Orcadian Energy plc has agreed an extension until 13 June 2024 to pay the US$1 million loan to Shell.
AGREEMENTS
The original repayment was 23 August 2023 which was twice extended to 13 March 2024.
The company said that the new extension allowed time to process the $3.1m sale of a 81.25% interest in its North Sea licence P2244, containing the Pilot field, to Ping Petroleum UK plc.
Extra time would also be used to conclude discussions with Shell on future financial and marketing arrangements.
Orcadian’s talks continue on the joint operating agreement with Ping as well as existing agreements with Shell and energy data company TGS.
The company expects Ping and its Malaysian parent company DNeX to approve the farm-out before the end of this month.
A condition to the two-year licence extension granted in October 2023 is that the assignment of the interest must complete by the end of March 2024.
“We remain confident that this will be achieved, and are looking forward to Ping progressing the implementation of the Pilot development scheme,” added Orcadian.