REG - Capricorn Energy PLC - Senegal update

Capricorn EnergyAnnouncement

13/02/2024 12:15

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RNS Number : 9953C  Capricorn Energy PLC  13 February 2024

FOR IMMEDIATE RELEASE                                                                                                          13 February 2024

 

 

CAPRICORN ENERGY PLC ("Capricorn" or "the Company")

 

 

Senegal update

 

 

Capricorn notes Woodside Energy's ("Woodside") announcement today confirming
the arrival of the Floating Production Storage and Offloading (FPSO) facility
for Woodside's Sangomar Field development offshore Senegal and its intention
to continue to target First Production for mid-2024.

 

As defined in the sale and purchase agreement, Capricorn may become 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. If
first oil is achieved prior to 30 June 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. First oil is defined as the
first continuous 72-hour period of production from the Sangomar Field during
which at least a total of 30,000 barrels is produced for sale.  In either
case, no additional payment will be due from Woodside if the average Brent
price is less than or equal to $55 per barrel or if first oil is achieved
later than H1/2024.

 

As previously disclosed in our January Trading Update on January 25, the
Senegalese Tax Authority has agreed that real estate capital gains tax is not
payable if a taxable gain has not been made.  However, the Senegalese Tax
Authority has not yet adjusted its claim to consider Capricorn's historic base
costs to recognise that Capricorn incurred a capital loss on its sale of its
interests in the Sangomar field to Woodside. Meanwhile, the tax process
continues with respect to the matter of Senegalese registration duty ($25m
plus interest and penalties). Capricorn's position remains that no Senegalese
registration duty is payable.  The Senegalese tax authorities had previously
confirmed in writing to Capricorn that transactions prior to first oil would
not be subject to registration duties.  Accordingly, the Company will
continue to vigorously defend its position on this matter.

 

Capricorn remains committed to returning any proceeds of this contingent
payment to its shareholders.

 

* All figures are displayed in US dollars.

Ends

 

 

Enquiries to:

 Analysts / Investors
 Nathan Piper, Commercial Director                                           Tel: 0131 475 3000

 Media
 Diana Milford, Corporate Affairs                                            Tel: 0131 475 3000

 Billy Clegg/Owen Roberts, Camarco                                           Tel: 0203 757 4980

 

 

Capricorn Energy

Capricorn is an Egypt-focused energy producer, with an attractive portfolio of
onshore exploration, development and production assets in the Western Desert.

 

For more information on Capricorn visit: https://www.capricornenergy.com
(https://www.capricornenergy.com)

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