Orcadian announces that, further to the announcements on 22 May 2024, 13 June 2024, 1 July 2024, 5 July 2024, and 2 August 2024 that Shell International Trading and Shipping Company Limited ("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 (the "Shell Facility") until 30 September 2024.
Orcadian's proposed Industry Partner in respect of the Earlham licence has made a further payment of $100,000 to Orcadian and Orcadian has paid the same amount to Shell (the "Advance") and has undertaken to deliver the balance of funds, due under the Shell Facility, to Orcadian by the end of September 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 September 2024, with this exclusivity being automatically extended until 31 December 2024 after the balance of the funds due to Shell are paid.
Steve Brown, Orcadian CEO, said:
"We continue to work 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.
"Our Industry Partner and Orcadian plan that the Earlham development will provide the fuel to drive an offshore power station with integrated carbon capture. It is our intention that the Earlham development will be the first gas field on the UKCS to be dedicated to a facility that will capture practically all the emitted carbon dioxide for storage underground.
"This project is one which we believe supports the new government's vision of a clean GB power system in 2030 whilst also delivering on the government's energy security goals."
