Scottish oil and gas firm Capricorn Energy (LON:CNE) is aiming to diversify and expand its operations, targeting further opportunities in the UK North Sea.
London-listed Capricorn noted that if first oil occurs before June 30, 2024, Woodside would owe it $25 million - or $50 million.
After selling-off its North Sea assets, Capricorn Energy (LON: CNE) is making a re-entry into the UK through a new deal with Waldorf Production.
As of the end of October, outstanding receivables had reached $170mn, of which $139mn was overdue.
Capricorn will “vigorously defend” its position, it said. This may include “exercising rights under the sales agreement”, it said.
Capricorn has warned it is watching the receivables closely. Its capital expenditure plans are “being monitored to match incoming receipts”, it said.
Capricorn Energy expects to have shed the majority of its UK workforce before the end of 2023, amid a pullback in North Sea and global exploration.
“We are looking forward to leveraging Simon’s experience in respect of our ongoing arbitration regarding Ombrina Mare, and Paul’s expertise in securing FID for offshore energy projects.”
North Sea firm Deltic Energy (LON: DELT) has given up on three exploration licences after its partner decided to exit the permits.
Executives at Capricorn Energy (LON: CNE) will tell a shareholder AGM today that it “continue(s) to pursue the potential sale” of its North Sea business.
The most significant step will be a special dividend of $575 million. The first tranche will come in May, with a return of around $450mn. A second payment of $100mn will come in the fourth quarter.
North Sea firm Capricorn Energy (LON: CNE) has bolstered its ranks with the appointment of a new commercial director.
“The cost of getting things done is astronomically higher for oil and gas than for the greener projects,” he said. “In the longer term it’s bullish for prices, as not enough investment is going into the areas where it should be.”
While work in C2 is just beginning, the MPME said Shell was planning to drill another licence in the coastal area before the end of 2023.
Palliser has suggested that Capricorn should return at least $535 million to shareholders.
The vote appoints Hesham Mekawi, Christopher Cox, Maria Gordon, Craig van der Laan, Richard Herbert and Tom Pitts to the board with immediate effect. They all received 99.2% approval at the vote.
Capricorn chair Nicoletta Giadrossi is stepping down immediately from the board. So too is CEO Simon Thomson, in addition to Peter Kallos, Alison Wood and Luis Araujo.
“Despite billions in investments and divestments over a decade, we do not find evidence that Capricorn created any meaningful value for shareholders.”
However, the company said in closing, it would “continue to consider its alternative strategic options, with the objective of maximising value for its unitholders”.
Smith noted the opposition from shareholders to the Tullow merger. “The message from shareholders was that there was a preference for cash returns over long-term delivery. We listened to that and [the NewMed deal] offers a lot of cashback, while also being energy transition led.”
The value of several North Sea operators could soar this year, according to ambitious predictions made by US investment bank Jefferies.
Capricorn Energy has conceded that it expects to hold an EGM on February 1 but has warned shareholders against rejecting its proposed combination with NewMed Energy.
Palliser Capital reports more Capricorn Energy shareholders have backed its plans to remove the board and scrap proposed merger plans with NewMed Energy.
Capricorn noted that it had been working on “strategic alternatives” for more than a year. However, there have been no better options, it reported, and a sale is necessary to “maximise shareholder value and the full potential of Capricorn’s assets”.
Plays by Shell (LON: SHEL), TotalEnergies (LON: TTE) and Ithaca Energy (LON: ITH) are listed amongst Wood Mackenzie’s UK North Sea wells to watch.