Egypt's BED generates boosted production for Capricorn in 2025

Liquids-rich development drilling and the ongoing waterflood programme in the Badr El Din (BED) concession has resulted in increased production levels from Egypt for Capricorn Energy's 2025 report at 20,024 barrels of oil equivalent per day, surpassing the year's guidance of 17000-21000 bopd

The new guidance for 2026 is hence set at 18000-22000 boepd, also driven by a forecast to generate 43% liquids. A four-rig drilling programme has been put in place throughout the year with a special focus on the liquids-rich area. It will also include activities on the gas-prone Bahariya target which was found last year. Operating costs for the year are anticipated around US$5-7 barrels of oil equivalent. The US$217mn collected from Egypt in 2025 will cover the funding for the sustainably designed drilling plan.

The BED facility will undergo maintenance shutdowns twice in the year.

The Egyptian General Petroleum Corporation and the Egyptian Cabinet have approved the merged concession agreement, with formal ratification expected within the first half of 2026.

"2025 was a year of significant operational, strategic and financial progress for Capricorn, marked by a number of milestones across our Egypt operations.

"In May we received approval from the Egyptian General Petroleum Corporation (EGPC) to consolidate eight of our existing Egyptian concession agreements into a single, merged concession agreement, unlocking significant fiscal and operational benefits which should allow us to extract additional value from our existing portfolio. The new agreement, anticipated to receive parliamentary ratification in H1 2026, secures access to an additional development lease area and two open exploration areas adjacent to our existing acreage. These additions supported a 20.2 mmboe increase of working interest (WI) 2P reserves (certified at year end), enhancing future development potential. The improved fiscal terms will drive increased investment and cash flow across a range of oil prices and at $80 per bbl our netback improves from $18 to $23 per boe. Furthermore, it includes a 60% increase in gas pricing for incremental volumes from both existing fields and new discoveries.

"Operations in Egypt delivered full year production of 20,024 boepd, exceeding the midpoint of 2025 guidance, supported by liquids-rich development drilling and the ongoing waterflood programme in the Badr El Din (BED) concession.

"Despite a volatile macroeconomic environment and fluctuating commodity prices, we collected $217m from Egypt, reducing the Company’s accounts receivable to $86m.

"Capricorn’s progress in 2025 provides a robust platform to build a cash-generative business. A key priority for 2026 will be accelerating development activities in the merged concession area.

"Our strategic priorities for the coming year are to maximise value from our Egyptian assets through disciplined investment, prioritise shareholder value, and continue to explore value-accretive opportunities, primarily in Egypt, with a secondary focus in the UK North Sea and the broader MENA region," said Randy Neely, the chief executive of Capricorn Energy.