TIDMORCA
RNS Number : 0515F
Orcadian Energy PLC
17 March 2022
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.
17 March 2022
Orcadian Energy plc
("Orcadian Energy", "Orcadian" or the "Company")
Results for the half year ended 31 December 2021
Orcadian Energy (AIM: ORCA), the North Sea focused oil and gas
development company, is delighted to announce its unaudited results
for the six months ended 31 December 2021.
Activity Focus:
-- To improve the technical and commercial definition of the Pilot development project
-- To finance the Pilot development project
-- To explore every avenue to maximise the value in our satellite discoveries and prospects
-- To propose a practical means to electrify the Central North
Sea ("CNS") and to develop a business model enabling Orcadian to
benefit from this work
Highlights:
-- Orcadian was admitted to AIM in July 2021 raising gross proceeds of GBP3 million
-- Receipt of Letter of no objection from the Oil and Gas
Authority ("OGA") and entry into the authorisation phase of
development planning for the Pilot Field
-- Received three expressions of interest for the provision of
an Floating Production Storage Offloading ("FPSO") for the Pilot
Development
-- 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")
-- Selected by the OGA to evaluate an approach to the
electrification of North Sea oil and gas platforms which will
dramatically cut carbon emissions.
-- Cash position as at 31 December 2021 of over GBP1.5 million
Steve Brown, Orcadian's CEO, commented:
"Our first half year results have covered a remarkable period
for Orcadian as well as the energy industry as a whole. For our own
part, we completed our listing on AIM; proposed a transformational
approach to new oil and gas developments on the United Kingdom
Continental Shelf ("UKCS") which we believe has the potential to
blaze a trail for a slew of new projects with dramatically lower
emissions than existing production; the OGA blessed those plans and
has also acknowledged the leading role we are seeking to take in
enabling electrification of the North Sea basin.
"We also believe that both the Government and society have begun
to acknowledge that continuing oil and gas production is an
essential part of an energy system in transition and thus ensuring
energy security. We believe that new North Sea developments are
essential to meet continuing demand for oil and gas, and absent
those, we believe that prices will rise, hitting the pockets of the
general public, while ensuring that old, high cost, and hence high
emissions, production has to stay online.
"Governments should be encouraging investors to back those plans
- they will help deliver an energy transition without soaring
costs. Having our own oil and gas production is the only viable
path to energy security and stability. We need to deal with the
reality of energy delivery in the cleanest and most cost effective
ways possible. We believe Orcadian can help deliver this."
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)
-------------------------
Shore Capital (Joint Broker) +44 20 7408 4090
-------------------------
Toby Gibbs / James O'Neill (Advisory)
-------------------------
Tavistock (PR) + 44 20 7920 3150
-------------------------
Nick Elwes / Simon Hudson orcadian@tavistock.co.uk
-------------------------
Charlesbye (PR) + 44 7403 050525
-------------------------
Lee Cain / Lucia Hodgson
-------------------------
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 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 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.
Chairman's Statement
This is the first set of interim financial statements for
Orcadian Energy plc. On 15 July 2021, we were admitted to trading
on the AIM market of the LSE raising GBP3m from new investors.
These results include the impact of the IPO, which has transformed
the Company's capacity to develop the business.
In July 2021 the Company filed an addendum to the Pilot field
Concept Select Report ("CSR") with the Oil and Gas Authority
("OGA"). This followed the execution of an agreed work programme
which included polymer core flood tests and work to reduce the
projected carbon dioxide emissions from the development. The
selected concept had been revised to include a significant
improvement in process heat management and power generation
efficiency and included a floating wind turbine to provide energy
for the development scheme. This effort means that the Pilot
development will have emissions which are about an eighth of the
current North Sea average and means that Pilot will lie in the
lowest 5% of global oil production.
In August 2021, using some of the proceeds of the fundraise, we
licenced a 205 sq km 3D seismic dataset from TGS. which covers the
Pilot and Blakeney discoveries as well as the Bowhead prospect.
Axis Well Technology Ltd were also engaged to interpret the survey.
