LONDON – Orcadian Energy PLC (AIM: ORCA) has revealed this Serica Energy (LON:) will acquire Parkmead (E&P) Ltd, making Serica the new operator of North Sea license P2634, in which Orcadian has a 50% stake. The acquisition was announced on Thursday by Serica and The Parkmead Group plc.
License P2634 contains the Fynn Beauly heavy oil discovery, with an estimated P50 potential resource of 292 million barrels of oil, based on the operator's latest estimates. The discovery, located in the outer Moray Firth, is one of the UK's largest untapped oil deposits. Orcadian, in collaboration with Parkmead, is working on a three-year plan to develop the Fynn Beauly field, aiming for a low-emissions production strategy in line with the North Sea Transition Authority's net zero strategy.
The development of the Finn field is expected to include advanced extraction techniques, such as polymer flooding with geothermal heat, to increase the efficiency of oil extraction. This method is expected to significantly reduce carbon emissions associated with production, putting it in a positive position compared to traditional methods of heavy oil extraction.
Steve Brown, CEO of Orcadian Energy, expressed his enthusiasm for the acquisition, noting that the company is “committed to finding a way to produce this essential oil with as few emissions as possible.” The strategic importance of domestic production of viscous oil is underscored by its use in products such as lubricants, asphalt and petroleum coke, which is crucial for electric vehicle batteries.
This deal is part of Orcadian's wider strategy to maintain a balance between achieving net zero targets and ensuring sustainable energy supplies for the UK. Orcadian's approach to oil and gas exploration and development focuses on minimizing environmental impact and contributing to the country's energy security.
This announcement is based on a press release and does not contain any speculative information or promotional content.
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