Genel Energy has agreed a recommended cash acquisition of Capricorn Energy, valuing the Edinburgh-based group at approximately US$360 million (£271 million) as the Kurdistan-focused producer moves to establish a second production hub in Egypt.
The offer of 357p represents a 34% premium to Capricorn’s closing price of 266p on 10th March and a 48% premium to the three-month volume-weighted average.
The deal will secure Genel the Egyptian Western Desert portfolio it has been circling for some time, having identified Egypt as a priority country for expansion. Genel’s production is currently concentrated in a single asset, its 25% non-operated stake in the Tawke licence in Kurdistan, and the acquisition roughly doubles output while spreading risk across two countries.
The enlarged group will hold 2P reserves of 117 mmboe and combined production of 41,003 bopd based on December 2025 exit rates, split evenly between Kurdistan and Egypt.
Commenting on the Acquisition, Paul Weir, Chief Executive Officer of Genel, said: “Today we announce a landmark transaction to acquire a leading oil and gas portfolio in Egypt — a move that delivers our strategic intent, reshapes our company’s growth trajectory, diversifies our portfolio of oil and gas fields and begins our role as a partner in Egypt’s energy future.”
“The acquisition of Capricorn Energy and its portfolio brings high‑quality assets, material reserves, and a talented local workforce that together create immediate scale and opportunity for further onward investment and growth. By applying our technical and operational capabilities to these assets, we will work with the operator to accelerate production optimisation, replace reserves, reduce unit costs, and capture significant near‑term cash flow while preserving optionality for future development.”