The work to date has gone very well and is currently drawing to a
conclusion. Our maps and static (geological) models of Pilot,
Bowhead, Blakeney and Feugh are now based on this recently
reprocessed seismic dataset which is the best data available over
our acreage.
In October 2021 we entered into a non-binding Heads of Terms
with Carrick Resources Ltd ("Carrick") in respect of a sub-area of
Licence P2320 which covers the Carra prospect, we continue to work
with Carrick on this opportunity.
Also, in October 2021, we were delighted to receive three
expressions of interest for the provision of an FPSO for the Pilot
project and, given quality of the responses , the directors are
confident that a suitable vessel and FPSO contractor can be chosen.
The Company is currently conducting a series of wash tank trials,
in conjunction with the wash tank technology supplier Sulzer at
TotalEnergies's facility in Pau, to derive design parameters for
the in-hull separation tanks. In parallel, the Company is running a
competitive concept definition process with the three FPSO
respondents as it moves towards making a final decision on which
vessel is best for the project.
In November 2021 the Company received a "Letter of no objection"
from the OGA in respect of the development concept for the Pilot
field. This letter signalled the finalisation of the "Assessment
phase" and the entry into the "Authorisation phase" of development
planning for the Pilot Field. In times past, this was a fairly
routine marker of progress, but since the OGA's adoption of a Net
Zero central objective, to rank equally with its MER (Maximising
Economic Recovery) objective, the directors believe this is
actually a very significant stepping-stone towards government
approval of the development of Pilot.
In December 2021 the OGA announced that Orcadian had been chosen
as one of three winners of the decarbonisation competition for the
electrification of offshore oil and gas installations, which had
been announced in September 2021. Based upon the knowledge gained
from our work on reducing emissions for the Pilot project, we
formed what we believe is a powerful consortium and prepared a
concept to electrify existing platforms in the CNS. The Company was
awarded GBP466,667 by the OGA and is working with Crondall Energy,
Enertechnos, Petrofac, North Sea Midstream Partners and Wärtsilä to
deliver a report to the OGA and Central Graben Operators by the end
of March 2022. The evaluation will include a commercial proposal
for the delivery of electrical power to Central Graben and Central
North Sea Operators interested in rapidly implementing
electrification of their platforms.
The first half year as a quoted company has been extraordinarily
busy and we are working hard focussing on four fronts:
-- firstly, to improve the technical and commercial definition of the Pilot development project;
-- secondly, to finance the Pilot development project;
-- in addition, we are exploring every avenue to maximise the
value in our satellite discoveries and prospects; and
-- finally, to propose a means to practically electrify the CNS
and to develop a business model enabling Orcadian to benefit from
this work.
Of these activities, securing finance for Pilot is paramount,
and we are exploring multiple avenues and potential opportunities
to deliver this. The work to select the FPSO contractor will help
define both the project costs and the portion of those costs which
the FPSO contractor is willing to shoulder. We are exploring the
potential for infrastructure investors to finance facilities costs
in return for a tariff (similar to the arrangements Premier entered
into for the Tolmount project); and we are testing with potential
lenders the project debt capacity, which is determined by the
robustness of the proven reserve case.
All these activities will define the equity requirement for the
project. This equity can come either from industry, through a farm
in, or the markets. The directors, whose interests are closely
aligned with shareholders, will choose the most appropriate option
which minimises dilution whilst maximising value for all the
Company's shareholders.
The directors believe that the Company is well placed with an
excellent project, the development of which is aligned with the
interests and strategy of the OGA. Given the feedback that we have
already gained from the industry, we believe that we have an
exciting year ahead in taking forward not only the Pilot
development project, but also our other discoveries and
prospects.
