RCS - Orcadian Energy PLC - Lock-in agreement

Orcadian EnergyAnnouncement

23/10/2023 07:15

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RNS Number : 8808Q  Orcadian Energy PLC  23 October 2023

 

 

 

 

RNS Reach

23 October 2023

Orcadian Energy plc

("Orcadian Energy", "Orcadian" or the "Company")

 

Lock-in agreement

 

Orcadian is pleased to announce that a six-month lock-in agreement has been
signed in respect of  7,049,695 ordinary shares held in the Company by former
director of the Company, Greg Harding and his wife, Nora Harding (representing
9.35% of the issued share capital of the Company) (the "Harding Holding").

 

The agreement provides that Greg and Nora Harding will not dispose of the
Harding Holding for the six month period from 23 October 2023, save in certain
limited circumstances.

 

This lock-in was required by a third party who have agreed to acquire the
balance of 456,546 Ordinary Shares ("Initial Holding") held by Greg and Nora
Harding, pursuant to the terms of an off-market transaction between them. The
agreement also provides that if the Orcadian share price exceeds certain price
parameters during the lock-in period, the third party will pay a further
amount per Ordinary Share for the Initial Holding.

 

Steve Brown, Orcadian's CEO, said:

 

"We are pleased that this agreement has been signed. We believe it
demonstrates the belief shown in the work we are doing to progress the Pilot
project, and the potentially significant value of our licences. We are working
hard to promote the Company and have recently welcomed new investors to the
Company.

 

"We look forward to providing updates on the proposed farm-in to the Pilot
Project and to the outcome of our applications in the 33rd Offshore Licensing
Round."

 

For further information on the Company please visit the Company's website:
https://orcadian.energy (https://orcadian.energy)

 

Non-Regulatory Announcement

 

 

Contact:

 

 Orcadian Energy plc        + 44 20 7920 3150
 Steve Brown, CEO

 Alan Hume, CFO

 Tavistock (PR)             + 44 20 7920 3150
 Nick Elwes / Simon Hudson  orcadian@tavistock.co.uk (mailto: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.

 

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