By Scott Wright
NEPTUNE Energy has boosted the UK’s domestic energy supply amid the ongoing disruption arising from Russia’s war on Ukraine by bringing a further North Sea well on stream.
The company announced yesterday that it has commenced production from a 10th well at the giant Cygnus gas field it operates in the southern North Sea, unlocking additional supplies for UK homes and businesses. Neptune said the contribution from the new well means Cygnus is now capable of producing enough natural gas to meet the needs of around two million UK households, which it said underlines the contribution the field makes to UK energy security.
Energy prices soared in the wake of Russia’s invasion of Ukraine around one year ago, since when the UK Government has undertaken a range of measures to boost domestic energy production. It has led to renewed focus on oil and gas extraction in the North Sea, following a period of retrenchment amid concerns over climate change.
Neptune is the operator and holds a 38.75 per cent interest in Cygnus, with partner Spirit Energy holding 61.25%. The company said it has now started drilling on the 11th well on the field, which is expected to begin production in the second quarter.
Alan Muirhead, Neptune’s UK country director, said: “Bringing the 10th Cygnus well online is an important milestone for the field and supports additional supplies of lower carbon gas for UK homes and businesses. Domestic production has a crucial role to play in supporting energy security in this country and Neptune has increased gas supplies to the UK from our operated assets in the UK and Norwegian North Seas.”
Meanwhile, Orcadian Energy said yesterday that it raised gross proceeds of £500,000 through a placing of new ordinary shares to certain and institutional and other investors, at a price of 10p per share. The company said it would use the funding to progress the field development plan for the Pilot prospect, which lies in the North Sea east of Aberdeen. Orcadian was awarded a licence for Pilot in 2014. The funds will also go towards licence fees and for general working capital purposes, Orcadian noted.
Chief executive Steve Brown said: “We believe our Pilot project is a key UKCS (UK Continental Shelf) development project. Not only should it pave the way for the industry to unlock up to three billion barrels of viscous oil discoveries on the UKCS, but Pilot is also a potential flagship project demonstrating how to reduce global emissions and make a contribution to a secure transition to net zero. The funds raised, through our oversubscribed fund raise, will enable us to further progress Pilot towards field development plan”.
Shares in Orcadian closed the day down 33.3%, or 5p, at 10p.
as well as advance the farm out process that we have commenced, delivering the value that we believe is inherent in the project.
“We believe the year ahead promises to be a very significant year for the company and look forward to providing updates to all as shareholders in due course.”
Orcadia added that it has issued 900,000 ordinary shares to Alisanos Geoscience in lieu of unpaid invoices. It had owed £90,000 to Alisanos, which has provided geoscience consultancy services to the company.
Shares in Orcadian closed down 33.3%, or 5p, at 10p.
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