Orcadian Energy, the North Sea focused, oil and gas development company, announces the following general update and an issue of new shares.

Concept Selection Update

The Company confirms today that it has now filed an addendum to the Pilot field Concept Select Report (“CSR”) with the Oil and Gas Authority (“OGA”). This followed the execution of an agreed work programme which included polymer core flood tests and work to reduce the carbon dioxide emissions from the project. The selected concept has now been revised to include a significant improvement in process heat management and power generation efficiency. To further improve emissions performance Orcadian has also chosen to include a floating wind turbine in the development concept. Following a review by Crondall Energy Limited, these initiatives combined have the potential to reduce expected Scope 1 emissions from the development by over 80%, to 2.6 kgCO2e/bbl.

See KeyFacts Energy news release dated 23.06.2021

Pilot Field

The Pilot field, which has proven plus probable reserves of 79 mmbbls in Eocene Tay sands is very well appraised with 5 wells and 2 sidetracks and is development ready.

Orcadian was awarded the P2244 licence in 2014 in the 28th licensing round. The licence is currently in the second term and contains the Pilot Main, Pilot South and Harbour discoveries. Pilot was discovered by Fina in 1989 after a successful well on the Harbour field which proved up mobile oil in the Eocene Tay sands.

These Tay sands have excellent reservoir properties with very good porosity and very high permeabilities.

The oil is viscous with API gravities ranging from 12º to 17º and reservoir viscosities which range from approximately 100 cP (like olive oil) to 1200 cP (like engine oil). A horizontal appraisal well in the most viscous region produced about 1,800 bopd. Whilst the oil is viscous, when compared to typical light oils in the North Sea, it is well within the limits where polymer flooding is considered to be effective.

Issue of Shares

Following the completion of the placing and the Company’s Admission to AIM, Alisanos Geoscience Ltd, which has provided the services of geoscience consultant Maurice Bamford to the Company, has agreed to take £50,000 of £71,422 owed to it by Orcadian in ordinary shares in the Company at the Admission price of 40p per share. As a result of this Alisanos Geoscience Ltd (or other parties as it so directs) will today be issued with 125,000 ordinary shares in the Company. 

Application will be made to admit the New Shares to trading on AIM (“New Shares Admission“). Admission is expected to become effective, and dealings in the New Shares will commence on 21 July 2021. The New Shares will rank pari passu in all respects with the Company’s existing ordinary shares in issue.

KeyFacts Energy: Orcadian Energy UK country profile   l   KeyFacts Energy Industry Directory: Crondall Energy