Orcadian Energy PLC Determination of Licence P2320 (3423Z)
15 5월 2023 - 3:00PM
UK Regulatory
TIDMORCA
RNS Number : 3423Z
Orcadian Energy PLC
15 May 2023
15 May 2023
Orcadian Energy plc
("Orcadian Energy", "Orcadian" or the "Company")
Determination of Licence P2320
Orcadian announces that following extensive discussions with the
North Sea Transition Authority ("NSTA") that the NSTA has declined
Orcadian's request to extend Phase A of Licence P2320 (the
"Licence" or "P2320"). As a consequence the Licence determined
(expired) on 14 May 2023. In addition, the potential disposals of
interests in sub-areas of the licence to Rapid Oil (see
announcement dated 11 January 2023) and Carrick Resources (see
announcement dated 3 August 2022) will not now proceed.
Orcadian has been in farm-out discussions with multiple
counterparties regarding the drilling of an exploration well within
the former P2320 licence area. A number of those companies have
agreed non-compete arrangements with Orcadian which should ensure
that any reapplication for a licence over the same area, by any of
those companies, would be made in partnership with Orcadian.
The P2320 licence contained the Blakeney discovery which had 2C
Resources of 25 MMbbl and which represented only about 0.5% of the
combined Pilot, Elke, Narwhal and Blakeney development project NPV
evaluated in the Competent Person's Report (set out in the
Company's Admission Document), assuming a $60/bbl oil price. The
Licence also contained the Feugh, Dandy and Crinan discoveries, and
the Bowhead and Carra prospects.
Orcadian intends to make an out-of-round application for a new
licence covering the extensions of the Pilot field into the P2320
area, the Blakeney and Feugh discoveries, and the prospects
identified using the TGS seismic data and Quantitative
Interpretation products. Further updates on this will be provided
in due course, but it is anticipated that this process could take
up to six months.
Licence P2244 (the Pilot field) remains the Company's key asset
and key focus; and the Company's interest in this licence is
unaffected by the NSTA decision on Licence P2320.
As previously announced to the market, the Company needs to
raise new funds in the short term for working capital and to repay
the loan facility with Shell of c. GBP1m. However, the Company has
initiated a series of cost cutting measures and is continuing
positive discussions with potential investors in the Company.
Further updates will be provided in due course.
Steve Brown, Orcadian's CEO, commented:
"Whilst we obviously would have preferred that NSTA had extended
Phase A of P2320, we are pleased to have progressed discussions on
the prospects we had identified in the area with multiple potential
partners, who have been willing to agree non-compete arrangements
with us. We are determined to catalyse the drilling of the
prospects we have identified and to deliver on our Central
Obligation to Maximise Economic Recovery from the UKCS whilst
continuing to minimise the potential emissions from any future
development."
For further information on the Company please visit the
Company's website: 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 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 P2482, which contain a further 52.7 MMbbl of 2C Contingent
Resources in the Elke and Narwhal discoveries (as audited by
Sproule, see the CPR in the Company's Admission Document for more
details). Within these licences there are also 119 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 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 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.
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