10 March 2025

Orcadian Energy plc

("Orcadian" or the "Company")

Results for the half year ended 31 December 2024

Orcadian Energy (AIM: ORCA), the North Sea focused oil and gas development company, is pleased to announce its unaudited results for the six months ended 31 December 2024.

Highlights:

·    Completed the acquisition of HALO Offshore UK Ltd ("HALO") and agreed the sale of a 50% interest in HALO to The Independent Power Corporation PLC ("IPC")

·    Agreed the terms for a disposal of a 50% interest in licence P2680, which includes the Earlham project, to The Marine Low Carbon Power Company Ltd ("MLCP")

·    Upon completion, all costs associated with the remaining 50% interest in Earlham to be carried by MLCP until first production from Earlham

·    These agreements cement the important and consequential relationship the Company has developed with IPC and MLCP

Post period Highlights:

·    Completed the sale of a 50% interest in HALO to IPC and entered into a shareholders' agreement and a financing agreement

Activity Focus:

·    To identify and negotiate producing asset acquisition opportunities for HALO

·    To support Ping and MLCP in the development of Pilot and Earlham respectively

·    To pursue out-of-round licence applications for the former P2320 licence over Blakeney, Feugh and Thornham; and an extension of the P2634 licence to include the area of former licence P2516

Steve Brown, Orcadian's CEO, commented:

"The second half of 2024 has been an important period in the development of Orcadian. We have handed over responsibility for the Pilot project to Ping Petroleum and we are pleased with the progress they are making. We have developed a strong working relationship with the MLCP and IPC teams, and we believe that these relationships can deliver on the Government's Clean Power initiative as well as being extraordinarily fruitful for Orcadian.

"Having closed the acquisition of HALO in December we are delighted to have brought IPC in as a 50% partner in HALO which we intend to grow into a gas producing company just as quickly as we can. We believe that 2025 will see us well on the road to being a production company and graduating from our current pre-development status."

For further information on the Company please visit the Company's website: https://orcadian.energy

Contact:

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.

Orcadian's key asset is the Pilot oilfield. Pilot was discovered by PetroFina in 1989 and has been well appraised. The field has excellent quality reservoir and contains 263MMbbl of a viscous oil ranging in gravity from 17º API in the South of the reservoir to 12º API in the North. In planning the Pilot development, Orcadian has selected polymer flooding and wind power to transform the production of viscous oil into a cleaner and greener process. Polymer significantly reduces fluid handling requirements and hence energy consumption as well as boosting recovery. Ithaca Energy has enjoyed consistent success in applying polymer flood to the highly analogous Captain field in the Inner Moray Firth. Following the recent farm-down of Pilot, the project is now under the stewardship of Ping Petroleum UK PLC ("Ping") and is intended to become amongst the lowest carbon emitting oil production facilities in the world.

Ping is progressing a low-emissions, phased, field development plan for Pilot based upon a polymer flood of the reservoir, a Floating Production Storage and Offloading vessel (FPSO) and provision of power from a floating wind turbine or a local wind farm.

Orcadian has an 18.75% fully carried interest in licence P2244 (block 21/27a) and a 100% interest in licence P2482 (blocks 28/2a and 28/3a). Ping is operator of P2244 and the Pilot development project.

Orcadian was awarded three licences in the 33^rd round. The Mid-North Sea High licence, P2650, contains shallow gas leads. Orcadian applied in partnership with Triangle Energy, an Australian listed energy company. Orcadian is licence administrator and holds 50% of the offered licence. The Mid-North Sea High licence covers blocks 29/16, 29/17, 29/18, 29/19, 29/21, 29/22, 29/23, 29/27 and 29/28.

The Fynn licence, P2634, contains a very substantial heavy oil discovery. About 88% of the resource on a best technical case is estimated to lie within the area of the offered licence. Orcadian has a 50% working interest in the Fynn licence which is operated by the Parkmead Group. The Fynn licence covers blocks 14/15a, 14/20d and 15/11a.

The SNS licence, P2680, 50% Orcadian on completion of a proposed transaction, contains the Earlham discovery, a low-calorie gas discovery with 114bcf of methane resources on a P50 basis, the Clover prospect which has P50 prospective resources of 153bcf, and the decommissioned Orwell field which has redevelopment potential, alongside a number of smaller prospects. The Marine Low Carbon Power Company Ltd, an affiliate of IPC, is intended to own the other 50% of P2680 and will carry Orcadian to first gas.

