REG - Orcadian Energy PLC - Earlham Exclusivity and Shell Facility Agreement

Orcadian EnergyAnnouncement

02/08/2024 07:00

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RNS Number : 8739Y  Orcadian Energy PLC  02 August 2024

 

2 August 2024

Orcadian Energy plc

("Orcadian" or the "Company")

Earlham Exclusivity and Shell Facility Agreement

Orcadian (AIM:ORCA) announces that, further to the announcements on 22 May
2024, 13 June 2024, 1 July 2024 and 5 July 2024, that Shell International
Trading and Shipping Company Limited ("Shell") has confirmed to the Company
that it does not intend to take any steps in relation to existing borrowings
by the Company under its loan facility with Orcadian (the "Shell Facility")
until 31 August 2024.

Orcadian's proposed Industry Partner in respect of the Earlham licence has
made an initial payment of $100,000 to Orcadian and Orcadian has paid the same
amount to Shell (the "Advance") and has undertaken to deliver the balance of
funds, due under the Shell Facility, to Orcadian by the end of August 2024.

The Advance will be secured by a charge over the Earlham licence and as part
of this the Earlham project is exclusively dedicated to the Industry Partner
until the end of August 2024, with this exclusivity being automatically
extended until 31 December 2024 when the balance of the funds due to Shell are
paid.

 

Steve Brown, Orcadian CEO, said:

"We have been working very closely with both Shell and our Industry Partner to
ensure that we can meet our obligations to Shell and to support our partner's
financing processes which are ultimately intended to deliver a clear pathway
to production for the Earlham discovery."

 

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. As noted above Orcadian
has also been offered three licences in the 33(rd) licensing process and
expects formal issues of these licences in due course.

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 100% Orcadian, 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.

 

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