REG - Capricorn Energy PLC - AGM Statement

Capricorn EnergyAnnouncement

Thu 07:00

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RNS Number : 6773J  Capricorn Energy PLC  22 May 2025

FOR IMMEDIATE RELEASE                                                                                                 22 May 2025

 

 

Capricorn Energy PLC ("Capricorn" or the "Company")

 

Annual General Meeting Chief Executive's Statement

 

 

Randy Neely, Chief Executive of Capricorn Energy PLC, will make the following
statement at the Company's Annual General Meeting for shareholders at 10am on
22 May 2025. The Company will announce its half year results on 18 September
2025.

 

"Over the last two years, through focused strategic and operational delivery,
the business has been reset and is now grounded in financial discipline and a
renewed commitment to delivering sustainable growth and shareholder value.

 

Our announcement earlier this month that the EGPC board has approved the
consolidation of eight of the Company's existing Egyptian concession
agreements into a new, single integrated concession agreement is further
validation of our strategy and there is real momentum within the business as
we seek to maximise the potential of our Egyptian portfolio. We remain
optimistic that EGPC will create an investment environment through innovative
deal structures and honouring its debt obligations to incentivise the industry
for the benefit of all stakeholders. Further to that, EGPC has recently
informed the Company that it intends to make payments of approximately $130m
through the remainder of 2025. The Company will continue to seek both timing
improvements to this payment programme and additional payments to decrease its
accounts receivable outstanding.

 

For Capricorn, the improved fiscal terms strengthen our resilience delivering
strong netbacks even at low oil prices. This supports cash flow generation and
promotes increased investment, driving reserves and potentially production
growth, thereby enabling us to enhance shareholder value. The asset base
itself will expand to include four additional blocks in the BED 17 development
area, and the addition of two open exploration areas adjacent to existing
acreage. The licence extensions alone should add ~20mmboe of reserves in the
current year. We will also benefit from a 60% increase in gas price on
incremental gas produced from the existing fields and new discoveries, further
growing our revenue base. The development potential of these assets is fully
capable of being funded by internal cash flows generated in Egypt so long as
EGPC receivables collections materially improve.

 

Year to date, production from our Western Desert assets is tracking slightly
above the mid-point of our annual guidance for 2025 of 17,000 - 21,000 boepd.
Parliamentary ratification is on track to take place later this year, at which
point we will provide updated guidance on our ongoing work programme with the
potential for incremental development drilling. We do not anticipate that any
incremental activity will have a material impact on the current year
production forecast.

 

Our self-funding Egyptian business continues to deliver an improved
operational performance as we focus on strengthening the base business through
liquids focused development drilling. Of the 13 development wells planned for
2025, we have drilled two ARG targeted wells on the AESW concession and
commenced exploration drilling with three wells currently in progress to
fulfil outstanding commitments.

 

A robust balance sheet underpins our production, development and exploration
activity with a current net cash position of $34m, and PLC cash of $91m. The
current receivables position is $209m. Year to date, Capricorn has received
$22m against the receivables balance of which every dollar has been reinvested
in the assets through operational costs, debt servicing costs and capital
expenditures. As noted, we continue to actively work with EGPC to fund an
increased investment programme.

 

Outside Egypt, the Company continues to prioritise diversifying and expanding
our operations and we are evaluating a number of value opportunities including
strategic investments and partnerships in the UK North Sea and MENA.

 

Capricorn is becoming a compelling investment proposition driven by strong
momentum, a focused team and a clear path to scalable growth and sustainable
value creation for shareholders."

 

 

Ends

 

 

 

Enquiries
to:

 

Analysts / Investors

Nathan Piper, Commercial Director
                                        Tel: 0131 475 3000

 

Media

Diana Milford, Corporate Affairs
 
Tel: 0131 475 3000

 

Georgia Edmonds / Violet Wilson / Fergus Young, Camarco
               Tel: 0203 757 4980

 

About Capricorn Energy PLC

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

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

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