REG - Orcadian Energy PLC - £500,000 equity financing & TVR

Orcadian EnergyAnnouncement

18/12/2023 07:30

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20231218:nRSR0680Xa&default-theme=true

RNS Number : 0680X  Orcadian Energy PLC  18 December 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.

 

18 December 2023

Orcadian Energy plc

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

 

£500,000 equity financing

Total Voting Rights

 

Orcadian is pleased to announce that it has today raised gross proceeds of
£500,000 through the issue of 3,571,429 new ordinary shares of the Company
(the "New Ordinary Shares") at a price per New Ordinary Share of £0.14. These
funds are raised as part of a direct subscription with the Company with
existing investors. The subscription price represents a discount of
approximately 15% to the closing mid-price of an ordinary share in the Company
of 16.5p on 15 December 2023, being the latest practicable day prior to the
publication of this announcement.

 

The investors will also receive one warrant for every one New Ordinary Share
subscribed for. Each warrant entitles the holder to subscribe, at any time for
the next five-years, for one ordinary share in the Company at a price of 25p
per ordinary share (the "Warrants"). In the event that, Orcadian's volume
weighted average share price ("VWAP") in each of five consecutive trading days
is 35p or above, investors will be required to exercise or forfeit the
Warrants.

 

The New Ordinary Shares and 25% of the Warrants are being issued under the
Company's pre-existing share capital authorities with the balance of the
Warrants to be issued subject to shareholders passing the necessary
resolutions to authorise the issue, at the Company's upcoming Annual General
Meeting.

 

The proceeds of this fundraising will be applied to ongoing short term working
capital and the costs involved in the progression of the Sale and Purchase
agreement with Ping Petroleum UK plc ("Ping") announced on 7 December 2023.

 

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 January 2024.  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
79,000,412 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 79,000,412 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 have support from our existing investors as we continue
to progress what we believe is a truly exciting time for the Company."

 

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

 

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

 Alan Hume, CFO
 WH Ireland (Nomad and 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 (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 conditional sale and purchase agreement with Ping
Petroleum UK plc ("Ping") which details the terms under which Ping 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 Ping.

 

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 (mailto:rns@lseg.com)
 or visit
www.rns.com (http://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 (https://www.lseg.com/privacy-and-cookie-policy)
.   END  ROIUBVWROAUUAAA