Orcadian Energy extends Pilot farm-out deadline

(Sharecast News) - Orcadian Energy updated the market on the potential farm-out of the Pilot development project on Friday, agreeing to extend the deadline for executing definitive documentation with the potential operator. The AIM-traded firm said the deadline, initially set for 30 November, had been extended to 7 December.

In parallel with the extension, Orcadian said it had taken proactive steps by submitting a formal request to the North Sea Transition Authority (NSTA).

The request sought consent for an assignment to the operator and approval for the operator's appointment as the project operator.

As part of its application to the NSTA, Orcadian included the currently agreed sale and purchase agreement.

The company anticipated that a fully executed agreement would be submitted before 7 December.

However, Orcadian Energy said that if the conditions were unmet and a sale and purchase agreement was not signed by the new deadline, it had the right to withdraw the NSTA request.

In such a scenario, unless the NSTA granted alternative arrangements, Orcadian's interest in the licence would automatically cease and terminate on 30 December.

"There can be no guarantee that the sale and purchase agreement with a potential operator will be signed by the new deadline, but the directors have every confidence that it will be," the board said in its statement.

At 1313 GMT, shares in Orcadian Energy were down 2.33% at 21p.

Reporting by Josh White for Sharecast.com.