LONDON — Orcadian Energy has non-binding heads of agreement to transfer its interests in the Crinan and Dandy fields in the UK North Sea to Rapid Oil Production.
Rapid is progressing development of the nearby Fyne Field, with the goal of securing approval for the development plan in 2023. Crinan could form part of the Fyne cluster in Phase two or three of the field development, followed potentially by a Dandy tieback via Fyne.
If the transaction completes, subject to approvals by the UK authorities, Orcadian would receive $900,000 plus a royalty on oil and gas produced from the fields.
Rapid CEO Hallvard Hasselknippe said, “This adds approximately 7 MMbbl to our contingent resources. In particular, Crinan will be a very cost-efficient add-on, as it can be drilled from the Fyne Central location.”
Mobil discovered Crinan and Dandy in 1987 and 1990, respectively, with UK independent Monument appraising the finds in 1998.
Crinan is on the boundary between 21/28a, Orcadian’s block, and 21/28b, Rapid’s block, while Dandy is wholly within 21/28a.