Edinburgh's Capricorn Energy narrows losses as it 'assesses all options' for future
Capricorn Energy, the Edinburgh-based oil and gas exploration and development company that recently agreed a merger deal with Tullow Oil, has reported a narrowing in first-half losses.
In the six months to the end of June, operating losses at the firm, formerly known as Cairn Energy, narrowed to some $37.3 million (£32.2m) from $47.4m a year earlier.
However, the group downgraded full-year production guidance to between 33,000 and 36,000 barrels of oil equivalent per day, from between 37,000 and 43,000 barrels previously.
The firm noted that its joint venture in Egypt secured additional rig capacity in the closing months of 2021 to allow a ramp-up in investment following completion of the acquisition in September. That would take the number of rigs active on the licences from two to five.
Chief executive Simon Thomson told investors: “Almost one year since the acquisition of the Egypt business, we continue to make good progress. We were delighted to return more than $500m to shareholders following receipt of the India tax refund at the beginning of the year.
“The board continues to believe that the proposed merger with Tullow can deliver significant long-term value for shareholders through creating a leading, Africa-focused energy company.
“The board is also mindful of the impact of external factors and market conditions and is, as always, assessing all options to maximise value for shareholders. The company is exploring a number of expressions of interest relating to alternative transactions, and is engaging with those parties expressing interest to evaluate potential outcomes.”