Investment accounts
Adult accounts
Child accounts
Choosing Fidelity
Choosing Fidelity
Why invest with us Current offers Fees and charges Open an account Transfer investments
Financial advice & support
Fidelity’s Services
Fidelity’s Services
Financial advice Retirement Wealth Management Investor Centre (London) Bereavement
Guidance and tools
Guidance and tools
Choosing investments Choosing accounts ISA calculator Retirement calculators
Share dealing
Choose your shares
Tools and information
Tools and information
Share prices and markets Chart and compare shares Stock market news Shareholder perks
Pensions & retirement
Pensions, tax & tools
Saving for retirement
Approaching / In retirement
Approaching / In retirement
Speak to a specialist Creating a retirement plan Taking tax-free cash Pension drawdown Annuities Investing in retirement Investment Pathways
Capricorn set to gain up to $50m from Sangomar
(Sharecast News) - Capricorn Energy said in an update on Tuesday that, in response to Woodside Energy's recent announcement, it was awaiting the arrival of the floating production, storage and offloading (FPSO) facility for the Sangomar Field development off the coast of Senegal. The AIM-traded firm said Woodside had affirmed its aim to achieve first production by the middle of the year.
Under the terms of the sale and purchase agreement, Capricorn said it stood to gain a contingent payment ranging from $25m to $50m.
The payment hinged on the average Brent oil price surpassing predetermined thresholds of $55 or $60 per barrel during the initial six months of production, coupled with the achievement of first oil in the first half of 2024.
If the conditions were met before 30 June, Capricorn said it expected receiving the contingent payment in early 2025, subject to the determination of the average oil price and 30 days of continuous production.
First oil was defined as a continuous 72-hour period during which at least 30,000 barrels were produced for sale.
However, no additional payment would be due if the average Brent price remained at or below $55 per barrel, or if first oil was achieved after the first half of 2024.
Capricorn added that it was in ongoing negotiations with the Senegalese Tax Authority.
The board said that while it had been agreed that real estate capital gains tax would not apply if no taxable gain was made, there was a discrepancy concerning Capricorn's historic base costs, which resulted in a capital loss on the sale of its Sangomar field interests to Woodside.
Additionally, discussions regarding Senegalese registration duty were continuing, with Capricorn maintaining its stance that no such duty was owed.
The company asserted that prior assurances from the Senegalese tax authorities exempted transactions before first oil from registration duties, adding that it vowed to defend its position on the matter.
At 1535 GMT, shares in Capricorn Energy were up 1.16% at 121.8p.
Reporting by Josh White for Sharecast.com.
Share this article
Related Sharecast Articles
Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.
Award-winning online share dealing
Search, compare and select from thousands of shares.
Expert insights into investing your money
Our team of experts explore the world of share dealing.
Policies and important information
Accessibility | Conflicts of interest statement | Consumer Duty Target Market | Consumer Duty Value Assessment Statement | Cookie policy | Diversity, Equity & Inclusion | Doing Business with Fidelity | Diversity, Equity & Inclusion Reports | Investing in Fidelity funds | Legal information | Modern slavery | Mutual respect policy | Privacy statement | Remuneration policy | Staying secure | Statutory and Regulatory disclosures | Whistleblowing programme
Please remember that past performance is not necessarily a guide to future performance, the performance of investments is not guaranteed, and the value of your investments can go down as well as up, so you may get back less than you invest. When investments have particular tax features, these will depend on your personal circumstances and tax rules may change in the future. This website does not contain any personal recommendations for a particular course of action, service or product. You should regularly review your investment objectives and choices and, if you are unsure whether an investment is suitable for you, you should contact an authorised financial adviser. Before opening an account, please read the ‘Doing Business with Fidelity’ document which incorporates our client terms. Prior to investing into a fund, please read the relevant key information document which contains important information about the fund.
This website is issued by Financial Administration Services Limited, which is authorised and regulated by the Financial Conduct Authority (FCA) (FCA Register number 122169) and registered in England and Wales under company number 1629709 whose registered address is Beech Gate, Millfield Lane, Lower Kingswood, Tadworth, Surrey, KT20 6RP.