REG - Orcadian Energy PLC - Completion of sale of 50% in HALO Offshore UK Ltd

Orcadian EnergyAnnouncement

04/03/2025 07:00

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RNS Number : 1626Z  Orcadian Energy PLC  04 March 2025

 

4 March 2025

 

Orcadian Energy plc

("Orcadian" or the "Company")

Completion of sale of 50% in HALO Offshore UK Ltd

Orcadian Energy (AIM:ORCA) is pleased to announce that, the company has now
completed the sale of 50% of the ordinary shares of HALO Offshore UK Ltd
("HALO") to The Independent Power Corporation Plc  ("IPC"). Peter Earl and
Mark Preece have been appointed to join Steve Brown and Alan Hume on the board
of HALO.

As announced on 13 December 2024, Orcadian and IPC intend to seek production
acquisition opportunities for HALO with a preference for low-emissions,
non-operated, gas producing licences.

Since 2013 HALO has incurred around £50 million of pre-trading capital
expenditures which we expect will generate, on commencement of a ring-fence
trade, tax allowances in the region of £115 million when Ring Fence
Expenditure Supplement is applied.

In addition, IPC has entered into a loan agreement with HALO for up to
£539,000 so that HALO can evaluate and negotiate gas producing licence
interests. HALO has reimbursed Orcadian for costs incurred on behalf of HALO
and IPC. Orcadian has pledged its share of HALO as security for its 50% share
of this loan.

IPC has also agreed to provide, or procure the provision of, non-dilutive
funding of at least £5 million; and has also agreed to provide, or procure
the provision of, additional dedicated funding lines to finance acquisitions.

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
 Zeus (Nomad and Joint Broker)                         +44 20 3829 5000
 Dan Bate / Alex Campbell-Harris (Investment Banking)

 Simon Johnson (Corporate Broking)
 Novum (Joint Broker)                                  +44 207 399 9425
 Colin Rowbury / Jon Belliss
 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 exploration and
development company. 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's key asset is the Pilot oilfield, Pilot was discovered by PetroFina
in 1989 and has been well appraised. The field has excellent quality reservoir
and contains 263MMbbl of a viscous oil ranging in gravity from 17º API in the
South of the reservoir to 12º API in the North. In planning the Pilot
development, Orcadian has selected polymer flooding and wind power to
transform the production of viscous oil into a cleaner and greener process.
Polymer significantly reduces fluid handling requirements and hence energy
consumption as well as boosting recovery. Ithaca Energy, operator of the
Captain field in the Inner Moray Firth, has enjoyed consistent success in
applying polymer flood to the highly analogous Captain field. Following the
recent farm-down of Pilot, the project is now under the stewardship of Ping
Petroleum UK PLC ("Ping") and is intended to be amongst the lowest carbon
emitting oil production facilities in the world.

Ping is progressing a low-emissions, phased, field development plan for Pilot
based upon a polymer flood of the reservoir, a Floating Production Storage and
Offloading vessel (FPSO) and provision of power from a floating wind turbine
or a local wind farm.

Orcadian has an 18.75% fully carried interest in licence P2244 (block 21/27a)
and a 100% interest in licence P2482 (blocks 28/2a and 28/3a). Ping is
operator of P2244 and the Pilot development project.

Orcadian was awarded three licences in the 33(rd) round. The Mid-North Sea
High licence, P2650, contains shallow gas leads. Orcadian applied in
partnership with Triangle Energy, an Australian listed energy company.
Orcadian is licence administrator and holds 50% of the offered licence. The
Mid-North Sea High licence covers blocks 29/16, 29/17, 29/18, 29/19, 29/21,
29/22, 29/23, 29/27 and 29/28.

The Fynn licence, P2634, contains a very substantial heavy oil discovery.
About 88% of the resource on a best technical case is estimated to lie within
the area of the offered licence. Orcadian has a 50% working interest in the
Fynn licence which is operated by the Parkmead Group. The Fynn licence covers
blocks 14/15a, 14/20d and 15/11a.

The SNS licence, P2680, 50% Orcadian on completion of a proposed transaction,
contains the Earlham discovery, a low-calorie gas discovery with 114bcf of
methane resources on a P50 basis, the Clover prospect which has P50
prospective resources of 153bcf, and the decommissioned Orwell field which has
redevelopment potential, alongside a number of smaller prospects. The Marine
Low Carbon Power Company Ltd, an affiliate of IPC is intended to own the other
50% of P2680 and will carry Orcadian to first gas.

About Independent Power Corporation PLC

Since 1995 Independent Power Corporation PLC ("IPC") has been a developer,
owner and operator of power plants on five continents across the globe. IPC
has developed, owned or operated around 10,000 MW of conventional power
capacity across a wide range of project types including gas, diesel, wind,
biofuels and hydroelectric plants. Thermal plants have included combined
cycle gas turbine (CCGT) power plants (including the first in country in
Bolivia and South Africa) as well as combined heat and power (CHP) projects
and emissions reduction projects in CIS countries.

In recent years, IPC has developed projects in Azerbaijan, Chile, Ghana and
the United Kingdom as an independent developer, sponsor and operator of
power plants.

Its IPC New World Energy renewable and zero carbon energy subsidiary has in
excess of 7.5 GW of offshore wind and BESS battery storage projects in the
United Kingdom and Europe.

 

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