FOR IMMEDIATE
RELEASE
3 July
2024
CAPRICORN ENERGY PLC
("Capricorn" or "the Company")
Operational and Trading
Update
Consistent payments continue
in Egypt and production on track to meet the midpoint of
guidance
Capricorn intends to announce its
half-year results on 19 September 2024. In advance of these
results, the Company is providing an update on recent operations
and the Group's production guidance for 2024. This information is
unaudited and subject to further review.
Randy Neely, Chief Executive, Capricorn PLC
said:
"The Company enters the second half of 2024 offering a clear
value opportunity against the backdrop of an improving fiscal
landscape and re-start of drilling operations in Egypt, and the
potential to grow a non-operated production base to capitalise on
our advantaged legacy position in the UK North
Sea.
We
were pleased with Woodside Energy's announcement that they had
successfully brought the Senegal project on-line and met the first
oil condition on 10 June 2024, triggering a potential $50m
contingent payment due in early 2025. Additionally, we note the
recent announcement by Waldorf Production UK PLC regarding a new
bond issuance and a new liquidity facility."
During the period from YE/23 to
date, Capricorn collected $107.8m against its Egyptian accounts
receivable inclusive of a $15m payment on 1 July 2024. The
Company's Egyptian receivables position has improved from $169m at
YE/23 to $145m year to date. After expected credit loss adjustments
debt outstanding reduced from $114m to $108m. Despite good progress
during the period, timely collections of the Company's accounts
receivable remain a key priority for management.
Against the backdrop of an improved
fiscal environment in Egypt, Capricorn approved an Egypt budget for
2024 in May with a total net capex spend forecast to be $56.6m.
Capricorn's cash position has decreased from $209m
at 30 April 2024 to $148.6m, as well as $108m debt. Aside
from normal operations, the cash balance was impacted by the $50m
dividend paid in June and the $25m Egypt contingent payment paid to
Shell.
To the end of June 2024, working
interest (WI) production across the four main concession areas in
the Western Desert averaged 25.4 mboepd (45% liquids) expected to
be consistent with the full year guidance range for 2024 of
20.0-24.0 mboepd. Production has been underpinned by solid asset
performance in the first half of the year despite a hiatus in
drilling activity. Two new wells, completed at the start of the
year in the Badr El Din (BED) concession (Capricorn 50% WI), have
recently been brought online and delivered rates at the upper end
of expectations.
Drilling activity recommenced at the
end of June with three rigs under contract. A drilling sequence for
the remainder of the year has been approved by Capricorn and is
expected to deliver seven development wells in the BED concession
area and enable the fulfilment of commitments on the exploration
concessions starting with two wells in 2024. In addition, drilling
will also target development opportunities in the Alam El Shawish
Concession (Capricorn 20% WI).
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
|
About Capricorn Energy PLC
Capricorn is a cash flow focused
energy producer, with an attractive portfolio of onshore
exploration, development and production assets in the Egyptian
Western Desert and, subject to completion, a producing position in
the UK North Sea. For further information, visit
www.capricornenergy.com.