AIM-listed Orcadian Energy has announced that, further to the announcement on 22 May 2024, it has entered into a secured long term loan agreement with an industry partner. The Partner has agreed to loan Orcadian up to £1,150,000 for a period of two years. As announced on 22 May 2024, the loan is intended to be settled from the completion payment due under a proposed farm-in or joint venture arrangement on Orcadian's recently offered SNS licence.
Interest shall accrue from the drawdown date to the date the loan is repaid in full. The interest rate will be determined at drawdown and is expected to be between 6% and 9%.
It is expected that drawdown will occur before 30 June 2024. The purpose of the loan is to enable Orcadian to repay the outstanding loan to Shell International Trading and Shipping Company Limited ('STASCO'). STASCO has agreed an extension to its facility agreement with Orcadian so that the repayment date on that loan will now be 30 June 2024. Upon repayment of the STASCO loan Orcadian will provide the Partner with a security over its 18.75% interest in the Pilot field.
Steve Brown, Orcadian's CEO, said:
'We are delighted to have finalised this facility agreement with our Partner, and we are looking forward to updating the market on our plans to build upon this partnership in the future.'
Source: Orcadian Energy
