REG - Orcadian Energy PLC - Results for the half year ended 31 December 2023
27/02/2024 07:00
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RNS Number : 5087E Orcadian Energy PLC 27 February 2024
The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulations
(EU) No. 596/2014 (MAR). Upon the publication of this announcement via
Regulatory Information Service (RIS), this inside information is now
considered to be in the public domain.
27 February 2024
Orcadian Energy plc
("Orcadian Energy", "Orcadian" or the "Company")
Results for the half year ended 31 December 2023
Orcadian Energy (AIM: ORCA), the North Sea focused oil and gas development
company, is pleased to announce its unaudited results for the six months ended
31 December 2023.
Highlights:
· Agreed the terms for a conditional disposal of an 81.25% interest in
licence P2244, which includes the Pilot project, to Ping Petroleum UK plc*
· If completed, all costs associated with the remaining 18.75% interest
in Pilot to be carried by Ping until first production from Pilot*
· Secured a two-year extension to the P2244 licence, subject to
completion of the disposal to Ping
· Completed the seismic inversion of the Catcher North seismic survey
with TGS, which covers the Elke field, and conducted quantitative
interpretation work to help refine field outline and assist in identification
of development well locations
· Raised £350k before expenses on 2 October 2023, and £500k before
expenses on 18 December 2023
Post period Highlights:
· Offered two licences in the 33(rd) Round adding a very large viscous
oil discovery, and a series of shallow gas prospects, to our project inventory
Activity Focus:
· To finalise a farm-out deal for the Pilot development project
· To maximise the value of the Company's satellite discoveries and
prospects
· To prepare for awards of new licences in the 33(rd) Round
Steve Brown, Orcadian's CEO, commented:
"In the second half of 2023 we struck the deal which we have been seeking
since we first signed the Pilot licence. The deal with Ping Petroleum is
transformational for us and, whilst completion is still subject to the
satisfaction of certain conditions, the board remain confident that these
conditions will be satisfied before the end of this quarter.
"We are also delighted to have replenished our inventory of projects with the
award of the 292 MMbbl (gross 2C resource) Fynn Beauly discovery. We see
opportunities to deploy geothermal heat sources to raise the reservoir
temperature and boost production rates sufficiently to enable a polymer flood
of the reservoir to be highly successful.
"The 33(rd) Round awards also included our first gas project and we are very
pleased to have been awarded a licence covering nine North Sea blocks with an
unrisked P50 prospective resource of over 300 bcf with a P10 upside potential
of over 500bcf."
*see announcement dated 7 December 2023
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)
Tavistock (PR) + 44 20 7920 3150
Nick Elwes / Simon Hudson orcadian@tavistock.co.uk
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 energy to the UK.
Orcadian Energy (CNS) Ltd, Orcadian's operating subsidiary, was founded in
2014 and is the sole licensee of P2244, which contains 78.0 MMbbl of 2P
Reserves in the Pilot discovery, and of P2482, which contain a further 52.2
MMbbl of 2C Contingent Resources in the Elke and Narwhal discoveries (as
audited by Sproule, with both numbers modified to take into account the TGS
royalty, see the CPR in the Company's Admission Document for more details).
Within these licences there are also 118 MMbbl of unrisked Prospective
Resources (modified for TGS royalty). These licences are in blocks 21/27a,
28/2a and 28/3a, and lie 150 kms due East of Aberdeen.
Pilot, which is the field with the largest reserves in Orcadian's portfolio,
was discovered by PetroFina 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 and provision of power from a floating
wind turbine.
Orcadian has entered into a conditional sale and purchase agreement with Ping
Petroleum UK plc ("Ping") which details the terms under which Ping will
farm-in to the Pilot development project. Upon conclusion of this deal
Orcadian would have an 18.75% stake in the Pilot development with all
pre-first oil development costs paid by Ping.
Emissions per barrel produced are expected to be about a tenth of the 2021
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.
Chairman & CEO's Statement
The second half of 2023 has been transformational for Orcadian, on 7 December
2023 we announced the signature of a conditional sale and purchase agreement
(the "SPA"), for an 81.25% interest in licence P2244, which contains the Pilot
project, with Ping Petroleum UK plc ("Ping"). The deal includes a carry of all
costs associated with Pilot until first production from the Pilot field as
well as a $3 million payment due on Pilot FDP approval.
