London-listed Pharos Energy (LON:PHAR) has received approval from the Prime Minister of Vietnam for its full field development plan for the Te Giac Trang (TGT) offshore project.
The independent oil and gas company holds a 30.5% working interest in Block 16-1 which contains 97% of the TGT field and is operated by the Hoang Long Joint Operating Company.
The group, which has interests in Egypt, Israel and Vietnam, explained to investors that today’s news represents the last stage of the required process in order to kickstart drilling.
Pharos will now begin to drill six development wells during its fourth quarter of the year.
Shares in Pharos Energy have started to recover from lows of 10p in March and were trading 10.61% higher at 14.06p this morning following the news.
A two-year extension for the TGT field licence was formally granted by the Ministry of Industry and Trade in Vietnam last month, extending the licence to 7 December 2026.
This infill-drilling programme is targeted to increase gross production at TGT from around 15,000 barrels of oil equivalent per day (boepd) to around 20,000 boepd in 2022.
"We are pleased to have received approval from the Prime Minister of Vietnam for the TGT Full Field Development Plan,” said Ed Story, President and Chief Executive of Pharos.
He added, “This final approval enables us to put plans in place to commence the drilling of the six new producer wells on TGT starting in Q4 2021, allowing us to realise further resources in the TGT field."
Follow News & Updates from Pharos Energy here: