REG - Orcadian Energy PLC - Convertible Loan Notes

Orcadian EnergyAnnouncement

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RNS Number : 2008N  Orcadian Energy PLC  30 December 2025

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.

30 December 2025

Orcadian Energy plc

("Orcadian" or the "Company")

Convertible Loan Notes

Orcadian announces that the Company has created £500,000 of unsecured
convertible loan notes ("CLNs"). The Company has received proceeds of
£322,500 from existing and new investors and has agreements in place to sell
the balance of the CLNs. The Company expects to receive the balance of the
proceeds by the end of January 2026. The proceeds will be used primarily to
fund working capital requirements.

The CLNs have been arranged by the Company. The CLNs are governed by the terms
of the CLN instrument dated 24 December 2025. They have a term of just over
two years, maturing on 31 January 2028, and will accrue interest at a rate of
10% per annum. The CLNs will be transferable but will not be admitted to
trading or quoted on any market.

The CLNs are convertible, at the loan note holders' discretion, into Ordinary
Shares of the Company at a price of 13.5p per share. The conversion price
represents a discount of approximately 1.8% to the closing price of 13.75p per
share for the Company's shares on 30 December 2025, being the latest
practicable business day prior to the publication of this Announcement.

Steve Brown, Orcadian CEO, said:

"We are delighted to have had support from both long-standing existing
investors and investors new to the company. We believe 2026 will be the start
of a resurgence in the oil and gas industry in the UK, given the clarity on
the long-term fiscal framework, and the possibility for Energy Profits Levy
paying companies to secure a 38% offset to their tax bill for every pound they
spend on exploration and development activity between now and 2030.

"Orcadian has interests in three near term development projects - the Pilot
reservoir, operated by Ping; the Earlham gas field, operated by Orcadian and
intended to support data centres around the M25, and the light oil Lowlander
field operated by Serica; two great appraisal opportunities in Elke and Fynn
Beauly; and three gas exploration prospects.

"We believe all of these projects could prove attractive to partners in a
resurgent basin."

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
 Darshan Patel / John Moran (Investment Banking)

 Simon Johnson (Corporate Broking)
 Albr (Joint Broker)                              +44 207 399 9425
 Colin Rowbury / Jon Belliss

 

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.

Viscous oil

As part of its viscous oil strategy Orcadian has an 18.75% carried interest in
the Pilot development project, Pilot was discovered by PetroFina in 1989 and
has been well appraised. The field has excellent quality reservoir and has
contingent resources of 79 MMbbl 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. P2482 covers the Elke and
Narwhal discoveries which contain 53 MMbbl of contingent resources.

The Fynn licence (P2634) which was awarded in the 33(rd) Round 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 licence. Orcadian has a 50%
working interest in the Fynn licence which is operated by Serica Energy. The
Fynn licence covers blocks 14/15a, 14/20d and 15/11a.

Gas to Artificial Intelligence

Orcadian was awarded two gas 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 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 Earlham and Orwell licence, P2680, 100% Orcadian, contains the Earlham
discovery, a low-calorie gas discovery with 114 bcf of methane resources on a
P50 basis, the Clover prospect which has P50 prospective resources of 153 bcf,
and the decommissioned Orwell field which has redevelopment potential,
alongside a number of smaller prospects.

Orcadian intends progressing these and other projects in partnership with IPC
through its 50% -owned, tax-advantaged, HALO subsidiary. 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.
Orcadian continues to evaluate opportunities to acquire development and
producing opportunities for HALO.

 

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