Orcadian Energy PLC (AIM:ORCA) shares fell 11% in Thursday morning’s deals as the offshore oil junior’s half-year results statement highlighted a need for new capital.
The company, which is seeking partnering options for its Pilot field in the North Sea, today said it is in active talks with potential new investors because it “needs additional working capital to secure the best deal for shareholders” for the project.
Orcadian had £284,446 of cash as at 31 December 2022, its half-year end, and subsequently in February raised £500,000 in a placing.
Chief executive Steve Brown, in this morning’s statement, said: “Our absolute focus is to find a farm-in partner or a new owner for Pilot and our intention is to elicit offers during 2Q and 3Q of 2023 so that a new operator can take the project forward; a project which will help deliver a secure transition for the UKCS.”
He added that its funding talks are "buoyed" by the identification of two new prospects in its North Sea licences.
In London, Orcadian shares fell more than 11% and traded at an intraday low of 5p.