Independent explorer Orcadian has conditionally farmed out an 81.25% interest in its Pilot Development project (Licence P2244) to Ping Petroleum, it said December 7.
According to the agreement, the price is $3.1mn plus certain historic costs incurred by Orcadian to date, with a down-payment of $100,000 on transfer of the licence to Ping, expected by the end of March 2024.
Ping will then become operator but it will not pay the remaining $3mn until the North Sea Transition Authority has approved the development plan. Submission is expected during 2024. The two are also in talks with the NSTA on other matters relating to their E&P partnership.
The agreement is conditional on, among other matters, Orcadian shareholder approval. Orcadian CEO Stephen Brown will provide a live presentation for shareholders via Investor Meet Company December 12 at 1pm GMT.