REG - Orcadian Energy PLC - Results for the half year ended 31 December 2025
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RNS Number : 6144X Orcadian Energy PLC 23 March 2026
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.
23 March 2026
Orcadian Energy plc
("Orcadian" or the "Company")
Results for the half year ended 31 December 2025
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 2025.
Highlights:
· Secured a three-year extension to the Second Term of the Pilot
Licence
· Completed the transfer of polymer flood reservoir modelling knowledge
to the Ping sub-surface team
· Identified the potential to develop the Lowlander field as a tieback
to local infrastructure
· Defined the scope of the Earlham development to include the sale of
unprocessed gas to The Marine Low Carbon Power Company Ltd
· Cash position as at 31 December 2025 of £319,903
Post period Highlights:
· As previously announced on 30 December 2025, the Company has
continued to receive funding through its convertible loan notes ("CLNs")
investors of which £450,000 has now been received to date, with a balance of
£50,000 outstanding
· Reached an in-principle agreement with Albion Labs Canada to issue
royalties in return for cash as announced on 9 February 2026
Activity Focus:
· To support Ping in the sub-surface evaluation of Pilot
· To assist Ping in the preparation of a Concept Select Report for the
Pilot development
· To support our partners in securing finance for the power station at
the Earlham field
· To explore financing opportunities for the company by issuing
royalty-based cash flow streams
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)
Albr (Joint Broker) + 44 20 7 399 9425
Colin Rowbury / Jon Belliss
+44 20 3829 5000
Albr (Joint Broker)
Colin Rowbury / Jon Belliss
+ 44 20 7 399 9425
About Orcadian Energy plc
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.
Chairman & CEO's Statement
The global energy landscape has become much more uncertain, with heightened
geopolitical and macroeconomic volatility now the major influence on policy
and investment decisions. While short‑term outcomes are difficult to
predict, the Board believes that energy security will become an increasingly
important priority for governments over the medium to long term compared with
the position a decade ago.
Energy security, in the Boards' view, is most effectively supported through
increased domestic energy production. Experience has shown that reliance on
external supply can expose economies to significant risk. Renewable energy
sources, including wind, are expected to continue to play a role within the UK
energy mix; however, their intermittency and stubbornly high costs mean that
conventional energy sources are likely to remain essential, with gas
continuing to act as a critical balancing fuel within the system.
The Board considers that domestically produced oil and gas will be recognised
as strategically important to the UK. In addition to supporting security of
supply, domestic production contributes positively to the balance of payments
and, when compared with imported hydrocarbons, can result in lower overall
lifecycle emissions due to shorter supply chains and higher regulatory
standards.
Against this backdrop, the Board expects that, over time, UK government policy
will continue to evolve to encourage responsible investment in domestic oil
and gas resources, including the North Sea. The current Energy Profits Levy
("EPL") is scheduled to transition to the Oil and Gas Price Mechanism
("OGPM"), which applies only above defined price thresholds and is designed to
capture windfall gains during periods of elevated commodity prices. The Board
believes that this framework provides greater clarity and is likely to
encourage long‑term investment decisions.
In the Board's opinion, the UK oil and gas sector is therefore assessing
opportunities to invest in new developments ahead of the expected conclusion
of the EPL. Under the current regime, investment in new projects can mitigate
near‑term tax exposure without increasing longer‑term liabilities under
the OGPM, creating an incentive to advance viable developments, subject to
regulatory approvals.
Orcadian Energy's portfolio remains focused on development opportunities. The
Company specialises in identifying and progressing licences that have
previously been relinquished, applying technical expertise and commercial
innovation to unlock value and advance projects towards development.
We have five licences and five important discoveries all of which can be
contributing to the UK's energy security in the 2030s and beyond.
· P2244 (Orcadian 18.75%) contains the Pilot discovery, with 79 MMbbl
of contingent resources, which is planned to be developed using a polymer
flood strategy. We have Ping as the development partner and a carried pathway
to first oil. Orcadian continues to support Ping in the preparation of a
concept select report to submit to the NSTA.
· P2482 (Orcadian 100%) contains the Elke and Narwhal discoveries which
have 53 MMbbl of discovered resources with the potential of doubling that
resource base through appraisal.
· P2634 (Orcadian 50%) covers the Fynn Beauly discovery where we are
working with the operator Serica Energy to model potentially viable resource
recovery schemes, the resource potential is huge, of the scale of another
Rosebank, where the oil is particularly well suited to make the anode grade
needle coke that can be used to make the anodes of electric vehicle batteries.
· P2634 also includes the Lowlander discovery which contains over 20
MMbbl of light sulphurous oil. Dealing with the hydrogen sulphide has been the
rock that every previous development plan has foundered on, we are working on
an alternative scheme that has potential to navigate around that hazard.
