Capricorn Energy has concluded its sale and purchase agreement with Waldorf Production UK, completing the disposal of its interests in the Catcher and Kraken fields. The revised terms of the agreement involve Capricorn receiving $72.5 million over the next 13 months and acquiring Waldorf's 25% non-operated working interest in the Columbus gas field.

The original terms of the sale included three additional annual contingent payments from 2024 to 2026, with remaining contingent payments tied to Brent oil prices and field production performance. However, the revised settlement includes an initial payment of $48 million in December, followed by $2 million at the end of the first quarter of the next year. An additional $22.5 million will be due in early January 2025.

The 25% working interest in the Columbus field, situated in the UK Central North Sea, will be transferred to Capricorn's existing UK subsidiary. This acquisition is expected to provide consistent cash flows from January, with approximately 80% of production exposure to the UK gas price.

The deal enables Capricorn Energy to maintain its presence in the UK North Sea, where it has been actively involved in exploration and production activities over the past decade.

As part of the settlement, Capricorn has agreed to release $48 million in restricted cash held by Waldorf related to a residual liability on the Kraken field.

Capricorn Energy, primarily focused on Egypt, has faced management reshuffles and two failed merger deals in recent years. Despite project delays in Egypt's Western Desert affecting production, Capricorn is actively pursuing new well opportunities and deploying the appropriate rig fleet to maximize asset exploitation.

The company's capital and operational expenditure guidance remains unchanged at $117 million to $127 million. Capricorn had a cash position of $158 million at the end of October, with $113 million in reserve-based lending related to Egypt. The company is actively addressing outstanding accounts receivable, confident in the full collection of the amount from the Egyptian General Petroleum Corporation (EGPC).