REG - Orcadian Energy PLC - Long Term Loan Agreement

Orcadian EnergyAnnouncement

13/06/2024 07:00

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RNS Number : 2042S  Orcadian Energy PLC  13 June 2024

 13 June 2024

 

Orcadian Energy plc

("Orcadian Energy", "Orcadian" or the "Company")

Long Term Loan Agreement

Orcadian Energy (AIM:ORCA) is pleased to announce that, further to the
announcement on 22 May 2024, it has entered into a secured long term loan
agreement with an industry partner (the "Partner"). The Partner has agreed to
loan Orcadian up to £1,150,000 for a period of two years. As announced on 22
May 2024, the loan is intended to be settled from the completion payment due
under a proposed farm-in or joint venture arrangement on Orcadian's recently
offered SNS licence.

Interest shall accrue from the drawdown date to the date the loan is repaid in
full. The interest rate will be determined at drawdown and is expected to be
between 6% and 9%.

It is expected that drawdown will occur before 30 June 2024. The purpose of
the loan is to enable Orcadian to repay the outstanding loan to Shell
International Trading and Shipping Company Limited ("STASCO"). STASCO has
agreed an extension to its facility agreement with Orcadian so that the
repayment date on that loan will now be 30 June 2024. Upon repayment of the
STASCO loan Orcadian will provide the Partner with a security over its 18.75%
interest in the Pilot field.

 

Steve Brown, Orcadian's CEO, said:

"We are delighted to have finalised this facility agreement with our Partner,
and we are looking forward to updating the market on our plans to build upon
this partnership in the future."

 

For further information on the Company please visit the Company's website:
https://orcadian.energy (https://orcadian.energy)

Contact:

 Orcadian Energy plc                                   + 44 20 7920 3150
 Steve Brown, CEO

 Alan Hume, CFO
 Zeus (Nomad and Joint Broker)                         +44 20 3829 5000
 Dan Bate / Alex Campbell-Harris (Investment Banking)

 Simon Johnson (Corporate Broking)
 Novum (Joint Broker)                                  +44 207 399 9425
 Colin Rowbury / Jon Belliss
 Tavistock (PR)                                        + 44 20 7920 3150
 Nick Elwes / Simon Hudson                             orcadian@tavistock.co.uk (mailto:orcadian@tavistock.co.uk)

 

About Orcadian Energy

Orcadian is a North Sea focused, low emissions, oil and gas exploration and
development company. 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's key asset is the Pilot oilfield, Pilot was discovered by PetroFina
in 1989 and has been well appraised. The field has excellent quality reservoir
and contains 263MMbbl of a viscous oil ranging in gravity from 17º API in the
South of the reservoir to 12º API in the North. In planning the Pilot
development, Orcadian has selected polymer flooding and wind power to
transform the production of viscous oil into a cleaner and greener process.
Polymer significantly reduces fluid handling requirements and hence energy
consumption as well as boosting recovery. Ithaca Energy, operator of the
Captain field in the Inner Moray Firth, has enjoyed consistent success in
applying polymer flood to the highly analogous Captain field. Following the
recent farm-down of Pilot, the project is now under the stewardship of Ping
Petroleum UK PLC ("Ping") and is intended to be amongst the lowest carbon
emitting oil production facilities in the world.

Ping is progressing a low-emissions, phased, field development plan for Pilot
based upon a polymer flood of the reservoir, a Floating Production Storage and
Offloading vessel (FPSO) and provision of power from a floating wind turbine
or a local wind farm.

Orcadian has an 18.75% fully carried interest in licence P2244 (block 21/27a)
and a 100% interest in licence P2482 (blocks 28/2a and 28/3a). Ping is
operator of P2244 and the Pilot development project. As noted above Orcadian
has also been offered three licences in the 33(rd) licensing process and
expects formal issues of these licences in due course.

The Mid-North Sea High licence contains shallow gas leads. Orcadian applied in
partnership with Triangle Energy, an Australian listed energy company.
Orcadian would be licence administrator and would hold 50% of the offered
licence. The Mid-North Sea High licence covers blocks 29/16, 29/17, 29/18,
29/19, 29/21, 29/22, 29/23, 29/27 and 29/28.

The Fynn licence contains a very substantial heavy oil discovery. About 88% of
the resource on a best technical case is estimated to lie within the area of
the offered licence. Orcadian has been offered a 50% working interest in the
Fynn licence to be operated by the Parkmead Group. The Fynn licence covers
blocks 14/15a, 14/20d and 15/11a.

The SNS licence, 100% Orcadian, contains the Earlham discovery, a low-calorie
gas discovery with 114bcf of methane resources on a P50 basis, the Clover
prospect which has P50 prospective resources of 153bcf, and the decommissioned
Orwell field which has redevelopment potential, alongside a number of smaller
prospects.

 

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