· P2650 is the only licence which is focussed on exploration
opportunities, the kind we like: low cost and low risk. They are low cost
because the wells are shallow and low risk as the key uncertainty - gas
saturation can be addressed using an electromagnetic survey.
· P2680 includes the Earlham gas field which is slated to supply an
offshore power station with integrated carbon capture. Key to moving the
Earlham project forward is the financing of the power station project, that
process is managed by our partners The Marine Low Carbon Power Company Ltd and
The Independent Power Corporation Limited. With Earlham underway, there is
further potential to redevelop at the decommissioned Orwell field, and the
compelling Clover prospect to drill.
Taken together, this portfolio reflects Orcadian's strategy of maintaining a
diversified range of development and exploration opportunities, underpinned by
technical innovation and disciplined capital allocation. The Company seeks to
progress multiple projects in parallel, applying proven and emerging
technologies to unlock value from UK domestic resources, with the objective of
advancing assets in a manner that supports long‑term shareholder value and
contributes to the UK's future energy requirements.
Of course, exploring these avenues to unlock value takes finance as well as
innovation. So, we are innovating there as well. As announced on 9 February
2026, we are exploring a potential royalty-based funding structure under
which, subject to separate definitive agreements and regulatory approvals,
Albion Labs Canada would acquire royalty interests over certain of Orcadian's
assets. Albion Labs Canada subsequently intends to securitise and tokenise
those royalty interests, and offer them to its own investors. Orcadian would
not be involved in any such tokenisation or distribution, which would be
undertaken independently by Albion Labs Canada (or its regulated affiliate).
This creates a new opportunity for investors to back specific field
developments and to benefit from the resources that can ultimately be
produced, so we are optimistic that there will be a market for these tokens
and that tokenisation can provide the capital to unlock the significant
potential in our portfolio.
We cannot predict how deep the market for these tokens is, nor make an
estimate of what financial resources we might secure in this process, but we
are delighted to create a new means to finance the prospects, projects and
licences we have accumulated. In the meantime, just before year end we created
a £500,000 convertible loan note, the company had received £322,500 by year
end, now the company has received a total of £450,000 and we expect to
receive the remaining £50,000 in due course.
Of note during the period, our Operator on the Pilot project had been awarded
a three-year extension to that licence, which contains the Pilot project. The
licence now expires on 30 November 2028.
We hope that the rest of 2026 will bring peace and stability for the globe and
for all of our shareholders.
CONSOLIDATED STATEMENT OF COMPREHENSIVE LOSS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2025
Unaudited Unaudited Audited
6 Month Period Ended 6 Month Period Ended 12 Month Period Ended
31 December 2025 31 December 2024 30 June
2025
Note £ £ £
Administrative expenses (413,853) (397,979) (694,190)
Exploration and evaluation expenses (13,448) (131,410) (148,704)
Pre-acquisition licence expenses (66,556) (30,163) (67,839)
Operating Loss (493,857) (559,552) (910,733)
Net Finance costs (27,137) (34,494) (126,685)
Other income 20,755 145,031 167,662
Share of loss in joint venture 5 - - (15,150)
Loss before tax (500,239) (449,015) (884,906)
Taxation - - -
Loss for the period (500,239) (449,015) (884,906)
Other comprehensive income:
Items that will or may be reclassified to profit or loss:
Other comprehensive income - - -
Total comprehensive income (500,239) (449,015) (884,906)
Basic and Diluted Earnings per share 3 (0.63p) (0.60p) (1.12p)
All operations are continuing.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2025
Unaudited Unaudited Audited
as at as at as at
31 December 2025 31 December 2024 30 June
2025
Note £ £ £
Non-current assets
Property, plant and equipment 358 1,718 670
Intangible assets 4 4,698,735 4,488,967 4,621,666
Investment in joint venture 5 - 30,150 -
4,699,093 4,520,835 4,622,336
Current assets
Trade and Other Receivables 6 156,060 26,225 125,126
Cash and cash equivalents 319,903 62,461 77,244
475,963 88,686 202,370
Total assets 5,175,056 4,609,521 4,824,706
Current liabilities
Trade and Other Payables 7 (2,664,316) (1,502,873) (2,228,525)
Borrowings 8 (1,217,921) (1,250,199) (1,175,623)
(3,882,237) (2,753,072) (3,404,148)
Non-Current liabilities
Borrowings 8 (372,500) - -
(372,500) - -
Total liabilities (4,254,737) (2,753,072) (3,404,148)
Net assets 920,319 1,856,449 1,420,558
9 79,000 79,000 79,000
Equity
Ordinary share capital
