REG - Orcadian Energy PLC - Elke Licence Extension

Orcadian EnergyAnnouncement

18/06/2025 07:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250618:nRSR2491Na&default-theme=true

RNS Number : 2491N  Orcadian Energy PLC  18 June 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.

 

18 June 2025

 

Orcadian Energy plc

("Orcadian" or the "Company")

Elke Licence Extension

Orcadian Energy (AIM:ORCA) is pleased to announce that, Phase B of the P2482
licence, which contains the Elke and Narwhal discoveries, has been extended
until 14 July 2027.

As announced previously on 15 August 2024, the Elke discovery has net 2C
resources of 45 MMbbl and Narwhal has net 2C resources of 9 MMbbl, both as
audited by Sproule. The Company has identified a further 53 MMbbl of
prospective resources with geological chance of success ranging from 64% to
87%, which have also been supported by the relative Extended Elastic Impedance
analysis undertaken by TGS.

TGS has undertaken to shoot 100 sq km of new 3D seismic over P2482 upon
approval of the Pilot Field Development plan. This seismic is to be shot
during Phase B of the licence and will cover the Narwhal discovery which is
currently mapped on 2D seismic only.

Pilot Area Plan

Extension of the licence will enable Orcadian (as Elke Operator) and Ping
Petroleum ("Ping") (as Pilot Operator) to explore the optimum area development
plan with the North Sea Transition Authority ("NSTA"). Ping continues to
progress Pilot development planning work and is working with SNF (a major
global supplier of polymer to oil industry) and Heriot-Watt University to
optimise the polymer flood approach to Pilot. Orcadian has an 18.75%
"carried-to-first-oil" interest in the Pilot development.

Gas opportunities

Orcadian confirms that it is working in partnership with The Independent
Power Corporation PLC ("IPC") and The Marine Low Carbon Power
Company Limited ("MLCP") to place the ownership of Licence P2680 (Earlham
and Orwell), and potentially Licence P2650 (shallow gas prospects), into a
corporate joint venture structure to support the plan to deliver carbon free
energy from new, offshore balancing power plants to IPC's large energy
user customers.  A further announcement on this joint venture is expected in
the coming weeks.

Steve Brown CEO of Orcadian Energy plc says:

"We are delighted to have received this licence extension which maximises the
probability of us designing an area development plan which optimises the
development of all the viscous oil resources in the Pilot area. We believe
that Pilot and Elke can form the basis of a new low-emissions hub for the
development of the major resources in this area.

"We are also very enthused by the potential to be involved with IPC's project
to deliver reliable electrical power from our gas resources, we really believe
that the IPC and MLCP projects can demonstrate that abated gas works and is
critical to the success of the UK's clean power plan."

 

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)
 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)

 

Qualified Person's Statement

Pursuant to the requirements of the AIM Rules and in particular, the AIM Note
for Mining and Oil and Gas Companies, Maurice Bamford has reviewed and
approved the technical information and resource reporting contained in this
announcement.

Maurice has more than 35 years' experience in the oil & gas industry and 3
years in academia. He holds a BSc in Geology from Queens University Belfast
and a PhD in Geology from the National University of Ireland. Maurice is a
Fellow of the Geological Society, London, and a member of the Geoscience
Energy Society of Great Britain. He is Exploration and Geoscience Manager at
Orcadian Energy.

 

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
farm-down of Pilot, the project is now under the stewardship of Ping Petroleum
UK PLC ("Ping") and is intended to become 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 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 now operated by Serica. The Fynn licence covers blocks
14/15a, 14/20d and 15/11a.

The SNS licence, P2680, currently 100% but intended to be 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.

 

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.

 

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  MSCUBVVRVNUNAAR