Operations

Egypt

In September 2021, the company together with consortium partner Cheiron, acquired a portfolio of upstream oil and gas production, development and exploration interests in the Western Desert, onshore Egypt.

Production

The producing assets are located across four concession areas These have a variety of characteristics such as reservoir age, reservoir type and fluid properties. The four concession areas that comprise Capricorn’s production position are:

  1. Obaiyed (Capricorn 50% WI) contains Egypt’s largest onshore gas field
  2. Badr El Din (BED) (Capricorn 50% WI) comprises five producing concessions, both oil and gas
  3. North East Abu Gharadig (NEAG) (Capricorn 26% WI) comprises the concession covering the NEAG Tiba area and the NEAG Extension area
  4. Alam El Shawish West (AESW) concession area (Capricorn 20% WI)

Development activity in these concessions is guided by a broad portfolio of new well candidates and projects. New well activity in 2023 occurred across all four concession areas with the greatest focus on the Abu Roash reservoir targets in the BED concession, where continued step-out and delineation wells have extended the field limits and added reserves. Much of the new well activity has been focused on this liquids-rich area which benefits from stacked reservoir targets. Within BED the consortium has been actively developing an inventory of additional opportunities for future drilling.

The consortium continues to assess facilities projects to manage asset integrity and add production where possible. In 2023 facilities projects were completed at BED, Teen and Karam. These projects focused on optimising gas production with compression and low-pressure production optimisation, with production impact to be assessed in Q1/24.

Decarbonisation initiatives are in place to reduce flaring, venting and fugitive emissions in line with Capricorn’s net zero commitments. The Company’s operated data (direct from our contractors) is recorded in a greenhouse gas (GHG) inventory where emission factors are applied – Capricorn receives annual support and limited assurance on this data set, facilitating the continuous improvement of our reporting disclosures. The Company’s non-operated data is received directly from our partners, with emission factors already applied. Independent verification of this calculation methodology for GHG emissions (associated with our 2022 baseline) was completed in Q4 2022. Capricorn’s operated and non-operated data set directly contributes to this baseline which underpins our equity Scope 1 and Scope 2 emission reduction targets of 15% by 2025, 30% by 2030, with a commitment to achieve net zero by 2040.

Exploration

Capricorn has a non-operated participation in three exploration concessions in the Western Desert, held in 50:50 joint ventures with Cheiron. As a consequence, Capricorn is exposed to a variety of opportunity types from unconventional resource opportunities, established proven play types and near field opportunities.

In the coming year it is anticipated that these concessions will present the opportunity to target conventional and unconventional objectives with exploration drilling. Work continues to mature these opportunities, supported by the delivery of new 3D seismic, previously acquired by the consortium.

On the Bapetco concessions the consortium continues to mature near-field exploration targets. These opportunities have been an area of success since entry into the assets and in particular in the BED area where new hydrocarbon pools, such as at BED15 have been discovered and subsequently developed.

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