REG - Orcadian Energy PLC - Result of Placing

Orcadian EnergyAnnouncement

30/06/2022 10:00

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RNS Number : 8098Q  Orcadian Energy PLC  30 June 2022

THIS ANNOUNCEMENT AND THE INFORMATION CONTAINED HEREIN IS NOT FOR PUBLICATION,
RELEASE OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN OR
INTO THE UNITED STATES, AUSTRALIA, CANADA, JAPAN, THE REPUBLIC OF SOUTH AFRICA
OR NEW ZEALAND OR IN OR INTO ANY OTHER JURISDICTION WHERE TO DO SO WOULD
CONSTITUTE A BREACH OF ANY APPLICABLE LAW OR REGULATION.

THIS ANNOUNCEMENT IS FOR INFORMATION PURPOSES ONLY AND DOES NOT ITSELF
CONSTITUTE A PROSPECTUS OR OFFERING MEMORANDUM OR AN OFFER FOR SALE OR
SUBSCRIPTION IN RESPECT OF ANY SECURITIES IN THE COMPANY. THIS ANNOUNCEMENT
DOES NOT CONSTITUTE OR CONTAIN ANY INVITATION, SOLICITATION, RECOMMENDATION,
OFFER OR ADVICE TO ANY PERSON TO SUBSCRIBE FOR, OTHERWISE ACQUIRE OR DISPOSE
OF ANY SECURITIES OF ORCADIAN ENERGY PLC IN ANY JURISDICTION WHERE TO DO SO
WOULD BREACH ANY APPLICABLE LAW OR REGULATION.

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 June 2022

Orcadian Energy Plc

("Orcadian", the "Company" or the "Group") (AIM: ORCA)

 

Result of Placing

Related Party Transaction

PDMR Notification

Orcadian Energy Plc (AIM:ORCA) is pleased to announce that, further to its
announcement of 7 a.m. (London time) today, it has successfully completed and
closed the Placing.

 

The Placing has raised, in aggregate, gross proceeds of £1m through the
placing of 2,857,143 Ordinary Shares (the "Placing Shares") to certain
institutional and other investors at a price of 35 pence per share.

 

The net proceeds of the Placing will be applied towards:

 

·    Licence Fees;

·    On its Pilot Licence by funding progress towards the Field
Development Plan; and

·    For general working capital purposes.

 

Commenting on the transaction, Steve Brown, Orcadian's CEO, said:

 

"We are very pleased to have concluded this fund raising which enables the
Company to deliver our planned work programme as well as progress the
previously announced farm-out process towards completion. Pilot is one of the
top five development projects on the UKCS, with 79MMbbls of 2P reserves. We
believe the immediate investment allowance, included in the Energy Profits
Levy, has transformed the attractiveness of domestic oil and gas projects for
companies extracting oil and gas in the UK and it should spark further
investment in the North Sea. We look forward to providing further updates on
the outcome of our discussions with potential industry partners."

 

Related Party Transaction

Alan Hume, a director and PDMR of the Company, has subscribed for 228,571
Placing Shares in the Placing as detailed below:

 Name       Number of Placing Shares  Number of Ordinary Shares held following Admission  Percentage of the Enlarged Share Capital (%)
 Alan Hume  228,571                   4,036,960                                           6.1

The participation of Alan Hume in the Placing is a related party transaction
for the purpose of Rule 13 of the AIM Rules for Companies. The directors of
the Company (excluding Alan Hume, as the related party) consider, having
consulted with WH Ireland Limited, the Company's Nominated Adviser, that the
terms of the transaction are fair and reasonable insofar as shareholders are
concerned.

Admission and Total Voting Rights

Application will be made to the London Stock Exchange for admission of the
2,857,143 Placing Shares to trading on AIM ("Admission"). It is expected that
Admission will become effective and dealings in the Placing Shares commence on
AIM at 8.00 a.m. on 6 July 2022 (or such later date as may be agreed between
the Company and the Joint Bookrunners, but no later than 29 July 2022).

The Placing Shares will be issued fully paid and will rank pari passu in all
respects with the Company's existing Ordinary Shares.

Following Admission, the total number of Ordinary Shares in the capital of the
Company in issue will be 66,612,317 with voting rights. This figure may be
used by shareholders as the denominator for the calculations by which they
will determine if they are required to notify their interest in, or a change
to their interest in, the Company's share capital pursuant to the Company's
Articles.

Capitalised terms used but not otherwise defined in this announcement shall
have the meanings ascribed to such terms in the Company's announcement made at
7 a.m. on 29 June 2022, unless the context requires otherwise.

The notifications set out below are provided in accordance with the
requirements of the Market Abuse Regulation.

 

 1   Details of the PDMR
 a)  Name                                                         Alan Hume
 2   Reason for the notification
 a)  Position/status                                              Director
 b)  Initial notification/amendment                               Initial notification
 3   Details of the issuer, emission allowance market participant, auction
     platform, auctioneer or auction monitor
 a)  Name                                                         Orcadian Energy plc
 b)  LEI                                                          213800S2M4Z7VSJVN964
 4   Details of the transaction(s): section to be repeated for (i) each type of
     instrument; (ii) each type of transaction; (iii) each date; and (iv) each
     place where transactions have been conducted
 a)  Description of the financial instrument, type of instrument  Ordinary shares of £0.001 pence each

     Identification code

                                                                  GB00BN0TY502
 b)  Nature of the transaction                                    Placing

 c)  Price(s) and volume(s)                                       Price(s)  Volume(s)
                                                                  35p       228,571
 d)  Aggregated information

     -   Aggregated volume                                        228,571

      -   Price                                                   35p
 e)  Date of the transaction                                      30 June 2022
 f)  Place of the transaction                                     London Stock Exchange (XLON)

d)

Aggregated information

-   Aggregated volume

 -   Price

 

228,571

35p

e)

Date of the transaction

30 June 2022

f)

Place of the transaction

London Stock Exchange (XLON)

 

 

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 / James O'Neill (Advisory)
 Tavistock (PR)                                       + 44 20 7920 3150
 Nick Elwes / Simon Hudson / Matthew Taylor           orcadian@tavistock.co.uk (mailto:orcadian@tavistock.co.uk)
 Charlesbye (PR)                                      + 44 7403 050525
 Lee Cain / Lucia Hodgson

 

 

Notes to editors

 

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.

Important Notices

This announcement contains 'forward-looking statements' concerning the Company
that are subject to risks and uncertainties. Generally, the words 'will',
'may', 'should', 'continue', 'believes', 'targets', 'plans', 'expects',
'aims', 'intends', 'anticipates' or similar expressions or negatives thereof
identify forward-looking statements. These forward-looking statements involve
risks and uncertainties that could cause actual results to differ materially
from those expressed in the forward-looking statements. Many of these risks
and uncertainties relate to factors that are beyond the Company's ability to
control or estimate precisely. The Company cannot give any assurance that such
forward-looking statements will prove to have been correct. The reader is
cautioned not to place undue reliance on these forward-looking statements,
which speak only as of the date of this announcement. The Company does not
undertake any obligation to update or revise publicly any of the
forward-looking statements set out herein, whether as a result of new
information, future events or otherwise, except to the extent legally
required.

 

Nothing contained herein shall be deemed to be a forecast, projection or
estimate of the future financial performance of the Company.

 

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