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Oil & Gas

Orcadian jumps on fundraise and anticipation of oil licence bid result

Orcadian Energy PLC (AIM:ORCA) shares climbed over 8% on Monday after the North Sea firm announced results of its latest fundraising round and hinted to news on prospective licences.

Some £350,000 was raised through the issue of 2,916,666 ordinary shares at 12p each, Orcadian said, with the funding set to cover working capital, a proposed farm-out of the Pilot oil field and credit repayments.

Though further funds will need to be raised, Orcadian admitted, news of its bid to secure three North Sea permits should come in the fourth quarter of this year, following the latest oil and gas licensing round.

Chief executive Steve Brown commented that the fundraising had come despite available funding from other groups, as Orcadian looked to minimise overheads.

Shares had initially plummeted on Monday morning, before rebounding to 15.25p - up 8.9% on today's opening price.

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