Orcadian Energy, the North Sea-focused oil and gas development company, raised gross proceeds of £ 3million after being placed on the Alternative Investment Market (AIM) yesterday.
Based on the placement price of 40 pence, the market capitalization of the company was approximately £ 25.5million on admission
Orcadian’s 63,630,174 common shares were issued at approximately 34% free float.
However, the response was not as enthusiastic as the directors had hoped, as the company set out to raise around £ 5million.
The proceeds from the sale will now be used to advance its pilot oilfield, with recently restated 3D seismic and interpretations on the Bowhead prospect. The money will also go towards ongoing license fees, evaluation work on other licenses held by the group and for working capital purposes.
Admission is expected to be effective and trading in the new shares will begin on July 21.
Following the company’s admission to AIM, Alisanos Geoscience, who provided the services of geoscience consultant Maurice Bamford, agreed to take £ 50,000 of the £ 71,422 owed to him by Orcadian in ordinary shares. As a result, Alisanos will today receive 125,000 common shares of the company.
Steve Brown, Managing Director of Orcadian, commented: “Our admission to AIM is an important next step in Orcadian’s development – we look forward to welcoming our new shareholders and providing updates as they arise. as our work program advances.
Orcadian was founded in 2014 and is the sole licensee of P2244, which contains 78.8 million barrels of oil reserves in the discovery of the pilot field, and of P2320 and P2482, which contain 77.8 million barrels. additional contingent resources in the Elke, Narwhal and Blakeney deposits. discoveries.
These licenses are spread over blocks 150 km east of Aberdeen.
The company also owns a 50% working interest in P2516, which contains Fynn’s discoveries. This is administered by Parkmead Group and covers boulders located midway between the Piper and Claymore fields, 180 km east of Wick.
Pilot, which is the largest oil field in Orcadian’s portfolio, was discovered by Fina in 1989 and has been rated by five wells with seven distinct formation reservoir penetrations, including a relatively short horizontal well which produced more than 1,800 barrels per day on trial.
Orcadian also confirmed yesterday that it has filed an addendum to the Pilot field. Concept selection report with the Office of Oil and Gas.
This followed the execution of an agreed work program that included polymer core flood testing and work to reduce 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. As a result of a review by Crondall Energy, these combined initiatives have the potential to reduce expected Scope 1 emissions from development by more than 80%.
Don’t miss the latest headlines with our twice daily newsletter – subscribe here for free.
