Orcadian Energy plc has been awarded two central North Sea licences, each in separate partnerships, in the 33rd licensing round.
STRATEGY
The mid-North Sea High licence contains shallow gas prospects and leads with up to 336bcf of gross prospective recoverable resource on a P50 basis, estimated by Orcadian as a guide.
The two largest prospects of Glenlough and Breckagh are estimated to account for about 80% of the identified resource potential.
Orcadian applied in 50-50 partnership with Australian company Triangle Energy, and would be the licence administrator.
The mid-North Sea licence covers blocks 29/16, 29/17, 29/18, 29/19, 29/21, 29/22, 29/23, 29/27 and 29/28.
The company applied for the licence with proposed operator Parkmead (E&P) Ltd for 50-50 working interest.
Fynn contains a “very substantial heavy oil discovery” with gross P50 contingent recoverable resource of 292 mmbbl, based on the latest internal estimates by Parkmead.
Orcadian said that about 88% of the resource on a best technical case is estimated to lie within the area of the licence covering blocks 14/15a, 14/20d and 15/11a.
Its third application was not offered in tranche 2 but the company anticipates it would be considered in a future tranche.
Chief executive Steve Brown added: “Our strategy has been to licence or acquire discoveries and compelling prospects, and then to farm-out an interest in the licence to finance exploration drilling or, best of all, development.
“With Parkmead, our focus will be on designing a work programme to unlock the potentially very significant resource base in Fynn; and with Triangle we will be working to transform the leads on the mid-North Sea High licence into prospects which can be drilled, likely at a relatively low cost as the gas prospects are so shallow.”
Orcadian plans to sell an 81.25% interest in its Pilot oil field licence P2244 to Ping Petroleum UK plc by 31 March 2024.