FPSO Expressions of Interest

RNS Number : 4955Q

Orcadian Energy PLC

28 October 2021

 

28 October 2021

Orcadian Energy plc

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

FPSO Expressions of Interest

Orcadian Energy (AIM: ORCA), the North Sea focused oil and gas development company, is pleased to announce that it has received three expressions of interest for the provision of an FPSO for the Pilot development.

As advised in the Admission Document, the Company engaged Crondall Energy to approach the appropriate FPSO providers on our behalf and has been delighted with the quality of the responses. Three of the four companies, currently operating FPSOs on the UKCS, submitted detailed proposals to Orcadian. The Company will now enter into discussions to clarify the proposals which the Directors expect to take several months. The Company anticipates announcing its preferred partner for the development of Pilot in due course.

Steve Brown, Orcadian's CEO, said:

"We were very pleased to have received three such high-quality expressions of interest for the provision of an FPSO for the Pilot development. We will be evaluating these proposals and discussing them with the contractors, to optimise both the vessel selection and the technical and commercial framework for engaging an FPSO contractor as a partner in the development of Pilot."

 

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)	[phone]
Harry Ansell / Fraser Marshall (Corporate Broking) Katy Mitchell /  Andrew de Andrade (Nomad)
Shore Capital (Joint Broker)	[phone]
Jerry Keen (Corporate Broking) Toby Gibbs / James O'Neill (Advisory)
Tavistock (PR)	+ 44 20 7920 3150
Nick Elwes / Simon Hudson / Matthew Taylor	[e-mail]

About Orcadian Energy

Orcadian is a North Sea oil and gas operator with a difference. 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 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 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. Orcadian's proposed development plan for Pilot is based upon a Floating Production Storage and Offloading vessel, with over thirty wells to be drilled by a Jack-up rig through a pair of well head platforms and will include a floating wind turbine to provide much of the energy used in the production process. Emissions per barrel produced are expected to be about an eighth of the 2018 North Sea average and to lie in the lowest 5% of global oil production.

About Crondall Energy

Crondall Energy is a leading independent consultancy providing strategic, commercial and technical services for offshore energy projects. Crondall works with a range of project stakeholders, including energy companies, investors and law firms; and helps their clients to manage technical, commercial and strategic risks and achieve positive project outcomes. Crondall are passionate about the role of the offshore industry in providing society's sustainable energy and are actively engaged in supporting their clients to confront the challenges of generating low carbon energy and renewable energy in the offshore environment.

 

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