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Scots oil firm confirms merger and move to London

  • BFM
  •    
  • 23 days-ago

One of Scotland’s most successful home-grown oil exploration companies is being merged and its headquarters moved from Edinburgh to London.

Capricorn Energy, formerly known as Cairn Energy, is becoming part of Tullow Oil, with a focus on African oil and gas drilling.

Cairn was founded in 1981 by ex-rugby international Sir Bill Gammell.

It was successful in finding a large oilfield in India but not with controversial drilling near Greenland.

It has since withdrawn from both countries.

An agreed merger with Tullow Oil will see the joint company, listed on the London Stock Exchange, focus on their current assets in Africa and new opportunities for drilling on the continent.

Tullow has operations in Gabon, Ivory Coast and Kenya.

Capricorn was successful drilling for gas in Senegal and sold its stake there, with its focus now on Mauritania and onshore in Egypt.

Its portfolio also includes prospects in the UK North Sea, Israel and Mexico.

The combined company, through an all share deal, is being valued at £657m. It will have production of an estimated 100,000 barrels of oil per day, and identified reserves of 343 million barrels, mostly of oil.

Both the chairman and chief executive roles are being taken by those currently in Tullow Oil. The chief financial officer will be from Capricorn.

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