Orcadian Energy PLC - North Sea-focused oil and gas development company - Notes a significant rise in the company’s share price, but says that it is ‘not aware of any specific reason’ for the increase.
Orcadian Energy says it is aware of the positive support given by the UK government on July 31 to the future of the oil and gas industry, and that it intends to proceed with awards of licences in the 33rd round. Orcadian Energy applied for three licenses in the 33rd round on January 19. The company needs to raise new finance in the short term for working capital and to repay its estimated £1.0 million loan facility with Shell PLC that is due for repayment at the end of August. Its net cash at the end of July was £97,000.
‘The government’s clear support for further development of oil and gas in the UK is very welcome, and provides a supportive background to the company’s discussion with potential partners,’ says Orcadian Energy.
Current stock price: 5.58 pence, more than doubled from 2.75p at the London equities close on Tuesday
12-month change: down 83%
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