Capricorn Energy PLC (LON:CNE, OTC:CRNZF) told investors it still believes its proposed merger with Tullow Oil PLC (LSE:LON:TLW) can deliver significant long-term value for shareholders.
Chief executive Simon Thomson, in Capricorn’s interim results statement, said that the arrangement will create a leading, Africa-focused energy company.
He added: “The board is also mindful of the impact of external factors and market conditions and is, as always, assessing all options to maximise value for shareholders.
“The company is exploring a number of expressions of interest relating to alternative transactions, and is engaging with those parties expressing interest to evaluate potential outcomes."
Capricorn and Tullow in early June announced a combination which would see their respective shareholders own 47% an 53% of the enlarged firm – which will have a portfolio of production, development and exploration assets across Africa.
Within the Capricorn business the first half saw production averaging 35,500 barrels oil equivalent per day, as the company prioritise liquids production amidst a particularly strong prevailing oil price environment.
Overall, guidance for Capricorn’s production over the full year was trimmed to 33,000 to 36,000 barrels, from 37,000 to 43,000 barrels. The company noted delays to the mobilisation of rigs to project which impacted operations.
Capricorn’s schedule sees exploration drilling getting underway in Mexico during the fourth quarter, whilst drill programmes continue in Egypt.
It expects the necessary merger documentation to be issued to shareholders in the fourth quarter also, ahead of a general meeting.
In London, Capricorn shares were on the front foot rising just over 3% to 241.6p.