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Orcadian enter agreement to develop one of largest undeveloped discoveries in the central North Sea

Published by , Editorial Assistant
Oilfield Technology,

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.

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. Orcadian has granted the Operator a commercial exclusivity period until the end of November 2023 to complete definitive documentation for the overall deal.

If the deal completes as documented in the HoA:

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. 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.

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.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.

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