Orcadian Energy PLC Pilot Licence Extension (3736G)
November 15 2022 - 2:00AM
UK Regulatory
TIDMORCA
RNS Number : 3736G
Orcadian Energy PLC
15 November 2022
15 November 2022
Orcadian Energy plc
("Orcadian Energy", "Orcadian" or the "Company")
Pilot Licence Extension
Orcadian Energy (AIM: ORCA), the low-emissions North Sea oil and
gas development company, is delighted to announce the North Sea
Transition Authority (NSTA) has granted Orcadian a one-year
extension to licence P2244, which contains the Pilot field.
The Second Term of licence P2244 was due to expire at the end of
November this year but will now expire at the end of November 2023.
During 2023 Orcadian will be working towards a potential
development decision on the Pilot field, which has audited proven
and probable reserves of 79 million barrels (MMbbl) (see Company's
Admission Document). This extension to the licence will enable the
Company to continue to progress this work.
The Directors believe that development of the Pilot field is an
essential aspect of a "Secure Transition" to net zero for the UK
and, due to the development concept that the Company has adopted,
we expect the Pilot field to be amongst the lowest carbon emitting
oil production facilities in the world. The selected development
concept for Pilot is expected to produce just 2.6 kgCO(2e) /bbl of
carbon-equivalent emissions. That is approximately a tenth of the
emissions intensity of North Sea production in 2021. By developing
Pilot, the emissions associated with the UK's consumption of oil
and gas will be significantly reduced. The Pilot development should
achieve this exceptionally high environmental standard because of
the pioneering techniques proposed by Orcadian, combined with the
rigorous process the regulator imposes upon the industry, here in
the United Kingdom.
See this link for an internally produced chart, using data
sourced from the NSTA , comparing forecasted Pilot emissions to
those from currently producing oil and gas platforms in the CNS,
NNS and West of Shetland during 2021:
https://bit.ly/Pilot_emissions
Steve Brown, Orcadian's CEO, said:
" We see extending the licence as a real vote of confidence from
the NSTA in the North Sea. We look forward to progressing the Pilot
project during 2023, and we believe that when production commences
at Pilot it will contribute greatly to the UK's energy
security.
"We believe the UK North Sea is blazing a trail for the global
oil and gas industry. It is time to 'Back British Energy' and we
are confident that the Pilot development has the potential to be a
flagship project demonstrating how to reduce global emissions and
making a contribution to the transition to net zero.
"We would like to thank the regulator, and everyone working
there, for their continued support for this project."
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 (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 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.
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