CAP Energy PLC Announces Arbitration Proceedings Against Petroguin Over Block 5B (Becuda) and Block 1 (Corvina) in Guinea-Bissau

London, 02 April 2025 – CAP Energy PLC (“CAP”), through its subsidiaries Trace Corvina and Trace Becuda, has formally triggered arbitration proceedings against Petroguin, the national oil company of Guinea-Bissau, in response to the wrongful cancellation of its hydrocarbon licenses for Block 5B and Block1, despite full compliance with contractual obligations.

During the COVID-19 pandemic, CAP faced unavoidable work delays due to global restrictions. In recognition of this, Petroguin agreed to grant license extensions in exchange for payment of accrued license fees. CAP paid the full sum of $450,000 USD, as requested, in good faith and with the expectation of receiving the agreed extensions.

However, Petroguin failed to honour the agreement and instead cancelled CAP’s licenses without prior notice, justification, or due process. Reports now indicate that Petroguin is in negotiations with third parties, including Chevron, regarding the reassignment of these same blocks.

CAP has taken formal steps to initiate international arbitration in accordance with the dispute resolution provisions of its production sharing agreements and is seeking immediate protective measures to prevent the reassignment of the blocks while the dispute is pending.

CAP Energy PLC will take all necessary legal action to protect its rights and investments and warns that any third party entering into agreements over Blocks 5B and 1 may be exposing themselves to legal liability.

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Investor Relations

Investor-relations@capenergyplc.co.uk