Orcadian Energy license extension denied

Orcadian Energy PLC’s request to extend Phase A of Central North Sea license P2320 has been declined by The North Sea Transition Authority (NSTA). Consequently, the license expired on May 14, 2023.

With the denial, a previously noted agreement to sell interests in sub-areas of the license to Rapid Oil and Carrick Resources will not proceed (OGJ Online, Oct. 11, 2021).

Orcadian has been in farm-out discussions with multiple counterparties regarding drilling of an exploration well within the former P2320 license area east of Aberdeen, it said in a release May 16. A number of those companies have non-compete arrangements with Orcadian which should ensure that any reapplication for a license over the same area, by any of those companies, would be made in partnership with Orcadian, the company said.

Orcadian was awarded the P2320 license in 2017 in the 29th licensing round with 100% equity. The license contains Blakeney, Feugh, Dandy, and Crinan fields and Bowhead and Carra prospects. The Blakeney discovery contains 2C resources of 25 million bbl and represents about 0.5% of the combined Pilot, Elke, Narwhal, and Blakeney development project NPV, assuming a $60/bbl oil price, Orcadian said.

The company intends to make an out-of-round application for a new license covering extensions of Pilot field into the P2320 area, the Blakeney and Feugh discoveries, and prospects identified using the TGS seismic data and quantitative interpretation products. The company expects the process to take up to 6 months.

Orcadian said license P2244 (Pilot field) remains its key asset and focus and that its interest in the license is unaffected by the NSTA decision on license P2320.