Orcadian Energy plc said it would need further funding after recording more than a five-fold increase in losses from its Central North Sea operations.
FINANCES
The company holds four licences, East and North East of Aberdeen, of which the Pilot field is the largest.
Results for the year ended 30 June 2022 reflected investment in the Pilot field and the costs of admission to AIM, added Orcadian.
Losses rose to £1,586,727 (30 June 2021: loss of £296,338) mainly from salaries, consulting and professional fees, administration and transaction expenses.
The company met the costs from the proceeds of issuing shares.
Cash used in operations totalled £1,323,836 (30 June 2021: £312,189).
As at 30 June 2022, the group had a cash balance of £271,439 (30 June 2021: £179,556).
IMMENSE
“The key challenges for the group remain our financial condition and the financing of the Pilot project,” said chairman Joseph Darby and chief executive Stephen Brown.
“The value for all shareholders in achieving FDP [field development plan] approval on Pilot could be immense, shareholders can remain assured that the board will leave no stone unturned in our quest for the right partners for Pilot.”