Capricorn Energy to update on Egypt business

Edinburgh-based oil and gas firm Capricorn Energy said on Monday that a “detailed operational update presentation on its Egypt assets” will be held in London on November 30, 2023.

Capricorn said on September 14 that “accounts receivable” from the Egyptian General Petroleum Corporation (EGPC) increased from $97 million to $144 million in the firm’s first half of the year, with $113 million overdue.

The Egypt-focused firm said on Monday the update will outline the company’s commitment to its business in Egypt “and include the outcome of the recently commissioned new reserves report, an up-to-date assessment of the asset base and the initial outcome of other technical studies that are also underway with its partner, Cheiron.”

Capricorn, formerly called Cairn Energy, has experienced a tumultuous recent history, with two aborted merger deals and a revolt by shareholders that ousted the company’s former executive leadership.

The firm added on Monday: “Following Friday’s announcement of the $100 million return of cash, the company also announces that the remainder of the $25 million share buyback programme is planned to restart on the ex-dividend date of 6 October.

“Capricorn targets completion by year end, delivering approximately $575 million in shareholder returns throughout 2023.”

Capricorn CEO Randy Neely said: “I look forward to providing more detail on our Egypt assets and associated future investment opportunities in November. 

“I believe Egypt is a positive place for oil and gas companies to do business. 

“We are in the process of reorganising our business operations to enable us, working closely with our partner, to fully unlock the potential of our jointly held production and development portfolio. 

“Whilst receivables are a key focus for the company, Egypt has always honoured its payment obligations and the Ministry of Petroleum, and the Egyptian General Petroleum Company (EGPC) have always honoured their payment obligations. 

“We are actively working with our partner and EGPC, who are committed to resolving the issue. 

“In addition, we are in early discussions with EGPC regarding enhancing and extending our existing Joint Venture holdings as well as securing open acreage adjacent to those lands, to expand our portfolio and add incremental value for all parties.”    

Capricorn chairman Craig Van Der Laan said: “I am very pleased at the progress Capricorn has made in aligning our interests with our partner Cheiron and EGPC since Randy’s arrival. 

“The board is confident that we are on track to building a long term successful business in Egypt.”