Capricorn Energy Provides Operational and Trading Update
Why we think this is good
The RNS provides a positive update on Capricorn's operations and financial position. Key highlights include: - Production in the Western Desert tracking slightly above the mid-point of full-year guidance - Improved cash position and reduced debt levels - Successful exploration activities and plans for development drilling - Favorable progress on the new integrated concession agreement in Egypt Overall, the news suggests the company is making good operational and financial progress, though it does not meet the criteria for a 'very good' rating as there is no explicit profit upgrade or statement about trading significantly ahead of expectations.
Key Points
- Western Desert production tracking above guidance
- Improved cash position and reduced debt levels
- Successful exploration activities with three wells encountering hydrocarbons
- Plans for 10 development wells in H2 2025
- EGPC board approval for renewed concession terms in Egypt
Summary
Capricorn Energy PLC has provided an operational and trading update, highlighting key developments in its business. The company's Western Desert production in H1 2025 averaged 20,000 boepd, slightly above the mid-point of full-year guidance. Capricorn's cash position increased to $96m at the end of June 2025, with $86m held outside the Egypt business, and debt in Egypt reduced from $100m to $64m. The company has also made progress on its exploration activities, with three wells encountering hydrocarbons, and plans to drill 10 development wells in H2 2025. Importantly, Capricorn has received EGPC board approval for the renewed concession terms in Egypt, which is expected to be ratified by parliament later this year.