"This three-well infill development drilling programme will help increase production ahead of the main multi-year and multi-well programme to be drilled following completion of the IPR transaction, at which time our initial costs will be carried by our new partner in the concession."

At 1104 GMT, shares in Pharos Energy were up 5.63% at 22.5p.

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