Capricorn Energy PLC (LSE:CNE, OTC:CRNZF) will acquire a stake in the North Sea’s Columbus gas field under a revised deal with Waldorf Production UK PLC.
Following its sale of stakes in the Catcher and Kraken fields in 2021, Capricorn will now acquire Waldorf's 25% non-operated working interest in Columbus, alongside being paid US$72.5 million.
Some US$50 million of this will be paid by the first quarter of next year, Capricorn said in an update on Tuesday, before US$22.5 million is transferred in January 2025.
“The acquisition of the Columbus field allows the company to maintain its presence in the UK North Sea where it has been active over the last decade through continuous exploration and production activities,” Capricorn said.
Columbus should deliver consistent cash flows upon its transfer into Capricorn’s hands on 1 January, the company added.
Capricorn also said it had agreed to release US$48 million of restricted cash held by Waldorf “related to a residual liability on the Kraken field”.