© Shutterstock / Sad Agus North Sea operator Orcadian Energy has announced an extension of its licence for the Elke and Narwhal discoveries until 14 July 2027.
Last year, Orcadian announced its Elke discovery has net 2C resources of close to 45 million barrels (MMbbl), while Narwhal holds net 2c resources of 9 MMbbl.
The AIM-listed company said it has identified a further 53 MMbbl of prospective resources at the fields, with “geological chance of success ranging from 64% to 87%”.
Orcadian said the extension of the P2482 licence will allow it, as Elke operator, and Ping Petroleum, as Pilot operator, to explore an area development plan with the regulator.
Malaysian firm Ping is continuing to progress its Pilot development plan alongside SNF and Heriot-Watt University, Orcadian said.
© Supplied by DCTMedia/ Sandy McCoOrcadian Energy chief executive Steve Brown said the licence extension from the North Sea Transition Authority “maximises the probability of us designing an area development plan which optimises the development of all the viscous oil resources in the Pilot area”.
“We believe that Pilot and Elke can form the basis of a new low-emissions hub for the development of the major resources in this area,” Brown said.
Earlham and Orwell
Meanwhile, Orcadian said it is working with The Independent Power Corporation (IPC) and The Marine Low Carbon Power Company Limited (MLCP) to transfer two licences into a corporate joint venture.
Orcadian farmed-out a 50% stake in the licences last year for $2.2m, alongside a 50% stake in HALO Offshore UK Ltd.
The licences include licence P2680, which contains the Earlham and Orwell discoveries, and “potentially” licence P2650.
This would support a plan to deliver “carbon free energy” from new, offshore balancing power plants to IPC’s large energy user customers, Orcadian said.
Brown said the IPC project will deliver “reliable electrical power from our gas resources”.
“We really believe that the IPC and MLCP projects can demonstrate that abated gas works and is critical to the success of the UK’s clean power plan,” he said.
