Randy Neely, Chief Executive, Capricorn Energy PLC said:
'Capricorn had a robust first half as production remained resilient, development activity progressed in line with budget and pricing supported healthy margins during the period.
The ratification of the consolidated concession agreement in Egypt creates an improved framework for long-term investment, extends the life of key producing assets and supports our resource conversion funnel. Working closely with our partner and operator, Cheiron, we have progressed development plans designed to grow production and unlock value.
Regular collections have allowed continued disciplined reinvestment in the asset base, delivering strong drilling results and boosting monthly production.
Operational execution remains strong, with our teams and partner continuing to deliver safely and efficiently. We have also made progress in evaluating exploration and appraisal opportunities that have the potential to add reserves over time.
Shareholders will also be aware that, after the period end, Genel Energy plc and DNO ASA announced firm offers to acquire the Company, both of which remain ongoing.”
H1 2026 Financial and Operational Highlights
- Revenue in Egypt of $100m with a realised oil price of $89.5/bbl and gas price of $3.4/mscf
- Merged concession agreement became effective following formal parliamentary ratification on 30 March and ministerial signature on 19 May, with a 1 July 2025 operational start date
- Cash collections of $98m in Egypt
- Egypt receivables of $92m at 30 June 2026
- Operating costs of $5.0 per boe on a working interest (WI) basis
- Balance sheet: Group cash of $114m at 30 June 2026, after early repayment of the remaining debt in April
- Development and production capex of $52m; exploration capex of $1m
- 18 development wells and two near-field exploration wells were drilled during the period, establishing new areas of thick Abu Roash Gharadig (ARG) reservoir, unlocking significant follow-on drilling opportunities and delivering production above expectations
- WI production averaged 19,337 boepd, tracking slightly above the mid-point of 2026 guidance of 18,000-22,000 boepd comprising 46% liquids
- Final payment of $4m from Waldorf Production UK Plc ("Waldorf"), including costs, received in July.
H2 2026 Outlook
- Production performance through July and August has remained strong with excellent contributions from new wells. Continued development activity through the remainder of the year will be focused in the liquids rich Abu Roash G reservoir. Consequently, FY26 production is expected to be above the mid-point of the guidance range of 18,000-22,000 boepd
- Full-year forecast net capital expenditure towards the upper end of the range of $85-95m, reflecting an increase in drilling efficiency and the number of wells brought on production in the year to date
- Operating costs remain within guidance forecast of $5-7 per boe
- Drilling activity in the second half of 2026 will continue to target two key development focus areas, guided by the successful results from earlier in the year. Activity will also resume in the Obaiyed field area, for the first time since 2023, with two new wells planned and a re-entry opportunity.
Source: Capricorn Energy
