Orcadian Energy has created £500,000 of unsecured convertible loan notes (“CLNs”). The Company has received proceeds of £322,500 from existing and new investors and has agreements in place to sell the balance of the CLNs. The Company expects to receive the balance of the proceeds by the end of January 2026. The proceeds will be used primarily to fund working capital requirements.

The CLNs have been arranged by the Company. The CLNs are governed by the terms of the CLN instrument dated 24 December 2025. They have a term of just over two years, maturing on 31 January 2028, and will accrue interest at a rate of 10% per annum. The CLNs will be transferable but will not be admitted to trading or quoted on any market.

The CLNs are convertible, at the loan note holders’ discretion, into Ordinary Shares of the Company at a price of 13.5p per share. The conversion price represents a discount of approximately 1.8% to the closing price of 13.75p per share for the Company’s shares on 30 December 2025, being the latest practicable business day prior to the publication of this Announcement.

Steve Brown, Orcadian CEO, said:
“We are delighted to have had support from both long-standing existing investors and investors new to the company. We believe 2026 will be the start of a resurgence in the oil and gas industry in the UK, given the clarity on the long-term fiscal framework, and the possibility for Energy Profits Levy paying companies to secure a 38% offset to their tax bill for every pound they spend on exploration and development activity between now and 2030.

“Orcadian has interests in three near term development projects – the Pilot reservoir, operated by Ping; the Earlham gas field, operated by Orcadian and intended to support data centres around the M25, and the light oil Lowlander field operated by Serica; two great appraisal opportunities in Elke and Fynn Beauly; and three gas exploration prospects.

“We believe all of these projects could prove attractive to partners in a resurgent basin.”

KeyFacts Energy: Orcadian Energy UK country profile   l   KeyFacts Energy: Finance news