Orcadian Energy plc faces no action until the end of August for missing the deadline to pay $1.43 million debt to Shell International Trading and Shipping Company Ltd (Stasco).
OBLIGATIONS
The amount owed will be settled from payment due under a proposed farm-in or joint venture on Orcadian’s southern North Sea Earlham discovery.
The company said it had received $100,000 from the partner which it had paid to Shell.
The unnamed partner is seeking funds for the licence and will deliver the balance, previously expected on 5 July, to Orcadian by the end of August 2024.
The $100,000 advance is secured by a charge over Earlham and includes that the project is exclusively dedicated to the industry partner until the end of August 2024.
Exclusivity will be automatically extended to 31 December 2024 when the balance of the funds due to Shell is paid.
Chief executive Steve Brown added: “We have been working very closely with both Shell and our industry partner to ensure that we can meet our obligations to Shell and to support our partner’s financing processes which are ultimately intended to deliver a clear pathway to production for the Earlham discovery.”