Capricorn Energy plc noted the start of production from the Sangomar field development, offshore Senegal.
TERMS
First production satisfies the first oil condition under the sale and purchase agreement with operator Woodside Energy plc, which initially targeted first oil in late 2023.
Capricorn may be entitled to a contingent payment of either $25m or $50m if the average Brent oil price during the first six months of production exceeds the $55 per barrel or $60 per barrel thresholds and first oil is achieved in the first half of 2024.
The contingent payment is anticipated in early 2025 once the average oil price has been determined and there has been 30 days of continuous production.
Capricorn said it remained committed to returning any available proceeds of the contingent payment to its shareholders.
The company is also responsible for certain taxes arising in connection with the sale of the PSC interests. A tax audit of Capricorn’s disposal of the assets continues.