In September 2021, the company together with joint venture (JV) partner Cheiron, acquired a portfolio of upstream oil and gas production, development and exploration assets in the Western Desert, onshore Egypt.
Production
The producing assets are located across four concession areas:
- Obaiyed (Capricorn 50% WI) contains Egypt’s largest onshore gas field
- Badr El Din (BED) (Capricorn 50% WI) comprises five producing concessions, both oil and gas
- North East Abu Gharadig (NEAG) (Capricorn 26% WI) comprises the concession covering the NEAG Tiba area and the NEAG Extension area
- Alam El Shawish West (AESW) concession area (Capricorn 20% WI)
These four production concession areas have a wide variety of fluid and reservoir characteristics, requiring distinct development strategies for each. Capricorn focuses technical and subsurface activities on supporting our operating partner, Cheiron, to optimise production and prioritise the highest value development activity. Capricorn has continued to prioritise liquids focused operations in the BED area and efforts continue to actively manage reservoirs through water injection, in order to boost production and reserves.
Workovers remain an important, cost-efficient mechanism to maintain production and Capricorn continues to proactively high-grade opportunities, supporting the Operator in prioritising economic projects. Production performance has been underpinned by new development wells drilled and the implementation of a waterflood programme in the BED field area. The complex stacked nature of the reservoirs across many of the field areas offers considerable potential to extend productive areas through field extension, and the JV continues to proactively advance these opportunities.
In May 2025, the Egyptian General Petroleum Corporation approved an integrated concession agreement which consolidates eight of the Company’s existing concession agreements in which it has a 50% participating interest held jointly with Cheiron. The consolidation of these development concessions provides a catalyst for increased and sustained development and, since operational start date of 1 July 2025, the JV has been active with four drilling rigs. Ratification of the consolidated concession agreement is anticipated in 1Q 2026.
Exploration
Capricorn continues to consider exploration as an opportunity to grow the resource base and, following drilling in 2025, has elected to progress to the second phase on the South East Horus concession. Following ratification of the merged concession agreement, Capricorn will expand its position with two additional exploration concessions. Exploration activities are focused in several of the field areas, with near field exploration wells planned for 2026. Exploration studies which aim to identify and develop near term drilling candidates are also scheduled in the year.