Business
PSC Consolidation Agreed
PSC Consolidation Agreed.
About this update from Capricorn Energy Plc
[{"type":"text","content":"\nFOR IMMEDIATE RELEASE 8 May 2025\n \n \nCAPRICORN ENERGY PLC (\"Capricorn\" or \"the Company\")\n \nAgreement reached to consolidate, extend and improve Western Desert concessions\n \nCapricorn announces that it has been informed by the Egyptian General Petroleum Corporation (\"EGPC\") that it has approved the consolidation of eight of the Company's existing Egyptian concession agreements, in which it has a 50% participating interest held jointly with Cheiron Oil and Gas Limited (\"Cheiron\" or \"the Operator\"), into a new, single integrated concession agreement. The integrated concession agreement is subject to Egyptian Parliamentary ratification which is expected to take place in 2025.\n \nThe new concession agreement includes improved commercial terms[1] and a refreshed primary development term to support increased investment, for the benefit of all parties.\n \nKey elements of the merged concession\n· The Badr El Din (BED), Obaiyed, North Alam El Shawish, North Matruh, Sitra, BED 3, and BED 2 and BED 17 development concessions, along with the North Um Baraka exploration concession, will be consolidated into a single integrated concession providing up to a 20-year life through an initial 10-year term, plus two five-year extensions for the development areas.\n· Improved fiscal terms to promote increased production of both oil and gas through investment, including:\no profit share[2] of 27-29%,\no a merged single cost pool,\no 40% cost recovery over four years, and\no excess cost recovery of 20%.\n· An improved gas price of $4.25/mmbtu for incremental gas produced from existing fields and new discoveries agreed to promote increased gas production....