Senegal Asset Sale to Bring Capricorn Energy Up to $50M by 2025

2 min read | October 04, 2024 11:17 AM EDT | By Team Kalkine Media

Senegal Asset Sale to Bring Capricorn Energy Up to $50M by 2025 — Image source: Shutterstock

Payment Linked to Oil Prices

Capricorn’s potential payment hinges on the price of Brent crude oil over the first six months of production. If the price averages above $55 per barrel, the company will receive $25 million, and if it exceeds $60, the payout will increase to $50 million. The continuous production threshold, a key condition for the payment, was met after 30 days of sustained operations in the Senegal fields.

Commitment to Shareholders

In a statement, Capricorn reiterated its commitment to returning any proceeds from the contingent payment to shareholders, though the final amount available for distribution will be subject to any tax obligations owed in Senegal. This aligns with the company's ongoing efforts to deliver value back to its investors following the sale of the Senegal assets to Woodside Petroleum.

Strategic Asset Disposal

Capricorn’s sale of its stake in Senegal’s oil production assets to Woodside Petroleum, a major Australian oil and gas company, was part of the company’s strategy to streamline its portfolio and focus on its core operations. The successful transition to production marks a significant milestone in the deal, bringing added financial benefits to Capricorn as oil prices continue to fluctuate above key thresholds.

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