REG - Orcadian Energy PLC - Amendment to Facility Agreement

Orcadian EnergyAnnouncement

13/09/2023 13:45

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RNS Number : 3480M  Orcadian Energy PLC  13 September 2023

 

 

 

13 September 2023

Orcadian Energy plc

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

 

Amendment to Facility Agreement

 

Orcadian Energy plc is pleased to advise that its subsidiary, Orcadian Energy
(CNS) Ltd ("Orcadian CNS") has today executed an agreement to amend the
repayment date in its secured, facility agreement with Shell International
Trading and Shipping Company Limited ("STASCO"). The full terms of this
agreement are detailed on page 257 of the Company's Admission Document.  The
original repayment date of the STASCO loan of US$1m (and associated interest)
was 23 August 2023 (the "Loan"); this had been extended to 13 September 2023
(see announcement dated 22 August 2023).

 

The repayment date of the Loan has now been extended to 13 March 2024.

 

Cash Position

The Company's current cash balance is £92k and the Company's current monthly
burn rate is less than £20k; accordingly, the Company will need to raise
additional funds in the very short term. It is continuing to explore all
options.

 

For further information on the Company please visit the Company's website:
https://orcadian.energy (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 (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 ("CNS"), 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, and 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. These
licences are in blocks 21/27a, 28/2a and 28/3a, and lie 150 kms due East of
Aberdeen.  The Company also has a 50% working interest in P2516, which
contains the Fynn discoveries. P2516 is administered by the Parkmead Group and
covers blocks 14/20g and 15/16g, which lie midway between the Piper and
Claymore fields, 180 kms due East of Wick.

Pilot, which is the field with the largest reserves in Orcadian's portfolio,
was discovered by Fina 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.

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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