Capricorn Energy plc swung to a loss with decreases in production and revenue in the first six months of the year.
COSTS
The company posted losses of £62.2m (H1 2022: profit £40.8m) while revenue from production fell to $98.3m ($137.4m).
Loss on other continuing operations of $58.3m includes unsuccessful exploration costs of $16.4m and general exploration costs of $11.4m, of which $21.6m related to completion of drilling the Yatzil well in Mexico.
Administration charges of $40.4m, include $12m for redundancies in Edinburgh and $6.9m for “aborted corporate transactions” proposed by Capricorn’s previous board.
By the end of 2023, the company aims to reduce its UK workforce by 80%.
A special dividend of $450m was paid in May with a further payment of $100m expected in October 2023.
The current $25m share buyback is expected to complete by end of the year, with $15m to date repurchased.
The group held net cash of $176m.
OPERATIONS
H1 production reached 31.5 kboepd and the original guidance of 32-36 kboepd has narrowed to 32 kboepd.
Capricorn has accelerated the transfer of Egyptian operations to its partner Cheiron while it continues its exit from non-Egyptian assets.
Chief executive officer Randy Neely said that this would allow the company to “focus its limited internal technical resources on production and development”.
A total eight wells were drilled in the Badr el Din (BED) area with one flowing at initial rates of up to 4,600 bopd.
In November Capricorn expects to publish details news of operations and plan for the company’s future.