Orcadian signs data deal with TGS

Orcadian Energy plc has signed a seismic licensing deal with the energy data company TGS for its North Sea licences.

AGREEMENT

The agreement will give Orcadian high quality seismic data, revealing the reservoir structures and likely fluid type.

Data will be used to evaluate the “multitude of development opportunities and prospects”.

The company added that the 2,070km_² of newly reprocessed and interpreted, high quality 3D seismic data covering the bulk of its licences would allow it to evaluate nearby open acreage in the upcoming 33^rd round.

“Near term costs have been deferred and future payments to TGS will largely derive from a 1% royalty on production.

“TGS will, subject to Pilot FDP approval, acquire 100km_² of new seismic over the important Elke and Narwhal discoveries.

“The North Sea Transition Authority (NSTA) has confirmed that acquisition of this data will satisfy the Phase B work commitment on P2482.”

Orcadian has asked NSTA to allow P2482 to continue into Phase B.

SURVEYS

TGS owns three surveys over Orcadian’s licences on the Western Platform.

These comprise Blakeney, covering blocks 21/22a, 21/26a, 21/27a, and 21/27b; Catcher North covering 21/28 which was shot in 20112/13; and Catcher covering all of 28/3a, shot in 2011.

CARRA FARM-OUT

Orcadian confirmed it was working with Carrick Resources Ltd to progress the farm-out agreement.

CONFIDENCE

“A good subsurface understanding is the foundation upon which we will build our success and securing access to the best data available is essential,” added chief executive Steve Brown.

“We are delighted that TGS have the confidence in our project to enter into this deal under which the vast majority of their return will depend on us successfully taking the project into production.

“We now have licensed, what we believe is the highest quality data across all of our Western Platform licences, whilst minimising value dilution to our shareholders.

“This deal ensures a long term alignment between TGS and Orcadian as we seek to make the most of the development and exploration potential of our acreage.”