Capricorn Energy on track to meet midpoint of current FY guidance

Exploration and development firm Capricorn Energy said on Wednesday that it was on track to meet the midpoint of current guidance as consistent payments continued throughout its Egyptian operations.

Capricorn said it had entered H2 with "a clear value opportunity" against the backdrop of an "improving fiscal landscape" and the re-start of drilling operations in Egypt.

To the end of June, Capricorn said working interest production across its four main concession areas in the Western Desert averaged 25.4m barrels of oil equivalent per day was expected to be consistent with the full-year guidance range for 2024 of 20.0m-24.0m boepd.

"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," said Capricorn.

The London-listed group added that year-to-date, it had collected $107.8m against its Egyptian accounts receivable, inclusive of a $15.0m payment on 1 July. Capricorn said its Egyptian receivables position has improved from $169.0m at year-end to $145.0m. After expected credit loss adjustments, debt outstanding reduced from $114.0m to $108.0m.

As of 1010 BST, Capricorn shares were unchanged at 179.0p.

Reporting by Iain Gilbert at Sharecast.com