AIM-listed Orcadian Energy has completed the sale of 50% of the ordinary shares of HALO Offshore UK Ltd ('HALO') to The Independent Power Corporation Plc ('IPC'). Peter Earl and Mark Preece have been appointed to join Steve Brown and Alan Hume on the board of HALO.
As announced on 13 December 2024, Orcadian and IPC intend to seek production acquisition opportunities for HALO with a preference for low-emissions, non-operated, gas producing licences.
Since 2013 HALO has incurred around £50 million of pre-trading capital expenditures which we expect will generate, on commencement of a ring-fence trade, tax allowances in the region of £115 million when Ring Fence Expenditure Supplement is applied.
In addition, IPC has entered into a loan agreement with HALO for up to £539,000 so that HALO can evaluate and negotiate gas producing licence interests. HALO has reimbursed Orcadian for costs incurred on behalf of HALO and IPC. Orcadian has pledged its share of HALO as security for its 50% share of this loan.
IPC has also agreed to provide, or procure the provision of, non-dilutive funding of at least £5 million; and has also agreed to provide, or procure the provision of, additional dedicated funding lines to finance acquisitions.
Source: Orcadian Energy
