AIM-listed Orcadian Energy has confirmed that the North Sea Transition Agency ('NSTA') announced on Friday 3rd May a further tranche of licence awards in the 33rd Round. NSTA has indicated that Orcadian Energy will be offered a further licence in the Southern North Sea ('SNS') in addition to the two Central North Sea ('CNS') licences offered on 31 January 2024.
SNS Licence
The SNS licence contains an existing discovery with a high inerts content (Earlham) and an exciting undrilled prospect (Clover). The Earlham discovery was made by well 50/26b-6 drilled in 1995 by Talisman, encountering gas in the Rotliegendes. This was then followed in 1996 by a long horizontal appraisal well drilled by BP, which tested at over 30 mmscf/day of gas. The test was curtailed when it was established that the gas contained 49% CO2 and 9% N2. Taking that into account, Orcadian estimate that the Earlham reservoir contains 114 bcf of sales gas (methane) on a P50 basis. Our preliminary development concept entails an offshore power station, to be connected to the grid via a wind farm substation, with integrated CO2 capture and storage. This concept would deliver a stable and reliable supply of electricity with near-zero emissions.
Collaboration with the wind farm operator will be essential to deliver this project, and we look forward to discussing our plans with RWE who have recently acquired the rights to develop the Norfolk Boreas wind farm from Vattenfall.
The licence also contains a compelling gas prospect which the Company has named Clover, this is a four-way dip closure reservoired in Bunter sands, analogous to the nearby Orwell Field, that is now decommissioned having produced over 300 bcf of gas. Orcadian estimate that P50 recoverable resources in Clover amount to 153 bcf and the geological chance of success is estimated to be 38%.
The SNS licence covers blocks 49/25b, 50/21a, 49/30a and 50/26.
Steve Brown, Orcadian's CEO, said:
'Following on from the very large viscous oil accumulation at Fynn, and the shallow gas prospects on the Mid North Sea High, we are delighted to have completed a hat-trick of licence awards with the SNS offer from the NSTA. The star of this licence is the Earlham discovery which we believe can be developed as a gas-to-wire scheme with integrated carbon capture. Such an approach means the project could reliably supply electricity to the UK grid with near-zero emissions. This is a project that anyone who is concerned with energy security, grid reliability, consumer bills, and emissions can get behind, and which demonstrates how our industry can adapt to a Net Zero world.
'In addition, there is also a cracking Bunter sand prospect which was cleaved in two by the Department of Trade and Industry in 1971, when they put a block boundary right down the middle of the Clover prospect. This is the first time in over fifty years that a single license group has the whole prospect in hand which will enhance any potential farm-out opportunities for the licence in the future.'
Source: Orcadian Energy
