Arab Finance: Genel Energy, a London-based oil and gas exploration and production company, will expand in the Egyptian market through acquiring Capricorn Energy in a $360 million all-cash deal, according to a press release.

The boards of Genel, Bidco and Capricorn have reached an agreement on the terms of a recommended cash acquisition of the entire issued and to be issued ordinary share capital of Capricorn by Bidco.

Under the deal, Capricorn shareholders will receive $4.74 per share, comprising $3.75 in cash and a special dividend of $0.99 per share.

The transaction will boost Genel’s business by adding Capricorn's producing assets in the Western Desert to its portfolio and strengthening its footprint across the MENA region.

Genel currently generates production from its 25% non-operated interest in the Tawke Production Sharing Contract (PSC) in the Kurdistan Region of Iraq. The asset produced an average of 17,520 barrels of oil per day (bopd) in 2025, supported by operating costs of around $4 per barrel.

In line with its growth strategy, Genel has been seeking to acquire producing assets in selected markets to diversify its operations. Egypt was identified as one of the company's priority expansion markets, with management evaluating multiple investment opportunities before selecting Capricorn's Western Desert portfolio.

Following a detailed assessment of Capricorn's assets and operations, Genel's board believed that the acquisition would establish a new strategic pillar for the company's business while enhancing its production profile and geographic diversification.

It expects the enlarged group to generate strong cash flows from its existing production while benefiting from opportunities to increase its proven and probable (2P) reserves through its expanded resource portfolio.

“The acquisition will create an independent energy company of scale in the MENA region with a strong, low leverage balance sheet, significant production, reserves and resource upside,” the statement noted.

Upon concluding the transaction, the enlarged group is expected to have pro forma 2P reserves of 117 million barrels of oil equivalent (mmboe) and combined production of approximately 41,003 bopd based on the December 2025 exit rate, with output split roughly equally between Kurdistan and Egypt.