Joe Darby
Chairman
CONSOLIDATED STATEMENT OF COMPREHENSIVE LOSS
FOR THE SIX MONTHSED 31 DECEMBER 2021
Unaudited Unaudited Audited
6 Month 6 Month 12 Month
Period Ended Period Ended Period Ended
31 December 31 December 30 June
2021 2020 2021
Note GBP GBP GBP
Administrative expenses (519,650) (134,396) (258,909)
Operating Loss (519,650) (134,396) (258,909)
------------- ------------- -------------
Finance costs (19,277) (19,637) (44,349)
Other income - - 3,000
Listing costs (325,449) - (76,500)
------------- ------------- -------------
Loss before tax (864,376) (154,033) (376,758)
Taxation - - 80,420
Loss for the period (864,376) (154,033) (296,338)
------------- ------------- -------------
Other comprehensive income:
Items that will or may be
reclassified to profit or
loss:
Other comprehensive income - - -
------------- ------------- -------------
Total comprehensive income (864,376) (154,033) (296,338)
------------- ------------- -------------
Basic and Diluted Earnings
per share 4 (1.38p) (0.89p) (1.34p)
All operations are continuing.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2021
Unaudited Unaudited Audited
as at as at as at
31 December 31 December 30 June
2021 2020 2021
Note GBP GBP GBP
Non-current assets
Property, plant and equipment 1,842 107 1,842
Intangible assets 5 2,694,666 1,481,834 1,814,615
2,696,508 1,481,942 1,816,457
------------ ------------ -----------
Current assets
Trade and Other Receivables 6 63,217 139,795 88,548
Cash and cash equivalents 1,517,902 17,870 179,556
1,581,119 157,665 268,104
------------ ------------ -----------
Total assets 4,277,627 1,639,607 2,084,561
------------ ------------ -----------
Non-current liabilities
Borrowings 7 (815,185) (872,430) (762,686)
(815,185) (872,430) (762,686)
------------ ------------ -----------
Current liabilities
Trade and Other Payables 8 (516,902) (401,599) (328,601)
Borrowings 7 - (330,000) (1,100,000)
(516,902) (731,599) (1,428,601)
------------ ------------ -----------
Total liabilities (1,332,087) (1,604,029) (2,191,287)
------------ ------------ -----------
Net assets / (liabilities) 2,945,540 35,578 (106,726)
------------ ------------ -----------
Equity
Ordinary share capital 9 63,755 17,401 52,202
Share premium 9 3,890,089 563,561 -
Share warrants reserve 9 15,000 - -
Reverse Acquisition Reserve 3 (38,848) - (38,848)
Retained earnings (984,456) (545,384) (120,080)
------------ ------------ -----------
Total equity 2,945,540 35,578 (106,726)
------------ ------------ -----------
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTH PERIODED 31 DECEMBER 2021
Ordinary Share Reverse
Share Share warrants Acquisition Retained
capital premium reserve Reserve earnings Total
Note GBP GBP GBP GBP GBP GBP
Balance as at 1 July
2020 (audited) 17,401 563,561 - - (391,350) 189,612
Loss for the period and
total comprehensive income - - - - (154,034) (154,034)
-------- --------- --------- ------------ --------- ---------
Balance as at 31 December
2020 (unaudited) 17,401 563,561 - - (545,384) 35,578
Loss for the period and
total comprehensive income - - - - (296,338) (296,338)
-------- --------- --------- ------------ --------- ---------
Bonus issue of shares 9 34,801 (34,801) - - - -
Issue of shares 9 52,202 - - (52,202) - -
Transfer to Reverse Acquisition
Reserve 3 (52,202) (528,760) - 13,354 567,608 -
-------- --------- --------- ------------ --------- ---------
Balance as at 30 June
2021 (audited) 52,202 - - (38,848) (120,080) (106,726)
-------- --------- --------- ------------ --------- ---------
Loss for the period and
total comprehensive income - - - - (864,376) (864,376)
-------- --------- --------- ------------ --------- ---------
Issue of shares 9 7,625 3,042,375 - - - 3,050,000
Share issue costs 9 - (233,358) - - - (233,358)
Conversion of loans 9 3,928 1,096,072 - - - 1,100,000
Issue of warrants 9 - (15,000) 15,000 - - -
-------- --------- --------- ------------ --------- ---------
Balance as at 31 December
2021 (unaudited) 63,755 3,890,089 15,000 (38,848) (984,456) 2,945,540
-------- --------- --------- ------------ --------- ---------
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTH PERIODED 31 DECEMBER 2021
Unaudited Unaudited Audited
6 Month Period 6 Month Period 12 Month
