Capricorn Energy lifts production outlook on Egypt strength amid DNO takeover war

By Reuters News

Sept 24 (Reuters) - Takeover target Capricorn Energy CNE.L forecast annual production above the mid-point of its 18,000 to 22,000 barrels of oil equivalent per day guidance range on Thursday, boosted by higher output from its expanded Egyptian operations.

Here are some details:

  • The results come amid a months-long bidding contest for the Egypt-focused producer, whose shares have soared this year as a surge in oil prices following the Iran war spurred a wave of dealmaking among energy firms operating in the Middle East.

  • The company had agreed to a higher $396 million offer from Norwegian oil firm DNO DNO.OL over rival bidder Genel Energy GENL.L earlier this month.

  • Both offers remain ongoing, Capricorn said on Thursday.

  • Capricorn's Egyptian revenue hit $100 million in the six months to June 30, driven by an average realised oil price of $89.5 per barrel, up from $73.6 per barrel in the same period last year.

  • The company said production performance through July and August also remained strong with excellent contributions from new wells.

  • Capricorn swung to a first-half operating profit of $56.3 million from a $2 million loss a year earlier, with working interest production averaging 19,337 boepd in the first half.

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