Offshore staff
LONDON – Britain’s North Sea Transition Authority (NSTA) has turned down a request by Orcadian Energy to extend Phase A of license P2320 in the central UK North Sea.
The license has now expired, and planned disposals of interests in sub-areas to Rapid Oil and Carrick Resources will not proceed.
Orcadian had been seeking farm-outs with multiple parties related to drilling of an exploration well within the former license area. Some of those companies had agreed with non-compete arrangements, and any future re-application they might make for a license over the same area would be in partnership with Orcadian.
P2320 contained the 25-MMbbl Blakeney discovery, representing about 0.5% of Orcadian’s combined Pilot, Elke, Narwhal and Blakeney development, as assessed in a Competent Person’s Report. The concession also included the Feugh, Dandy and Crinan discoveries and the Bowhead and Carra prospects.
Orcadian will look to submit an out-of-round application for a new license covering the extensions of the Pilot Field into the P2320 area, Blakeney and Feugh, and the prospects identified using TGS seismic data and quantitative interpretation products. The process could take up to six months.
The company stressed that license P2244 covering the Pilot Field, its main North Sea asset and its key focus, is not impacted by the loss of P2320.
It has now initiated a series cost-cutting measures while at the same time continuing discussions with potential investors.
Orcadian CEO Steve Brown said, “We are determined to catalyze the drilling of the prospects we have identified and to deliver on our central obligation to maximize economic recovery from the UKCS whilst continuing to minimize the potential emissions from any future development.”
05.15.2023
