Capricorn Energy Raises 2026 Output Expectations on Egypt Gains

Capricorn Energy said production from its Egyptian portfolio remained resilient in the first half of 2026, supported by successful drilling, regular cash collections and an improved contractual framework for its producing assets.

The London-listed producer generated $100 million in Egypt revenue during the six months through June, realizing an average oil price of $89.50 per barrel and a gas price of $3.40 per thousand cubic feet.

Working-interest production averaged 19,337 barrels of oil equivalent per day, slightly above the midpoint of Capricorn’s full-year guidance range of 18,000 to 22,000 boepd. Liquids accounted for 46% of production.

The company now expects 2026 production to finish above the midpoint of that guidance after strong contributions from recently completed wells continued through July and August.

Capricorn and its operating partner Cheiron drilled 18 development wells and two near-field exploration wells during the first half. The program identified additional sections of the Abu Roash Gharadig reservoir, creating further drilling opportunities and delivering higher-than-expected production.

Development work during the remainder of 2026 will concentrate on the liquids-rich Abu Roash G reservoir. Capricorn also plans to resume drilling around the Obaiyed field for the first time since 2023, with two wells and a potential well re-entry planned.

Higher drilling efficiency and an increased number of wells coming online have pushed expected full-year net capital expenditure toward the upper end of Capricorn’s $85 million to $95 million guidance. Operating costs remain within the company’s $5-$7 per barrel of oil equivalent target after averaging $5 per boe during the first half.

Capricorn collected $98 million from its Egyptian operations during the period, although receivables remained at $92 million at the end of June. The company held $114 million in cash after repaying its remaining debt early in April.

The results follow a significant restructuring of Capricorn’s Egyptian concessions. A consolidated concession agreement received parliamentary ratification in March and ministerial approval in May, with an effective operational date of July 1, 2025. The revised framework extends the life of several producing assets and is intended to support further development and reserve conversion.

Capricorn’s improving operational performance comes as the company is also the subject of competing takeover approaches. DNO ASA and Genel Energy plc announced firm offers for Capricorn after the end of the reporting period, and both transactions remain ongoing.

The competing bids add a corporate dimension to Capricorn’s strategy in Egypt, where the company has increasingly concentrated its portfolio following earlier asset disposals and restructuring.

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