TIDMORCA
RNS Number : 2652O
Orcadian Energy PLC
02 October 2023
THE INFORMATION CONTAINED WITHIN THIS ANNOUNCEMENT IS DEEMED BY
THE COMPANY TO CONSTITUTE INSIDE INFORMATION AS STIPULATED UNDER
THE MARKET ABUSE REGULATION (EU) NO. 596/2014 AS IT FORMS PART OF
UK DOMESTIC LAW PURSUANT TO THE EUROPEAN UNION (WITHDRAWAL) ACT
2018, AS AMENDED. UPON THE PUBLICATION OF THIS ANNOUNCEMENT VIA A
REGULATORY INFORMATION SERVICE, THIS INFORMATION IS CONSIDERED TO
BE IN THE PUBLIC DOMAIN.
02 October 2023
Orcadian Energy plc
("Orcadian Energy", "Orcadian" or the "Company")
GBP350,000 equity financing
Update of 33(rd) Licencing Round
Orcadian is pleased to announce that it has today raised gross
proceeds of GBP350,000 through the issue of 2,916,666 new ordinary
shares of the Company (the "New Ordinary Shares") at a price per
New Ordinary Share of GBP0.12. These funds are raised as part of a
direct subscription with the Company with new investors. The
subscription price represents a discount of approximately 14% to
the closing mid-price of an ordinary share in the Company on 29
September 2023, being the latest practicable day prior to the
publication of this announcement.
The proceeds will be applied to ongoing working capital, the
costs involved in the progressing the proposed farm-in agreements
as announced on 18 September 2023 and the repayment of certain
creditors. The Company will need to raise further funds in the near
term to continue to progress its activities and further updates
will be provided in due course.
Application will be made to the London Stock Exchange for the
New Ordinary Shares to be admitted to trading on AIM, and it is
expected that dealings in the New Ordinary Shares will commence on
or around 5 October 2023. The New Ordinary Shares will be issued
fully paid and will rank pari passu to the Company's existing
ordinary shares.
Immediately following Admission, the Company's issued share
capital will be 75,428,983 Ordinary Shares, with each share
carrying the right to one vote. The Company does not hold any
Ordinary Shares in treasury. The total voting rights figure
immediately following Admission, of 75,428,983 may be used by
shareholders (and others with notification obligations) as the
denominator for the calculations by which they will determine
whether they are required to notify their interest in, or a change
to their interest in, the Company under the Disclosure Guidance and
Transparency Rules.
Steve Brown, Orcadian's CEO, said:
"We are delighted to welcome our new investors on board. Though
more funding was made available to the Company from other groups,
we are continuing to minimise Company overheads whilst seeking to
add value per share. As a Company we also remain very cognisant of
keeping shareholder dilution to a minimum. These funds will enable
us to progress the proposed farm-in deal that we announced as well
as helping us unlock the inherent value we have always believed is
in the Company for our shareholders.
"We look forward to providing updates on the proposed farm-in to
the Pilot Project and the outcome of our applications in the 33rd
Offshore Licensing Round."
33(rd) Licencing Round
As announced on 19 January 2023, the Company made three licence
applications, two in partnership with other companies and one on
its own. One of the applications builds upon Orcadian's viscous oil
experience whilst the other two applications are focused on gas
opportunities, including a potential gas-to-wire project on an
appraised discovery, with integrated carbon capture, which could
deliver baseload electricity with minimal emissions. Early stage
indications suggest that, net to Orcadian, the P50 sales gas
resource applied for, across the two gas focused applications,
could amount to 114 bcf (billion cubic feet) in a discovery, 153
bcf in a near drill-ready prospect and 377 bcf in leads and less
mature prospects. However, these are management estimates of
resources, are based upon seismic and well log data, are as
presented to the NSTA in the Licence Applications, and are provided
here for guidance purposes only.
The Company anticipates that it will hear as to whether its
licence applications have been successful during fourth quarter
2023 and a further announcement will be made when NSTA publish the
results of the round.
For further information on the Company please visit the
Company's website: https://orcadian.energy
Contact:
Orcadian Energy plc + 44 20 7920 3150
Steve Brown, CEO
Alan Hume, CFO
WH Ireland (Nomad and Joint Broker) +44 20 7220 1666
Katy Mitchell / Andrew de Andrade (Nomad)
Harry Ansell / Fraser Marshall (Corporate
Broking)
Tavistock (PR) + 44 20 7920 3150
Nick Elwes / Simon Hudson orcadian@tavistock.co.uk
About Orcadian Energy
Orcadian is a North Sea focused, low emissions, oil and gas
development company . In planning its Pilot development, Orcadian
has selected wind power to transform oil production into a cleaner
and greener process. The Pilot project is moving towards approval
and will be amongst the lowest carbon emitting oil production
facilities in the world, despite being a viscous crude. Orcadian
may be a small operator, but it is also nimble, and the Directors
believe it has grasped opportunities that have eluded some of the
much bigger companies. As we strike a balance between Net Zero and
a sustainable energy supply, Orcadian intends to play its part to
minimise the cost of Net Zero and to deliver reliable energy to the
UK.
Orcadian Energy (CNS) Ltd, Orcadian's operating subsidiary, was
founded in 2014 and is the sole licensee of P2244, which contains
78.0 MMbbl of 2P Reserves in the Pilot discovery, and of P2482,
which contain a further 52.2 MMbbl of 2C Contingent Resources in
the Elke and Narwhal discoveries (as audited by Sproule, with both
numbers modified to take into account the TGS royalty, see the CPR
in the Company's Admission Document for more details). Within these
licences there are also 118 MMbbl of unrisked Prospective Resources
(modified for TGS royalty). These licences are in blocks 21/27a,
28/2a and 28/3a, and lie 150 kms due East of Aberdeen.
Pilot, which is the field with the largest reserves in
Orcadian's portfolio, was discovered by PetroFina in 1989 and has
been well appraised. In total five wells and two sidetracks were
drilled on Pilot, including a relatively short horizontal well
which produced over 1,800 bbls/day on test. Orcadian's proposed low
emissions, field development plan for Pilot is based upon a
Floating Production Storage and Offloading vessel (FPSO), with over
thirty wells to be drilled by a Jack-up rig and provision of power
from a floating wind turbine.
Orcadian has entered into a non-binding heads of terms with a
North Sea Operator which details the terms under which the Operator
could farm-in to the Pilot development project. If the proposed
deal was to progress in accordance with its outline terms, Orcadian
would have an 18.75% stake in the Pilot development with all
pre-first oil development costs paid by the North Sea Operator.
Emissions per barrel produced are expected to be about a tenth
of the 2021 North Sea average, and less than half of the lowest
emitting oil facility currently operating on the UKCS. On a global
basis this places the Pilot field emissions at the low end of the
lowest 5% of global oil production.
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END
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