Ratification of integrated concession agreement
Capricorn Energy PLC announced the ratification of an integrated concession agreement for its Egyptian Western Desert assets by the Egyptian House of Representatives, a significant step that consolidates eight existing concessions and extends their life by up to 20 years. This new agreement, which includes a 10-year development term and two 5-year optional extension terms, aims to enhance operational and financial efficiencies through the merger of concessions and amended fiscal terms designed to encourage investment. The company, holding a 50% participating interest alongside Cheiron Oil and Gas Limited, anticipates the Minister of Petroleum and Mineral Resources will sign the amended agreement in the coming weeks.
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Capricorn has been informed that the Egyptian House of Representatives has ratified the consolidated and amended concession agreement covering eight of the Company's existing Egyptian Western Desert concession agreements in which it has a 50% participating interest held jointly with Cheiron Oil and Gas Limited ("Cheiron" or "the Operator").
The ratification represents a key milestone in the process to consolidate, extend and improve the terms of the Company's Western Desert asset base.
Key elements of the integrated concession
The new agreement extends the concession life by up to 20 years with a 10-year development term and two 5-year optional extension terms, amends the fiscal terms to promote investment, and merges the existing concessions to increase operational and financial efficiencies. Further details relating to the integrated concession agreement can be found in the Company's release dated 8 May 2025.
Next steps
The Company will now work with its partner and the Egyptian authorities to complete the remaining customary steps required for the Minister of Petroleum and Mineral Resources to sign the amended concession agreement. This is expected to occur in the coming weeks.
Further updates will be provided in due course.
Cleaned text: letterheads, contacts and legal notices removed. View the original announcement ↗ · Company filings. Not investment advice.