Capricorn forecasts the drilling of 10 development wells for H2 2025.

Capricorn has announced its half-year results

Randy Neely, chief executive, Capricorn PLC said, “Capricorn enters the second half of 2025 having made material progress in its strategic priorities, underpinned by financial discipline and driven by a focused team who have set out a clear path to creating shareholder value. EGPC board approval of the renewed concession terms marked a pivotal milestone in the evolution of our Egyptian business and, anticipating the conclusion of customary parliamentary ratification expected later this year, momentum has never been stronger to achieve increased reserves and value improvements to our Western Desert assets.

"With a payment plan agreed with the Egyptian General Petroleum Corporation (EGPC), we have continued to invest in the asset base, actively working with EGPC to ensure that the timely payment of receivables is able to support the increasing investment programme.

"Growing cash flow through diversification and expanding our operations remains a key strategic priority, and we continue to actively evaluate strategic investment and partnership opportunities in the region alongside accretive opportunities in the UK North Sea.”

WI production for H1 2025 in the Western Desert averaged approximately 20,000 boepd (43% liquids), tracking slightly above the mid-point of the full year guidance range for 2025 of 17,000 – 21,000 boepd. The recent receipt of a payment plan from EGPC, along with payments consistent with that plan, is expected to resolve recent issues that have been impacting timely provision of oil field supplies and services in support of production at the Operator, Bapetco. Capricorn continues to work with the Operator to prioritise opportunities to add production, from reinstating high-graded shut-in wells, to identifying additional perforation opportunities and optimising the development well sequence.

In the first half of 2025, development drilling activity was limited by the need to fulfil outstanding exploration commitments, postponed from 2024 and backed by a parent company guarantee. In April, a fourth rig was brought into the fleet to accelerate the completion of these exploration commitments, and from August the entire fleet is expected to be allocated to development activity. Three exploration wells have been drilled with one each on the North Um Baraka, West El Fayoum and South East Horus concessions. All three wells encountered hydrocarbons and are currently under analysis in anticipation of testing to evaluate commerciality.

In the second half of 2025, Capricorn forecasts the drilling of 10 development wells, all focused on the Badr El Din area, targeting liquids. This work programme is expected to be attributed against the commitments that the Company will be required to fulfil as part of the recently agreed integrated concession agreement.

Capricorn has engaged its reserves auditor, GLJ, to evaluate the expected reserves and resources increment associated with the consolidation of eight of the Company's existing Egyptian concession agreements into a new, single integrated concession agreement, which was recently approved by the EGPC Board. The preliminary work undertaken aligns with Capricorn’s expectation of an initial conversion of WI resources to 2P reserves of up to approximately 20 mmboe in the current year, and the Company continues to expect the customary Parliamentary ratification of the new agreement later in 2025. Capricorn anticipates investing in the concession area under the new terms prior to formal ratification.

The MoU will advance regional energy development in sub-Saharan Africa.

The Mnazi Bay North Block in southern Tanzania will undergo a technical assessment so that it can be developed for exploration and production opportunities by FIRST Exploration & Petroleum Development Company and the Tanzania Petroleum Development Corporation

Both the companies have signed a memorandum of understanding (MoU) to officialise the plan as an advancement of regional energy development in sub-Saharan Africa.

The MoU signing ceremony took place at the TPDC Head Office in Dodoma, with senior executives from both organisations, representatives of the Government of Tanzania, and members of the media in attendance.

Ademola Adeyemi-Bero, Managing Director/CEO of FIRST E&P, said, "Our success in Nigeria, built on deep technical expertise, a high-performance team, and an entrepreneurial mindset, has positioned us to deploy our capabilities beyond our home market. We believe Tanzania holds world-class hydrocarbon resources and its strategic location positions it as a natural energy hub for the region. With the right investments and partnerships, Tanzania can play a pivotal role in improving energy access, enabling cross-border distribution, and driving regional energy security across Sub-Saharan Africa.”

"We are confident that this MoU marks not just the beginning of a project, but the start of a long-term, mutually beneficial relationship between FIRST E&P and the government and people of Tanzania. We extend our sincere appreciation to TPDC for their collaborative spirit, professionalism, and openness throughout this process," said Adeyemi-Bero.

“The Petroleum Act of 2015 empowers TPDC to develop blocks independently or in partnership with strategic collaborators. TPDC has since identified key blocks, including Mnazi Bay, and we are working in close coordination with Petroleum Upstream Regulatory Authority (PURA), the Ministry of Energy, and TPDC to progress development. This MoU marks a first-of-its-kind upstream initiative, and we look forward to commencing exploration and production activities. With FIRST E&P’s support, we believe Tanzania’s upstream sector will be significantly strengthened,” said Godluck Shirima, Commissioner for Petroleum and Gas, Ministry of Energy, Tanzania.

Mussa Makame, managing director, Tanzania Petroleum Development Corporation (TPDC) said, “The reality we must acknowledge as Africans is that many of our people still rely on biomass for energy -- an option that poses serious risks to both health and the environment. Transitioning to gas is a critical step toward ensuring energy security for our communities. Developing our reserves is, therefore, a national priority. It is even more encouraging when African companies collaborate to unlock these resources, as it allows us to harness and benefit from them right here on our own soil.”