Chairman & CEO's Statement

During the second half of 2024 we have built on our success in the 33^rd Licensing Round and developed an important and consequential relationship with IPC and MLCP.

IPC has an impressive track record as a developer of electrical power projects and has been instrumental in establishing MLCP which has developed a design for an offshore power station capable of delivering nearly 300MW of clean power. The power is clean because the design includes integrated carbon capture facilities and a facility like this is capable of delivering dispatchable near-zero emissions electricity.

Folk may not have noticed, but this is the Holy Grail. Wind and solar, for all their green credentials, are at the mercy of the weather. The weather dictates when, and how much, power is generated. That means sometimes virtually no power is generated and sometimes bill-payers have to hand over cash to wind farm operators to shut down, as too much power is being generated. Batteries can help a little but their role on the grid is mostly to help with frequency stability.

As Sir Chris Llewellyn Smith FRS noted in the Royal Society's report on large-scale electricity storage: "Wind supply can vary over time scales of decades and tens of TeraWatt hours of very long-duration storage will be needed. The scale is over 1,000 times that currently provided by pumped hydro in the UK, and far more than could conceivably be provided by conventional batteries." The report assured us that "the leading candidate is storage of hydrogen in solution-mined salt caverns."

This is not a low-cost approach, and in our opinion, hydrogen will ultimately prove to be a costly thermodynamic dead-end.

Thankfully, it's not our role to find the best solution at national scale, our job and strategy is to find projects that deliver energy and mitigate carbon dioxide emissions for the lowest cost possible. Pursuing projects with a low carbon mitigation cost is how the UK can claim climate leadership. If we mitigate emissions at unbearable cost no-one will follow us. If the UK is to blaze a trail for climate policy, we have to slash the cost of mitigating emissions. We believe that the approach that MLCP has adopted can deliver energy security and drive down the cost of reducing carbon dioxide emissions as the design is replicated across the UKCS.

We are delighted that the Earlham field has the potential to be among the first of these developments.

The relationship we have developed with IPC has resulted in us jointly owning HALO. This company participated in exploration wells on the Andromeda (2019) and Pegasus (2014) gas fields which are now licensed by INEOS. As a result, 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. We intend to use this company as a vehicle for production acquisitions and our focus will be on non-operated producing gas fields.

We have great plans, but of course any deal requires a willing seller as well as a keen buyer so we are not about to forecast when a deal might be ready to announce. However, shareholders can rest assured that such acquisitions will be our prime focus in 2025.

The development of Earlham which has estimated 2C resources of 114 bcf of methane is potentially one of the first opportunities to deploy an offshore power station. We have been, and will be, working to support MLCP in preparing a Field Development Plan for Earlham and exploring opportunities to share planned nearby infrastructure. We have agreed the terms for a farm-in which will result in Orcadian retaining a 50% carried interest in this development.

IPC has also acquired from Shell the loan we took out in 2019 before we listed. The loan will be largely repaid from the proceeds of the Earlham farm-out deal. We see this as clear evidence of how much both IPC and MLCP value our relationship and the assets we have within our portfolio.

Our Pilot licence remains a core asset and we are pleased with the quiet progress Ping Petroleum UK plc ("Ping") has made since they took over operatorship. The whole industry has been waiting for consultations on future licensing, the successor tax regime to EPL and environmental regulations following the Finch verdict. Hopefully the Government will swing behind the industry as domestic energy production is essential both to reduce emissions and to deliver on national security.

We also look forward to Serica joining us on Licence P2634 which contains the Fynn oilfield. Fynn is one of the largest undeveloped discoveries in the North Sea and the crude appears to be very well suited to the production of anode grade petroleum coke, a pre-cursor to the synthetic graphite used in the anodes of electric vehicle batteries.

Finally, we would like to thank, and greatly appreciate the support that, shareholders have shown us in 2024, and we aim to deliver real value for you all in 2025.

CONSOLIDATED STATEMENT OF COMPREHENSIVE LOSS

FOR THE SIX MONTHS ENDED 31 DECEMBER 2024

All operations are continuing.