TIDMORCA
RNS Number : 6846U
Orcadian Energy PLC
03 August 2022
3 August 2022
Orcadian Energy plc
("Orcadian Energy", "Orcadian" or the "Company")
Farm-out of Carra Prospect
Orcadian Energy (AIM:ORCA), the low-emissions North Sea oil and
gas development company, is pleased to announce that, further to
the announcement of 11 October 2021, the Company has now executed a
formal agreement with Carrick Resources Limited ("Carrick") in
respect of a sub-area of Licence P2320 which covers the Carra
prospect ("Carra") (the "SPA").
Under the terms of the SPA, the consideration for the transfer
of the Carra interest is to be satisfied by the fulfilment of
certain work milestones (there is no cash consideration). Carrick
will review existing data, acquire a licence to, and reinterpret,
the seismic data currently being reprocessed by TGS relating to the
Carra prospect, and remap the prospect. In return, on completion of
the updated mapping, Orcadian will, subject to North Sea Transition
Authority approval, assign a 50% interest in the sub-area of
licence P2320, which contains the bulk of the Carra prospect, to
Carrick. Carrick may withdraw from the agreement prior to
completion of the remapping of the prospect. This work programme is
anticipated to take four months.
Carrick has agreed that after the transfer, it will then work up
the Carra prospect to drill-ready status and manage a further
farm-out process on the prospect.
By entering into this agreement with Carrick, Orcadian is
building upon the long experience of the Carrick team in this area
and is maximising the potential of this undrilled prospect.
About Carra
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 is
undrilled and unexplored but early, internal estimates from Carrick
indicate there is the potential for it to contain P50 recoverable
prospective resources of 30 MMbbls of medium gravity oil.
The sub-area of P2320 (approximately 3% of the area of the
licence) which is subject to this agreement can be viewed at this
link: https://bit.ly/carra-subarea .
Carra is a prospect on which Orcadian has undertaken no
exploration activities, there is no turnover or profits
attributable to the Carra sub-area. The Company currently ascribes
a nominal value to the Carra sub-area of licence P2320.
Steve Brown, Orcadian's CEO, said:
"We are delighted to have signed the SPA with Carrick. This SPA
enables us to further de-risk and maximise value from our assets in
a very cost-effective way while developing a drill ready prospect
on Carra. Progressing Pilot and the prospects close to it remains
our core focus whilst we continue to extract the maximum value on
all our assets. We look forward to working with the Carrick team
progressing Carra."
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 / Liam Zabludowicz (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 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 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 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 an eighth
of the 2020 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.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
MSCDLLFBLVLLBBD
(END) Dow Jones Newswires
August 03, 2022 02:00 ET (06:00 GMT)
Orcadian Energy (LSE:ORCA)
Historical Stock Chart
From Jun 2024 to Jul 2024
Orcadian Energy (LSE:ORCA)
Historical Stock Chart
From Jul 2023 to Jul 2024