On Friday, shares of Capricorn EnergyCNE.L surged almost 16% following the receipt of $50 million from Egypt’s state-owned oil corporation as part of a concession agreement.
In May, Capricorn formed a partnership with the Egyptian General Petroleum Corporation (EGPC) to consolidate eight concessions in Egypt into one joint venture with Cheiron Oil and Gas, which aims to enhance investments and boost production in the region.
The increase in cash flow from Egypt for Capricorn comes at a time when many international oil companies in the country are experiencing significant payment delays, indicating that the government is working to settle debts owed to energy firms.
The company, headquartered in Scotland, anticipates further significant payments towards these outstanding debts by the end of the year.
Capricorn also indicated that it expects its annual production to exceed the midpoint of its guidance range of 17,000 to 21,000 barrels of oil equivalent per day.