Orcadian Energy plc has secured a two-year £1.15 million loan with an as yet unnamed industry partner to repay the outstanding £1m loan to Shell.
The loan will settle from the completion payment due under a proposed farm-in or joint venture on Orcadian’s recently offered southern North Sea licence.
Interest, of between 6% and 9%, shall accrue from the drawdown date to the date the loan is repaid in full.
Orcadian said it expected that the drawdown would be before 30 June 2024, the same date as the new extension date to repay its loan to Shell.
Upon repayment of the STASCO loan, Orcadian will provide the partner with a security over its 18.75% interest in the Pilot field.