Capricorn Energy, the Edinburgh-based oil and gas company, said Waldorf Production has failed to meet today’s deadline for the final $22.5 million payment on the purchase of its interests in two North Sea fields.
In a statement to the Stock Exchange, Capricorn said it is “considering all options to recover this overdue payment”.
Under its previous name, Cairn Energy, the company agreed in March 2021 to sell its entire 20% interest in the Catcher field and 29.5% stake in the Kraken field. It took on Waldorf’s 25% non-operated working interest in the Columbus gas field.
Columbus, located in the UK Central North Sea, was due to transfer into the existing Capricorn UK subsidiary anddeliver cash flows from 1 January 2024, with approximately 80% of production exposed to the UK gas price.
Kraken oil field
The Kraken field forms part of the agreement
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 exploration and production activities.
Its brief statement today said: “Capricorn announces that it has not received the final settlement payment of $22.5m from Waldorf Production UK PLC which was due today. Capricorn is considering all options to recover this overdue payment.
“The longstop date under the sale and purchase agreement related to Capricorn’s acquisition of a non-operated 25% interest in the Columbus field has been extended until 31 March 2025.”
