Orcadian Energy seeks GBP5 million in AIM IPO to develop Pilot field

(Alliance News) - Orcadian Energy PLC on Wednesday said it is planning an initial public offering ...

Alliance News 9 June, 2021 | 11:26AM
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(Alliance News) - Orcadian Energy PLC on Wednesday said it is planning an initial public offering on London's AIM market to raise GBP5 million.

London-based Orcadian Energy, formerly Pharis Energy, is an oil developer founded in 2014 by geologists and petroleum engineers. The company strategy has been to acquire identified and well appraised resources, provide a field development plan and seek investment.

Orcadian Energy currently holds four licences for oilfields in the North Sea.

The firm expects to go public around late June or early July. The number of shares, valuation and share price are yet to be confirmed. However, the company plans to raise GBP5 million.

The market cap on admission is also yet to be confirmed.

Orcadian Energy said it will use the money to develop its current oilfield assets in phases starting with its fully owned Pilot oilfield then proceeding to develop its Elke & Narwhal and Blakeney assets.

Auditors Sproule BV estimate the 43 kilometre square Pilot Field has likely reserves of 78.8 million barrels. The company's licence for the Pilot oilfield expires in 2040.

Development plans for the Pilot oilfield include installing two well-head platforms with slots to drill 20 wells spaces 100 metres apart.

The company also plans to use a polymer flooding technique to maximise production. Polymer flooding increases the viscosity of water to more efficiently push oil through the reservoir therefore increasing field production. This technique can also reduce emissions from oilfields.

Chief Executive Steve Brown said: "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."

By Scarlett Butler; scarlettbutler@alliancenews.com

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