Capricorn Energy PLC's (LSE:CNE, OTC:CRNZF) shares rose 12% on Thursday after the oil and gas group reaffirmed its production guidance and reported solid progress in Egypt, its core market.
The company said first-half production averaged just over 20,000 barrels of oil equivalent per day, placing it on track to deliver between 17,000 and 21,000 for the full year.
Revenue from Egypt came in at $59 million with realised oil prices averaging $73.60 a barrel, while operating costs were kept low at $5.10 per barrel of oil equivalent.
A key milestone was approval from the Egyptian General Petroleum Corporation to consolidate eight of Capricorn’s concession agreements into a single deal with improved commercial terms.
Parliamentary ratification is expected later this year. The new framework should support greater investment, unlocking reserves and raising output.
The company reported cash collections of $61 million in the first half and expects at least $90 million in the second half under EGPC’s payment plan. Exploration results were also encouraging, with hydrocarbons encountered across three wells and two now moving to testing.
Looking ahead, Capricorn plans 15 new development wells in Egypt’s Badr El Din area in the second half and continues to evaluate merger and acquisition opportunities in the UK North Sea and the wider Middle East and North Africa.
The shares rose 25p to 226.5p.