Capricorn Energy plc said it had reached an initial agreement for an improved gas price over its concessions in the Western Desert, Egypt.
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The deal with state oil company Egyptian General Petroleum Corporation (EGPC) also outlines terms to “promote increased investment and production”.
An improved gas price would be for “incremental production and new discoveries alongside modernised commercial terms”.
Capricorn added it was in advanced discussions with EGPC, but any agreement was subject to the EGPC main board’s approval, ratified by the Egyptian Parliament.
The company and operating local partner Cheiron Energy each hold a 50% participating interest in oil and gas production, development and exploration interests.
The producing assets across four concession areas comprise Alam El Shawish West (AESW (Capricorn 20% working interest); Obaiyed (50%) containing Egypt’s largest onshore gas field; Badr El Din (BED) (50%) consisting of five producing oil and gas concessions; and North East Abu Gharadig (NEAG) (26%) containing the concession covering the NEAG Tiba and the NEAG Extension areas.
Capricorn additionally has non-operated participation in three Western Desert exploration concessions also in equal joint ventures with Cheiron.