Orcadian Energy plc could sell the Pilot oil licence with the company’s finances “severely constrained” and a £1m debt to Shell due at the end of August.
DISCUSSIONS
The company, which also still needs to raise new finance in the short term for working capital, held £97,000 at end of July 2023.
“A number of conversations are progressing with potential providers of finance but there can be no guarantee that any financing arrangements will be entered into,” added Orcadian in a statement.
“The company is looking to find a farm-in partner or a new owner for Pilot and the directors’ intention is to elicit offers during 3Q of 2023 so that a new operator can take the project forward.
“The company is continuing discussions with a number of oil and gas operators interested in partnering in the development of Pilot, or acquiring the Pilot licence, and/or partnering with Orcadian to re-apply for the area covered by the former P2320 licence.”
The sale of licence P2244 and the Pilot project would signal a “fundamental change of business” under Rule 15 of the AIM Rules for companies and need shareholder approval.
“However, there can be no guarantee that any transaction will occur,” added the company.