Randy Neely, Chief Executive, Capricorn Energy PLC said:
'2025 was a year of significant operational, strategic and financial progress for Capricorn, marked by a number of milestones across our Egypt operations.
In May we received approval from the Egyptian General Petroleum Corporation (EGPC) to consolidate eight of our existing Egyptian concession agreements into a single, merged concession agreement, unlocking significant fiscal and operational benefits which should allow us to extract additional value from our existing portfolio. The new agreement, anticipated to receive parliamentary ratification in H1 2026, secures access to an additional development lease area and two open exploration areas adjacent to our existing acreage. These additions supported a 20.2 mmboe increase of working interest (WI) 2P reserves (certified at year end), enhancing future development potential. The improved fiscal terms will drive increased investment and cash flow across a range of oil prices and at $80 per bbl our netback improves from $18 to $23 per boe. Furthermore, it includes a 60% increase in gas pricing for incremental volumes from both existing fields and new discoveries.
Operations in Egypt delivered full year production of 20,024 boepd, exceeding the midpoint of 2025 guidance, supported by liquids-rich development drilling and the ongoing waterflood programme in the Badr El Din (BED) concession.
Despite a volatile macroeconomic environment and fluctuating commodity prices, we collected $217m from Egypt, reducing the Company’s accounts receivable to $86m.
Capricorn’s progress in 2025 provides a robust platform to build a cash-generative business. A key priority for 2026 will be accelerating development activities in the merged concession area.
Our strategic priorities for the coming year are to maximise value from our Egyptian assets through disciplined investment, prioritise shareholder value, and continue to explore value-accretive opportunities, primarily in Egypt, with a secondary focus in the UK North Sea and the broader MENA region.'
FY 2025 Operational and financial highlights
- Merged concession agreement approved by EGPC in May 2025, with final-stage approval granted by the Egyptian Cabinet in December 2025 and formal ratification expected in H1 2026
- Revenues of $134m*, with an average oil price of $68.4/bbl and gas price of $3.1/mscf
- Production costs of $39m, equivalent to $5.4/boe on a WI basis
- 20.2 mmboe of WI 2P reserves added at year end, contributing to a 277% reserves replacement
- $77m capex on Egypt producing assets
- Group net cash of $103m; comprising $133m cash and $30m debt
- WI Egypt oil and gas production of 20,024 boepd at the upper end of guidance of 17,000-21,000 boepd, comprising 40% liquids; net entitlement sales volumes 9,701 boepd
- Net cash inflows of $81m from Egypt operations post-capex, including $217m cash receipts
- Egyptian receivables position of $86m with $1.3m expected credit loss adjustments
- Gross G&A of $24m**
- Profit of $19m; profit from continuing operations of $16m, profit from discontinued operations of $3m
* Includes $15m of accrued revenue on merged concession uplift
** Before depreciation and share-based payment charges, and including $2m of legacy and project costs
2026 Outlook
- Production is guided in the range of 18,000-22,000 boepd, of which 43% is forecast to be liquids
- Capex guidance of $85-95m
- Operating costs are forecast to be $5-7/boe
- Formal ratification of the merged concession agreement expected in H1 2026
- Two planned maintenance shutdowns at the BED facility
- A four-rig drilling programme will be maintained through 2026, prioritising the liquids-rich BED area and incorporating the gas prone Bahariya target successfully encountered in 2025
- Exploration drilling will focus on cost-recoverable, near field opportunities around the producing BED area and within the merged concession. All exploration will be funded from Egyptian cash flow
- Payment from Waldorf of around $4m expected in Q2 2026 dependent on restructuring plan sanction
- Woodside continues to contest Senegal tax claims in Senegal and through international tribunal
- M&A opportunities in Egypt, the UK North Sea and general MENA region to expand and diversify our operations continue to be evaluated
Source: Capricorn
