27th Feb 2023 10:03
(Alliance News) - Capricorn Energy PLC on Monday bemoaned production below expectations in Egypt, as it progresses with its strategic review of the company's finances.
Capricorn is an Edinburgh-based upstream energy company with assets in the UK North Sea, Mexico, Suriname, Mauritania and Egypt.
For 2022, oil and condensate production grew 10% year-on-year in Egypt, averaging around 14,500 barrels of oil per day, net to Capricorn's working interest.
Gas production declined 15% to average 110 million standard cubic feet per day. Overall production averaged around 34,200 barrels of oil equivalent, within revised full year guidance of 33,000 to 35,000 boepd, but below original guidance.
Capricorn attributed this to its joint venture drilling fewer development wells than originally planned and targeting oil versus higher rate, lower value gas, the Teen gas condensate project start-up date being delayed from 2022 to 2023, and certain gas wells performing below year-end 2021 expectations.
At the year's end, group net cash was USD597 million, comprising USD757 million cash and USD160 million debt.
The new board has now begun its strategic review of Capricorn's business including, as an immediate priority, an assessment of the future cash needs of the business. Capricorn told investors on Monday that it would "continue to focus on optimising our operations to identify a path forward in the interest of enhancing shareholder value and returns".
In other news, Director of Finance Clare Mawdsley has replaced James Smith as chief financial officer. She joined Capricorn in 2013 as a tax advisor, and has been director of finance since 2021.
Smith said he will step down in January, after being CFO since June 2022.
Capricorn shares were trading 2.1% lower at 248.00 pence each in London on Monday morning.
By Holly Beveridge; Alliance News reporter
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