Virtually every company that announces a significant transaction describes it
as transformational, but for Orcadian to bring in a partner to develop the
material oil resources in the Pilot field, would be truly transformational.
Pilot is one of the largest undeveloped fields in the Central North Sea with
audited 2P reserves of 79 MMbbl. Our team's focus has been to find a partner
that shares our vision for the project and to strike a deal which minimises
the extent of asset and shareholder dilution. That is now accomplished and we
can now focus on supporting Ping to satisfy all outstanding conditions to
complete the SPA. Once completed, the focus will be on working with Ping to
prepare a field development plan which optimises value for every party, and
which can deliver first production from Pilot.
Ping is an excellent partner for Orcadian. They are innovative and committed
to the UKCS. They may be an unfamiliar name to many, but they have been
operating on the UKCS since their first deal with Shell and Exxon in 2015.
They, alongside their partners Hibiscus Petroleum, operate the Anasuria
cluster which lies about 40km to the northeast of Pilot. They are a
subsidiary of a listed Malaysian conglomerate, Dagang NeXchange Berhad, or
DNeX, which is a multinational corporation with diverse businesses in
Technology, Energy, and Information Technology. DNeX has access to capital
from financial markets in the Far East that recognise the value of
low-emissions oil and gas assets rather better than our domestic markets do.
The conditions precedent to the SPA include: Orcadian shareholder approval,
received on 17 January 2024; completion of commercial and legal due diligence
by Ping, which we understand is now complete; finalisation and execution of
the Joint Operating Agreement, which is still ongoing; approval of the
transaction by the NSTA, received on 4 January 2024; approval of the
transaction and variations to the existing agreements in place (where
appropriate) from Shell and TGS, still ongoing; and finally approval of the
transaction by the Ping board and the board of DNeX, Ping's parent company,
which is expected during March 2024; plus additional standard conditions to a
transaction of this nature which are also expected to be satisfied before
March 2024.
The licence extension granted by NSTA requires that the assignment of the
interest in P2244 completes by the end of March 2024. We remain confident that
this will be achieved, and are looking forward to Ping progressing the
implementation of the Pilot development scheme.
The second half of 2023 was dominated by negotiating and documenting this
deal. We had hoped to have reported a number of licence awards during 2023,
but for a multitude of reasons the award of licences by NSTA was delayed, with
the first tranche being announced in October 2023. None of the areas we had
applied for were awarded in this tranche. So it took until 2024, more than a
year after our applications were submitted, for those efforts to bear fruit.
On 31 January 2024 NSTA announced a second tranche of awards in the 33(rd)
Round. Orcadian was successful in both of its applications within the areas
awarded. The area of the third application has not yet been awarded and we
remain hopeful that we will be awarded a further licence.
These awards open up new possibilities for Orcadian as we have added a gas leg
to our viscous oil development strategy. Nevertheless, we still see great
potential value in viscous oil opportunities.
The role of gas in displacing coal from power generation and in backing up
wind powered grids is well acknowledged. As the transition to net zero
proceeds, viscous oils will still be needed for multiple uses beyond
combustion: lubricants, asphalt and anode-grade petroleum coke are all
significant markets that have a much brighter future than the gasoline market.
Viscous oils, especially the relatively low sulphur content oils that Orcadian
has under licence, are considered prized pre-cursors of these materials.
The Fynn award, which lies next to our former P2516 licence, contains a very
substantial viscous oil discovery which has a gross P50 contingent recoverable
resource of 292 MMbbl, based upon the latest internal estimates as presented
to NSTA by Parkmead (E&P) Limited, the proposed operator. About 88% of the
resource on a best technical case is estimated to lie within the area of the
offered licence, so we estimate we have added some 129 MMbbl of 2C contingent
resource to our portfolio. However this is an internal estimate, that has not
been audited, and it provided for guidance purposes only.
Orcadian intends to hold a 50% working interest in the Fynn licence which
covers blocks 14/15a, 14/20d and 15/11a.
Our joint work on P2516 gave us the confidence to apply for this block and we
can do no better than acknowledge our partner Parkmead's observations on this
award which was incorporated in their announcement dated 5 February 2024. As
set out above, the estimates contained within it are Parkmead's own internal
estimates and have not been audited, so should not be relied upon and are
provided for guidance purposes only:
"This important award consists of a licence covering Blocks 14/15a, 14/20d and
15/11a situated in the Central North Sea. Parkmead will be operator and hold
a 50% working interest, alongside its partner Orcadian Energy (CNS)
Limited. The new licence contains seven undeveloped oil discoveries within
Mesozoic and Palaeozoic reservoirs. The most substantial of these is Fynn
Beauly.
