Capricorn Energy upbeat as it completes strategic reset

(Sharecast News) - Capricorn Energy chief executive officer Randy Neely told shareholders at the company's annual general meeting on Thursday that the business has completed a strategic reset and is now positioned for sustainable growth, underpinned by improved fiscal terms in Egypt and ongoing production delivery.

The London-listed company said it was tracking slightly above the midpoint of its 2025 production guidance of 17,000m to 21,000 barrels of oil equivalent per day.

Earlier this month, the Egyptian General Petroleum Corporation (EGPC) approved the consolidation of eight of Capricorn's existing concessions into a single integrated agreement, adding development and exploration acreage.

The licence extensions were expected to increase reserves by around 20 million barrels of oil equivalent this year, with a 60% increase in the gas price on new volumes further supporting revenue growth.

Capricorn said EGPC had indicated its intention to pay about $130m during the remainder of 2025, with the company working to accelerate receipts and secure additional payments.

Year-to-date receipts stood at $22m, with total receivables at $209m.

Development activity was reportedly advancing, with two targeted development wells already drilled and three exploration wells underway.

The company said it expected to drill a total of 13 development wells in 2025, and would provide further operational guidance once parliamentary ratification of the new agreement is completed later this year.

Capricorn said it ended the period with a net cash position of $34m and $91m in plc cash, supporting ongoing investment across its Egyptian portfolio.

Outside Egypt, the company said it was continuing to evaluate opportunities in the UK North Sea and MENA as it looked to broaden its asset base.

Neely described Capricorn as a "compelling investment proposition" supported by financial discipline, a clear growth path, and a self-funded model focused on shareholder value.

At 0958 BST, shares in Capricorn Energy were down 0.12% at 208.25p.

Reporting by Josh White for Sharecast.com.

Capricorn Energy PLC