Ended Ended Period Ended
31 December 31 December 30 June
2021 2020 2021
Note GBP GBP GBP
Cash flows from operating activities
Loss before tax for the year (864,376) (154,034) (376,758)
Adjustments for:
Depreciation - - 217
Unrealised foreign exchange loss
(gain) 33,222 - (129,511)
Decrease / (increase) in trade
and other receivables 6 25,331 (16,155) (10,409)
(Decrease) / Increase in trade
and other payables 8 (24,928) 39,128 79,504
Finance costs in the period 19,277 19,637 44,349
--------------- --------------- -------------
Cash generated from operations (811,474) (111,424) (392,608)
--------------- --------------- -------------
Income taxes paid - - 80,420
--------------- --------------- -------------
Net cash flows from operating
activities (811,474) (111,424) (312,188)
--------------- --------------- -------------
Investing activities
Purchases of property, plant and
equipment - - (1,952)
Purchases of exploration and evaluation
assets 5 (666,822) (86,165) (530,818)
--------------- --------------- -------------
Net cash used in investing activities (666,822) (86,165) (532,770)
--------------- --------------- -------------
Financing activities
Borrowings from Directors and
Officers - (45,500) -
Proceeds from issue of convertible
loan notes 7 - 230,000 1,100,000
Repayment of convertible loan
notes 7 - - (100,000)
Interest paid - (360) (6,804)
Proceeds from issue of ordinary
share capital 9 2,816,642 - -
--------------- --------------- -------------
Net cash used in financing activities 2,816,642 184,140 993,196
--------------- --------------- -------------
Net increase in cash and cash
equivalents 1,338,346 (13,449) 148,238
Cash and cash equivalents at beginning
of period 179,556 31,318 31,318
--------------- --------------- -------------
Cash and cash equivalents and
end of period 1,517,902 17,870 179,556
--------------- --------------- -------------
Significant non-cash transactions:
On 15 July all Convertible Loan Notes ("CLNs") were converted in
to ordinary shares at a price of 28 pence each. In total 3,928,572
ordinary shares were issued in full discharge of the CLNs.
NOTES TO THE FINANCIAL STATEMENTS
1. General Information
Orcadian Energy PLC (the "Company") is a public limited company
which is domiciled and incorporated in England and Wales under the
Companies Act 2006 with the registered number 13298968. The
Company's registered office is 6(th) floor, 60 Gracechurch Street,
London, EC3V 0HR, and it ordinary shares are admitted to trading on
AIM, a market of the London Stock Exchange.
The principal activity of the Group is managing oil and gas
assets and it holds a 100% interest in, and is administrator for,
UKCS Seaward Licences P2244, which contains the Pilot and Harbour
heavy oil discoveries, and P2320, which contains the Blakeney,
Feugh, Dandy & Crinan discoveries.
2. Summary of significant accounting policies
The principal accounting principles applied in the preparation
of these financial statements are set out below. These principles
have been consistently applied to all years presented, unless
otherwise stated.
2.1. Basis of preparation
The interim financial information set out above does not
constitute statutory accounts within the meaning of the Companies
Act 2006. It has been prepared on a going concern basis in
accordance with the recognition and measurement criteria of
International Financial Reporting Standards (IFRS) as adopted by
the European Union. Statutory financial statements for the year
ended 30 June 2021 were approved by the Board of Directors on 15
December 2021 and delivered to the Registrar of Companies. The
report of the auditors on those financial statements was
unqualified.
The interim financial information for the six months ended 31
December 2021 has not been reviewed or audited. The interim
financial report has been approved by the Board on 16 March
2022.
2.2. Going concern
The Directors, having made appropriate enquiries, consider that
adequate resources exist for the Company to continue in operational
existence for the foreseeable future and that, therefore, it is
appropriate to adopt the going concern basis in preparing the
interim financial statements for the period ended 31 December
2021.
