Capricorn provide North Sea contingent payment update

Under revised terms, Capricorn will now receive payment of US$72.5 million over the next 13 months and Waldorf’s 25% non-operated working interest (WI) in the Columbus gas field.

Under the original terms of the sale, Waldorf was required to make three additional annual contingent payments (2024-2026). The quantum of the remaining contingent payments was subject to Brent oil prices and field production performance.

In line with the expected 2024 contingent payment, Capricorn will receive a sum of US$50m cash through an initial payment of US$48m in December 2023, followed by US$2m at the end of Q124. An additional US$22.5m will be due in early January 2025. The 25% WI in the Columbus field, located in the UK Central North Sea, will be transferred into the existing Capricorn UK subsidiary and should deliver consistent cash flows from a 1 January 2024 effective date with approximately 80% of production exposed to the UK gas price. In addition, the acquisition of the Columbus field allows the Company to maintain its presence in the UK North Sea where it has been active over the last decade through continuous exploration and production activities.

As part of the above settlement, Capricorn has agreed to release US$48m restricted cash held by Waldorf related to a residual liability on the Kraken field. The transfer of ownership in the Columbus field will be subject to customary conditions precedent.

Read the article online at: https://www.oilfieldtechnology.com/special-reports/19122023/capricorn-provide-north-sea-contingent-payment-update/