Orcadian Energy PLC (AIM:ORCA) shares advanced close to 7%, to trade at 25.64p, as the company hired SLB (formerly known as Schlumberger) for services on its planned wells at the Pilot project in the North Sea.
The company, in a statement, said it signed a memorandum of understanding covering the core services and described it as a “compelling commercial and technical proposal with a strong focus on decarbonisation”.
They are now working on plans to develop a comprehensive project agreement.
“Pilot is currently planned to be developed with thirty-four wells; and delivering those wells for the least cost with the right completion technologies to maximise sweep of the reservoir is critical to the success of the pilot development,” said Orcadian chief executive Steve Brown.
"Pilot is a key UKCS development project which should pave the way for the industry to unlock up to 3bn barrels of viscous oil discoveries on the UKCS.”
Analysts at house broker Shore Capital, in a note, said it was a “very encouraging” update.
“Orcadian has recently confirmed that it is working towards a potential development decision for Pilot in 2023, and we eagerly look forward to further updates in relation to a very significant North Sea project with industry-leading environmental credentials as again emphasised today,” Shore Capital said.