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Wednesday, July 3, 2024
Capricorn Energy reports that through the end of June, working interest (WI) production across the four main concession areas in Egypt’s 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).
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.
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