"Fynn Beauly is one of the largest undeveloped oil accumulations in the UK,
with estimated gross P50 contingent resources of 292 million barrels. This
large heavy oil discovery is situated between the prolific Claymore and Piper
fields. The field extends across all three awarded blocks and is estimated to
contain oil-in-place of between 740 and 1,330 million barrels. This is an
important award because the acreage which encapsulates this significant oil
field has not previously been licensed to a single partner group, creating an
exciting opportunity for Parkmead and Orcadian to advance the development of
this substantial, previously untapped resource.
"The current licence commitment requires no major capital outlay. The work
programme is focused on assessing the feasibility of reducing Fynn Beauly oil
viscosity using enhanced oil recovery techniques. This work will include
assessing the potential to utilise geothermal energy as part of the recovery
mechanism to avoid the need for injected hot water. This would allow for the
delivery of a successful development of this major field which is in line with
the NSTA's Net Zero Strategy."
We are also excited by our second offer of award which lies to the southeast
of Pilot, and consider the area has excellent potential for the discovery of
gas. The UK is desperately short of gas and deeply reliant on uninterrupted
supplies from Norway, which could, if tensions escalated, easily be targeted
by an unfriendly power. As we know from the destruction of the Nordstream
pipelines, this type of cross-border infrastructure is vulnerable. The balance
of the UK's gas comes from the LNG market and CO(2) emissions associated with
that production and transport are many times greater than existing UK gas
production. New gas production, developed with an eye to reducing emissions,
can also be produced with much lower emissions than the aging UK fields which
supply us today.
New gas developments are the only way to mitigate our security of supply
concerns, whilst minimising emissions; so to have uncovered, and then won, a
significant potential resource on our own doorstep is a matter of great pride.
The Mid North Sea High award contains shallow gas prospects and leads which
contain 336 bcf of gross prospective recoverable resource on a P50 basis (this
estimate is an Orcadian management estimate, which is provided for guidance
only, and was submitted in the licence application). The two largest prospects
- Glenlough and Breckagh - are estimated to account for about 80% of the
identified resource potential. Orcadian applied in partnership with Triangle
Energy, an Australian listed energy company. Orcadian would be licence
administrator and would hold 50% of the offered licence.
The Mid North High Sea licence covers blocks 29/16, 29/17, 29/18, 29/19,
29/21, 29/22, 29/23, 29/27 and 29/28.
We have a couple of interesting development concepts for any discoveries here,
and we see the potential to use wind power to compress the gas for export as
an excellent example of how new developments can be designed to deliver new
gas production with emissions far below LNG imports and wholly within our own
borders.
We are looking forward to working with both Parkmead and Triangle to bring
these projects to fruition as soon as possible.
Finally, I would also like to take this opportunity to thank all our
shareholders for their continued support and look forward to providing further
updates as appropriate on what we believe will be a key year for the Company
and the development of Pilot.
Joe Darby Steve Brown
Chairman CEO
26 February 2024 26 February 2024
CONSOLIDATED STATEMENT OF COMPREHENSIVE LOSS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2023
Unaudited Unaudited Audited
6 Month Period Ended 6 Month Period Ended 12 Month Period Ended
31 December 2023 31 December 2022 30 June
2023
Note £ £ £
Administrative expenses (260,180) (455,196) (671,327)
Pre-acquisition licence expenses (2,513) - (129,867)
Impairment of intangible assets 5 (173,567) - (356,532)
Operating Loss (436,260) (455,196) (1,157,726)
Finance costs (51,865) (36,493) (77,228)
Other income - 2,187 50,000
Loss before tax (488,125) (489,503) (1,184,954)
