Capricorn’s entry to Egypt hasn’t quite gone to plan: Capricorn Energy has lowered its full-year production forecasts in Egypt due to “logistics and commissioning delays,” the London-listed oil and gas company said in its latest earnings release (pdf). Issues bringing two rigs online mean that the company now expects to produce 33k-36k barrels of oil equivalent per day this year, down from its previous 37k-43k boe/d estimate.

The company’s also going to be spending less than planned: Capricorn expects to spend USD 100-105 mn on its Egypt exploration and production operations this year, down from its initial USD 120-135 mn forecast at the start of the year.

Capricorn is a relative newcomer to Egypt: Formerly known as Cairn, Capricorn entered Egypt for the first time in 2021 when it teamed up with local firm Cheiron to acquire Shell’s Western Desert assets.

It might be about to cancel its engagement with Tullow: Capricorn is looking for alternatives to the contentious plan to merge with Tullow Oil, saying in the release that it is in talks with other undisclosed parties that have shown an interest. The merger has received backlash from investors who argue that Tullow’s offer undervalues Capricorn.

But it’s not ruling anything out: Capricorn believes that a merger with Tullow can produce “significant long-term value for shareholders.”