Orcadian Energy (LSE:ORCA) shares traded higher on Monday, after the firm announced it had secured a three-year extension to the second term of its Pilot Licence P2244, following approval by the North Sea Transition Authority.
The renewal moves the licence expiry date to 1 December 2028 and allows continued preparation of an updated field development plan. The company said the scheme aims to maximise oil recovery and minimise carbon dioxide emissions.
“Pilot can be a new low-carbon hub on the Western Platform in the Central North Sea with the potential to produce a total recoverable resource of well over 100 mmbbl from Pilot and adjacent discoveries," said Orcadian chief executive Steve Brown.
He added: “This licence extension our operator the time and space to design a low-emissions development scheme that can thrive in the post-EPL fiscal regime.”
Orcadian owns an 18.75% carried interest in the licence, and it said the extension is essential to support the project as it advances toward a final investment decision.
In London, Orcadian shares were up 1.5p or 10.34% changing hands at 16p.