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(Alliance News) - Orcadian Energy PLC on Thursday began trading on London's AIM junior market after raising proceeds of GBP3 million in its initial public offering.
Shares were trading at 40.725 pence on Thursday afternoon, up 1.8% from the initial public offering price of 40p, and giving a market capitalisation of around GBP26 million.
London-based Orcadian Energy, formerly Pharis Energy, is an oil developer founded in 2014 by geologists and petroleum engineers. The company strategy has been to acquire identified and well appraised resources, provide a field development plan and seek investment.
"Our admission to AIM is an important next step in Orcadian's development. We look forward to welcoming our new shareholders and providing updates as our work programme advances," commented Chief Executive Steve Brown.
Orcadian currently holds four licences for oilfields in the North Sea. The company said it will use the proceeds from the float to develop its current oilfield assets in phases starting with its fully owned Pilot oilfield, then proceeding to develop its Elke & Narwhal and Blakeney assets.
Auditors Sproule BV estimate the 43 kilometre square Pilot Field has reserves of 78.8 million barrels. The company's licence for the Pilot oilfield expires in 2040. Development plans for the Pilot oilfield include installing two well-head platforms with slots to drill 20 wells spaces 100 metres apart.
The GBP3 million proceeds will also be used to pay ongoing licence fees for licences held by the group.
The company also plans to use a polymer flooding technique to maximise production. Polymer flooding increases the viscosity of water to more efficiently push oil through the reservoir therefore increasing field production. This technique can also reduce emissions from oilfields.
By Will Paige; willpaige@alliancenews.com
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