News Oil & Gas

Orcadian signs farm-out for Carra prospect

Orcadian Energy plc has signed a farm-out agreement with Carrick Resources Ltd for a sub-area of licence P2320 which covers the Carra prospect, west of Aberdeen in the North Sea.

Progress: Pilot and the prospects close to it remain Orcadian’s core focus (Orcadian Energy)

TERMS

The company will transfer the Carra interest to Carrick on completion of certain work milestones, not cash consideration.  

Carrick will review existing data, acquire a licence to, and reinterpret, the seismic data currently being reprocessed by TGS relating to the Carra prospect, and remap the prospect.

On completion of the updated mapping, Orcadian will in return assign a 50% interest in the sub-area of licence P2320, which contains the bulk of the Carra prospect, to Carrick.

Orcadian said that Carrick may withdraw from the agreement prior to completion of the remapping of the prospect.

The company anticipates that the work programme will take four months.

“Carrick has agreed that after the transfer, it will then work up the Carra prospect to drill-ready status and manage a further farm-out process on the prospect,” added Orcadian in a statement.

CARRA

The sub-area of P2320 is approximately 3% of the licence area.

The Carra prospect, which lies to east of the Crinan and Dandy discoveries and to the south of Fyne, is undrilled and unexplored.

Early internal estimates from Carrick indicate there is the potential for it to contain P50 recoverable prospective resources of 30 MMbbls of medium gravity oil, said Orcadian.

The company currently ascribes a nominal value to the Carra sub-area of licence P2320.

PILOT

“This SPA enables us to further de-risk and maximise value from our assets in a very cost-effective way while developing a drill ready prospect on Carra,” said Orcadian Steve Brown.

“Progressing Pilot and the prospects close to it remains our core focus whilst we continue to extract the maximum value on all our assets.”