Capricorn confident in momentum though annual sales edge lower
Capricorn Energy PLC on Monday hailed ‘encouraging’ drill results, despite a slight drop in 2025 revenue, as it moves to finalise a merged concession agreement.
The Edinburgh-based fuel producer targeting Egypt said its working interest production totalled 20,024 barrels of oil equivalent in 2025, compared with 23,763 boepd in 2024.
Annual revenue was estimated at $119 million, down from $147 million on-year, while capital expenditure ticked up to $77 million from $63 million.
Capricorn’s daily exit rate was 21,003 boe in 2025, with provisional entitlement sales volumes totalling 3.5 million boe, at an average production cost of $5.4 per barrel. The company estimated an average oil price of $68.9 per barrel and gas price of $3.0 per thousand standard cubic feet.
Net cash inflows from Egyptian operations, after capex, rose to $81 million from $66 million. Capricorn ended the year with a $103 million net cash position, improved from $23 million a year earlier, and accounts receivable down to $86 million, which Chief Executive Randy Neely noted as ‘the lowest level since 2022.’
Production in 2025 was led by drilling of the Badr El Din prospect. Work also progressed at the South East Horus, North Um Barak and West El Fayoum sites, supporting continuation at the first two, and an exit from the latter, the firm said.
Capricorn has been working on a merged concession deal with the Egyptian General Petroleum Corp, for which it expects ratification in the first quarter of 2026. Meanwhile, Capricorn continues to eye M&A potential in the UK North Sea, Egypt and ‘general Middle East North Africa region’.
In 2026, it sees daily production ranging from 18,000 to 22,000 boe, with operating costs from $5 to $7 per barrel, and capex from $85 million to $95 million. The company is planning two maintenance shutdowns at Badr El Din, and noted uncertainty around the timing of a change in working interest at North East Abu Gharadig, as industry peer Apache Corp withdraws from the area.
According to CEO Neely, Capricorn began 2026 ‘with strong momentum’.
‘We anticipate scaling our operations in Egypt, taking advantage of the [merged concession’s] improved terms and ultimately returning significant value to shareholders,’ Neely said.
Capricorn Energy shares were down 1.1% to 259.50 pence on Monday morning in London.
Copyright 2026 Alliance News Ltd. All Rights Reserved.