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.
