14 March 2024
Orcadian Energy
plc
("Orcadian Energy",
"Orcadian" or the "Company")
Amendment to Facility
Agreement
Orcadian Energy plc is pleased to
advise that its subsidiary, Orcadian Energy (CNS) Ltd ("Orcadian
CNS") yesterday 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 "Loan"). The original repayment date of the
STASCO loan of US$1m (and associated interest) was 23 August 2023;
this had been extended to 13 September 2023 (see announcement dated
22 August 2023) and subsequently to 13 March 2024 (see announcement
dated 13 September 2023).
The repayment date of the Loan has
now been extended to 13 June 2024 to allow time for the proposed
sale of an 81.25% interest in Licence P2244 to complete and for
discussions with Shell on future financial and marketing
arrangements to conclude.
With respect to the Ping transaction
(see announcement dated 7 December 2023), activity to finalise the
Joint Operating Agreement, and variations or additions to the
existing agreements in place with Shell and TGS, are still ongoing.
Approval of the transaction by the Ping board and the board of
DNeX, Ping's parent company, is expected before the end of March
2024.
The licence extension granted by
NSTA requires that the assignment of the interest in P2244
completes by the end of March 2024. We remain confident that this
will be achieved, and are looking forward to Ping progressing the
implementation of the Pilot development scheme.
For further information on the
Company please visit the Company's website:
https://orcadian.energy
Contact:
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Orcadian Energy plc
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+ 44 20 7920 3150
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Steve Brown, CEO
Alan Hume, CFO
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WH
Ireland (Nomad and
Broker)
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+44 20 7220 1666
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Katy Mitchell / Andrew de Andrade
(Nomad)
Harry Ansell / Fraser Marshall
(Corporate Broking)
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Tavistock (PR)
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+ 44 20 7920 3150
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Nick Elwes / Simon Hudson
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orcadian@tavistock.co.uk
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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,
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, with both numbers 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 (modified for
TGS royalty). These licences are in blocks 21/27a, 28/2a and 28/3a,
and lie 150 kms due East of Aberdeen.
Pilot, which is the field with the
largest reserves in Orcadian's portfolio, was discovered by
PetroFina 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.
Orcadian has entered into a
conditional sale and purchase agreement with Ping Petroleum UK plc
("Ping") which details the terms under which Ping will farm-in to
the Pilot development project. Upon conclusion of this deal
Orcadian would have an 18.75% stake in the Pilot development with
all pre-first oil development costs paid by Ping.
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.