Share premium 9 6,080,544 6,080,544 6,080,544
Share warrants reserve 9 - - -
Reverse Acquisition Reserve (38,848) (38,848) (38,848)
Retained earnings (5,200,377) (4,264,247) (4,700,138)
Total equity 920,319 1,856,449 1,420,558
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTH PERIOD ENDED 31 DECEMBER 2025
Ordinary Share capital Share premium Share warrants reserve Reverse Acquisition Reserve Retained earnings Total
Note £ £ £ £ £ £
Balance as at 30 June 2024 (audited) 79,000 6,080,544 15,000 (38,848) (3,830,232) 2,305,464
Loss for the period and total comprehensive income - - - - (449,015) (449,015)
Transfer between reserves - - (15,000) - 15,000 -
Balance as at 31 December 2024 (unaudited) 79,000 6,080,544 - (38,848) (4,264,247) 1,856,449
Loss for the period and total comprehensive income - - (435,891) (435,891)
- -
Balance as at 30 June 2025 (audited) 79,000 6,080,544 - (38,848) (4,700,138) 1,420,558
Loss for the period and total comprehensive income - - - - (500,239) (500,239)
Balance as at 31 December 2025 (unaudited) 79,000 6,080,544 - (38,848) (5,200,377) 920,319
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTH PERIOD ENDED 31 DECEMBER 2025
Unaudited Unaudited Audited
6 Month Period Ended 6 Month Period Ended 12 Month Period Ended
31 December 2025 31 December 2024 30 June
2025
Note £ £ £
Cash flows from operating activities
Loss before tax for the year (500,239) (449,015) (884,906)
Adjustments for:
Depreciation 312 - 1,048
Unrealised foreign exchange loss (gain) 21,247 63,212 (39,581)
Interest received (575) (2,814) (3,762)
Finance costs in the period 27,712 37,308 130,447
Share of losses in joint venture 5 - - 15,150
(Increase) in trade and other receivables 6 (30,935) (6,995) (105,895)
Increase in trade and other payables 7 396,401 217,455 800,563
Net cash used in operating activities (86,077) (140,849) (86,936)
Investing activities
Interest received 575 2,814 3,762
Purchases of exploration and evaluation assets 4 (65,390) (38,331) (121,627)
Investment in joint venture 5 - (30,150) (15,150)
Net cash used in investing activities (64,815) (65,667) (133,015)
Financing activities
Proceeds from borrowings 8 372,500 209,128 155,128
Repayment of borrowings 8 - (155,128) (155,128)
Loans from joint ventures 8 21,051 - 82,218
Net cash used in financing activities 393,551 54,000 82,218
Net increase / (decrease) in cash and cash equivalents 242,659 (152,516) (137,733)
Cash and cash equivalents at beginning of period 77,244 214,977 214,977
Cash and cash equivalents at end of period 319,903 62,461 77,244
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 C/O
Arch Law, Floor 2, 8 Bishopsgate, London, EC2N 4BQ, and its ordinary shares
are admitted to trading on AIM, a market of the London Stock Exchange.
The Group's strategy is to identify discovered resources, preferably well
appraised and most likely on the UKCS; to secure access to those resources;
and to create a profitable field development plan which attracts finance
either from oil industry partners or financial investors. Since Orcadian
Energy (CNS) Limited was founded in March 2014 the company currently holds a
carried 18.75% interest in licence P2244, a 100% interest in licence P2482 and
P2680, a 50% interest in licences P2634 and P2650. The P2244 licence contains
a shallow viscous oil discovery known as the Pilot field which has audited 2P
reserves of 79 MMbbl, this licence is now operated by Ping Petroleum UK plc
who are progressing the preparation of a Field Development plan.
The Group is continues to discuss a potential farm-out of a 50% interest in
licence P2680 which contains the Earlham gas discovery. Importantly the Group
has agreed with the likely operator of the offshore power station the scope of
the upstream project. The Earlham project partners will construct a wellhead
tower with a metering skid and sell unprocessed gas to the offshore power
station; the power station will return almost all the carbon atoms that came
out of Earlham (either in the form of carbon dioxide, or as methane, then
combusted and captured) at injection pressure to maintain reservoir pressure
in Earlham.
The Group will also seek to mature its portfolio of prospective and contingent
resources into reserves.
The Group also owns a 50% interest in HALO Offshore UK Ltd which is intended
to pursue a strategy of acquiring producing, non-operated, gas fields on the
UKCS.
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 2025 were
approved by the Board of Directors on 30 December 2025 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 2025
has not been reviewed or audited. The interim financial report has been
approved by the Board on 20 March 2026.
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 2025.
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 2025 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 2025 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 2025, as described in those
annual financial statements.
