Capricorn Energy plc has agreed the final settlement of the subsequent payment terms with Waldorf Production UK plc from the sale of its previous assets in the Catcher and Kraken fields.
PAYMENTS
Under revised terms, Capricorn will now receive $72.5 million over the next 13 months and Waldorf’s 25% non-operated working interest in the Columbus gas field.
Waldorf was originally to make three additional annual contingent payments from 2024 to 2026 with remaining contingent payments subject to Brent oil prices and field production performance.
Capricorn said, in line with the expected 2024 contingent payment, it would receive $50m cash through an initial payment of $48m in December 2023 and $2m at the end of Q1 2024.
An additional $22.5m is due in early January 2025.
The 25% working interest in the Columbus field will be transferred into the existing Capricorn UK subsidiary and is expected to deliver consistent cash flows from 1 January 2024.
The acquisition of Columbus allows the company to maintain its presence in the UK North Sea through continuous exploration and production activities.
As part of the agreement, Capricorn will release $48m restricted cash held by Waldorf related to a residual liability on the Kraken field.
The transfer of ownership in the Columbus field will be subject to usual conditions precedent.