Shares of Orcadian Energy have experienced a significant jump following the company’s update on the outcome of its application in the U.K.’s 33rd offshore licensing round. The company has also raised £350,000 from new investors through the issuance of new shares.
At 0735 GMT, Orcadian Energy shares were up by 25% or 3.5 pence, reaching 17.5 pence.
Orcadian Energy, a North Sea focused oil-and-gas company, has announced that it plans to utilize the funds raised for working capital purposes. Additionally, the raised capital will be used to cover costs associated with processing the proposed farm-in agreements for their pilot development project in the Central North Sea, as well as to repay some creditors. The company has acknowledged that further funds will be necessary in the near future to ensure the progress of its activities.
The London-listed firm has issued 2.9 million new shares at a price of 12 pence each, representing a discount of 14% compared to Friday’s closing price.
Additionally, Orcadian Energy has stated that it expects to receive confirmation on the success of its three license applications, initially announced in January, during the fourth quarter.
Based on early stage indications, management estimates that the applied P50 sales gas resource for the two gas-focused applications could potentially amount to 114 billion cubic feet in a discovery, 153 billion cubic feet in a near drill-ready prospect, and 377 billion cubic feet in leads and less mature prospects, net to Orcadian.
