TIDMORCA
RNS Number : 1682R
Orcadian Energy PLC
25 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.
25 October 2023
Orcadian Energy plc
("Orcadian Energy", "Orcadian" or the "Company")
Two Year Pilot Licence Extension
Orcadian is pleased to announce that the North Sea Transition
Authority (NSTA) has confirmed to the Company that, on the basis of
the work that Orcadian and the Proposed Operator intend to
undertake on Seaward Production Licence P2244 ("P2244"), NSTA is
prepared to agree an extension to the Second Term of Licence P2244,
subject to certain conditions detailed below (the "Extension").
The Extension would change the expiry date of the Second Term of
P2244 from 30 November 2023 to 30 November 2025.
As announced on 18 September 2023, Orcadian entered into a
non-binding heads of agreement with a North Sea operator (the
"Proposed Operator"), which provided a period of exclusivity to
undertake due diligence on P2244, and execute definitive
documentation for a farm out, by 30 November 2023. The work
programme included in the P2244 extension request, submitted by
Orcadian, was prepared jointly with the Proposed Operator and the
preparation of documentation is proceeding to plan.
The Extension is conditional on the following:
-- Orcadian's submission, before 30 November 2023, of an application for NSTA consent to:
o assignment of an interest in P2244 to the Proposed Operator;
and
o appointment of the Proposed Operator as operator of P2244.
-- If NSTA consents are granted, the assignment of the interest
in P2244 to the Proposed Operator must be completed by 31 March
2024.
At this stage there can be no guarantee that the final
agreements will be entered into, or that the farm out will complete
but the Directors are progressing on the basis that the agreements
will be concluded and that the necessary consents will be
forthcoming. Completion of the transaction would be subject to
shareholder approval, pursuant to Rule 15 of the AIM Rules for
Companies, and the consent of Shell and TGS to the assignment.
NSTA have advised Orcadian that should the above conditions not
be met, then P2244 would automatically cease and determine 30 days
thereafter.
Steve Brown, Orcadian's CEO, said:
"We are delighted that the NSTA provided such a prompt response
to our licence extension request, and we are working diligently on
the necessary documentation so that we can progress this deal as
quickly as possible."
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
will farm-in to the Pilot development project. Upon conclusion of
this deal 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.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
MSCUSRBROUURUAA
(END) Dow Jones Newswires
October 25, 2023 02:00 ET (06:00 GMT)
Orcadian Energy (LSE:ORCA)
Historical Stock Chart
From Nov 2024 to Dec 2024
Orcadian Energy (LSE:ORCA)
Historical Stock Chart
From Dec 2023 to Dec 2024
