Genel Energy (LSE:GENL), the Kurdistan-focused oil producer, has launched a recommended cash acquisition of Capricorn Energy via a wholly owned subsidiary, Genel Energy No.9, at $3.75 per share in cash plus a special dividend of $0.99 per share intended to be declared before completion.
The $0.99 special dividend, if declared, will be paid no more than 14 days after the scheme becomes effective, with the combined value to Capricorn shareholders representing a total of $4.74 per share.
The deal brings Capricorn's Egyptian Western Desert portfolio into Genel's hands, adding onshore development and production assets that were consolidated into a single integrated licence in May 2025, ratified by Egyptian parliament in March, giving the enlarged group pro-forma proved and probable reserves of 117 million barrels of oil equivalent and combined December 2025 exit-rate production of 41,003 bopd, split evenly between Kurdistan and Egypt.
Genel's existing production at the Tawke PSC in Kurdistan averaged 17,520 bopd in 2025 at operating costs of approximately $4 per barrel, generating EBITDAX of $43 million for the year ended 31 December 2025.
"Today we announce a landmark transaction to acquire a leading oil and gas portfolio in Egypt, a move that delivers our strategic intent, reshapes our company's growth trajectory," said Paul Weir, chief executive of Genel.
The scheme requires Egyptian regulatory clearance, and completion is expected during the second half of 2026.