2.3. Risks and uncertainties
The Board continuously assesses and monitors the key risks of
the business. The key risks that could affect the Company's medium
term performance and the factors that mitigate those risks have not
substantially changed from those set out in the Company's 2021
Annual Report and Financial Statements, a copy of which is
available on the Company's website: https://orcadian.energy. The
key financial risks are securing finance for the Pilot project and
an emerging cost inflation risk.
2.4. Critical accounting estimates
The preparation of interim financial statements requires
management to make estimates and assumptions that affect the
reported amounts of assets and liabilities at the end of the
reporting period. Significant items subject to such estimates are
set out in note xx of the Company's 2021 Annual Report and
Financial Statements. The nature and amounts of such estimates have
not changed significantly during the interim period.
The accounting policies applied are consistent with those of the
annual financial statements for the year ended 30 June 2021, as
described in those annual financial statements.
3. Group reorganisation under common control
The acquisition met the definition of a group reorganisation due
to the Company and the subsidiary being under common control at the
date of acquisition. As a result, and since Orcadian Energy Plc did
not meet the definition of a business per IFRS 3, the acquisition
fell outside of the scope of IFRS 3 and the predecessor value
method was used to account for the acquisition.
These consolidated financial statements for the period ended 31
December 2020 are of the Company's wholly owned subsidiary,
Orcadian Energy (CNS) Ltd.
On 11 May 2021, the Company issued 52,201,601 shares to acquire
the entire issued share capital of Orcadian Energy (CNS) Ltd.
The net assets of Orcadian Energy (CNS) Ltd at the date of
acquisition was as follows:
GBP
Property Plant & Equipment 1,357
Intangible Assets 1,719,292
Current Assets 447,425
Current Liabilities (284,745)
Non-Current Liabilities (1,869,975)
---------------------------- ------------
Net assets 13,354
---------------------------- ------------
The reserve that arose from the acquisition is made up as
follows:
GBP
---------------------------------------------------- ---------
As at 31 December 202 -
Cost of the investment in Orcadian Energy (CNS)
Ltd 52,202
Less: net assets of Orcadian Energy (CNS) Ltd
at acqusition (13,354)
As at 30 June 2021 (audited) and as at 31 December
2021 (unaudited) 38,848
---------------------------------------------------- ---------
4. Earnings per share
The calculation of the basic and diluted earnings per share is
calculated by dividing the loss for the year for continuing
operations for the Company by the weighted average number of
ordinary shares in issue during the year.
Dilutive loss per Ordinary Share equals basic loss per Ordinary
Share as, due to the losses incurred in all three periods
presented, there is no dilutive effect from the subsisting share
warrants.
Unaudited Unaudited Audited
6 Month Period 6 Month Period 12 Month
Ended Ended Period Ended
31 December 31 December 30 June
2021 2020 2021
GBP GBP GBP
Loss for the purposes of basic
earnings per share being net
loss attributable to the owners (864,376) (154,034) (296,338)
Weighted average number of Ordinary
Shares 62,809,231 17,400,534 22,167,804
Loss per share (1.38p) (0.89p) (1.34p)
------------------------------------- ---------------- ---------------- --------------
The weighted average number of shares is adjusted for the impact
of the acquisition as follows:
- Prior to the acquisition, the number of shares is based on
Orcadian Energy (CNS) Ltd, adjusted using the share exchange ratio
arising on the acquisition; and
- From the date of the acquisition, the number of shares is
based on the Company.
