Capricorn Energy PLC (LSE:CNE, OTC:CRNZF) shares surged 7% to 203.76p on Friday after the oil and gas producer said it had received $50 million from Egypt’s state-owned petroleum company, easing concerns over delayed payments.
The company confirmed that it has now collected $102 million from the Egyptian General Petroleum Corporation (EGPC) since the end of June, reducing outstanding receivables to around $115 million, down from $182 million at mid-year.
Capricorn said it expects further “material payments” before the end of 2025.
The announcement comes as a relief to investors worried about overdue receipts from Egypt, where foreign exchange shortages have delayed payments to international energy companies.
Capricorn’s confirmation of progress, coupled with stable production, boosted confidence in its cash flow outlook.
The group said it continues to invest in its Egyptian assets and has completed all exploration commitments on its existing acreage. At the South East Horus block, Capricorn and joint venture partner Cheiron have moved into the next exploration phase following positive well tests.
The pair also plan to apply for a development lease at the North Um Baraka concession, which will be incorporated into Egypt’s new “modernised” concession framework.
Capricorn said it remains on track to exceed the midpoint of its full-year output guidance of 17,000–21,000 barrels of oil equivalent per day, with average production so far this year at 19,924 boepd, 41% of which is liquids.