Farm-out talks and rig search ongoing: Exploration timeframe for Asian duo gets prolonged

UK-headquartered oil and gas player Pharos Energy has confirmed a license extension for two blocks in the moderate to deepwater Phu Khanh Basin, northeast of the Cuu Long Basin, off the coast of Vietnam.

The approval from the Vietnamese government for the two-year extension of the production sharing contract (PSC) for blocks 125 and 126 extends the exploration period from November 9, 2025, to November 8, 2027. This follows the previous two-year extension from November 2023 to November 8, 2025.

Katherine Roe, Pharos’ Chief Executive Officer, commented: “We are pleased to have secured approval from the Vietnamese government for the two-year extension of the Blocks 125 & 126 exploration period.

“This approval reflects the government’s continued support as we progress our active discussions with potential farm-in partners and rig contractors to complete all necessary preparations ahead of drilling the commitment well on Block 125.”

Pharos secured these blocks in 2017. The company claims that multiple structural and stratigraphic plays are observed on the existing 2D seismic data, with the interpretation of the available data indicating good potential for source, expulsion, and migration of oil with numerous probable reservoir and seal intervals.

“We are committed to pursuing this exciting opportunity, and this extension allows us to retain optionality for the prospect to be drilled, whilst investing in near term production growth in our producing assets in Vietnam,” added Roe.

Pharos holds a 70% interest in blocks 125 and 126, which comprise 10,691 square kilometers of acreage in the southern part of the Phu Khanh Basin. The firm concluded a seismic survey on the western part of Block 125 in July 2021.

An independent report, prepared by ERCE, makes estimates of prospective oil resources with an aggregated gross unrisked mean of 13,328 MMstb for blocks 125 and 126.