Potential Funding Structure with Albion Labs

9 February 2026

Orcadian Energy plc

(“Orcadian” or the “Company”)

Orcadian Energy plc (AIM: ORCA) announces that the Company 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.

Highlights

• Orcadian and Albion Labs Canada are working together to explore a potential royalty-based funding structure across elements of Orcadian’s portfolio, under which Albion Labs Canada would acquire royalty interests that it intends to choose to securitise and tokenise as part of its own offering to its investors, subject in all cases to North Sea Transition Authority (“NSTA”) approval
• The proposed funding structure is intended to provide an additional and complementary source of development capital for Orcadian’s North Sea portfolio
• This funding structure is designed to minimise dilution to existing shareholders while allowing Orcadian to retain ownership and operational control of its licences and assets
• The proposed funding structure broadens Orcadian’s potential investor base beyond traditional banking and capital markets
• The proposed funding structure is expected to assist in progressing Orcadian’s portfolio of projects through to Field Development Plan (“FDP”) approval

Background

Orcadian is exploring a potential, royalty-based, funding structure with Albion Labs Canada, under which Orcadian would grant royalty interests over defined portions of future revenues from specific projects or licences to Albion Labs Canada. Albion Labs Canada then intends, working with an entity regulated by BaFin, to securitise and tokenise these royalty interests and offer them to its own investors. The proposed arrangements remain subject to legal advice and the receipt of all necessary regulatory approvals, including those of the NSTA. No definitive agreements have yet been entered into in relation to this royalty-based potential funding structure and neither Orcadian nor Albion Labs Canada is under any obligation to proceed with any transaction.

Under the proposed funding structure, Orcadian would enter into royalty agreements with Albion Labs Canada under which a defined share of future revenues from specific projects or licences would be payable to Albion Labs Canada. Orcadian currently anticipates that royalties of up to 5% of revenues may be issued in this manner. There is currently no assurance that any royalties will be issued or that any minimum amount of funding will be raised under this potential structure.

Albion Labs Canada would work with an entity regulated by BaFin, the German Federal Financial Supervisory Authority, to issue royalty tokens and distribute the resulting cash flows to Albion Labs Canada’s investors.

The purpose of this initiative is to provide an additional source of development capital for Orcadian’s North Sea portfolio. Rather than relying solely on equity issuance, Orcadian intends to monetise small, clearly defined portions of future cash flows, while retaining ownership and operational control of its underlying licences and assets.

The initiative is intended to support the progression of Orcadian’s projects through to FDP approval and reflects the Company’s view that rising demand from data centres, artificial intelligence and electrification is increasing the strategic importance of reliable energy supply. Alternative financing structures of this nature can accelerate investment decisions and reduce the overall cost of capital.

By combining conventional North Sea energy assets with modern digital financing infrastructure, Orcadian believes it can access a broader and more global investor base while maintaining capital discipline and minimising shareholder dilution.

There can be no assurance that the Company will successfully conclude negotiations with Albion Labs Canada or that the proposed funding structure will proceed.

Further announcements will be made by the Company as and when appropriate.

Commenting, Steve Brown, CEO of Orcadian Energy, said:

“We are delighted to be exploring this funding structure with Albion Labs. We believe the North Sea continues to have an important role to play in meeting the UK’s energy needs.

“This funding structure provides an innovative way of financing and progressing our portfolio without diluting our shareholders, while retaining full ownership and operational control of our assets and enables investors to access returns from specific oil and gas fields while supporting the UK’s oil and gas industry.

“We look forward to working with Albion Labs Canada to progress our projects, deliver value for shareholders and royalty holders, and continue to support UK energy security.”

For further information please visit:

www.orcadian.energy
www.albionlabs.org

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 Fynn licence also contains the Lowlander discovery with contingent resources of 21.4 mmbbls.

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.