3. 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 2025 31 December 2024 30 June
2025
£ £
£
Loss for the purposes of basic earnings per share being net loss attributable (500,239) (449,015) (884,906)
to the owners
Weighted average number of Ordinary Shares 79,000,412 74,655,987 79,000,412
Loss per share (0.63p) (0.60p) (1.12p)
4. Intangible assets
Oil and gas exploration assets
£
Cost
As at 30 June 2024 (audited) 4,412,453
Additions 76,514
As at 31 December 2024 (Unaudited) 4,488,967
Additions 132,699
As at 30 June 2025 (audited) 4,621,666
Additions 77,069
As at 31 December 2025 (Unaudited) 4,698,735
5. Investment in joint venture
On 28(th) February 2025 the Company completed its joint venture acquisition of
HALO Offshore UK Limited whose registered office is at c/o Shakespeare
Martineau LLP, 15 Queen Street, Edinburgh, Scotland, EH2 1JE ("HALO") with
Independent Power Corporation Plc (IPC). Both Orcadian and IPC have a 50%
working interest in HALO and as such HALO is considered to be a joint venture
arrangement which accounted for under IAS 28.
£
As at 31 December 2024 (Unaudited) -
Investment in joint venture during the period 15,150
Share of loss in joint venture (15,150)
As at 30 June 2025 (audited) -
Investment in joint venture during the period -
Share of loss in joint venture -
As at 31 December 2025 (Unaudited) -
6. Trade and other receivables
Group Unaudited Unaudited Audited
as at as at as at
31 December 31 December 30 June
2025 2024 2025
£ £ £
VAT receivable 43,753 26,225 36,819
Prepayments 88,307 - 88,307
Other receivables 24,000 - -
156,060 26,225 125,126
7. Trade and other payables - due within one year
Unaudited Unaudited Audited
as at as at as at
31 December 2025 31 December 2024 30 June
2025
£ £ £
Trade payables 865,260 631,979 811,311
Accruals 1,799,056 870,894 1,417,214
2,664,316 1,502,873 2,228,525
8. Borrowings
Unaudited Unaudited Audited
as at as at as at
31 December 2025 31 December 2024 30 June
2025
£ £ £
IPC Loan (ex-Shell) 966,033 1,196,199 938,277
IPC Loan 148,620 - 155,128
Loan from Joint Venture 103,268 54,000 82,218
Convertible loan notes 372,500 - -
1,590,421 1,250,199 1,175,623
Current liabilities 1,217,921 1,250,199 1,175,623
Non-current liabilities 372,500 - -
During the period under review:
· Company created £500,000 of unsecured CLNs and as at 31 December
2025 proceeds of £372,500 had been received from the issue of CLNs to
existing and new investors. The CLNs will accrue interest at a rate of 10% per
annum, will mature on 31 January 2028, and are convertible at the loan note
holders' discretion into Ordinary Shares of the Company at a price of 13.5p
per share. The conversion price represents a discount of approximately 1.8% to
the closing price of 13.75p per share for the Company's shares on 30 December
2025;
· Net loans of £21,050 were received from the joint venture with HALO
Offshore (UK) Limited.
9. Ordinary share capital and share premium
Group
Issued Number of shares Ordinary share capital Share Total share capital
£ premium £
£
As at 30 June 2024 (audited) 79,000,412 79,000 6,080,544 6,159,544
As at 31 December 2024 (unaudited) 79,000,412 79,000 6,080,544 6,159,544
As at 30 June 2025 (audited) 79,000,412 79,000 6,080,544 6,159,544
As at 31 December 2025 (unaudited) 79,000,412 79,000 6,080,544 6,159,544
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.
10. Events after the reporting period
On 5(th) February 2026 the Company announced that it had received a total of
£440,000 in gross proceeds from the issue of Convertible Loan Notes ("CLNs"),
as previously announced on 30(th) December 2025. Albion Labs Jersey Limited
("Albion Labs Jersey") is one of the investors and is expected to continue
funding the Company through further purchases of CLNs up to the maximum issue
of £500,000.
On the same date the Company further announced that it has received a
conversion notice in respect of a CLN held by one of the loan note holders and
has issued 204,931 new ordinary shares, which settles £27,500 of the face
value loan amount.
On 9(th) February 2026 the Company announced that it is exploring with Albion
Labs Canada Ltd ("Albion Labs Canada") a potential royalty-based funding
structure under which, subject to separate definitive agreements and
regulatory approvals, Albion Labs Canada would acquire royalty interests over
certain of Orcadian's assets. Albion Labs Canada subsequently intends to
securitise and tokenise those royalty interests, and offer them to its own
investors. Orcadian would not be involved in any such tokenisation or
distribution, which would be undertaken independently by Albion Labs Canada
(or its regulated affiliate). There can be no assurance that the Company will
successfully conclude negotiations with Albion Labs Canada or that the
proposed funding structure will proceed.
On 6th March 2026 the Company received a further £10,000 proceeds from the
issue of CLN's taking the total received at that date to £450,000 with a
further £50,000 committed from Albion Labs Jersey.
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