Orcadian has announced the expected doubling of its interest in the P2650 licence, from 50% to 100%, on Triangle Energy UK's withdrawal from the licence, subject to NSTA approval.
Triangle UK’s parent company, Triangle Energy (Global) Limited, entered administration in July 2026 after its junior producer joint venture partner, Pilot Energy Limited, entered voluntary administration following its failure to secure funding to buy out the Triangle group’s stake in the Cliff Head joint venture.
Following non-payment of a cash call, Orcadian gave notice on 10 September 2026 that Triangle UK was in default, and on 9 November 2026 notified Triangle UK that the remedy period had expired. Triangle UK has not yet withdrawn from the licence. Completion of the withdrawal remains subject to NSTA approval and Triangle UK’s continued co-operation in the withdrawal process, which may be effected through the purchase of Triangle UK for a nominal sum, as opposed to a licence interest assignment. Orcadian intends to seek an extension to the term of Phase A which currently expires at the end of February 2027.
Triangle UK’s withdrawal will mean that Orcadian would hold a 100% interest in the P2650 licence (the 'Mid-North Sea High licence'), which contains shallow gas prospects and leads. The Mid-North Sea High licence covers blocks 29/16, 29/17, 29/18, 29/19, 29/21, 29/22, 29/23, 29/27 and 29/28 and contains the Glenlough and Breckagh prospects.
Orcadian considers these seismic amplitude-supported prospects to be analogous to the A-block shallow gas fields in the Netherlands developed by Chevron and currently operated by Petrogas, and the Aviat field in the UK CNS operated by Apache. As the prospects are shallow, well costs are expected to be relatively low; Orcadian estimates the gross cost of each exploration well at between £10m and £15m.
The key prospect is Glenlough, which Orcadian estimates has a recoverable gas resource of 131 bcf and a chance of success of 31%. Orcadian has identified that the Breckagh prospect comprises two separate horizons: Upper Breckagh, which may contain 33 bcf with a chance of success of 55%, and Lower Breckagh, which may contain 105 bcf with a chance of success of 20%. Success in both horizons would result in a volume of 138 bcf. These are gross unrisked best estimate (2U) prospective resources (SPE-PRMS, effective 1 January 2026). Resource figures in this announcement are stated gross to the licence; Orcadian’s net share is currently 50% and would increase to 100% on completion of the withdrawal.
Orcadian believes electromagnetic surveys are well suited to the shallow reservoir depth and may help to reduce the key risks and uncertainties on these prospects which are gas saturation and pay thickness.
On completion of the withdrawal of Triangle UK, which is subject to NSTA approval, Orcadian intends to approach potential farm-in partners to progress these opportunities.
The Company will provide further updates in due course.
Steve Brown, Orcadian CEO, said:
'We were disappointed to hear that the Triangle parent company had been forced into administration; Triangle have been a good partner to us on the Mid-North Sea High licence and it is a shame that they will not see the fruits of their efforts in the UK.
“From our perspective we expect to double our interest in the potential gas resource on our P2650 licence. This licence has a pair of prospects which, in our view, combine relatively low drilling costs with an attractive risk profile. Development strategies for these shallow discoveries have proven successful in Dutch waters and we are looking forward to redoubling our efforts to attract farm-in partners for these gas prospective blocks.'
For further information on the Company please visit the Company’s website: https://orcadian.energy
Source: Orcadian Energy