Taxation - - -
Loss for the period (488,125) (489,503) (1,184,954)
Other comprehensive income:
Items that will or may be reclassified to profit or loss:
Other comprehensive income - - -
Total comprehensive income (488,125) (489,503) (1,184,954)
Basic and Diluted Earnings per share 4 (0.66p) (0.74p) (1.72p)
All operations are continuing.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023
Unaudited Unaudited Audited
as at as at as at
31 December 2023 31 December 2022 30 June
2023
Note £ £ £
Non-current assets
Property, plant and equipment 1,671 3,264 2,508
Intangible assets 5 4,610,093 3,768,546 3,871,362
4,611,764 3,771,810 3,873,870
Current assets
Trade and Other Receivables 6 535,522 58,689 48,828
Cash and cash equivalents 72,934 225,446 109,705
608,456 284,135 158,533
Total assets 5,220,220 4,055,945 4,032,403
Current liabilities
Trade and Other Payables 8 (1,396,463) (428,381) (567,629)
Borrowings 7 (1,067,947) (992,678) (991,339)
(2,464,410) (1,421,059) (1,558,968)
Total liabilities (2,464,410) (1,421,059) (1,558,968)
Net assets 2,755,810 2,634,886 2,473,435
9 75,429 66,612 72,512
Equity
Ordinary share capital
Share premium 9 5,638,615 4,788,432 5,316,532
Share warrants reserve 9 15,000 15,000 15,000
Shares to be issued 10 445,500 - -
Reverse Acquisition Reserve 3 (38,848) (38,848) (38,848)
Retained earnings (3,379,886) (2,196,310) (2,891,761)
Total equity 2,755,810 2,634,886 2,473,435
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTH PERIOD ENDED 31 DECEMBER 2023
Ordinary Share capital Share premium Share warrants reserve Reverse Acquisition Reserve Retained earnings Total
Shares to be issued
Note £ £ £ £ £ £ £
Balance as at 1 July 2022 (audited) 63,755 3,890,089 (1,706,807) 3,124,389
15,000 901,200 (38,848)
Loss for the period and total comprehensive income - - - - - (489,503) (489,503)
Issue of shares 9 2,857 997,143 - (1,000,000) - - 1,000,000
Share issue costs 9 - (98,800) - 98,800 - - -
Balance as at 31 December 2022 (unaudited) 66,612 4,788,432 15,000 - (38,848) (2,196,310) 2,634,886
Loss for the period and total comprehensive income - - (695,451) (695,451)
- - -
Issue of shares 9 5,900 584,100 - - - - 590,000
Share issue costs 9 - (56,000) - - - - (56,000)
Balance as at 30 June 2023 (audited) 72,512 5,316,532 (2,891,761) 2,473,435
15,000 - (38,848)
Loss for the period and total comprehensive income - - - - - (488,125) (488,125)
Issue of shares 9 2,917 347,083 - - - - 350,000
Share issue costs 9 - (25000) - - - - (25,000)
Shares to be issued - 18 December 2023 placing 10 - - - 445,500 - - 445,500
Balance as at 31 December 2023 (unaudited) 75,429 5,638,615 15,000 445,500 (38,848) (3,379,886) 2,755,810
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTH PERIOD ENDED 31 DECEMBER 2023
Unaudited Unaudited Audited
6 Month Period Ended 6 Month Period Ended 12 Month Period Ended
31 December 2023 31 December 2022 30 June
2023
Note £ £ £
Cash flows from operating activities
Loss before tax for the year (488,125) (489,503) (1,184,954)
Adjustments for:
Depreciation 837 150 1,822
Unrealised foreign exchange loss (gain) 24,692 - (44,852)
Impairment of intangible assets 5 173,567 - 356,532
Interest received (51) - (2,779)
Decrease / (increase) in trade and other receivables 6 13,305 (2,859) 7,001
Increase / (decrease) in trade and other payables 8 98,320 (60,714) 189,064
Finance costs in the period 51,916 36,493 80,007
Net cash used in operating activities (125,539) (516,433) (598,159)
Investing activities
Interest received 51 - 2,779
Purchases of property, plant and equipment - - (916)
Purchases of exploration and evaluation assets 5 (236,283) (430,760) (1,000,638)
Net cash used in investing activities (236,232) (430,760) (998,775)
Financing activities
Proceeds from issue of ordinary share capital 9 350,000 1,000,000 1,590,000
Share issue costs paid 9 (25,000) (98,800) (154,800)
Net cash used in financing activities 325,000 901,200 1,435,200
Net decrease in cash and cash equivalents (36,771) (45,993) (161,734)
Cash and cash equivalents at beginning of period 109,705 271,439 271,439
Cash and cash equivalents and end of period 72,934 225,446 109,705
There were no significant non-cash transactions during the period.
