Orcadian Energy PLC on Monday announced that it raised money to fund costs involved in progressing its proposed farm-in agreements.
The North Sea-focused oil and gas development company said it raised £350,000 via issuing 2.9 million shares at 12 pence per share, which was a 12% discount to its closing mid-price from Friday.
On September 18, the company announced a non-binding agreement regarding the potential farm-out of its pilot project and ‘core asset, entering a non-binding heads of agreement with an unnamed North sea operator. Orcadian had said it granted the operator commercial exclusivity until November 30, to complete definitive documentation for the proposed transaction.
Orcadian had said if the deal completes as specified in the HoA, the operator will acquire an 81.25% stake in the pilot project’s Licence P2244 and become the development’s operator. Orcadian will retain an 18.75% carried interest.
Chief Executive Officer Steve Brown said: ’We are delighted to welcome our new investors on board. Though more funding was made available to the company from other groups, we are continuing to minimise company overheads whilst seeking to add value per share. As a company we also remain very cognisant of keeping shareholder dilution to a minimum. These funds will enable us to progress the proposed farm-in deal that we announced as well as helping us unlock the inherent value we have always believed is in the company for our shareholders.‘
The shares will be admitted to trading on or around Thursday. Orcadian Energy’s issued share capital will be 75.4 million following admission.
Orcadian Energy shares rose 6.1% to 14.85 pence each on late Monday morning in London.
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