Our latest Investing Matters Podcast episode with QuotedData's Edward Marten has just been released. Listen here.

Less Ads, More Data, More Tools Register for FREE

Pin to quick picksOrcadian Engy Regulatory News (ORCA)

Share Price Information for Orcadian Engy (ORCA)

London Stock Exchange
Share Price is delayed by 15 minutes
Get Live Data
Share Price: 8.75
Bid: 8.50
Ask: 9.00
Change: 0.00 (0.00%)
Spread: 0.50 (5.882%)
Open: 0.00
High: 0.00
Low: 0.00
Prev. Close: 8.75
ORCA Live PriceLast checked at -

Watchlists are a member only feature

Login to your account

Alerts are a premium feature

Login to your account

Draft FDP and Farm-out Process Update

13 Jun 2022 07:00

RNS Number : 5523O
Orcadian Energy PLC
13 June 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.

 

 

 

13 June 2022

Orcadian Energy plc

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

 

 

Draft FDP and Farm-out Process Update

 

Orcadian Energy (AIM:ORCA), the low-emissions North Sea oil and gas development company, is pleased to provide the following update.

Highlights:

· The Company has submitted a draft Field Development Plan for the Pilot oilfield to the North Sea Transition Authority (NSTA)

· A structured farm-out process has been initiated for the Pilot oilfield

· New tax regime has transformed economics of North Sea investment for tax-paying companies.

Summary

Orcadian has 79MMbbls of 2P reserves in the Pilot oilfield and the Pilot oilfield Field Development Plan ("FDP") builds upon work done in the concept select process which culminated in NSTA sending a "letter of no objection" to the low-emissions concept selected by Orcadian, as announced on 1 December last year. 

Orcadian's proposed low emissions, FDP for Pilot is based upon a Floating Production Storage and Offloading vessel (FPSO), with thirty-four 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 oilfield emissions at the low end of the lowest 5% of global oil production. The draft FDP will be discussed and agreed between NSTA and Orcadian over the coming months but it cannot be approved until the associated development finance has been finalised. The structured farm out process, that has been initiated for Pilot, is a key part of that process.

At the same time, the Directors understand that the introduction of the Energy Profits Levy ("EPL") by the UK Government last month, has radically improved the economics of a farm-in deal for some potential farminees. Whilst the EPL did introduce a further tax on profits from UK oil and gas companies, it also introduced significant investment allowances to encourage oil and gas companies to reinvest their profits to support the economy, jobs and UK energy security. Accordingly, for companies that pay both EPL and UK ring fence corporation tax (a modified form of corporation tax only payable by the UK oil and gas industry), the after-tax cost of development could be reduced by up to 75% when compared with a non-tax paying company. The Board believe that this will make investment in the development of the Pilot oilfield an increasingly attractive opportunity.

There is more information on the workings of the UK ring fence tax system, and the impact of the EPL, available in a Treasury briefing note here: https://bit.ly/Treasury_EPL

Steve Brown, Orcadian's CEO, said:

"Submission of the draft FDP is a further important milestone for the Pilot development and highlights the maturity of the project. Our focus on minimising emissions means that the project will be especially attractive to companies that wish to drive down their emissions intensity whilst the introduction of the investment allowances as part of the Energy Profits Levy will surely incentivise operators to double down on investing in domestic energy security. We look forward to a heightened level of interest in our project and providing further updates as the process progresses."

 

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

 

 

Notes to editors

 

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.

 

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
 
 
MSCBDGDLSDBDGDB
Date   Source Headline
18th Apr 20077:00 amRNSOrca selected by SibirTelecom
10th Apr 20077:02 amRNSOrca selected by Lattelecom
2nd Apr 20077:14 amRNSFinal Results
26th Mar 20074:20 pmRNSHolding in Company
26th Mar 20077:03 amRNSOrca wins contract
26th Mar 20077:01 amRNSContract Win
12th Jan 20071:59 pmRNSStatement rePress Speculation
18th Oct 200611:56 amRNSBlocklisting Interim Review
19th Sep 20067:02 amRNSInterim Results
12th Sep 20069:35 amRNSNotice of Results
7th Jun 20063:52 pmRNSAnnual Report and Accounts
22nd May 20067:05 amRNSOrca Signs Agreement
22nd May 20067:00 amRNSRe Agreement
26th Apr 20069:33 amRNSRe Contract
19th Apr 20067:00 amRNSBlock Admission Notification
6th Apr 20067:01 amRNSCommercial Launch
24th Mar 20067:02 amRNSFinal Results
22nd Mar 20069:55 amRNSNotice of Results
3rd Mar 20065:18 pmRNSHolding(s) in Company
2nd Feb 20061:31 pmRNSHolding(s) in Company
30th Dec 20057:00 amRNSContract Win & Trading Update
18th Oct 20052:00 pmRNSBlocklisting Interim Review
19th Sep 20059:07 amRNSORCA Interim Results-Replace
19th Sep 20057:53 amRNSInterim Results - Replacement
19th Sep 20057:02 amRNSORCA Interim Results
19th Sep 20057:01 amRNSInterim Results
6th Sep 20057:05 amRNSRe Agreement
5th Sep 200510:26 amRNSNotice of Results
18th Aug 20057:05 amRNSOrca Broadband Operator Deal
18th Aug 20057:01 amRNSRe Agreement
27th Jul 200511:00 amRNSAGM Statement
30th Jun 20053:41 pmRNSAnnual Report and Accounts
30th Jun 20053:37 pmRNSDirectorate Change
14th Jun 20057:02 amRNSOrca Launches Home Media
14th Jun 20057:02 amRNSRE Launch
14th Jun 20057:02 amRNSOrca Partnership Agreement
14th Jun 20057:02 amRNSRe Agreement
8th Jun 20057:01 amRNSOrca Wins Pilot Agreement
8th Jun 20057:00 amRNSRe Agreement
7th Jun 20058:48 amRNSORCA IPTV Licensing Agreement
7th Jun 20057:19 amRNSOrca and Lucent
7th Jun 20057:02 amRNSRe Agreement
15th Feb 20055:20 pmRNSHolding(s) in Company
2nd Feb 20057:01 amRNSFinal Results
2nd Feb 20057:00 amRNSOrca Preliminary Results
2nd Feb 20057:00 amRNSRe Agreement
25th Jan 20057:01 amRNSRe Chunghwa Licence Expansion
25th Jan 20057:00 amRNSRe Licence
21st Jan 20059:43 amRNSNotice of Results
5th Jan 20054:24 pmRNSHolding(s) in Company

Due to London Stock Exchange licensing terms, we stipulate that you must be a private investor. We apologise for the inconvenience.

To access our Live RNS you must confirm you are a private investor by using the button below.

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.