Randy Neely, Chief Executive, Capricorn Energy PLC said: 
“Capricorn delivered solid operational performance during H1 2025, with the Company on track to achieve the mid-point of our annual production guidance. This performance reflects our ongoing commitment to operational and financial discipline as we pursue long-term value creation for shareholders.

Significant progress has been made towards unlocking value from our Egypt portfolio, having achieved a number of key milestones for increased investment in country. Crucial groundwork has been laid by the Egyptian General Petroleum Corporation’s (EGPC’s) approval of the amendment and consolidation of eight of the Company’s 50% owned concession agreements into a new, single integrated concession agreement, pending Egyptian Parliamentary ratification which is expected later this year. In return for a modernisation payment paid in instalments, improved commercial terms in the new concession agreement support material investment which should unlock significant contingent resources and could increase future production and substantially increase reserves through economic extensions and investment.

We have received regular payments to date against a receivables balance which has remained stable and we anticipate the receipt of at least $90m in H2 2025, based on the most recent guidance from EGPC. We continue to invest in the asset base and we are actively working with EGPC to ensure that collections keep pace with our increasing investments in Egypt.

Operationally, the Company and its partners prioritised fulfilling its outstanding exploration commitments in H1 2025. Having encountered hydrocarbons in all three exploration wells drilled in the North Um Baraka (NUMB), West El Fayoum (WEF) and South East Horus (SEH) concessions, we are pleased to report that the joint venture (JV) elected to test two wells to evaluate commerciality, with results expected in September. With these exploration wells, our financial commitments will be fully met on SEH and WEF, with only ~$750k remaining on NUMB. A fourth rig was contracted in April, and in the second half of the year, we anticipate drilling 15 development wells, all focused on liquids in the Badr El Din (BED) area, to deliver our planned drilling target of 22 development wells during 2025.

We remain focused on growing cash flow through diversification and expanding our operations. Outside of our Egypt portfolio, the active evaluation of M&A opportunities in the UK North Sea and in the MENA region continues against a strict set of commercial and strategic criteria. We are well positioned for growth and look forward to updating the market on our efforts.”

H1 2025 Financial and Operational Highlights

• Revenue in Egypt of $59m with a realised oil price of $73.6/bbl and gas price of $3/mscf
• Increased investment programme bolstered by EGPC’s approval to consolidate eight of the Company’s existing Egyptian concession agreements into a new, single integrated concession agreement (including improved commercial terms and a refreshed primary development term), as well as an agreed payment plan
• Cash collections of $61m in Egypt
• Egypt receivables of $172m at 30 June 2025
• Operating costs of $5.1 per boe on a working interest (WI) basis
• Balance sheet: Group cash of $96m, net cash $32m after debt
• Exploration capex of $8m; development and production capex of $19m
• Seven development wells drilled; two Abu Roash G (ARG) targeted wells on the Alam El Shawish West (AESW) concession and five ARG wells in BED. In April, a fourth rig was added to accelerate exploration drilling prior to licence expiry across the exploration concessions
• WI production averaged 20,342 boepd, tracking slightly above the mid-point of 2025 guidance of 17,000-21,000 boepd comprising 43% liquids

2025 Outlook

• On track to deliver FY25 production guidance of 17,000-21,000 boepd with year-to-date production averaging 19,994 boepd to 31 August 2025 comprising 42% liquids
• Full year forecast net capital expenditure of $75-85m
• Operating costs remain within guidance forecast of $5-7 per boe
• Egyptian Parliamentary ratification of the integrated concession agreement expected in 2025
• Payments expected in H2 2025 of at least $90m based on EGPC’s payment plan
• Drilling of 15 development wells forecast in second half of 2025, all focused on the BED area, targeting liquids. Work programme is expected to be attributed against the commitments that the Company will be required to fulfil as part of the integrated concession agreement
• Continue to actively evaluate opportunities to create shareholder value in the UK North Sea and MENA region.

KeyFacts Energy: Capricorn Energy UK country profile