Capricorn Energy reports first production at Sangomar development

11th Jun 2024 08:57

(Sharecast News) - Exploration and development company Capricorn Energy said on Tuesday that first production from its Sangomar Field development offshore Senegal has commenced after it received confirmation from Woodside Energy that the first oil condition under the sale and purchase agreement has been satisfied.

Capricorn stated it may be entitled to a contingent payment of either $25.0m or $50.0m if the average Brent oil price during the first six months of production exceeds the $55 per barrel or $60 per barrel thresholds and the first oil is achieved in the first half of 2024.

The FTSE 250-listed group said the contingent payment was anticipated in early 2025, once the average oil price has been determined and there have been 30 days of continuous production.

Capricorn added that it "remains committed" to returning any available proceeds of the contingent payment to shareholders.

As of 0855 BST, Capricorn shares had rallied 13.27% to 194.25p.

Reporting by Iain Gilbert at Sharecast.com