Orcadian Energy (AIM: ORCA), the low-emissions North Sea oil and gas development company, is pleased to announce that, further to the announcement of 11 October 2021, the Company has now executed a formal agreement with Carrick Resources Limited (“Carrick”) in respect of a sub-area of Licence P2320 which covers the Carra prospect (“Carra”) (the “SPA”).
Under the terms of the SPA, the consideration for the transfer of the Carra interest is to be satisfied by the fulfilment of certain work milestones (there is no cash consideration). Carrick will review existing data, acquire a licence to, and reinterpret, the seismic data currently being reprocessed by TGS relating to the Carra prospect, and remap the prospect. In return, on completion of the updated mapping, Orcadian will, subject to North Sea Transition Authority approval, assign a 50% interest in the sub-area of licence P2320, which contains the bulk of the Carra prospect, to Carrick. Carrick may withdraw from the agreement prior to completion of the remapping of the prospect. This work programme is anticipated to take four months.
Carrick has agreed that after the transfer, it will then work up the Carra prospect to drill-ready status and manage a further farm-out process on the prospect.
By entering into this agreement with Carrick, Orcadian is building upon the long experience of the Carrick team in this area and is maximising the potential of this undrilled prospect.
The Carra prospect lies to the East of the Crinan and Dandy discoveries and to the South of Fyne. The Carra prospect is contained in Tay and Cromarty sandstones which lie on trend with Guillemot West, and is a stratigraphic trap associated with a clear amplitude anomaly defined by 3D seismic. The Carra prospect is undrilled and unexplored but early, internal estimates from Carrick indicate there is the potential for it to contain P50 recoverable prospective resources of 30 MMbbls of medium gravity oil.
The sub-area of P2320 (approximately 3% of the area of the licence) which is subject to this agreement can be viewed at this link: https://bit.ly/carra-subarea.
Carra is a prospect on which Orcadian has undertaken no exploration activities, there is no turnover or profits attributable to the Carra sub-area. The Company currently ascribes a nominal value to the Carra sub-area of licence P2320.
Steve Brown, Orcadian’s CEO, said:
“We are delighted to have signed the SPA with Carrick. This SPA enables us to further de-risk and maximise value from our assets in a very cost-effective way while developing a drill ready prospect on Carra. Progressing Pilot and the prospects close to it remains our core focus whilst we continue to extract the maximum value on all our assets. We look forward to working with the Carrick team progressing Carra.”
For further information on the Company please visit the Company’s website: https://orcadian.energy
Orcadian Energy plc
+ 44 20 7920 3150
Steve Brown, CEO
Alan Hume, CFO
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