LONDON - Capricorn Energy PLC has confirmed the completion of the sale of its production sharing contract interests in Senegal to Woodside (OTC:WOPEY) Energy. The $50 million transaction is set to be finalized with payment expected in January 2025, as announced by the London-based energy company on Tuesday.
The deal's closure follows the achievement of first oil by the set deadline of June 30, 2024, and the condition that the average Brent oil price surpassed the $60 per barrel threshold during the initial six months of production. Woodside has agreed to fulfill the payment terms by January 22, 2025.
Capricorn has reiterated its commitment to its shareholders, stating its intention to redistribute the proceeds from this transaction while continuing to develop its business scale and longevity. The company aims to maintain robust cash flows to ensure consistent returns for its investors. However, the exact distribution amount is yet to be determined, pending the resolution of any disputed tax obligations highlighted in the company's half-year results released on September 19, 2024.
This recent development is part of Capricorn's broader strategy to focus on its cash flow-driven energy production, particularly in its onshore assets located in the Egyptian Western Desert. The company's approach is centered on creating value for its shareholders through careful asset management and strategic transactions.
The completion of this sale marks a significant step for Capricorn as it streamlines its portfolio and strengthens its financial positioning. The information regarding this transaction was released by RNS, the news service of the London Stock Exchange (LON:LSEG), and is based on a press release statement from Capricorn Energy PLC.
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