Orcadian Energy (AIM:ORCA) is pleased to announce that, the company has now completed the sale of 50% of the ordinary shares of HALO Offshore UK Ltd (“HALO”) to The Independent Power Corporation Plc (“IPC”). Peter Earl and Mark Preece have been appointed to join Steve Brown and Alan Hume on the board of HALO.

As announced on 13 December 2024, Orcadian and IPC intend to seek production acquisition opportunities for HALO with a preference for low-emissions, non-operated, gas producing licences.

Since 2013 HALO has incurred around £50 million of pre-trading capital expenditures which we expect will generate, on commencement of a ring-fence trade, tax allowances in the region of £115 million when Ring Fence Expenditure Supplement is applied.

In addition, IPC has entered into a loan agreement with HALO for up to £539,000 so that HALO can evaluate and negotiate gas producing licence interests. HALO has reimbursed Orcadian for costs incurred on behalf of HALO and IPC. Orcadian has pledged its share of HALO as security for its 50% share of this loan.

IPC has also agreed to provide, or procure the provision of, non-dilutive funding of at least £5 million; and has also agreed to provide, or procure the provision of, additional dedicated funding lines to finance acquisitions.

About Orcadian Energy

Orcadian is a North Sea focused, low emissions, oil and gas exploration and development company. Orcadian may be a small operator, but it is also nimble, and the Directors believe it has grasped opportunities that have eluded some of the much bigger companies. As we strike a balance between Net Zero and a sustainable energy supply, Orcadian intends to play its part to minimise the cost of Net Zero and to deliver reliable energy to the UK.

About Independent Power Corporation PLC

Since 1995 Independent Power Corporation PLC (“IPC”) has been a developer, owner and operator of power plants on five continents across the globe. IPC has developed, owned or operated around 10,000 MW of conventional power capacity across a wide range of project types including gas, diesel, wind, biofuels and hydroelectric plants. Thermal plants have included combined cycle gas turbine (CCGT) power plants (including the first in country in Bolivia and South Africa) as well as combined heat and power (CHP) projects and emissions reduction projects in CIS countries.

In recent years, IPC has developed projects in Azerbaijan, Chile, Ghana and the United Kingdom as an independent developer, sponsor and operator of power plants.

Its IPC New World Energy renewable and zero carbon energy subsidiary has in excess of 7.5 GW of offshore wind and BESS battery storage projects in the United Kingdom and Europe.