AIM-listed Orcadian Energy has announced that, further to the announcements on 22 May 2024, 13 June 2024, 1 July 2024 and 5 July 2024, Shell International Trading and Shipping Company (Shell) has confirmed to the Company that it does not intend to take any steps in relation to existing borrowings by the Company under its loan facility with Orcadian until 31 August 2024.
Orcadian's proposed Industry Partner in respect of the Earlham licence has made an initial payment of $100,000 to Orcadian and Orcadian has paid the same amount to Shell and has undertaken to deliver the balance of funds, due under the Shell Facility, to Orcadian by the end of August 2024.
The Advance will be secured by a charge over the Earlham licence and as part of this the Earlham project is exclusively dedicated to the Industry Partner until the end of August 2024, with this exclusivity being automatically extended until 31 December 2024 when the balance of the funds due to Shell are paid.
Steve Brown, Orcadian CEO, said:
'We have been working very closely with both Shell and our Industry Partner to ensure that we can meet our obligations to Shell and to support our partner's financing processes which are ultimately intended to deliver a clear pathway to production for the Earlham discovery.'
Source: Orcadian Energy
