13 September 2023
Orcadian Energy plc
(“Orcadian Energy”, “Orcadian” or the “Company”)
Orcadian Energy plc is pleased to advise that its subsidiary, Orcadian Energy (CNS) Ltd (“Orcadian CNS”) has today executed an agreement to amend the repayment date in its secured, facility agreement with Shell International Trading and Shipping Company Limited (“STASCO”). The full terms of this agreement are detailed on page 257 of the Company’s Admission Document. The original repayment date of the STASCO loan of US$1m (and associated interest) was 23 August 2023 (the “Loan”); this had been extended to 13 September 2023 (see announcement dated 22 August 2023).
The repayment date of the Loan has now been extended to 13 March 2024.
The Company’s current cash balance is £92k and the Company’s current monthly burn rate is less than £20k; accordingly, the Company will need to raise additional funds in the very short term. It is continuing to explore all options.
For further information on the Company please visit the Company’s website: https://orcadian.energy
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||[email protected]|
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 (“CNS”), 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, and 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. These licences are in blocks 21/27a, 28/2a and 28/3a, 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 field with the largest reserves 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 and provision of power from a floating wind turbine.
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.