Capricorn Energy PLC agreed to merge with Israel's NewMed (fka Delek Drilling) to create NewMed Energy. The deal includes interest in Chevron-operated Leviathan (NewMed 45.34%) and Aphrodite (NewMed 30%) eastern Mediterranean gas fields and prospects offshore Mauritania and onshore in the Egypt Western Desert. The assets hold 11.8 tcf net 2P + 2C gas reserves with production estimated to increase to 200,000 boe/d by 2030 from the current 115,000 boe/d.
Ex-Capricorn assets will be managed by NewMed Energy, while NewMed assets will be managed by NewMed Energy LP, a wholly owned subsidiary of the new company.
Completion of the merger is expected in first-quarter 2023, subject to shareholder approvals from both companies. If approved, Capricorn will issue new shares to NewMed investors based on an exchange ratio of around 2.34 per NewMed share.
The combine will be based in the UK with leadership from both companies. NewMed shareholders will hold 89.7% in NewMed Energy with Capricorn shareholders holding the remaining 10.3%.
Capricorn had previously agreed to an all-share merger with Tullow Oil (OGJ Online, June 1, 2022).
