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Raising £5m

Orcadian plans biggest UK oil and gas IPO on AIM

Stephen Brown and Joe Darby

Stephen Brown, CEO and Joe Darby, chairman

Orcadian Energy, the North Sea focused, oil and gas development company, is launching what it believes is the largest UK-focused oil and gas IPO on the Alternative Investment Market since the junior exchange was launched in 1995.

The company intends to raise gross proceeds of c.£5 million in the flotation planned for the end of this month.

Its key asset is the 100% interest in the Pilot oilfield, with audited proven and probable reserves of 78.8 million barrels.

The directors believe that no other company has undertaken an IPO on AIM with more proven and probable reserves since 2006.

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Plans involve development of the Pilot Oilfield and the company’s other key discoveries Elke, Narwhal and Blakeney, using a polymer flood approach.

There is also potential for other prospects within the group’s licence areas to be developed using the same method (such as Bowhead and the Elke satellites) if future drilling successfully confirms their suitability.

Polymer flooding is an established development technique for viscous oil assets which has been proven offshore on the Captain field in the Central North Sea by Chevron and Ithaca.

The company expects to pursue in parallel, potential development farm-out and contractor alliances as options for financing the development of its assets.

It has a low emission development plan which the directors’ believe is in line with the OGA’s Net Zero goals, and which is projected by Crondall to deliver an emissions performance which lies in the lowest 5% of the world’s oilfields.

Previous initial funding was received by Orcadian from Shell Trading International Limited in 2019.

The company’s strategy is to identify discovered resources, preferably well appraised and most likely on the UKCS; to secure access to those resources; and to create a profitable field development plan which attracts finance either from oil industry partners or financial investors.

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Orcadian was founded as the Steam Oil Production Company in 2014 by Stephen Brown and Greg Harding with help from, among others, Joe Darby, former chairman of Mowlem and Faroe Petroleum, who became chairman of Orcadian in March.

Mr Brown, CEO, said: “Orcadian was founded in 2014 to find the best way to develop the Pilot discovery.  Since then, we have added to our resource base, but most importantly we have created a technically mature, feasible development plan for Pilot, based upon the injection of polymerised water right from the start of production.

“Admission to AIM will give the company access to some of the capital we need to transform our plans into actionable projects.

“We look forward to welcoming new investors as we progress this next phase of development of our North Sea oilfields.”



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