Orcadian Energy (AIM:ORCA) is pleased to announce that, Phase B of the P2482 licence, which contains the Elke and Narwhal discoveries, has been extended until 14 July 2027.
As announced previously on 15 August 2024, the Elke discovery has net 2C resources of 45 MMbbl and Narwhal has net 2C resources of 9 MMbbl, both as audited by Sproule. The Company has identified a further 53 MMbbl of prospective resources with geological chance of success ranging from 64% to 87%, which have also been supported by the relative Extended Elastic Impedance analysis undertaken by TGS.
TGS has undertaken to shoot 100 sq km of new 3D seismic over P2482 upon approval of the Pilot Field Development plan. This seismic is to be shot during Phase B of the licence and will cover the Narwhal discovery which is currently mapped on 2D seismic only.
Pilot Area Plan
Extension of the licence will enable Orcadian (as Elke Operator) and Ping Petroleum ("Ping") (as Pilot Operator) to explore the optimum area development plan with the North Sea Transition Authority ("NSTA"). Ping continues to progress Pilot development planning work and is working with SNF (a major global supplier of polymer to oil industry) and Heriot-Watt University to optimise the polymer flood approach to Pilot. Orcadian has an 18.75% "carried-to-first-oil" interest in the Pilot development.
Gas opportunities
Orcadian confirms that it is working in partnership with The Independent Power Corporation PLC ("IPC") and The Marine Low Carbon Power Company Limited ("MLCP") to place the ownership of Licence P2680 (Earlham and Orwell), and potentially Licence P2650 (shallow gas prospects), into a corporate joint venture structure to support the plan to deliver carbon free energy from new, offshore balancing power plants to IPC's large energy user customers. A further announcement on this joint venture is expected in the coming weeks.
Steve Brown CEO of Orcadian Energy plc says:
"We are delighted to have received this licence extension which maximises the probability of us designing an area development plan which optimises the development of all the viscous oil resources in the Pilot area. We believe that Pilot and Elke can form the basis of a new low-emissions hub for the development of the major resources in this area.
"We are also very enthused by the potential to be involved with IPC's project to deliver reliable electrical power from our gas resources, we really believe that the IPC and MLCP projects can demonstrate that abated gas works and is critical to the success of the UK's clean power plan."