NOTES TO THE FINANCIAL STATEMENTS
1. General Information
Orcadian Energy PLC (the "Company") is a public limited company which is
domiciled and incorporated in England and Wales under the Companies Act 2006
with the registered number 13298968. The Company's registered office is 6(th)
floor, 60 Gracechurch Street, London, EC3V 0HR, and it ordinary shares are
admitted to trading on AIM, a market of the London Stock Exchange.
The principal activity of the Group is managing oil and gas assets and the
Group holds a 100% interest in, and is licence administrator for, UKCS Seaward
Licences P2244, which contains the Pilot and Harbour heavy oil discoveries and
P2482 which contains the Elke and Narwhal discoveries. The Group has entered
into a Sale and Purchase agreement to reduce its working interest in the P2244
licence to 18.75% and to assign operatorship of this licence to Ping Petroleum
UK PLC.
The Group also had a 50% working interest in P2516, which contains a small
part of the Fynn discoveries. P2516 was administered by the Parkmead Group and
covers blocks 14/20g and 15/16g, which lie midway between the Piper and
Claymore fields. P2516 expired in November 2023.
2. Summary of significant accounting policies
The principal accounting principles applied in the preparation of these
financial statements are set out below. These principles have been
consistently applied to all years presented, unless otherwise stated.
2.1. Basis of preparation
The interim financial information set out above does not constitute statutory
accounts within the meaning of the Companies Act 2006. It has been prepared on
a going concern basis in accordance with UK-adopted international accounting
standards. Statutory financial statements for the year ended 30 June 2023 were
approved by the Board of Directors on 18 December 2023 and delivered to the
Registrar of Companies. The report of the auditors on those financial
statements was unqualified.
The interim financial information for the six months ended 31 December 2023
has not been reviewed or audited. The interim financial report has been
approved by the Board on 26 February 2024.
2.2. Going concern
The Directors, having made appropriate enquiries, consider that adequate
resources exist for the Company to continue in operational existence for the
foreseeable future and that, therefore, it is appropriate to adopt the going
concern basis in preparing the interim financial statements for the period
ended 31 December 2023.
2.3. Risks and uncertainties
The Board continuously assesses and monitors the key risks of the business.
The key risks that could affect the Company's medium term performance and the
factors that mitigate those risks have not substantially changed from those
set out in the Company's 2023 Annual Report and Financial Statements, a copy
of which is available on the Company's website: https://orcadian.energy
(https://orcadian.energy) . The key financial risks are securing finance for
the Pilot project and an emerging cost inflation risk.
2.4. Critical accounting estimates
The preparation of interim financial statements requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities at the end of the reporting period. Significant items subject to
such estimates are set out in note 3 of the Company's 2023 Annual Report and
Financial Statements. The nature and amounts of such estimates have not
changed significantly during the interim period.
The accounting policies applied are consistent with those of the annual
financial statements for the year ended 30 June 2023, as described in those
annual financial statements.
3. Group reorganisation under common control
The acquisition in the year ended 30 June 2021 met the definition of a group
reorganisation due to the Company and the subsidiary being under common
control at the date of acquisition. As a result, and since Orcadian Energy Plc
did not meet the definition of a business per IFRS 3, the acquisition fell
outside of the scope of IFRS 3 and the predecessor value method was used to
account for the acquisition.
These consolidated financial statements for the period ended 31 December 2022
are of the Company's wholly owned subsidiary, Orcadian Energy (CNS) Ltd.
On 11 May 2021, the Company issued 52,201,601 shares to acquire the entire
issued share capital of Orcadian Energy (CNS) Ltd.
The net assets of Orcadian Energy (CNS) Ltd at the date of acquisition was as
follows:
£
Property Plant & Equipment 1,357
Intangible Assets 1,719,292
Current Assets 447,425
Current Liabilities (284,745)
Non-Current Liabilities (1,869,975)
Net assets 13,354
The reserve that arose from the acquisition is made up as follows:
£
As at 31 December 2020 -
Cost of the investment in Orcadian Energy (CNS) Ltd 52,202
Less: net assets of Orcadian Energy (CNS) Ltd at acquisition (13,354)
As at 30 June 2023 (audited) and as at 31 December 2023 (unaudited) 38,848
4. Earnings per share
The calculation of the basic and diluted earnings per share is calculated by
dividing the loss for the year for continuing operations for the Company by
the weighted average number of ordinary shares in issue during the year.
Dilutive loss per Ordinary Share equals basic loss per Ordinary Share as, due
to the losses incurred in all three periods presented, there is no dilutive
effect from the subsisting share warrants.
