DNO ASA, a Norway-based oil and gas exploration and production operator, has reached an agreement on the terms of a recommended all-cash acquisition to acquire Capricorn Energy plc, a UK-listed independent upstream energy company, in a deal valuing the firm at approximately $396 million (£292 million), according to a press release by Capricorn.
The offer effectively supersedes an earlier agreed transaction with Genel Energy plc, providing a higher cash consideration and marking DNO’s entry into the Egyptian upstream sector.
Commenting on the Acquisition, Randy Neely, Chief Executive Officer of Capricorn, said: “We are pleased to recommend this higher all-cash offer from DNO. It maximizes the value created by the Capricorn team and importantly increases the return for shareholders.”
Under the terms of the transaction, Capricorn shareholders are entitled to receive $5.214 per share in cash, comprising an acquisition price of $4.224 per share alongside an expected special dividend of $0.99 per share.
The transaction represents an aggregate premium of 45% over Capricorn’s undisturbed share price on March 10, 2026, and an increase of approximately 10% compared to the previous $4.74 per share offer submitted by Genel Energy.
The transaction is expected to become effective between the fourth quarter (Q4) of 2026 and Q1 of 2027, provided all required conditions are met.
DNO ASA, founded in 1971, is Norway’s oldest oil company and became the first Norwegian oil company to be listed on the Oslo Stock Exchange in 1981. It has oil and gas interests across the North Sea, the Middle East and West Africa. Its portfolio includes stakes in onshore and offshore licenses at different stages of exploration, development and production in Norway, the Kurdistan Region of Iraq, the UK, Côte d’Ivoire and Yemen.
“Today marks an exciting chapter in DNO’s 55 year growth story as we move to acquire a high-quality portfolio of oil and gas assets in Egypt. Capricorn will add another business with scale, cash flow and growability to our existing operations in Kurdistan and the North Sea,” said Bijan Mossavar-Rahmani, Executive Chairman of DNO.
“With three core areas, each with its own geology, geography and geopolitics, DNO will be a more diversified and stronger company. DNO has ambitious plans to build a significant Egyptian business through investment in Capricorn’s portfolio, participation in new license rounds and additional acquisitions. DNO’s technical capability, financial strength and can-do attitude will fuel that growth,” Rahmani added.
Capricorn’s core producing assets are situated in Egypt’s Western Desert and operated through Badr El Din Petroleum Company (BAPETCO ), a joint operating company established alongside EGPC and Cheiron.
On completion of the Acquisition, DNO is projected to deliver net average production from its global portfolio of nearly 156,939 barrels of oil equivalent per day (boe/d) and hold 2P (proved plus probable) reserves of 443 million barrels of oil equivalent (mmboe).
