Capricorn Energy has cut its projected production for the year and warned of debts it is owed mounting in Egypt.
As of the end of October, Capricorn’s production has averaged 30,600 barrels of oil equivalent per day, of which 45% was oil. It expects to sustain this level to the end of the year.
It had originally guided to output of 32,000-36,000 boepd in 2023.
Capricorn noted said its plans had suffered as a result of timing of projects at Teen and in the BED area. A number of activities, including new wells, could increase production to the end of the year.
Capital expenditure this year is unchanged at $117-127 million for 2023, with operating expenditure of $5-6 per boe.
Egypt must be self funding, the company said. During the period from July to the end of October, it had collected $44mn for its operations.
However, as of the end of October, outstanding receivables had reached $170mn, of which $139mn was overdue.
At its half year results, Capricorn reported receivables had increased from $97mn to $144mn, of which $113mn was overdue.
The company said it was working with Egyptian General Petroleum Corp. (EGPC) and “remains confident in the full collection of the amount outstanding”.
Capricorn will present its full year results for 2023 on March 14, 2024.
Since May, Capricorn has spent £13.98mn on repurchasing 5.02mn of its own shares.
Recommended for you
