Orcadian Energy, the low-emissions North Sea oil and gas development company, has announced its audited results for the twelve months ended 30 June 2025.
Highlights:
The start of the financial year was marked by significant changes in the UK’s political and regulatory landscape. Four days into the period, the election of a new government introduced policies that had a material impact on the oil and gas sector. These included an increase and extension of the Energy Profits Levy (EPL), the removal of investment incentives, and a pause in licensing activity. Collectively, these measures created a challenging environment for the industry throughout the year.
So, progress in 2024-25 has been slower than we would have liked. Nevertheless: there were highlights:
- P2244 and P2482 licence extensions to November 2028 and July 2027 respectively. These two licences are the core of our viscous oil business, and we appreciate the North Sea Transition Authority’s (NSTA) support.
- Understanding of the scope of our Earlham project: Earlham is intended to supply unprocessed gas to an offshore power station, and accept carbon dioxide for pressure support and storage. The Earlham project is intended (subject to NSTA approval) to consist of a wellhead platform, two production wells and one injection well in a high-quality Leman sandstone with no requirement for hydraulic stimulation.
- Earlham power to be exported to data centre customers: The generated power is planned to be exported to data centres located on the M25 corridor, where demand for clean, dispatchable electricity has risen beyond the grid’s current capacity.
After the reporting period:
- Completion of dynamic modelling on Pilot by the new Operator Ping, which delivered resource estimates and production profiles in line with Orcadian’s previous work.
- Revelation of a new approach to development of the light oil Lowlander reservoir which we intend to discuss with our Operator Serica and nearby infrastructure owners in 2026.
- A small, company arranged, fund raising through the issue of convertible loan notes, with supportive and committed investors, to ensure the Company has sufficient working capital.
And most important of all, for the whole industry:
- Clarity on the terms for the replacement for the EPL which mean that the new windfall tax is both fair and genuine. Fiscal risk on the UKCS is now massively diminished.
While the pause in licensing activity represents a challenge for the sector, Orcadian Energy remains well-positioned with a strong portfolio of assets. The Company holds five licences, including three appraised development projects (Pilot, Earlham, and Lowlander), two appraisal targets (Elke and Fynn Beauly), and three gas exploration prospects (Clover, Glenlough, and Breckagh). In addition, there is potential for the redevelopment of the Orwell field.
Our priority is to maximise value for shareholders from these licences. The Board is committed to delivering this objective under all market conditions.
The full financial statements are available at this link:
https://orcadian.energy/investors/results-reports/
Report and Accounts and Annual General Meeting
A copy of the annual report and accounts for the year ended 30 June 2025 will be available on the Company’s website (https://orcadian.energy) with effect from today. The Company will be posting its annual report and accounts to its shareholders.
The AGM will be held during January and will be the subject of a further announcement.
For further information on the Company, visit the Company’s website: https://orcadian.energy
Source: Orcadian Energy
