Orcadian Energy’s shares surged 45% in the first hour of trading following the announcement of a major farm-out agreement and loan restructuring.
The company has agreed to sell a 50% stake in its Earlham and Orwell projects to The Marine Low Carbon Power Company (MLCP) for $2.2 million.
MLCP will fund Orcadian’s development costs through to production, with repayment via enhanced revenue sharing.
The deal allows Orcadian to retain a 50% carried interest in the projects while settling debts owed to Shell and IPC New World Energy. MLCP plans to use the projects to support offshore power facilities with carbon capture technology, enhancing the projects’ potential.
Completion is targeted for the first quarter of 2025, pending regulatory approvals.
In early trading the shares were changing hands for 12.75p, up 3.95p.