TIDMORCA
RNS Number : 1023U
Orcadian Energy PLC
01 December 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.
1 December 2021
Orcadian Energy plc
("Orcadian Energy", "Orcadian" or the "Company")
Concept Select Study for the Pilot Field
Orcadian Energy (AIM: ORCA), the North Sea focused oil and gas
development company, is delighted to announce that it has received
a "Letter of no objection" from the Oil and Gas Authority ("OGA")
in respect of the development concept for the Pilot field. This
letter signals the finalisation of the "Assessment phase" and the
entry into the "Authorisation phase" of development planning for
the Pilot Field.
The letter acknowledges receipt of the Concept Select Report and
subsequent Addendum (the "Concept Select Documents"), which were
submitted in accordance with the OGA's Requirements for the
planning of, and consent to, UKCS field developments guidance:
https://www.ogauthority.co.uk/media/7803/fdp_guidance_111021.pdf
.
The development concept for the Pilot field is based upon the
use of polymer flooding to maximise economic recovery, implemented
using an FPSO, two wellhead platforms and over thirty production
and injection wells. Energy requirements for the development are to
be largely supplied by a floating wind turbine unit supplemented by
associated gas. This is as detailed in the Company's Admission
Document, and as amended by the submission of the CSR Addendum in
July 2021, described in the announcement dated 15 July 2021.
The letter states that, based on the information provided to
date and the OGA's current understanding of that information, the
OGA has no objection to Orcadian preparing a Field Development Plan
(FDP) for the Pilot Field as described in the Concept Select
Documents.
The facilities concept delivers a well optimised process heat
management scheme and includes a local wind power system, with
highly efficient backup gas engines, to significantly reduce
emissions. Scope 1 and Scope 2 emissions over the life of field
have been estimated, by the Company's client engineers Crondall
Energy, to be 2.6 kgCO2e per barrel, about an eighth of the North
Sea average emissions in 2020: 20.0 kgCO2e/boe, and less than half
of the lowest emitting oil facility currently operating on the
UKCS:
https://www.ogauthority.co.uk/the-move-to-net-zero/net-zero-benchmarking-and-analysis/carbon-emissions-intensity-analysis/
The Company is preparing a plan to advance the FDP and progress
the project through the Authorisation phase, with a particular
focus on securing a contract for the provision of a FPSO (a
floating production, storage and offloading vessel). As already
announced the Company has engaged Crondall to assist with this and
a short list of three providers have been identified (see
announcement dated 28 October 2021). The Directors believe this
vessel selection to be a crucial step in the process of finalising
the basis of design for the rest of the development at Pilot and
the commercial terms offered by the contractors will fundamentally
define the capital requirements of the project. Further updates
will be provided as appropriate.
Steve Brown, Orcadian's CEO, said:
"The letter of no objection for the concept select study from
the OGA is a really important step in the progress towards the
development of the Pilot Field.
"This is also particularly pleasing for us given the extensive
work that the team have done to address the net zero aspects of the
development. We believe the plan that we have developed, once
executed, will ensure that the Pilot Field emissions will lie in
the lowest 5% of global oil production, an incredible achievement
and one in keeping with the drive to net zero whilst continuing to
ensure energy security in the UK.
"We look forward to continuing to work with the OGA and our
other partners in taking this development forward."
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)
Toby Gibbs / James O'Neill (Advisory)
-------------------------
Tavistock (PR) + 44 20 7920 3150
-------------------------
Nick Elwes / Simon Hudson / Matthew orcadian@tavistock.co.uk
Taylor
-------------------------
About Orcadian Energy
Orcadian is a North Sea oil and gas operator with a difference.
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 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 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 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 2020
North Sea average and to lie in the lowest 5% of global oil
production.
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END
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