Orcadian Energy PLC Farm-out of Carra Prospect (5752O)
11 October 2021 - 5:00PM
UK Regulatory
TIDMORCA
RNS Number : 5752O
Orcadian Energy PLC
11 October 2021
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.
11 October 2021
Orcadian Energy plc
("Orcadian Energy", "Orcadian" or the "Company")
Farm-out of Carra Prospect
Orcadian Energy (AIM: ORCA), the North Sea focused oil and gas
development company, is pleased to announce that the Company has
entered into a non-binding Heads of Terms with Carrick Resources
Limited ("Carrick") in respect of a sub-area of Licence P2320 which
covers the Carra prospect ("Carra").
Under the terms of the agreement with Carrick, both parties are
working towards the execution of a formal agreement, in respect of
the assignment of the Carra interest, before 31 December 2021 (an
"SPA"). Further updates will be provided in due course as
appropriate.
If an SPA is executed Carrick will then purchase new seismic
data relating to the Carra prospect, work up the Carra prospect to
drill-ready status, and manage a further farm-out process on the
prospect. In return, Orcadian will, subject to OGA approval, assign
a 50% interest in the sub-area of licence P2320, which contains the
bulk of the Carra prospect, to Carrick.
The Carra prospect lies to the East of the Crinan and Dandy
discoveries and to the South of Fyne. The Carra prospect is
contained in Tay and Cromarty sandstones which lie on trend with
Guillemot West, and is a stratigraphic trap associated with a clear
amplitude anomaly defined by 3D seismic. The Carra prospect has
been previously estimated to contain P50 recoverable prospective
resources of 30 MMbbls of medium gravity oil (Carrick has provided
these initial estimates of recoverable volumes).
The sub-area of P2320 which is subject to this agreement can be
viewed at this link: https://bit.ly/carra-subarea
Steve Brown, Orcadian's CEO, said:
"We are delighted to be co-operating with Carrick to make the
most of the exploration potential of our acreage. Progressing Pilot
and the prospects close to Pilot is our main focus and partnering
with Carrick to develop a drill-ready prospect on Carra means we
will leave no stone unturned in our strategy to maximise value from
our assets."
Qualified Person's Statement
Pursuant to the requirements of the AIM Rules and in particular,
the AIM Note for Mining and Oil and Gas Companies, Greg Harding has
reviewed and approved the technical information and resource
reporting contained in this announcement. Greg has more than 35
years' experience in the oil & gas industry. He holds a BEng in
Chemical Engineering from Imperial College and is a Chartered
Engineer, European Engineer, and a member of the Society of
Petroleum Engineers, the Energy Institute and the Institute of
Chemical Engineers. Greg is Technical Director of Orcadian
Energy.
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
-------------------------
Harry Ansell / Fraser Marshall (Corporate
Broking)
Katy Mitchell / Andrew de Andrade (Nomad)
-------------------------
Shore Capital (Joint Broker) +44 20 7408 4090
-------------------------
Jerry Keen (Corporate Broking)
Edward Mansfield / James O'Neill (Advisory)
-------------------------
Tavistock (PR) + 44 20 7920 3150
-------------------------
Nick Elwes / Simon Hudson / Matthew orcadian@tavistock.co.uk
Taylor
-------------------------
About Orcadian 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 P2320 and P2482, which contain a further 77.8 MMbbl of 2C
Contingent Resources in the Elke, Narwhal and Blakeney discoveries
(as audited by Sproule, see the CPR in the Company's Admission
Document for more details). Within these licences there are also
191 MMbbl of unrisked Prospective Resources. These licences are in
blocks 21/27, 21/28, 28/2 and 28/3, 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 development plan for Pilot is based
upon a Floating Production Storage and Offloading vessel, with over
thirty wells to be drilled by a Jack-up rig through a pair of well
head platforms and will include a floating wind turbine to provide
much of the energy used in the production process. Emissions per
barrel produced are expected to be about an eighth of the 2018
North Sea average and to lie in the lowest 5% of global oil
production.
About Carrick Resources Limited
Carrick recently completed the sale of its 50% operated interest
in the adjacent Block 21/28b (Licence P2451) containing the Fyne
Field. First oil from Fyne is currently targeted during 2022.
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