PEL 79 sits adjacent to an emerging microregional dynamic focused on oil-weighted prospectivity. (Image source: Sintana Energy))

The Ministry of Industries, Mines and Energy for the Republic of Namibia has approved a second renewal exploration period with a 12-month extension for the petroleum exploration license 79 (PEL79) that includes blocks 2815 and 2915 located in Namibia's Orange Basin

The PEL 79  is operated by the National Petroleum Corporation of Namibia Ltd (Namcor) with a 67% interest, while Giraffe Energy Investments -- an entity in which Sintana maintains a 49% ownership interest -- owns a 33% share on the license.

Sitting inboard of licenses operated by BW Energy, Rhino Reosurces, and Shell, PEL 79 promises incredible prospects with an existing prospect inventory underpinned by more than 4760 km of 2D seismic, 1,137 sq km of 3D seismic and 1 well with gas shows intersecting the Kudu source rock.

To top that, PEL 79 sits adjacent to an emerging microregional dynamic focused on oil-weighted prospectivity.

Right outboard to the west of PEL79, the license operator, Rhino Resources, has drilled two wells, including the Capricornus-1X discovery well, that reflected a flow test exceeding 11,000 barrels per day of light oil with limited associated gas from a 38-metre net oil-bearing reservoir. The third quarter of the year will see the commencement of further drilling activity, targeting the Volans prospect, with up to two optional wells that could include appraisals.

BW Energy has acquired 4,600 sq km of new 3D seismic over PEL 3, located directly west of PEL 79, and has moved to initiate an exploration and appraisal campaign including drilling the Kharas well located northwest of Kudu during H2 2025.

“We appreciate the leadership by our joint venture partner NAMCOR to secure the extension for PEL 79. Extending our exposure during a period of significant offset activity positions us to fully realise the significant geologic, commercial, and strategic value of PEL 79,” said Robert Bose, chairman of Giraffe and chief executive officer of Sintana. “The potential for high impact progress on PEL 79 adds to the prospect for significant developments across our Namibian offshore portfolio. We expect material progress on all our licenses over the coming quarters,” he added.

Afentra recorded an overall revenue of US$52.0mn.

Africa-focused upstream oil and gas company, Afentra plc, has reached a gross average production of 21,350 bopd for the first half of 2025 

The company is on track with its multi-year redevelopment plan to boost recovery and production growth. The first half of the year saw continued ramp-up in water injection to reach an average of 35,000 barrels of water per day, so that a level of approximately 85,000 bwpd can be attained by the end of the year. The company, however, has recorded an excess of 100,000 bwpd of maximum injection rates in the first half of the year.

Afentra has reached enhanced production performance by conducting as many as 10 lightwell interventions. There was infrastructure upgrades across power systems, cranes, subsea lines and risers to enhance safety, reliability, uptime and protect future value.

The company is currently conducting platform surveys and access preparation so that rig mobilisation and drilling can be effectively achieved in 2026.

With the assurance of stable asset uptime, the company is on track to deliver US$180mn capital investment programme by the book. 

The first half of 2025 also saw Afentra's acquisition of an additional 5% net interest in Block 3/05 and 6.67% net interest in Block 3/05A. 

Another big highlight for the company during this period includes the onshore Kwanza basin growth plan. A risk service contract was initialed in the KON4 with operatorship and a 35% working interest. The blocks are known for its low-cost exploration potential, and one of them hosts the Quenguela Norte field, which is known to be the largest onshore discovery. 

The Kwanza licenses are currently subjected to technical and operational workstreams, as historic well data are being reviewed and early-stage subsurface workshops conducted. An eFTG acquisition over KON15 and KON4 is now awaited by Q3 2025 to support future 2D seismic planning and subsurface evaluation before exploration, development, and appraisal opportunities can be identified over the next 18 months. 

Afentra recorded an overall revenue of US$52.0mn. It has completed two crude oil liftings during the first half of the year, totalling to 0.7mn barrels, and expects lifting another five before the year ends.

"Afentra has continued to make strong progress in executing our value driven growth strategy, with the announced Etu transaction consolidating our position in Block 3/05 and the initialling of the KON4 RSC marking a further step forward in our onshore ambitions. The KON4 RSC marks an important step for Afentra, as it will be our first operated asset, a testament to our growing capabilities and a key step forward in our onshore ambitions. We continue to prioritise sound financial and risk management to ensure appropriate visibility on cash flow and the most recent cargo sale has moved Afentra into a strong net cash position. Combined with solid operational performance, material reserve replacement and strong asset cash generation, these milestones reinforce the strength of our portfolio and leave us well positioned to deliver further organic growth from our existing portfolio and pursue further value-accretive opportunities. The focus for the second half of the year will be continued operational progress across the portfolio and completion of the Etu and KON4 transactions as we continue to expand, diversify and strengthen Afentra's portfolio in Angola," said Paul McDade, chief executive officer, Afentra plc.