REG - Orcadian Energy PLC - Farm-out of Carra Prospect

Orcadian EnergyAnnouncement

03/08/2022 07:15

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20220803:nRSC6846Ua&default-theme=true

RNS Number : 6846U  Orcadian Energy PLC  03 August 2022

 

 

 

 

 

3 August 2022

Orcadian Energy plc

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

 

Farm-out of Carra Prospect

 

Orcadian Energy (AIM:ORCA), the low-emissions North Sea oil and gas
development company, is pleased to announce that, further to the announcement
of 11 October 2021, the Company has now executed a formal agreement with
Carrick Resources Limited ("Carrick") in respect of a sub-area of Licence
P2320 which covers the Carra prospect ("Carra") (the "SPA").

Under the terms of the SPA, the consideration for the transfer of the Carra
interest is to be satisfied by the fulfilment of certain work milestones
(there is no cash consideration).  Carrick will review existing data, acquire
a licence to, and reinterpret, the seismic data currently being reprocessed by
TGS relating to the Carra prospect, and remap the prospect. In return, on
completion of the updated mapping, Orcadian will, subject to North Sea
Transition Authority approval, assign a 50% interest in the sub-area of
licence P2320, which contains the bulk of the Carra prospect, to Carrick.
Carrick may withdraw from the agreement prior to completion of the remapping
of the prospect. This work programme is anticipated to take four months.

Carrick has agreed that after the transfer, it will then work up the Carra
prospect to drill-ready status and manage a further farm-out process on the
prospect.

By entering into this agreement with Carrick, Orcadian is building upon the
long experience of the Carrick team in this area and is maximising the
potential of this undrilled prospect.

About Carra

The Carra prospect lies to the East of the Crinan and Dandy discoveries and to
the South of Fyne. The Carra prospect is contained in Tay and Cromarty
sandstones which lie on trend with Guillemot West, and is a stratigraphic trap
associated with a clear amplitude anomaly defined by 3D seismic. The Carra
prospect is undrilled and unexplored but early, internal estimates from
Carrick indicate there is the potential for it to contain P50 recoverable
prospective resources of 30 MMbbls of medium gravity oil.

The sub-area of P2320 (approximately 3% of the area of the licence) which is
subject to this agreement can be viewed at this
link: https://bit.ly/carra-subarea (https://bit.ly/carra-subarea) .

Carra is a prospect on which Orcadian has undertaken no exploration
activities, there is no turnover or profits attributable to the Carra
sub-area. The Company currently ascribes a nominal value to the Carra sub-area
of licence P2320.

 

Steve Brown, Orcadian's CEO, said:

"We are delighted to have signed the SPA with Carrick.  This SPA enables us
to further de-risk and maximise value from our assets in a very cost-effective
way while developing a drill ready prospect on Carra.  Progressing Pilot and
the prospects close to it remains our core focus whilst we continue to extract
the maximum value on all our assets. We look forward to working with the
Carrick team progressing Carra."

 

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)

 Shore Capital (Joint Broker)                         +44 20 7408 4090
 Toby Gibbs / Liam Zabludowicz (Advisory)
 Tavistock (PR)                                       + 44 20 7920 3150
 Nick Elwes / Simon Hudson                            orcadian@tavistock.co.uk (mailto:orcadian@tavistock.co.uk)
 Charlesbye (PR)                                      + 44 7403 050525
 Lee Cain / Lucia Hodgson

 

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 organic energy.

Orcadian Energy (CNS) Ltd ("CNS"), Orcadian's operating subsidiary, was
founded in 2014 and is the sole licensee of P2244, which contains 78.8 MMbbl
of 2P Reserves in the Pilot discovery, and of P2320 and P2482, which contain a
further 77.8 MMbbl of 2C Contingent Resources in the Elke, Narwhal and
Blakeney discoveries (as audited by Sproule, see the CPR in the Company's
Admission Document for more details). Within these licences there are also 191
MMbbl of unrisked Prospective Resources. These licences are in blocks 21/27,
21/28, 28/2 and 28/3, 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 largest oilfield 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 through a pair of well head platforms and provision of power from
a floating wind turbine.

Emissions per barrel produced are expected to be about an eighth of the 2020
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.

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  MSCDLLFBLVLLBBD