Capricorn Energy (LSE:CNE), in its AGM statement, highlighted an anticipated boost in Egypy where it has recently consolidated eight concession agreements into a single merged Western Desert production sharing contract, ratified by the Egyptian House of Representatives at the end of the first quarter.
The consolidation, the company said, should unlock additional reserves, deliver enhanced fiscal terms, drive increased investment and cash flow and increase netback by around $5 at $80 per barrel.
Year-to-date production is tracking within its 2026 guidance range of 18,000-22,000 boepd, and a planned February operational shutdown at the Badr El Din facility was completed on time and safely.
With the ratified contract, Capricorn plans to drill two wells in the new acreage in the third quarter to test whether producing trends in the Abu Rouash Gharadig reservoir extend and could open additional development locations.
The group is targeting 2026 capital expenditure of $85-95m and operating costs of $5-7/boe while continuing near‑field exploitation work complementary to its producing asset base.
Capricorn said it repaid its remaining debt in April and held $132m of group cash at 30 April.
The company will announce its half-year results on 24 September.
