Capricorn Energy plc remains committed to its Egypt assets as its receivables balance “increased materially” last year.
SPEND
In its year results, the company said it continued to progress amendments to the production sharing contract to unlock value from its assets.
Chief executive Randy Neely added that in his 12 years’ experience in the country, the Egyptian Government had “always honoured its financial obligations to international investors”.
“We are confident that the receivables position will improve in the coming months, supported by the Q1 2024 announcements of the UAE investment deal on the Egyptian north coast and the International Monetary Fund loan, as well as financial support package pledges from the EU and World Bank.”
After last week receiving $30 million from the Egyptian General Petroleum Corporation (EGPC) the company’s debt totals $114m, while it plans to issue a £50m dividend in Q2.
Revenues during the year totalled $201m with net cash inflow of $32m from Egypt operations. Post-tax loss amounted to $144m.
Following 2023’s assets’ review and cost cutting, the company has also returned $568m to shareholders in a buyback.
Capricorn’s working interest in Egypt oil and gas production reached 30,044 boepd, with 23 additional wells beginning production adding 6,300 bopd.
Of the 29 development wells drilled, 25 targeted liquids production.
Nine near field exploitation wells were drilled, of which seven were successful, adding developed producing reserves of 1 mmboe.
Exploration drilling in the first half of 2023 was unsuccessful with three wells drilled.
GUIDANCE
Production guidance for 2024 is 20-24,000 boepd, of which 48% is forecast to be liquids.
Capricorn, holding a 20% working interest on the Alam El Shawish (AESW) joint venture with Cheiron, was voted into the 2024 work programme for a net exposure of $4.3m
The company is committed to spend a further $10m this year, for up to five non-operated exploration wells and to de-risk the Abu Roash F unconventional play.
Capricorn hopes to defer partial payment to next year.
The company settled its remaining earn-out from Waldorf Production Ltd (Waldorf) for $72.5m.
It also aims to acquire a 25% working interest in the Columbus gas field during Q2 2024 to retain a footprint in the UK North Sea.
A contingent payment could also be forthcoming from Woodside Energy’s Sangomar field development in Senegal.