5. Intangible assets
Oil and gas
exploration
assets
GBP
Cost
------------
As at 30 June 2020 (audited) 1,283,797
------------
Additions 198,037
------------
As at 31 December 2020 (unaudited) 1,481,834
------------
Additions 332,781
------------
As at 30 June 1 (audited) 1,814,615
------------
Additions 880,051
------------
As at 31 December 2021 (Unaudited) 2,694,666
------------
6. Trade and other receivables
Unaudited Unaudited Audited
as at as at as at
31 December 31 December 30 June
Group 2021 2020 2021
GBP GBP GBP
VAT receivable 63,217 22,071 50,925
Prepayments relating to the
issue of equity - - 13,500
Prepayments other - - 24,123
Amounts due from related parties - 117,724 -
------------ ------------ --------
63,217 139,795 88,548
------------ ------------ --------
7. Borrowings
Unaudited Unaudited Audited
as at as at as at
31 December 31 December 30 June
2021 2020 2021
GBP GBP GBP
STASCO Loan 815,185 872,430 762,686
Convertible Loan Note 2020 - 330,000 380,000
Convertible Loan Note 2021 - - 720,000
------------- ------------- ----------
815,185 1,202,430 1,862,686
------------- ------------- ----------
8. Trade and other payables - due within one year
Unaudited Unaudited Audited
as at as at as at
31 December 31 December 30 June
2021 2020 2021
GBP GBP GBP
Trade payables 294,918 160,357 35,443
Accruals 191,049 241,242 276,133
Other creditor 30,935 - 17,025
------------ ------------ --------
516,902 401,599 328,601
------------ ------------ --------
9. Ordinary share capital and share premium
Group
Number of Ordinary Share
shares share capital premium
Issued GBP GBP
As at 30 June 2020 (audited) 17,400,534 17,401 563,561
As at 31 December 2020 (unaudited) 17,400,534 17,401 563,561
-------------- -------------- -----------
Transfer between reserves - 34,801 (34,801)
Issued capital of Company at acquisition 1 - -
Issue of shares upon acquisition
of subsidiary 52,201,601 52,202 -
Transfer of Ltd paid up capital
to reverse acquisition reserve (17,400,534) (52,202) (528,760)
-------------- -------------- -----------
As at 30 June 2021(audited) 52,201,602 52,202 -
-------------- -------------- -----------
Issue of shares 7,625,000 7,625 3,042,375
Share issue costs - - (233,358)
Conversion of loans 3,928,572 3,928 1,096,072
-------------- -------------- -----------
As at 31 December 2021 (unaudited) 63,755,174 63,755 3,905,089
-------------- -------------- -----------
The issued capital of the Group for the period 1 July 2020 to 11
May 2021 was that of Orcadian Energy (CNS) Ltd. Upon completion of
the acquisition the share capital of Orcadian Energy (CNS) Ltd was
transferred to the Acquisition reserve (Refer to note 4) and the
share capital of Orcadian Energy PLC was brought to account.
The ordinary shares confer the right to vote at general meetings
of the Company, to a repayment of capital in the event of
liquidation or winding up and certain other rights as set out in
the Company's articles of association.
On 15 July 2021 the Company issued 75,000 warrants over ordinary
shares of the Company at 40 pence each, exercisable at any time
over a three year period from the date of issue. The warrants were
valued using the Black-Scholes pricing model. The inputs into the
Black-Scholes model are as follows:
Grant date 15 July 2021
Exercise price 40.00 pence
Expected life 3 years
Expected volatility 77.32%
Risk free rate of
interest 0.0242%
Dividend yield Nil
Fair value of option 20.00 pence
---------------------- -------------
Volatility has been estimated based on the historic volatility
of a collection of comparable companies over a period equal to the
expected term from the grant date.
10. Events after the reporting period
Since 31 December 2021, the Company has been focussed on the
following activities:
-- Progressing, with Sulzer, wash tank trials at the
TotalEnergies test facility in Pau, these tests will help provide
useful design parameters for the wash tanks to be installed in the
FPSO hull;
-- Developing the geological and geophysical models for Pilot,
Bowhead, Blakeney and Feugh based upon the new seismic data;
-- Modelling the expected performance of a polymer flood scheme
based upon the results of the polymer core flood work and the new
maps;
-- Preparing a functional specification and basis of design to
be discussed with potential FPSO contractors;
-- Executing the agreed work programme for the OGA on the
Electrification Competition; and, of course
-- Exploring opportunities to finance the Pilot development scheme.
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