REG - Capricorn Energy PLC - Operational and trading update

Capricorn EnergyAnnouncement

Tue 07:00

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RNS Number : 0272S  Capricorn Energy PLC  22 July 2025

FOR IMMEDIATE RELEASE                                                                                               22 July 2025

 

 

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

 

Operational and trading update

 

Capricorn intends to announce its half-year results on 18 September 2025. In
advance of these results, the Company is providing an update on recent
operations and the Group's production for 2025. This information is unaudited
and subject to further review.

 

Randy Neely, Chief Executive, Capricorn PLC said:

"Capricorn enters the second half of 2025 having made material progress in its
strategic priorities, underpinned by financial discipline and driven by a
focused team who have set out a clear path to creating shareholder value. EGPC
board approval of the renewed concession terms marked a pivotal milestone in
the evolution of our Egyptian business and, anticipating the conclusion of
customary parliamentary ratification expected later this year, momentum has
never been stronger to achieve increased reserves and value improvements to
our Western Desert assets.

 

With a payment plan agreed with the Egyptian General Petroleum Corporation
(EGPC), we have continued to invest in the asset base, actively working with
EGPC to ensure that the timely payment of receivables is able to support the
increasing investment programme.

 

Growing cash flow through diversification and expanding our operations remains
a key strategic priority, and we continue to actively evaluate strategic
investment and partnership opportunities in the region alongside accretive
opportunities in the UK North Sea."

 

During the HY ended 30 June 2025, Capricorn collected $62m in Egypt.
Capricorn's receivables position remains relatively flat from YE 2024 at $172m
at 30 June 2025, after expected credit loss adjustments. Total working
interest (WI) cash outflows on operating costs and development expenditures on
the Egypt assets were $53m over the six-month period.  Based on an EGPC
payment plan the Company is expecting payments in H2 2025 of at least $90m.

 

Capricorn's cash position has increased from the $91m reported at the
Company's AGM in May 2025 to $96m at 30 June 2025, with $86m held outside the
Egypt business.  Debt outstanding in Egypt reduced from $100m to $64m over
the six-month period ended 30 June 2025, with repayments of debt and related
financing costs funded through Egypt in-country resources other than the final
Shell contingent payment.

 

WI production for H1 2025 in the Western Desert averaged approximately 20,000
boepd (43% liquids), tracking slightly above the mid-point of the full year
guidance range for 2025 of 17,000 - 21,000 boepd. The recent receipt of a
payment plan from EGPC, along with payments consistent with that plan, is
expected to resolve recent issues that have been impacting timely provision of
oil field supplies and services in support of production at the Operator,
Bapetco. Capricorn continues to work with the Operator to prioritise
opportunities to add production, from reinstating high-graded shut-in wells,
to identifying additional perforation opportunities and optimising the
development well sequence.

 

In the first half of 2025, development drilling activity was limited by the
need to fulfil outstanding exploration commitments, postponed from 2024 and
backed by a parent company guarantee. In April, a fourth rig was brought into
the fleet to accelerate the completion of these exploration commitments, and
from August the entire fleet is expected to be allocated to development
activity. Three exploration wells have been drilled with one each on the North
Um Baraka, West El Fayoum and South East Horus concessions. All three wells
encountered hydrocarbons and are currently under analysis in anticipation of
testing to evaluate commerciality.

 

In the second half of 2025, Capricorn forecasts the drilling of 10 development
wells, all focused on the Badr El Din area, targeting liquids. This work
programme is expected to be attributed against the commitments that the
Company will be required to fulfil as part of the recently agreed integrated
concession agreement.

 

Capricorn has engaged its reserves auditor, GLJ, to evaluate the expected
reserves and resources increment associated with the consolidation of eight of
the Company's existing Egyptian concession agreements into a new, single
integrated concession agreement, which was recently approved by the EGPC
Board. The preliminary work undertaken aligns with Capricorn's expectation of
an initial conversion of WI resources to 2P reserves of up to approximately 20
mmboe in the current year, and the Company continues to expect the customary
Parliamentary ratification of the new agreement later in 2025. Capricorn
anticipates investing in the concession area under the new terms prior to
formal ratification.

 

 

Ends

 

 

* All Financial figures are unaudited and displayed in US dollars

 

 

 

 

 

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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