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Shares of Capricorn Energy CNE.L jumped nearly 16 per cent on Friday after the oil and gas producer received $50m from Egypt’s state-owned petroleum corporation under a concession agreement.
In May, Capricorn and Egyptian General Petroleum Corporation (EGPC) agreed to merge eight concessions in Egypt into a single deal under a joint venture with Cheiron Oil and Gas, boosting investments and production in the company’s core region.
Capricorn’s accelerating cash collections from Egypt come as international oil firms operating in the country face lengthy delays in payments, with improved flows signalling the government’s efforts to clear arrears to energy companies.
The Scotland-based company said it expects to receive further material payments against arrears before the year-end.
Capricorn said it expects to deliver annual production above the mid-point of its 17,000-21,000 barrels of oil equivalent per day guidance.
