By Joe Hoppe
Capricorn Energy said Monday that it has made significant progress in its strategic review, which it expects to complete in September, and said it intends to return more surplus capital to shareholders.
The energy company said it has made good progress in its review, which is focused on reducing costs, refocusing its Egyptian operations and returning excess funds and is expected to end in September.
Capricorn said it has already achieved a significant reduction in general and administrative costs, and believes it to be possible to reduce annual gross general and administrative expenses to $1.50 for each barrel of oil produced or less.
Production in the year-to-date to the end of May has averaged 31,500 barrels of oil equivalent a day. Its full-year guidance remains at 32,000-36,000 barrels a day, and it expects an uplift in production in the second half of the year to reach that.
The company said it has earmarked the fourth quarter for a payout to shareholders of a $100 million dividend. It intends to return more moving forward, including a contingent payment from the sale of the Senegal business due after first producing oil, which it intends to give back to shareholders in full. The precise scale and timing will become clear later this year or early 2024, it said.
The company also named Hesham Mekawi as non-executive deputy chairman.
Write to Joe Hoppe at joseph.hoppe@wsj.com
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