Orcadian Energy PLC on Thursday said it executed a conditional sale & purchase agreement with Ping Petroleum UK PLC for Orcadian’s flagship asset, the Pilot Development project.

Orcadian Energy shares jumped 25% to 22.48 pence each on Thursday afternoon in London.

Last week Friday, North Sea-focused oil and gas development company announced an extension to execute documentation for Ping Petroleum, which back then was unnamed.

The total consideration under the agreement is $3.1 million.

Further, Orcadian has now requested approval from the North Sea Transition Authority for the assignment of an 81.25% interest in the P2244 licence to Ping. Subject to outstanding conditions, Ping will buy the planned 81.25% interest in the licence and become operator of the Pilot licence and development project.

‘The Pilot field is one of the largest undeveloped discoveries in the central north sea, with significant upside potential in the surrounding area,’ Orcadian said.

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