Business
Proposed Farm-in to the Pilot Project
Proposed Farm-in to the Pilot Project.
About this update from Orcadian Energy Plc
[{"type":"text","content":"\n\n \n \n\n \nTHE INFORMATION CONTAINED WITHIN THIS ANNOUNCEMENT IS DEEMED BY THE COMPANY TO CONSTITUTE INSIDE INFORMATION AS STIPULATED UNDER THE MARKET ABUSE REGULATION (EU) NO. 596/2014 AS IT FORMS PART OF UK DOMESTIC LAW PURSUANT TO THE EUROPEAN UNION (WITHDRAWAL) ACT 2018, AS AMENDED. UPON THE PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS INFORMATION IS CONSIDERED TO BE IN THE PUBLIC DOMAIN.\n \n18 September 2023\nOrcadian Energy plc\n(\"Orcadian Energy\", \"Orcadian\" or the \"Company\")\n \nProposed Farm-in to the Pilot Project\n \nFarm-in Highlights\n· Orcadian has entered into a non-binding Heads of Agreement (\"HoA\") with a North Sea operator (the \"Operator\"), which details a potential farm-out of the Pilot development project.\n· This is a provisional agreement and there can be no guarantee that any transaction will occur. Any deal is subject to, amongst other matters, completion of due diligence; negotiation of documentation; and various regulatory and shareholder consents as well as Board approvals of the Operator and Orcadian.\n· Orcadian has granted the Operator a commercial exclusivity period until 30 November 2023. to complete definitive documentation for the overall deal.\nIf the deal completes as documented in the HoA:\n· This will enable Orcadian and the Operator to progress the development of the Pilot field, one of the largest undeveloped discoveries in the Central North Sea (\"CNS\"), with significant upside potential in the surrounding area.\n· The Operator will become operator of the Pilot development and will acquire an 81.25% interest in Licence P2244 and will become operator of the Pilot development.\n· Based upon the Competent Person's Report (\"CPR\") prepared by Sproule in 2021, the Operator will acquire net reserves or resources of 63.4 MMbbl on completion of the deal, with Orcadian retaining 14.6 MMbbl of 2P reserves, carried to first oil.\n· The Operator and Orcadian will work to deliver a Field Development Plan (\"FDP\") to the North Sea Transition Authority (\"NSTA\") for a polymer flood development of the Pilot field with industry leading emissions performance.\n· Orcadian managemen...