LONDON - Orcadian Energy PLC (AIM: ORCA) has disclosed that Serica Energy (LON:SQZ) will be acquiring Parkmead (E&P) Ltd, making Serica the new operator of the North Sea licence P2634, in which Orcadian holds a 50% interest. The acquisition was announced on Thursday by both Serica and The Parkmead Group plc.
The licence P2634 contains the Fynn Beauly heavy oil discovery, with an estimated P50 contingent resource of 292 million barrels of oil, based on the latest operator estimates. This discovery, located in the Outer Moray Firth, is considered one of the largest undeveloped oil accumulations in the UK. Orcadian, together with Parkmead, has been working on a three-year plan to develop the Fynn Beauly field, aiming for a low-emission production strategy in alignment with the North Sea Transition Authority's Net Zero Strategy.
The development of the Fynn field is expected to incorporate advanced recovery techniques, such as polymer flooding combined with geothermal heat, to increase the efficiency of oil extraction. This method is anticipated to significantly reduce carbon emissions associated with production, positioning it favorably in comparison to traditional heavy oil extraction methods.
Orcadian Energy's CEO, Steve Brown, expressed enthusiasm for the acquisition, stating that the company is "committed to finding a way to produce this essential oil with the least emissions possible." The strategic importance of domestic production of viscous oil is underscored by its use in products such as lubricants, asphalt, and anode grade petroleum coke, which is crucial for electric vehicle batteries.
The transaction is part of Orcadian's broader strategy to maintain a balance between achieving Net Zero targets and ensuring a sustainable energy supply for the UK. Orcadian's approach to oil and gas exploration and development focuses on minimizing the environmental impact and contributing to the country's energy security.
This announcement is based on a press release statement and contains no speculative information or promotional content.
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