Unaudited Unaudited Audited
6 Month Period Ended 6 Month Period Ended 12 Month Period Ended
31 December 2023 31 December 2022 30 June
2023
£ £
£
Loss for the purposes of basic earnings per share being net loss attributable (488,125) (489,503) (1,184,954)
to the owners
Weighted average number of Ordinary Shares 73,891,393 66,519,149 68,876,857
Loss per share (0.66p) (0.74p) (1.72p)
The weighted average number of shares is adjusted for the impact of the
acquisition as follows:
5. Intangible assets
Oil and gas exploration assets
£
Cost
As at 30 June 2022 (audited) 3,303,400
Additions 465,146
As at 31 December 2022 (unaudited) 3,768,546
Additions 459,348
Impairment (356,532)
As at 30 June 2023 (audited) 3,871,362
Additions 912,298
Impairment (173,567)
As at 31 December 2023 (Unaudited) 4,610,093
6. Trade and other receivables
Group Unaudited Unaudited Audited
as at as at as at
31 December 2023 31 December 2022 30 June
2023
£ £ £
VAT receivable 26,978 55,188 47,440
Prepayments 8,544 - -
Other receivables 500,000 3,500 1,388
535,522 58,688 48,828
7. Borrowings
Unaudited Unaudited Audited
as at as at as at
31 December 2023 31 December 2022 30 June
2023
£ £ £
STASCO Loan 1,067,947 992,678 991,339
1,067,947 992,678 991,339
Current liabilities 1,067,947 992,678 991,339
Non-current liabilities - - -
8. Trade and other payables - due within one year
Unaudited Unaudited Audited
as at as at as at
31 December 2023 31 December 2022 30 June
2023
£ £ £
Trade payables 867,941 177,849 196,354
Accruals 528,522 250,532 371,275
1,396,463 428,381 567,629
9. Ordinary share capital and share premium
Group
Issued Number of shares Ordinary share capital Share
£ premium
£
As at 30 June 2022 (audited) 63,755,174 63,755 3,890,089
Issue of shares 2,857,143 2,857 997,143
Share issue costs - - (98,800)
As at 31 December 2022 (unaudited) 66,612,317 66,612 4,788,432
Issue of shares 5,900,000 5,900 584,100
Share issue costs - - (56,000)
As at 30 June 2023 (audited) 72,512,317 72,512 5,316,532
Issue of shares 2,916,666 2,917 347,083
Share issue costs - - (25,000)
As at 31 December 2023 (unaudited) 75,428,983 75,429 5,638,615
The ordinary shares confer the right to vote at general meetings of the
Company, to a repayment of capital in the event of liquidation or winding up
and certain other rights as set out in the Company's articles of association.
On 15 July 2021 the Company issued 75,000 warrants over ordinary shares of the
Company at 40 pence each, exercisable at any time over a three year period
from the date of issue. The warrants were valued using the Black-Scholes
pricing model. The inputs into the Black-Scholes model are as follows:
Grant date 15 July 2021
Exercise price 40.00 pence
Expected life 3 years
Expected volatility 77.32%
Risk free rate of interest 0.0242%
Dividend yield Nil
Fair value of option 20.00 pence
Volatility has been estimated based on the historic volatility of a collection
of comparable companies over a period equal to the expected term from the
grant date.
10. Shares to be issued
The Shares to be issued represents the issue of 3,571,429 Ordinary shares
("the Shares") at 14 pence each that completed post-reporting date, on 8
January 2024. The value of the Shares to be issued reserve reflects the gross
proceeds of the share placement of £500,000, less £54,500 of share issue
costs which have been accrued for at 31 December 2023. Upon completion the
value of Shares to be issued will be re-allocated to Share capital and Share
premium.
11. Events after the reporting period
Since 31 December 2023, the Company has been focussed on the following
activities:
· On 8 January 2024 the Company completed a share placement raising
£500,000 before costs through the issue of 3,571,429 Ordinary shares at 14
pence per share. Each Ordinary share also has one warrant share entitlement to
subscribe at a price of 25p per share for a period of 5 years. Total costs of
the share issue were £54,500;
· On 1 February 2024 the Company announced that pursuant to the 33(rd)
licensing round, the NSTA will offer the Company two licences in the Central
North Sea ("CNS") one in partnership with Parkmead Group, and the other in
partnership with Triangle Energy. Orcadian anticipates that these licences
will be formally issued within the next three months.
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