Offshore staff
EDINBURGH, Scotland — Capricorn has entered into an agreement for the full and final settlement of the subsequent payment terms of its sale and purchase agreement with Waldorf Production UK Plc relating to the disposal of its previously held interests in the Catcher and Kraken fields.
Under revised terms, Capricorn will now receive payment of $72.5 million over the next 13 months and Waldorf’s 25% non-operated working interest in the Columbus gas field in the UK Central North Sea.
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 $50 million cash through an initial payment of $48 million in December 2023, followed by $2 million at the end of first-quarter 2024. An additional $22.5 million will be due in early January 2025.
The 25% working interest in the Columbus Field will be transferred into the existing Capricorn UK subsidiary and should deliver consistent cash flows, effective Jan 1, 2024, with about 80% of production exposed to the UK gas price.
In addition, the acquisition of the Columbus Field allows Capricorn to maintain its presence in the UK North Sea where it has been active over the last decade through continuous E&P activities.
As part of the above settlement, Capricorn has agreed to release $48 million 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.
12.19.2023
